The Harrison times., 1917-01-20
Inaugural Message of Gou.
Chas. II. Brough

Judgment is rendered If the prOsecut-
ing attorney shall violate this provis-
lon he shall be guilty OF malfsAsance
in office.
Fourth, our methods Of reaching
intangible personally need a compre-
hensive revision. Mortgages should
either be reached BY a flat filing fee
not TO exceed one-half OF one per cent.
when filed, in lieu OF AL other taxes,
! regardless OF the time the mortgages
run. so arranged that the mortgage.
rather than the mortgagor. should pay
the tax. as In Oklahoma. or the Penn
| sylvania method, which has been fol-
! lowed by a number OF States with uni
form success, OF imposing q low an
nual tax uniform throughout the State,
upon mortgages and other intangibles.
should be adopted. Systematic meth
DDS should be developed for assessing
franchise values and corporate ex-
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. I am aware that the
latter part OF this program will re
quire constitutional amendment.
which. in my judgment. is of such par
amount Importance that it should be
submitted as one OF the three amend
ments allowed at the next general cleo
don.
FavOrs 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 $4,000 in each case, and l believe
that the method Of collection should
be radically changed This tax, which
In 1902 yielded only s602.11, this year
has already yielded a revenue of $751;
053, 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
herltance taxes. the cost of collection
has exceeded $4,000 per annum for
the last fiscal year.
Il respectfully recommend to the
General Assembly the passage OF bill
vesting the collection of the inheri-
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 $4,000 per annum, and neces-
sary travelling expenses, who shall have
exclusive charge Of the collection Of
the inheritance tax of the State and
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 ac-
crue, II this saving in the cost of COZ
lection is effected, and the rights Of
dover and courtesy, statutory rights
in Araknsas, are included within the
purview of the inheritance tax, l be-
lieVe that within the next biennial pc
riod the inheritance tax will yield a
minimum Of $25O,OO0 to the treasury
of Arkansas,
FayOrs Increased Franchise Tax.
Sixth, the rate of the present fran
chise tax charged corporations doing
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
and the law taxing insur-
ance companies should be amended 50
as TO fix the tax rate paid by life, ac-
cident surety and miscellaneous COM
panies at 2 l-2 per cent on bulk pre-
miums collected In the case of fire
Insurance companies l am of the opln-
on that tax Of 2 IL per cent on the
gross, after allowing for reinsurance
n authorized companies, cancelled and
returned policies, would be fair. This
IL per cent fee is in accord with
many Of the other States of the Union.
ARKANSAS, 1t is conservatively esti-
mated, will be $753.31S1S in debt on
he first day Of July; our State war
ants are being hawked and peddled
lround at a rate sometimes as low as
% cents on the dollar; our credit at /
lome and abroad is being seriously
impaired, and our State Institutions
ire compelled to buy their supplies at |
,redit prices frequently 20 per cent |
higher than corresponding cash prices. |
Use Capitol Tax Revenue.
by abolishing our present State |
'apitol tax Of one-eighth Of mill, |
which produces an annual revenue of .
$4,000, and taking care Of the main .
enance OF the capitol out OF the gem
,ral revenue fund, we could easily /
hift this one-etghth Of a mill as
linking fund to protect a short-time
tote issue, to run not exceeding 20
,ears, issued in serial form so that
proportionate part Of the principal
md interest would fall due each year,
,earing q rate of interest not exceed
ng 10 per cent in such a way as
o take care Of a note Issue Of $780,
100. such a note issue would take care
Il our outstanding warrants and could
promptly cash them at par, and 1t
would redeem the credit OF the state
md put Arkansas on a cash basis
"Of the Southern States, Maryland
las total indebtedness Of $1s,699,594,
IT $1472 per capita; Virginia, S24,9
n, or Sll62 per capita West Vir-
,inia, Sl,151.9S7, or $50 per capita;
Worth Carolina, s9,O35, sos, or 1897 per
apita; South Carolina, S6,554,3lS, or
412 per capita; Georgia, S6,67S1S5,
n $40 per capita; Florida, S3,l526l7,
" $3,72 per capita, Alabama Sl4,365,-
90, or $6,25 per capita; Mississippi, S5,-
46,390. or sal per capita; Texas, S.,
1885 or Sl.l9 per capita; oklahoma,
years younger than Arkansas, ST.
37177, or $3.50 per capita, Missouri,
Z $40. S5l. or s224 per capita; while
Arkansas has at tho present time a
unded and floating debt of only s2,-
4S.3i3, or sl2l per capita. The major
,ortion Of this Indebtedness OF Arkan-
as represents school funds, held in
rust for the benefit OF the school chill