Evening star., 1932-03-11
BY MALCOLM CUTTING.

RALEIGH, N. c., March 8 (N.A.N.A.).
North Carolina wins the palm for the
boldest experiment in tax reduction, the
most complete reorganization of gov
eminent to lower cost.
If comparative record of State Leg
tslatures ever is compiled, that of the
General Assembly of North Carolina in
1881 will receive conspicuous mention
Here are the astonishing enactments it
brought into being, and the revolu-
tionary changes in State and local gov
eminent these engendered:
Public school system placed under
State responsibility and support. tax
on school property reduced from an
average of AZ cents in the school dis
tricts to fiat State levy of Is cents
per 500 of assessed valuation.
County road system transferred -
state control and support, more than
IT'S county and township road boards
abolished, and county road tax elm
mated
Local government commission created
to control financial affairs of every unit
of government, county and municipal,
limiting particularly incurring Of addi-
tional debt without approval.
Division of purchase and contract
created for centralized purchase of
ONQ4PiLICIlI dIlu SuDDlleS lOI dlI oIaJe &C.
partmentS ard institutions, including
schools and roads.
Taxes Reduced S12,000,00O.
Appropriations for State departments
and institutions reduced about 10 per
cent salaries of all State employees, in
cluding teachers, reduced 10 per cent,
followed by similar salary cuts of public
officials in nearly half the counties.
As a combined result, total property
tax was reduced $12,00O,0O0, or 20 per
cent, and total cost of government low
cred $7,000,000, 7 per cent, in the first
year.
That North Carolina needed a new
deal is indicated by figures In 1918 the
cost Of government, State and local, was
$23,500,000. By 1880 it was S100, ,00O, ,00O
Meantime bonded debt had grown from
$70000000 to S537 ZOO, 900, until 40
cents of every tax dollar went for inter-
est and payment of debt.
Then came slump in collections. In
1880 more than 35 local units defaulted
in interest payments, and the General
Assembly of 1881 was deluged with spe-
cial bills for funding outstanding local
debts.
Gov. o. Gardner demanded complete
reorganization of government and SUBJ
stantial reduction in property tax. Fol-
lowed then the mircale of advanced
legislation
Most revolutionary of new measures
passed, providing greatest reduction in
cost. was public school legislation. Es-
tablished in Massachusetts in 1887, the
district system of school administration
has been retained generally throughout
the United States. But in late years ten
or dozen States have changed to the
county unit plan. North Carolina is
the first to place the entire operation
and support of public schools in the
hands of the State itself
State Takes Responsibility.
In 1881 the General Assembly passed
a law establishing full responsibility of
the State for a minimum term of six
months in all public schools, and pro-,
vtding that State support should be sup
piled in the main from sources other
than an ad valorem tax on property.
It took two months constant debate
and nearly constant deadlock to work
out the source of such funds It was
finally settled by providing a State levy
OF Is cents on property, by increasing
franchise and income taxes, and by re-