Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-10-15
EXPERTS REPORT
IS INACCURATE"
SAYS HOKE SMITH
Former Governor Contends His
Original Statement of the Con-
dition of the State Treasury
is Correct. r.


! the report of Alonzo Richardson & Co.,
| expert accountants. who examined the
! books of the state treasury This report.
it will be recalled estimated the deficit
j Of the treasury on January l, 1910, to be
4 S72S,566.50. Mr. Smith takes exception to
the conclusions drawn by the report, and
states that instead of there being deficit
January l. f91o.t there would be in the
treasury, provided all taxes were collected
and all obligations paid. approximately
$l,75o.O0O. t&
Il NEAR-BEER TAX OMITTED.
The near-beer tax for 1909 has been
/ omitted in the estimate for 19o9 he states.
This of itself would Increase the revenue
Of the state by 100000. The increased ad
! valorem taxes of the state will. he as
! serts, increase the revenue of the state
over 1908 by approximately 100000. He
calls attention to the fact that, in making
up the deficit Of the treasury, $4,000 APP
! propriated for purchase OF terminals in
Chattanooga is included. AS the options
| for this property have been allowed to
| lapse. he naturally thinks this an error.
! In word, Mr., Smith, after carefully an
alyzing the report says the revenues OF
! the state should be increased by $2SS,00
and the expenditures lessened by $4,000.
Governor Brown, when asked If he
statement from Alonzo Richardson &
Co. which showed there would be ap-
proximately' $2,0O0,000 in the treas
ury January 1.sif all taxes were paid
and all disbursements made. declined
to answer. He also declined to answer
other questions put to him and re-
ferred them to Alonzo Richardson &
i Co.
In concluding bis statement, Mr.. Smith
says: w.
eff balance is made charging the state
on January l, 1910, with all appropriations
for 1909, whether due or undue, and cred
iting II with all taxes for 1909, whether
collected or ine process OF collection, II
will show that instead Of there being a
deficit there would betto the credit Of the
state approximately $l75o.OO 8
Mr.. SMITHS STATEMENT.
'T have carefully examined the report
made by Messrs. AlOnzo Richardson and
Company upon the state treasury.
1T consists largely of estimates and
conclusions which8required experience in
the constructions effstatutes and in the
management of;the finances Of the state.
rather than capacity in expert account
ing. 4T& 1907 fIf
''Messrs. Richardson & Co.. have I'M
dertaken to present the condition of the
treasury as II was january /, 1908 and
1909 and to estimate what will be the
condition of the treasury" January 1, 1910.
They state January 1, 1908. the
state owed excessS of demand
liabilities over cash in hand. .$646 9.0e
January l, 1909, the state owed
excess of demand liabilities over
cash in hand,-.. e. -. BE-. ..... 49S, sos 80
Estimated cash deficit January q
l. $780,. -. - e. ......... ..... 72S,566.5o
Each of these three statements IL
erroneous. The state owed no demand
liabilities In excess of cash on hand on.
January 1, 1908, or January 1. 1903. There
will be no cash deficit January /, 1910.
"In making up, this statement they have
treated all appropriations for a current
year as demand liabilities when appro-
priations for current year are payable
in part during the current year and in
part during the six months following. ,
APPROPRIATIONS NOT PAYABLE.
Let me illustrate. by the year 1908. All
OF the appropriations for 1908 were not
payable during 1908. A considerable por-
ton of them could not have been legally
paid by the governor during 1908. They
matgred during the first six months of
1909. To charge them as demand liza
biities' on January /, 1909, was either
to misconceive the law applicable to their
payment, or to make a misleading state
ment.
When 1 state that demand liabilities
did not exceed the cash in the treasury
on January /, 1909, state a fact which
was under my personal supervision. So
far from demand liabilities exceeding
the cash in the treasury on January /,
1909. in point of truth the cash in the
treasury exceeded demand liabilities"
more than 100000. @
"Messrs. Richardson & Co., used the
d.sks -
the same to January /. 1910. just as they
used the term demand liabilities over
cash in hand as applied to January /,
1905 and January l. 1909.
They have charged all of the appro-
priations of 1909 as demand liabilities
against the treasury on January l, 1870
when considerable portion of the ap-
preparations for. 1919 viii not mature, and
cannot legally be paid, until different Pc
RODS during the first six months of 1910
Appropriations for 1909. which will be-
come due at various lines from January
TO June, 1910. In correct statement, can
not be charged as demand liabilities on
January 1, 1sI0.
"A statement which purrorts to esti-
mate the cash which will be in the treas
ury on January 1, 1910, charging the treas
ury with every appropriation made ter
1863 as a demand liability, is entirety IN
accurate and useless. 1t presents false
view of what the condition of the treas
ury will be.
at would be just as fair to a merchant
to make up a statement Of what his 1nan-
cial condition the first Of next January
would be and charge him up with every
account or note which he will owe during
the first six months of next year. as
though all of his accounts and bills pay
able were due on the first of January.
"A large part of the ad valorem taxes
for 1879, which are chargeable with pay
ment of appropriations for 1909. will be
collected during the first six months of
next year They will be collected long
before the appropriations for 1909 will ma
ture during next year. and will far ex-
coed the amount of the appropriations.
CANNOT - SUSTAINED
ITO make a treasury estimate Of date
January 1, 1sl0. charging the treasury
with all of the appropriations for 1909 as
demand liabilities, when a considerab Bile J
portion o. them will not mature until
several months later, without creditins
the treasury In the estimate with all the
amounts due for taxes on January l, /
1910. which will be collected before the
appropriations. are due, cannot be sus- ,
tanned.
"'It would be just as fair to make a
statement of the financial condition of
merchant and charge him with all OF the