The Birmingham age-herald., 1923-09-16
kILBY LAUNCHES AN ATTACK UPON HIS OFFICE SUCCESSOR
"Tax Dodgers Are Taking Promised Joy Ride,"
 Says Statement
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 outstanding liability but an obliga- tion of one state fund to another. l quote from that letter as follows:
 Nov as to the so-called trust funds there was money in the treasury January 15 to cover all of them ex- cept the game and fish, pure food and highway funds. The game and fish and pure food are trust funds only in a technical sense. The money standing to their credit was collected from the people of the state just as other license and privilege tax money is collected and there Is no earthly reason why 1t should not be used for general purposes. These funds have always gone Into the treasury along with all other funds and have been used as parts of the general fund and there can be no possible objection, except the mere technicality. How ever to cover the technicality in- volved a bill should be passed author izing their coverage into the general fund.
 "The highway fund Is somewhat different That money will ultimately
 
 aud principal of highway bonds and for other road purposes. It should perhaps be kept separate and apart for those purposes, just as the pro- ceeds from the sale of bonds are se- gregated. but there is nothing now in the law to forbid it's use in the manner in which 1t has been used.
 Segregation Is undoubtedly the cor rect theory, but in practice it would be inconvenient and expensive. It would mean that at times when the large sums of money are in the treas ury to the credit of this fund. while little or no money is there for other purposes, tho state would be com pelled to borrow money and pay in- terest charges that otherwise might be saved. In other words, 1t might frequently force the state to pay banks or other lenders for the use of their money while it's own money Is lying idle in the treasury earning nothing. Of course 1t would be bad policy to nningle real trust funds with other bonds, but this highway fund is not a trust fund in the strict sense of the term. It is money that belongs to the state to be used for state pur- poses and no outside party or interest has any lien or claim upon 1t what .soever. Money received from the sale of bonds should be kept separate
  fund to. retire bonds which is taken from the highway fund. Those funds have been been kept separate and apart from other monies and they should never under any circumstances be diverted for one moment. Came From Auto Licenses.
 Now, where did this highway fund come from? It came from motor H. hu hn Iau efo 1919. It was collected by the recen, administration in accordance with the financial program of that administra- tion. And right here l call attention to the fact that the late administra- ion lived well within its income. The receipts for the four year period totaled $49,6s9.47e. The disburse- ments totaled s47.65s.o4s. The ex- cess of s2.o33,42S was applied to the payment of the floating and bonded debt. These figures were taken iron, the books of the state auditor and the state treasurer and were Checked by. an expert accountant Of the state tax face of these figures is absurd and ridiculous"
 Educational Fund.
 SGT, 900. .00-This was the annual in- crease for the support of the uni yersity, Auburn, Moutevallo and the normal schools. Every year during my administration an increase was given these institutions. These in- creases were pitifully small. But, small as they were, I am very sorry they are now to be discontinued. Since you arc making no such in- creases in your budget, I should have thought you would be glad to let this one pass without special mention, especially in view of your speech at an Auburn banquet when you promised amid tumultuous ap- plause,' s2,000,000 to the Polytechnic institute
 s4e6.75s-Decreas in available in- come, I agree with you as to there being decrease, but I do not agree as to the cause. What you say con corning the educational and pension funds is true; the law governs them But l wholly dissent from your opin- ion as to the general tax. l believe the decrease in assessments and con sequent reduced revenues result di- rectly from the propaganda that has been broadcast over the state during the past year. The tax dodges were promised a grand Joy ride over a period of reduced taxes and they are taking It. The machinery that worked so well has been neglected simply because it was doomed 8 year or SD ago to the scrap heap, where it will land on September 30. The adjusters received their legal notice of dis charge last January and very natur- ally many of them did not have tho heart to go on with the work with the vigor that had character ized their efforts during the preced- ing years.
 Called Sad Mistake.
 s32, 2,672-Sheriff's feed bills brought lot s,f pi opriated S70,000 to pay similar hangover from the Henderson ad- ministration. l made no complaint about it, in fact, never before men toned it. These hang-overs have always occurred and always will oc- to estimate four years in advance what amount will be required to feed prisoners. Apropos of this matter, !t may not be amiss to remark that the repeal of the law requiring coun-. ty authorities to account for funds appropriated for feeding prisoners .s a sad and lamentable mistake you arc making. It means full purses for the sheriffs and empty stomachs for the prisoners
 S445, ,00O---You are wholly mistaken about this item. Since the automo- bile license law was eXacted in 1912 those funds have been credited to the hlSnNdy QeplFLHenl. see beuerAl Acts 1919. pag 9e2. It was the use of such funds for general purposes that created the debt the general fund owed the highway fund, which constitutes the first item of your statement. Ton surely do not ap- preciate the effect and inconsistency of your complaint that this fund IS not available for general purposes. You say in one breath that so-called trust funds should remain in the bank as an idle board of the state