The leader-enterprise. [volume] (Fitzgerald, Ga.) 1912-1915, 1915-06-25
FAREWELL MESSAGE
TO LEGISLATURE
Governor SIatOn Gives Review
of Years Work
Executive Office,
State of Georgia,
Atlanta. June % s1915

Before making to you these recon-
nendatlons contemplated by law and
required by usage, it is my pleasure
70 briefly review events that have
transplred within the last twelve
months, which should be a source of
pride to every Georgian.
During the year it became necessary
to refund large part of the bonded
debt of Georgia. 1t was the first sale
OF Georgia bonds in any considerable
amount for, thirty years. No time
could have been more unfavorable.>
The legislature of 1914, prior to the
declaration of war, and in the exercise
Of far-sighted craftsmanship, granted
the governor the authority to make a
temporary loan in the event the
bonds could not be sold advantageous
ly and it was thought this provision
might be utilized.
And yet, when other states could
scarcely borrow at usurious rates,
Georgia was offered a loan of the full
amount of her maturing debt at the
rate OF four and one-half per cent,
and when she offered for sale her
bonds they were overbid five times
and commanded price equal to that
Of the bonds of the state of New
York
The governors office was crowded
with investors from the financial cen
uSl6dIlUS
his nearest competitor by fraction
OF per cent, was a Georgia citizen
The bonds to be refunded, excepting
S134,00O, due May /, 1914, bore four
and one-half per cent. The bonds
sold to refund them bear four and
one-quarter per cent and these were
sold at premium amounting to $62,-
800. They brought $1,017.S2 each with
the result that the principal of the
bonded debt is reduced, the interest
rate is lessened, and it is calculated
that, by virtue of this refunding, the
state of Georgia has saved $373,000.
Tax Equalization Law
In immediate connection with the
foregoing and as an integral part of
the history of the bond sale should
be mentioned the tax equalization law.
When I was elected governor and
realized that the bonds must be sold
in 1915, | saw New York bankers
regarding the sale. They asked
whether Georgia had not reached it's
constitutional tax limit, and if so,
whether we could increase the income
or lessen the expenditures. If we
could do neither, how could we hope
to raise the necessary amount to an
nually retire our bonds or meet the
emergency of a sudden depression of
values of taxable property? These
questions were difficult to answer.
In the meantime the legislature
passed the equalization law and the
tax rate was reduced to four and one
half mills, and when these same ques-
lions were asked in the fall of 1914
and in the spring of 1915, the state
ment that a margin of one-half mill
would raise twice the amount needed,
met all objections and the financial
triumph of Georgia was the result.
In 1914, under the operation of this
law taxable values increased in ex-
cess of $85,000,000. This sum repre-
sented the net result after many de-
creases of returns ordered by the
equalizers. 1t is estimated that two
thirds of this increase came from
property never on the tax books be-
fore. The additional returns from
money, notes and accounts went into
the millions and some localities pro-
tested because mortgages were taxed
for the first time.
Because of the law, the great bulk
Of the taxpayers in Georgia are pay
ing less taxes than before County
tax rates have been lowered; the state
tax rate has been cut, and largely for
the reason that those who have failed
to contribute heretofore are now fore
ed to bear their part of the burden.
Whoever opposes this law simply
declares his opposition to the Consti-
0ulOTC0.
1t is unfair that burdens should not
&c commensurate with benefits and
that the evasion by one person of
his duty should enure to the injury of
his neighbor.
The effect of this law has been to
reduce the tax rate ten per cent When
the comptroller general and myself
met to fix the tax rate for 1914, in
accordance with the statute and after
discussed whether the rate should not
be larger than four and half mills,
but the comptroller general, with his
experience of over thirty years and
with a fidelity to duty which has rem
dered the state his everlasting debtor,
quoted the law which provided that
no greater rate could be levied than
enue to meet the appropriations of
that year, and that four and a half
mills complied with the law.
This authority was not only con-
vincing, but compelling. The Consti-
tuition did not contemplate that money
be taken from the peoples pockets
and forced to lie idle In the treasury.
Economy
Closely connected with the tax
equalization law is the question of
economy. Many urged against the law
the argument that it only enabled the
legislator to make larger appropriations
and to spend the peoples money more
extravagantly. This position is I'M
sustained for the reasons which have
been given.
In this connection, l earnestly urge
the passage of a bill providing for an
auditor. The governor has practically
no method of verifying the necessities
of the various departments calling on
him for warrants. BY postponing one
Tequisition which can wait and honor
ing another which is urgent, he can
so adjust the various claims as to
prevent injustice to any one.
Tax Collectors
Under the law, as heretofore inter-
preted, the comptroller general was
authorized to issue an execution
against tax collectors and their sure
ties for the recovery of money due
the state. The supreme court of
Georgia, in the case of Gaulden VS..
Wright, 40 Ca, page 500, held this
statute unconstitutional.
In 1914 the house of representatives
passed a bill whose purpose was to
make the statute conform to the de-
cision of the supreme court and the
bill failed to be placed upon its pass
age in the senate because of the press
ure of business.
/ recommend that appropriate legis-
lation be effected to enable the state
to speedily collect the money due it.
Under existing conditions the comp
tro1lnr fc hox