Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-08-19
UNFAIR TOBACCO TAX
NOT COLLECTED IN
BIC GEORGIA CITIES
Special Investigators APP
pointed by Authority of the
Governor Confined Activi-
ties to Country Districts

That the special tax investigators
appointed on the recommendation of
Governor Dorsey collected the illegal
cigarette tobacco tax from merchants
in the country counties and gave the
large cities of the state a wide
berth, was the outstanding develop
ment Wednesday in the situation
which has caused such widespread
comment and interest throughout the
state.
It was a matter of particular in
terest that despite the fact that four
of the special tax Investigators are
residents of Atlanta, no cigarette to-
bacco taxes were collected in this
city, although more than $4,000 in
other special taxes was collected
within the limits of Fulton county.
The records of the comptroller
general show that the cigarette to-
bacco tax was not collected in At
lanta, Macon, Savannah, Columbus or
Augusta, but that the eight special
tax investigators confined their ef-
forts to rounding up merchants IN
the rural counties and collecting
cigarette tobacco taxes over their
vigorous protest.
According to the official records,
the counties in which cigarette to-
bacco taxes were collected were Polk,
Barlow, Gordon, Chattooga, Emanuel
Screven, Oglethorpe, Madison, Oco-
nee, Taliaferro, Newton, Jasper.
Jones, Henry, Rockdafe, Sumter,
Houston, Macon, Twiggs, Jefferson,
Bleckley and Terrell.
The eight special tax investigators
were not out to collect only the
cigarette tobacco tax, but to gather
in back occupational taxes and vari-
Gus kinds of special taxes. They coll
lected these other taxes in the big
cities, but made no collections OF the
cigarette tobacco tax, which mas
since been held to be Illegal in cases
where merchants do not sell or give
away cigarette papers.
$500 Try to Beeloud- issue
Comment at the state capitol wed
tnesday was directed to the effort
in some quarters to divert attention
from the facts of the case by in
sinuating that the disclosures in re-
gard to the collection of the nlegal
cigarette tobacco tax were intended
to do political injury to Comptroller
General William A Wright, who, for
forty-two years has filled that OIL
flee with efficiency and honor to
himself.
The partisan attempt to shift the
onus of the situation to Comptroller
General Wright was ridiculed as
feeble effort to becloud the issue.
1t was pointed out, that the rulings
of the comptroller general have been
consistent from start to finish; that
he disagreed from the outset with
the opinion of Attorney General
Walker and it was the comptroller
general who first urged the refund
of the illegal cigarette tobacco tax
to those merchants who could make
the proper showing.
As the matter stands now, the
situation is about this way:
Back in 1919 the governor decided
to select special tax investigators 10
go out into the state and collect
past due special taxes of all KINDS
including the tax on cigarette TO-
bacco. 1t was claimed that the tax
collectors, for various reasons, hao
not collected these taxes and 1t was
decided to inaugurate general
round I'D. These special investiga-
tors were instructed to collect taxes
from 1899 through 1918 on mer-
chants selling cigarette tobacco re-
CARELESS of the fact that Comptroller
General. Wright held to the opinion
that this tax should not be collect
ed from merchants selling cigarette
tobacco if they did not sell or give
away cigarette papers.
Eight Investigators Appointed
The special Investigators were ap-
pointed-eight of them. Among
them was Marshall helms, former
Iy executive secretary to Governor
Dorsey, and Caughey Culpepper, for
merly a clerk In the governor t"
ecutive offices.
They were authorized to take 20
per cent of all their collections as
commission in payment for their
services. They also were author
lied to turn over to the several coun-,
collections, since, under the law, the
county tax collectors are entitled to
10 per cent of all special taxes they
>epllect. Thus the state received
only 70 per cent of the total amount
collected.
They turned into the state treas
ury the sum of $100,115.08, which
constituted 70 per cent of the total
amount they had collected in lille
gal cigarette tobacco taxes and past
due occupational taxes of various
kinds. Thus the special tax investi-
sum of $28,6O4.3O as their 20 per
cent commission, while the county
tax collectors received $14,30215 as
their 10 per cent commission. The
total amount collected by the spe-
cial tax investigators on all special
taxes, including the illegal cigarette
tobacco tax, was $143, 021.50 before
any commissions had been deducted.
Merchants who sold cigarette to-
bacco, but who did not sell or give
away cigarette papers made vigor-
| Gus protest at being compelled to
several years. They made their pro-
tests known at the office of the
governor and at conference called
by Governor Dorsey it was decided,
upon the suggestion of Comptroller
General Wright, who maintained his
| original position as to the exemption
of certain merchants, to make a re-
would certify that they had neither
sold nor given away cigarette pa
perS.
State Got Only 70 Per Cent
But the state had received only 20
per cent of the total amount of taxes
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