Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-08-28
AUDITOR REPORTS
S51,859.56 PAID
IN TOBACCO TAX
Joel Hunter & Co.'s Investi-
cation Gives Names and
Addresses Of Merchants
and Amounts EXaCted

The collection Of certain taxes on
cigarette tobacco and cigarette pa
pers from merchants in certain
country counties of Georgia by spe-
cial tax investigators appointed by
Governor Dorsey back in 1919 has
aroused considerable controversy.
The statement that many thousands
of dollars were secured from the
country merchants by the governors
special tax investigators has been
challenged in some quarters, notably
by Governor Dorsey and by certain
Of his most ardent supporters.
In view of the. conflicting state
ments issuing from various q r.
tiers, the firm of Joel Hunter &
Company, of Atlanta, certified public
accountants, has, at the request of
The Journal, made an exhaustive ex-
animation of the reports of the spe-
cial tax investigators as submitted
to the comptroller general. The re-
port of Hunter & Company shows
that the governors eight special tax
investigators operated in 1T coun-
ties and collected cigarette tobacco
taxes amounting to s51.S5956, that
no cigarette tobacco taxes were COL
lected in the large cities of the state,
but that. they were collected in the
country counties.
The audit made by Joel Hunter &
Co. shows the name of each
individual merchant who paid the
cigarette tobacco tax and the amount
collected from each merchant by the
governors special tax investigators.
This list, including, as it does. promi-
who stand high in their respective
communities, Is Of particular interest
in view of Governor Dorsey's decla-
ration in defense of his action that
his special tax investigators collect
ed from tax dodgers" and "tax de-
faulters."
The Hunter report also shows that
several merchants in Jefferson coun-
ty, after having paid the tax under
protest, stopped payment on their
checks and thus prevented the turn
ing in of s2,46125. which still re-
mains unpaid and which will prob
ably continue to remain unpaid in
view of the developments in the sit
uation.
After the special tax investigators
had been operating for some time,
the wave of resentment from mer-
chants who had paid the tax under
protest became sa4 strong that Gov
ernor Dorsey felt constrained to au-
thorize a "efund. This he did upon.
the recommendation of Comptroller
General ". a. Wright, who from the
first had ruled that merchants SELL
ing cigarette tobacco, but who nei-
ther gave away Or sold cigarette pa
pers. were not liable for the tax.
And SO it develops that merchants
who file with the governor affidavits
certifying that they have neither sold
nor given away cigarette papers, are
given a refund. This refund, how
ever. is only 10 per cent of the
amount they paid the special tax in
vestigators, except in cases where the
special tax investigators and the
county tax collectors agree to refund
their respective commissions. Some
merchants have already filed these
affida Wits and complied with the re-
quirements involving more or less
red tape. Warrants have thus far
been drawn to the amount of $8,125
and as fast as additional affidavits
are received at the state capitol, adj
ditional warrants will be drawn. The
sum of $8.125 is the total amount
thus far refunded and not, as has
been claimed in some quarters, the
total amount Of illegally collected
cigarette tobacco taxes.
30 Per Gent Commission
For the governors special tax in
mission on all taxes they collected.
Likewise the county tax collectors
received an additional 10 per cent,
making 80 per cent Of the gross
amount to be deducted before the
money was turned into the state
treasury.
The special tax ~investigators col
lected all sorts2of back taxes. They
collected the cigarette tobacco tax
only as one of the several kinds of
occupatfonal taxes on their list. They
also collected ad valorem taxes which
for one reason or another had not
been previously paid, On the entire
sum collected, however. they received
their 20 per cent commission and the
county tax collectors also received
their 10 per cent commission.
During the year 1919 the sum of
$143s&e1 was collected by the gov
errors special tax Investigators, this
sum representing the $51,S59.56 in
cigarette tobacco taxes, and the ball
ance in special occupational and ad
valorem taxes. On this total collec-
ton of $143.021 the special tax in
vestigators received commissions
amounting to S28,604, while the
county tax collectors received $14,-
ury actually received s100,115.0S or
70 per cent of the total amount col
lected.