The Harrison times., 1917-01-20

bgnOpbls OF Nne important feature
OF the inaugural address Of DR.. c. +
Brough. delivered before a joint ses
sion Of the Senate and House OF Repre-
sentatives OF the Forty-flrst Genera
Assembly Is as follows;
In assuming the responsibilities o
the office OF governor Of Arkansas. {
which ! have been elected, l do $
with a consciousness OF my many limi
tations. bat with the determination q
eonsecrate whatever OF ability an
character may possess to the moral
educational and financial bettermen
OF the State. I hereby pledge the peo
pie OF Arkansas a business administra
tion free from personal political strife
10 the end that we may have an ad
ministration based on efficiency. Tn,
statehouse will be workhouse. with
open doors, where all the people. ricf
and poor alike. will be welcomed.
shall treat the membership Of the For
ty-first General Assembly with that
high regard which is due you, pledging
myself never to influence legislation
and unduly emphasize executive power
l shall expect the same open-minded-
ness on your part and an aloofness
from round robins and legislative eau
uses.
Finances.
Arkansas has been blessed this year
with bounteous harvests, Industrial
progress and educational advancement
however, 1t should be a matter OF re-
gret to every patriotic Araknsan that
our revenu system has not kept pace
that State and county warrants are now
droted below par; that we are paying
credit prices for supplies necessary for
our State institutions, and that on July
J. 1917, Arkansas Will face a deficit
Of approximately S75O,0OO. There are
many sad commentaries on our anti
quated and 'crazy-quilted revenue sys-
TEN, eloquent advocates Of an i'm
proved assessment system that show
Ills OF gross inequalities in taxation.
high rates, ridicuously low assess
merits and a tax-dodging that is a
ravesty on a self-respecting people.
Need of Tnx system Change.
I'm my opinion, there are several de-
o fects in our system of taxation that
need correction and careful considera-
tion at the hands of the General AS
senbly:
First. the constitutional provisions
governing taxation. which practically
prevent the classification of property
as IL should be between realty, tang
ible personally and intangible person.
atty, restrictions that can only be re-
moved by a constitutional amendment
or a new constitutional convention.
The experience OF the federal gov
Srnment and Of every State In the
Union is to the effect that under a
rule OF uniformity, personally, es
pecially OF an Intangible character, like
stocks and bonds goes in hiding and is
not and frequently can not be reached
by the assessors. Statistics show that
not more than 10 per cent of the reai
value of intangible personality is list
eed, because OF the transitory character
OF such property. and that a classifi-
cation of property and segregation Of
the sources of revenue are absolutely
necessary to properly reach t.
Broadening Tax Commission Work.
Second, the Tax Commission, sitting
as State board Of equalization, has
no power to ldise or lower individual
assessments or order reassessments by
county assessors. Under the law ere
ating the commission it can raise or
reduce horizontally all Of the proper
ty of a class of property in 4 taxing
district If 1t raises real estate In a
district so per cent it must raise each
tract 80 per cent; If 1t raises the horses
or mules in a township so per cent.
the raise must apply to each horse
ThlG ig M fair for thnra Is In,
any taxing district in the State some
unit in some class that is not assessed
as low as per cent or as high as so
per cent of its true value The COM
mission should be Authorized when 1t
has made a horizontal raise Of the
property of the district to reduce any
individual assessment that the raise
will carry beyond its proportionate
value, or In case of horizontal rota-
tion it should be authorized to raise
any individual assessment that the re-
duction VIII take below its proper
tionate value. With the right of ap-
peal given to the individual when the
property is raised the taxpayer would
be allowed every safeguard and the
commission could equalize as between
counties without unjustly increasing
the burdens OF individual taxpayers,
respectfully recommend to the General
Assembly the passage OF a law con-
ferring upon the Tax Commission linz
tied power to equallze individual as
sessments and full power to order re-
assessments.
To Review Private Corporations.
Third. the Tax Commission has no
power to review and equalize private
corporate property Although our eco
nomic commercial and industrial con-
ditions have materially changed, the
property of private corporations In
Arkansas-industrial mercantile, man
ufacturing and miscellaneous -- has
been assessed under law that has
not been substantially modified for
more than 25 years. 1t Is practically
a method Of self-assessment which is
employed by corporate officers
Il therefore recommend the passage
OF an act requiring the Tax Commits
sion to investigate, review and equal
ize, by raising and lowering the as
sessment made by county assessors OF
all corporate property not now required
to be assessed by the Tax Commission,
Such acts are In force in a number of
States and have served to effectively
reach private corporate property. II
would also seem that this can be ac-
,omplished by reasonable penalties. a
money penalty for failure to turn in a
list OF property that would result in
the penalty being collected, would APP
pear to solve tho question,
Fines for Failing 10 List Property,
respectfully recommend TO tho
General Assembly your earnest COM
alteration Of bill deslgned 10 amend