Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-13
President of Senate Declares That
Archaic System Now in Vogue
Is States Great Drawback.
GEORGIRS CREDIT is HURT
Reasonable Loans Can't Be Made
on Georgia Property on Ac-
count of Absurd Returns.

vac" Lu4lLSneu Inc SUNDAY American
discusses the great problem Of tax
reform, now the paramount issue be-
fore the General Assembly.
Mr.. Anderson, experienced in legis-
lation and far-seeing in business af-
fairs, has no Illusions as to what tax
reform means, and as to how It must
be accomplished
He regards 1t as a most perplexing
proposition, and he thinks that it will
test the ingenuity and statesmanship
tax reform equitably and in result
getting shape.
Mr.. Anderson said:
The military nature Of the orig
tnal colony of Georgia gave to our
people characteristics of order, dis
ctpline or conservatism and steadi-
ness which persist to this day. In
our own time when the people of
some of the States of this country
are running after new gods and
ideals in politics, Georgia, one Of the
most progressive of them all, in all
essentials to health and happiness,
has not been swept off her feet by
either agitation or fanaticism, but
holds fast to her well-tried moor
ings and her ancient faiths.
In this spirit we come to-day to
grapple with the problems that con-
front us. So far as this General
Assembly is concerned the most ur-
gent and most important question
that faces us is the financial con-
dition of Georgia. We all know
that there is a serious deficit in our
treasury. 1t is a situation with
which I am quite familiar, and I
believe was the first to point out
its existence and the need for TAX
ing steps to remedy 1t.
Toward the close Of the session Of
1910 I was asked by the then
chairman Of the Senate Appropria-
ton Committee, now the distin-
guished Speaker Of the House, to
give him some information about
the condition of the State treasury
10 use in a speech he wished to
make in the Senate. After the close
of that session l gave out an inter
view publishing the result Of my
investigation, in which pointed out
the existence of a deficit and cal
culated that by the year 1913 it
would amount to $7S7OOO.
Prediction Was Correct.
N NAV De remembered ludl my
views and conclusions were bitter
" assailed in the public press, and
that it finally resulted in an audit
being had Of the States financial
status. To-day we realize the pain
full truth that my prediction was
approximately correct. This deficit
we know, is not due to any lack of
material resources in the State, but
q h Inadequate
and insufficient methods we have
under our laws for the ascertain
ment and collection Of taxes.
The State, instead of being run
as a business institution, is prac-
ticallv an object of charity so far
as its tax revenues are concerned.
We boast of being the Empire
State of the South, yet the figures
we are compelled to exhibit to the
world do not bear out our claim.
The condition is injurious to the
State and to our people in more
wavs than a failure to provide SUI
ficient revenues to run the State
and it's institutions.
A friend of mine in a county ad-
iacent to this one attempted to Ell
fect arrangements in the North ana
Fast for securing money to lend out
on Georgia real estate. His glow
ing descriptions of the wealth and
progress of Georgia were cut snort
bv the simple reply: "Huor state
figures show you to be among the
p0orest of States. You have tax
values of only about $50 millions
while much smaller States have vail
ues in excess of one billion, ana
States of approximately your size
show values of two billions ana up
ward" In this way the present
system is a serious injury TO the
States credit, and this is a grave
matter for US to consider especiaIIy
at mis- time when we have to retund
some three millions Of the state ;
debt This same system is also d
direct injury to the individual CIT
izen. ..,,oa ,,od
on anplication for a loan OF $ZoVo
S-aoT niece Of property which he
caUeidered to be worth at least
ss 00o He recommended the loan
bnt was notified he had omitted 10
send on the tax valuation OF tile
,,roner+v on looking this up ne
Hes borrifed to find that 1t was
returned at only $500. In the race
IF this sworn return the loan was
declined.
Evils Are Recognized.
Tho evils the injustice and the
rank Determinations Of the pres
emf system are now apparently
racognized and admitted by every
80 What is the remedy? 10
such new sources of taxes VIII
he adding only a drop in the
bucket. Some new taxes may De
Evisa hut they will only be palma
tive They will not cure the H.s
we suffer from, and on many VA
our people the tax burden Is a.
raadv felt 10 be a heavy one IN
NV Judgment, what Is neeueu
most of ali and first of all, is a
.boro,lgboofng revision Of our
1Ibole taxing and financial sys-
+am and the installation, under
the advice of expert accountants
of a modern up-to-date system %
keeping the accounts OF the otdte
and Of its various departments
and institutions, with adequate
nrovisions for proper periodic
anditing. This 10 the foundation
which must first be LAID ana ana
ssteT this is done, and not llll
then can we wisely or safely say
what our further needs may real
The cornerstone of the whole
business is and must be proper
and conservative method OF tax