The Monticellonian., 1917-01-18

cesses,' and all public service corpo-
rations should be assessed directly by
the Tax Commission as a central board
and the entire revenue from this source
should accrue to the State. leaving to
the counties and minor subdivisions
thereof the revenues from other realty
and personally. l am aware that the
! latter part of this program will re
quire a constitutional amendment
which. in my judgment is of such par
amount Importance that Il should be
submitted as one of the three amend
ments allowed at the next general cleo
ton.
Fsvors Inheritance Tax Commission.
Fifth. our Inheritance tax law
which has proved such lucrative
source of just revenue. should be
amended in accordance with the recon-
mendations of the retiring attorney
general as to include the rights OF
dover and courtesy, with exemptions
of S., 600 in each case, and l believe
that the method OF collection should
be radically changed. This tax. which
In 1902 yielded only $6o211. this year
has already yielded a revenue OF $St,-
058. but under our present system Of
giving fees OF $40 per cent to the at
torney general and his special attor-
neys for collection OF delinquent in
heritance taxes the cost of collection
has exceeded $40. 900 per annum for
the last fiscal year.
I respectfully recommend to the
General Assembly the passage Of a bill
vesttng the collection Of the tnhert=
tance tax in the State commissioner.
/ or If this is not done. the creation OF
the office of inheritance tax attorney
for the State, who shall be appointed
by the governor, whose compensation
shall be $500 per annum, and neeesz
sary travelling expenses. who shall have
! exclusive charge of the collection of
| the inheritance tax Of the State and
I power to file complaint in the name
OF the State in the probate court of
any county having Jurisdiction OF the
estate from which any taxes may ae-
crue. II this saving in the cost OF co..
lection is effected and the rights of
dover and courtesy statutory rights
in Araknsas are included within the
purView of the inheritance tax, 1 be-
lieVe that within the next biennial pc
Rod the inheritance tax will yield
minimum of $4,000 to the treasury
of Arkansas.
Fayors Increased Franchise Tax.
Sixth. the rate of the present fran
ehise tax charged corporations doine
business In Arkansas, should be in
creased from one-fifteenth OF one per
cent of the capital stock employed 20
one=tenth of one per cent. additional
fees should be paid by common car
riers, telegraph, telephone and gas
companies; and the Law taxing insaF-
ance companies should be amended
as TO fix the tax rate paid by life, &C
eident surety and miscellaneous com
panies at IL per cent on bulk pre-
miums collected In the case of fire
insurance companies l am OF the opin-
hat TO Of - ba
gross. after allowing for reinsurance
in authorized companies. cancelled and
returned policies. would be fair. This
2 IL per cont fee is in accord with
many of the other States Of the Union.
"Arkansas II is conservatively esti
mated will be 375:,318.1s in debt on
tho first day Of July; our State war
rants are being hawksd and peddled
around at a rate sometimes az low as
SO cents on the dollar; our credit at
home and abroad is being seriously
impaired. and our state Institutions
are compelled to buy their supplies at
credit prices, frequently % per cent
higher than corresponding cash prices.
Use CsHstei Tax Revenue.
BY abolishtng our present State
capitol TAX of one-eighth of a mill.
which produces annual revenue Of
ISL. 600. and taking care OF the main
+
eraI revenue fund. we could easily
shift this one-eighth of mill
sinking fund to protect shorttine
note issue, to run not exceeding 20
years. issued in serial form SO that
q proportionate part OF the principal
and interest would fail dNe each year.
bearing a rate of interest not exceed
ing IL per cent in such way as
to take caro- OF note issue of s7b0.
m l.
of our outstanding warrants and could
promptly cash them at par, and II
would redeem the credit OF the state
and put Arkansas on q cash basis
of the southern States. Maryland
has total indie btedness of sl9,e9e.5e4.
or s14.72 per capita; Virginia. t2+S2s.-
All. or $1162 per capita; West Vir-
ginia. $1,16l,Ss7. or SIS per capita;
North Carolina. ss.OS5. sos, or 1891 per
capita. south Carolina. .6664.31s. or
s412 per capita; Georgia. s6Sfs.1S5.
or ss.4O per capita; Florida. sS16g.617.
or S372 per capita: Ala bama 3l4.36b.-
o5s. or seas per capita; Mississippi So
las. SEQ. or s271 per capita; Texas, S.
317,s55, or S1.1s per capita; oklahoma.
IA years younger than Arkansas. 81.
237.177. So. 90 per capita Missouri.
$757O.351, or s2.24 per capita: while
Arkansas has at the present time a
funded and floating debt OF only az.
04S. 343, or 1921 per capita The major
portion of this Indebtedness OF Arksn-
sas represents school funds held in
trust for the bsnefit Of the school chill
dren of the state If the short-time
note issue of $4,000 which I have
| suggested should be approved and au-
thorized by the General Assembly. Ar
kansas total indie btedness would be
much less the Indebtedness or our
nsighboring Southmern States.
Il will take the whole personal and
political responsibility of whatever of
appropriately may attach to this short
slime note issue, believing as l do that
the protection of the honor Of Arkan-
sas is vital to her political and eco
nomical we'll being. l earnestly urge
the approval of this measure by the
General Assembly. assuring the mem
bers that I have personally investigat.
with reliable bankers and bonding
companies and that the loan can be Sc
cured on the terms named
State Accounting and Auditing Depart
ment
No two departments and no two in
! situations of the State have the same
system of accounting There is abso-
lutte lack OF any uniformity. with a
result that a comparison of revenue
receipts and governmental cost pay
! ments, the per capita receipts from
| specified classes or revenue, and the
of governmental cost payments-mat-
ters OF vital interest to the people OF
| the State-are absolutely Impossible
| Arkansas has effective audit