The Coconino sun., 1921-04-01
SENATOR SIMS DISCUSSES
 INFAMOUS OMNIBUS BILL

That the net result of the passage of the omnibus bill, and its signature by the governor with the veto of par agraphs which eliminate appropria- tions totalling 320,000 will be about the same as if the bill had never been introduced, was the declaration of State Senator w. P. Sims in an ad- dress before the Warren District Luncheon club. Sims spoke on the subject of "State Finances"
 q am not a pessimist," said Sims, in part, But 1 fully realize the fi- nancial condition of this state. Our troubles has been due probably to three things: First, the 60 cent tax rate of 1919 was cut to Al cents in 1920; second, delinquency of 30 per cent throughout the state in the col lection of taxes; third, unwillingness of banks to handle registered state warrants bearing only per cent when they can get easily s or 10 per cent for the money. l am sorry that l could not impress upon the state sen ate the importance of the situation, but state legislature believes that all it has to do is to make appropria- tions and the money will be forthcom- ing from somewhere.
 Mining Companies Punished.
 ''Cochise county and mining coun- ties in general often are punished be- cause they are able to pay their taxes. In 1920, 62 per cent of the taxes were paid by mining companies and rail- roads, and 30 per cent were delin- quent, which left only per cent that were paid by other classes of prop erty.
 "What is the answer? The state has to run. Cut expenses? That is the last thing a state legislature ever does. The governor, the treasurer and the state auditor are, together, the loan board of the state. They called on banks for assistance, but the banks are not interested, even though state paper were at per cent instead of 5. The situation was that one bank, the Central Bank of Phoenix, had about $500,0 of state finances on inactive deposit, and the other banks could not be interested because they were not carrying any large amounts of state money. The Central bank has since failed, but the state money is secured by surety bonds, and the state will not lose.
 Senator Woodward, of Gila county, introduced bill to limit the amount of state funds deposited in any one bank, passing the amount on the combined surplus and capital stock of the bank. When the bill came to the senate for the second reading he asked the priv ilege of withdrawing it, declaring that he feared it's passage would close sev- eral banks which had state money on deposit. Subsequent events have shown the wisdom of not passing the bill.
 Bond House Offers Solution.
 "A bond house offered solution in what are termed 'anticipatory' bonds. This means, in effect, putting a mort gage on future revenue to take care of immediate needs. The state is now behind in tax collections about $1 ,20O,- 900. Also when we went to the semi annual payment of taxes we fell be- hind six months, that is, the state gets the revenue six months after it is due. When this bond issue is sold it will turn over about one or one and half millions to be used to pay outstanding warrants. The present situation is that of mortgaging six months rev enue ahead to pay our bills.
 1.-The banks are strong for this measure because they get two chances at the money in this way: When the ahticipatory bonds are sold the cash is used to take up outstanding state warrants, which means the distribu- tion of this cash in the state under the provisions of the anticpatory bond bill. When the taxes are paid, the first payment falling in June, this money must be held by the state treas urer to pay off the bonds, which means that he must deposit this money with the banks in the state.
 "I have been asked to talk about the omnibus bill. 1t was originally introduced as an emergency measure. The fight was to prevent any money being spent on this special road bill. thought all along that other similar special road bills would be introduced and it was decided to hold this bill and see what others would come in. Others did come in, totalling about $500, 900.
 About this time l found that the omnibus bill would be brought in, in place of these special road bills. I will say now that I fought the omni- bus bill from start to finish. Many have the impression that no money would be spent on roads except for the omnibus bill, but such is not the case. The 10 cent levy, the auto li- cense tax, the tax on gasoline, and the prison labor fund, these alone would bring in s1,310,000 year for roads if the state legislature did not do thing. l believed that under present conditions that would be enough and tried my best to kill the omnibus bill and every special road bill that was introduced.
 "The first bill introduced as the omnibus bill carried s975 900, of which the Borderland would have had $200,- 900. This was pork barrel measure . designed to get votes, as may be seen by the appropriations for the various counties. In Santa Cruz county $50,- 900 was allotted for building two miles of paving on road that today