The Birmingham age-herald., 1912-09-04

lon Of Frank N. Julian, associate railroad commissioner, prove the only solution of the vexed tax problem. Such a system as Is outlined by MT. Julian is practiced in California, and according to MT. Julian 1t has been found not only satisfactory, but highly profitable to state municipal ity and county.
 Practiced in California
 Outside of the consideration of revenue, however, Mir. Julian states that practical operation of such law will at the same time prove of immeasurable relief to tax payers. He bases this prediction upon the practical results In California.
 Complete separation of taxes" states MT. Julian, implies that the state shall collect its revenues from sources other than direct levy on real and personal property of individuals, leaving to the countries and cities the exclusive right to tax such property for local purposes. All franchises and corporations of purely state operation are to be taxed by the state at from 3 to per cent of gross earning
 Work for Legislature
 MT. Julian proposes that Alabama should undertake this revision of it's system by having the next legislature name a com mission to get to work at once, and au- thorizing this commission to employ a tax expert to help them in their delibera- tions
 While serving in the capacity of secre- tery of state Nr. Julian was a member or the board of assessment of railroad and telegraph property, and in this capacity he made thorough study of the systems of taxation. His statement is as follows
 Julian's Statement
 Everyone interested in taxation should read the findings of the Cali fornfa special tax commission" said Mr. Julian. "In 1905 the legislature of California by enactment created a joint committee and provided for the ap- pointment of an expert in taxation and public finance. The commission as created named the governor as an ex- officio member and chairman of said committee The object of the act was to create committee to investigate the system of revenue and taxation in force in the state (California) and to recommend a plan for the revision and reform thereof
 Tn December. 1908, the commission submitted its report and the contents of this report should be studied by the legislators and tax officers of our own state. careful reading of this re- port makes it apparent that our legis- lators could with profit enact similar statute and if commission in this state would pursue the same course as the California commission many of the vexing questions of raising revenue would be solved.
 
 ifornia commission it will be noted that the commission gathered data from ev- cry available source and determined the burden imposed on each class of property The financial reports and revenue laws of every state in the union were carefully examined for sug- gestions and remedies. At the very be- ginning of it's work the commission decided not to search for or try to invest untried or novel methods of tax ation. It has selected in all of it's recommendations methods that have been fully tested in other states. Every year secs some state or states move in the direction of the separation of state from local taxation as to sources of revenue and the abandonment of the old general property tax as applied to public advice corporations whose bus mess is general rather than local in character.
 What has been accomplished in Cal ifornia can be accomplished in Alabama. In the former state 1t was necessary to pass an amendment to the constitu- ton but the relief to the tax payers and the increase in revenue to the state has demonstrated the wisdom of the commissions work.
 Tt Is we'll known fact that our law makers do not have time to properly n Sfdar tho lawS-uSnallv the revenue bill is rushed through the legis- lature just in time to come within the requirements of the constitutional pro- vision. Our methods do not reflect any great degree of business acumen and each meeting of the legislature upsets business.
 Gan we secure some fixed policy of raising revenue? It would seem that if we adopted the California plan, with such additions as time has demonstrated the need of, the problem would be solved.
 Quoting from the findings of the California report the conditions set out are similar to those existing in our own state. viz: Tn general the present sys- tenn of taxation does not meet the de- mands made upon it. It is antiquated and has not been revised to keep pace with modern conditions. It is full of inequalities which impose a handicap on the growth of the state Our chief tax, called a general property tax, has In fact become a real estate tax. Only from 15 per cent to IS per cent of the entire taxes are levied on personal property Un Ala bama the above percentage may be too high as to amount of personal property returned) ." The amount of personal property on the tax rolls to- day Is not increasing approximately with other property . The present system takes the revenue derivable by taxation from large general organiza- tions, like railroads. etc, which rev. enue belongs by right to the people of the state at large, and distributes il most inequitably among the local divis- ions of the state, etc. Uuder the present system 1t is impossible to ad- just the burden of taxation equitably between different classes of corpora tions. Our present system is a school for perjury"-puts penalty on honesty and pays high premiums for dishonesty
 From the above quotations it will readily be seen that the application of the statements to Alabama's system is not out of place. The commission recom- mended the following remedies, viz: Separation of state from local taxa tion as to sources of revenue. This is the first step in reform.
 Complete separation implies that tho state shall collect it's revenues from