The Spectator., 1915-07-20

franchise taxes for the year 1914 amounting to $S,365.21, which had not been paid into the treasury, and for which no satisfactory excuse has been given. The committee and it's accountants know the reason suits have not been brought on these un- collected claims. This was fully ex- plained to one of the accountants. Most of them were in sums so small that the state could not have recover ed enough to cover the advance costs of the courts in which the recovery was had. Furthermore. the constitu- tionality of the franchise tax act was pending in the Supreme Court of the United States, which was settled a few months ago, and this is another good reason why suits had not been filed against delinquent corporations, which was explained to the account ants.
 As to His Trips.
 "The next complaint pertains to'the costs of the travelling expenses of the attorney generals office, and there is recital of two trips to Mississippi and one to South Carolina, and two to Washington, D. C., and other places. and the committee states it does not know what benefit the state of Arkan- sas received from these trips. The chairman of the committee must have known about some of the trips, be- cause he had talked with the attorney general and the assistant on the sub- ject, and he could have known exactly the reasons why each of these trips was taken, and in what respect the public had interest in it. The commit tee apparently wanted no information except upon points which would re- fleet upon the integrity of the office.
 As to Alleged Indebtedness.
 The last item of indebtedness due from the attorney general to the state. according to the report of this committee, is $9995,02. This commit tee arrives at that conclusion by get ting information from the Probate Court records of the different counties in the state of the amount of judg ments that have been rendered in such courts in favor of the state for inher itance taxes, and dedueting therefrom the amounts collected and paid into the treasury since the committee re ceived this information. The commit tee thus assumes, as an indebtedness on my part, the amount of all the judg- ments that are uncollected all over the state of Arkansas on account of taxes.
 Attorneys Fees.
 With regard to the charge that the attorney general could have saved the state $7000 in attorneys fees and failed to do so, have this to say; The suit to recover the Cotton Belt fran ehise tax was brought two years be- fore l came into office. The attorneys brought the suit on a contingent fee. If they succeeded in recovering the tax they expected the state to give them fee; otherwise their labor was to be without compensation. The case was pending several years, and finally reached the Supreme Court of the United States. Before it was decided the taxes for other years were due and the attorneys who brought the first suit insisted that they should have the right to bring suits for the other years since the first suit was begun. They said that inasmuch as they had taken a chance of working without compen- satiOn, they should be allowed the opportunity of having fee for the recovery of all the tax that might be adjudged due from the corporation. Ii there was stipulation that all oth- CT cases should abide by the judgment in the first suit brought. that stipula- ton was voluntarily annulled by the attorneys before l came into office by other suits"