The Birmingham age-herald., 1924-04-04
Places Alaban1a Near Bottom
 ln Amount Spent On Schools
Abercrombie Says State Must Find Other Sources
 Of Taxation
(sTATE CAPITAL BUREAU)


 Continued reliance upon existing sources of revenue for education will probably result in stagnation and re- trogression in Alabama alongs educa tional lines, Dr. John W. Abercombie, state superintendent of education, de- clared in his address here this after noon before the opening session of the Alabama Education association. Dr. Abercrombie suggested and discussed several possible new source of revenue for educa tion, among them corporation, water power, severance, income, and inheritance taxes and an unearned in- crement tax, and appropriations from the federal government No state de- pneding soley upon such. sources as Alabama now has to provide educa- tional funds has been able to develop an efficient public school system, the speaker said.
 While giving credit to the education al accomplishments of Alabama, Dr. Abercrombie brought out also the low rank occupied by the state educational ly in many respects. The per capita expenditure for education in all states in 1920 ranged from $4.36 to $24.46, with Alabama's figure $4.55, only two states spending less, while the aver age was $11,43 It is deplorable that Alabama still peoples low education al status when compared with the other states, even the other southern states," Superintendent Abercfombie said. '1This is true for the reason that while we have been making notable progress, every other state has achieved almost equal if not greater progress"
 Adult Iilliteracy High
 Mention was made that only six states have a higher percentage of white illiterarcy than Alabama, and all but one have lower percentage of negro illiteracy. Figures were cited covering a number of phases of taxa tion mad expenditure, to show that Ala bama ranks well down in the list. While the richest of states in natural resources. Alabama is the poorest of states in per capita income, because she is lacking in that which is essential to the highest of economic growth, namely, citizenry adequately trained to make the wisest and fullest use of her matchless resources. The chief factor essential to economic prosperity is lacking because she has failed in her duty toward her children, because she has permitted them to grow into man. hood and womanhood in ignorance, weakness, and inefficiency."
 Speaking of new sources of revenue to meet the educational need, Superin- tendent Abercrombie declared that ''even if our present constitutional pro- visions were greatly liberalized, it would still be necessary for us to find some new sources of revenue if we are to assume and hold our rightful rank in the sisterhood of states" He pointed out that real and personal property originally represented about the only forms of wealth, hence property and poll taxes were first to be levied, but there is a strong tendency to depend less upon general property taxes, the speaker said.
 Much Property Tax Exempt
 Referring to corporation taxes, Sup erintendent Abercrombie stated Prop erty and wealth are coming more and more to be found in the forms of stocks, bonds, mortgages, leases, grants franchises, privileges, etc, many of which are exempt from all forms of taxation. As 8 consequence, states are beginning to realize that income derived from such ! sources is much truer index Of ability to support government al activities than is the mere possession VI ASuA pCAoOh0A pIOpCItys
 On water power taxation, the speak CT voiced the conviction that "this power is direct gift of nature, and like all other natural gifts belongs to the people, all the people; and the privilege of developing and utilizing it for commercial, industrial and specula- tive purposes should not be granted by state or nation without due com pensation."
 Speaking of an unearned increment tax, Superintendent Abercrombie de- clared that it would simply give to society a reasonable return for the part it performs in the creation of values"
 The income tax was described as lone of the most equitable forms of taxation" and, speaking of tax on inheritances, Dr. Abercrombie stated Since fortunes, especially the large ones, are the result of a utilization of natural resources that of right belong to the people in common, or of trade conditions and values made possible by collective activities, it is but logical