Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-07-30
w. & A. RENTAL DISCOUNT
BILL FAVORABLY REPORTED


the Western and Atlantic railroad
rental for a period Of five years, for
the purpose of paying the deficit in
the treasury, the senate committee
on appropriations and ways and
means voted to recommend to the
senate that the bill do pass. The
committee stood to in favor of
the bill.
The Western and Atlantic rental
bill is one of the pivots of the arch
by which Governor Hardwick ex-
poets to bridge over the states
finances. The present and prospac-
tive deficit in. the treasury amounts
in round figures to 100000. The
Western and Atlantic rental is $780,
900 year. A discount Of the rem
tai for five years would amount to
S2,700,000, minus whatever discount
rate the state had to pay. 1t would,
about $2,5OO.OO0. This with smaller
amounts which thegovernor hopes to
have in reduced appropriations, and
by raking and scraping the odds and
ends of revenue here and there, Will
it is said, just about pay off the
treasury deficit and enable the gov
ernor to wind up the calendar year
with a clean financial slate.
Senators Walker and WohlWender
led the opposition to the bill in the
senate committee. Senator Walker
made the interesting assertion that
in preference to discounting the
Western and Atlantic rentals for
any period, he would rather suspend
payments to the common schools,
to Confederate pensions and to all
state institutions except the insane
asylum, the tuberculosis sanitarlum
and a few others, until the state
caught up"
This statement was scored EN-,
phatically by Senator Nix, who led
the fight for the bill, discussing for
an hour the general financial situa-
tion Of the state.
II cannot understand how any
member Of the legislature would be
willing to postpone payments, or
suspend payments, to the Conteder-
had any resource on earth which 1t
could utilize to raise the cash to pay
Them" he declared.
Amends Assertion
Senator Walker amended his asser-
ton in so far as it related to COnfed-
crate pensioners, declaring he would
make an exception in their favor.
"Then 1 understand the senator to
mean that he would suspend pay
ments to the common schools and de-
prive the boys and girls of the state
of the right to an education" re-
torted Senator Nix.
Senator Walker countered with
the statement that he would rather
suspend the highway department
than to close the common schools, to
which Senator Nix replied that the
motor vehicle fund appropriated to
the highway department for 1921
has been collected and expended, and
therefore could not be recalled.
There is no other possible means
of raising the cash to pay the deficit
in the treasury" declared Senator
Nix. IF there is, invite some
member of this committee to come
forward and point the way. If he is
able to point a better way, l will
abandon the plan of discounting the
Western & Atlantic rental and go
with him. Our situation is perfectly
simple. in so far as our obligation and
duty is concerned. The previous leg
islature made appropriations in eX-
cess of the revenue of the state. Our
duty is to pay them. We are under
q moral and legal obligation to pay
the shape Of the western & Atlantic
rental, which we can utilize for that
purpose. and if we refuse to use it
we place our state in the attitude of
repudiating it's obligations"
Senator Wohlwender advanced the
theory that q discount of the West
ern & Atlantic rental for period of
wedge whereby the state of Georgia
would lose this great property, which
is it's most valuable single asset"
Senator Nix, replying to this OBJ
lection, said it was impossible for
him to understand how the states
ownership of the railroad would be
JeopardiZed in any manner by dis
counting the rental. unless Senator
Wohlwender thought somebody was
state, which certainly would not be
powerless to act
Would Guard Future
Senator Wohlwender replied that
he would not consent to a discount
of the rental unless there was put
into the constitution an amendment
forever prohibiting the legislature
from again discounting the rental in
the future
"You would render the state far
greater service" replied Senator
Nix. eff you put into the constitu-
ton an amendment forever prohibit
ing the legislatures of the future
IIOlll money III excess
of the revenue of the state. There
IS practically such a provision in
the. constitution now. but previous
legislatures have paid no attention
to it, and that is why we find our
selves in our present condition.
Senator Johnnie Jones at this
point iRAuired if Senator Wohlwer-
der would be in favor of a consti-
tutional amendment to make the
members of the legislature person
ally liable for passing appropriations
in excess of the states revenue.
What good would that do?" retort-
ed Senator WohlWender. THE legis-
lators haven't got any money"
Senator Jackson delivered a lengthy
argument in favor of the bill. He
said he "hated like sin" to vote for
a discount of the Wetern and Allan
tic rental, but it was the 'only posi-
BILE way to eXtricate the state from
its financial difficulties" Continu-
ing, he said:
I'VE are in the same position as a
state, that an individual would be in
with obligations which he did not
have the cash to pay, but had col
lateral which he could discount and
raise the cash he needed. An inGi-
vidual in that situation would be
called on by his creditors to utilize
his collateral, and justly so. That's
cur situation in a nutshell. You
have got to make up your minds
whether you are going to utilize the
available collateral of the state of
Georgia to pay the obligations of
the state of Georgia"