Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-13
NEW TAX LAW Is
CRYING NEED,
SAYS ANDERSON
President Of Senate Declares That
Archaic System Now in Vogue
Is States Great Drawback,
GE0RGIA'S CREDIT is HURT
Reasonable Loans Can't Be Made
on Georgia Property on Ac-
count of Absurd Returns.
GE0RGIA'S CREDIT is HURT

LeRandolph Anderson, President OIL
the Senate of Georgia, in an inter-
view furnished The 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 1t mus
be accomplished.
He regards 1T as a most perplexine
proposition, and he thinks that it will
test the ingenuity and craftsmanship
of the Legislature heavily to effecl
tax reform equitably and in result
getting shape.
Mr.. Anderson said:
The military nature Of the orig
fnal colony of Georgia gave to our
people characteristics of order. dis
cipline 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
E4NAAIA dElAdlAOll VI ldIldllClSlll. DuL
holds fast to her we'll 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 l
believe I was the first to point out
it's existence and the need for TAX
ing steps to remedy It.
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
TO 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 $7S7000.
prediction was correct.
II may be remembered that 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
simply to the miserably 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
ways than a failure to provide suf-
fcient revenues to run the State
and its institutions.
A friend of mine in a county ad-
tacent to this one attempted to ef-
feet arrangements in the North and
East for securing money to lend out
on Georgia real estate. His glow
ing descriptions of the wealth and
progress of Georgia were cut short
by the simple reply: "Yuor states
figures show you to be among the
poorest of States. You have tax
values of only about $50 millions,
while much smaller States have val
ues in excess of one billion, ana
States of approximately your size
show values of two billions and 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, especially
at this time when we have to refund
some three millions Of the States
debt. This same system is also
direct injury to the individual cit
izen.
This friend I have mentioned had
an application for a loan of $4,000
upon a piece of property which ne
considered to be worth at least
Sc 600. He recommended the loan,
hut was notified he had omitted to
send on the tax valuation Of the
nronertv. on looking this up he
was Mortified to find that it was
returned at only $500 In the face
of this sworn return the loan was
declined.
Evils Are Recognized.
The evils, the injustice and the
rank determinations Of the pres
emit system are now apparently
recognized and admitted by every
one. What is the remedy? To
such new sources of taxes will
be adding only drop in the
bucket. Some new taxes may be
wise. but they will only be pallia-
tive. They will not cure the Ills
we suffer from, and on many OF
our people the tax burden Is al
ready felt to be a heavy one. IN
nv Judgment, what is needed
most of all and first Of all, is a
thoroughgoing revision OF our
whole taxing and financial sys-
TEN, and the installation, under
the advice Of expert accountants.
of a modern up-to-date system OF
keeplng the accounts Of the State
and of its various departments
and institutions, with adequate
provisions for proper periodic
auditing. This is the foundation
which must first be laid, and
after this is done. and not till
then can we wisely or safely say
what our further needs may real
~ require.
The cornerstone of the whole
business is and must be proper
and conservative method of tax