Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1936-01-27
M'Donald Claims on Pro-
perty Tax Seem Distorted
,Continued from Page OneJ

they got and that all of the schools
would have Fhecn cut back to a six
months term, including the nine
months city schools. Some Of this
bill to close all the schools for one
year.
Reiterates Statements.
Yet in talking with this correspon-
dent here a day or so ago, DR.. Nc
Donald reiterated his previous state
ments and said again:
1.-The real school tragedy OF 1888
was the reversal Of the States policy
with regard to encouraging local in
tcrest in schools. The State appropria-
ton for schools was not then increas-
cd, but $1.50o,O00 in State encourage
ment funds and $6.7C0,0O0 in local
school support (raised from local pro-
perty taxes) were entirely removed
from the picture. The result was a
very greatly reduced quality Of edu-
cation, due to the reduced salary
scale, increased teaching loads. cur
tailed curriculum. reduced teaching
supplies and other stringent restric-
tons
Dr. Mcdonald further pointed out
taht betwee 1881 and 1888. the Gem
eral Assembly provided an equaliza-
tion fund of $16,000,0o0 a year, Il tax
reduction fund oe $1.500,00o year
and that tho schools received in adj
dition to this money from tho State
-. total of $S,2oO.000 from local taxes
levied and collected i'll the counties.
cities. and towns, all of which is
readily. admitted by every one But
DR. Mcdonald has not been pointing
out that under an act of the 1881 Ten
eral Assembly. the governor was not
permitted to curtail the State appro-
priation for schools, as he was requir-
Cd to do for all other purposes and
.h3.. as a. result it was necessary Tor
thc state To borrow $12,000,000 be-
tween 1881 and 1888 to meet its pay
lneuts to the schools.
Couldn't Collect.
No- docs d.. Mcdonald mention the
fact that. the counties rs well ~ the
state were unable to collcct taxes III
1882 and 1888 either because people
could not pay taxes or because they
, refused to. AS a result. a majority of
! ;hly-ma.ny of them opposed to a sales
tax. but who realized the fact that
property taxes could no longer be de-
pendent upon to yield enough revenue
to keen the schools open more than
four or five months year-finally
|! decided the only way to Keep the
schools open was to operate tnen
with state funds, and without pro
pe,ty tax.
Term Made Uniform.
The next. question to he decided wa
; Ahn ,c~oth of the term. The rural
members for the most part Wou'o
have been satisfied with six month
term, but the cities and towns want
ed at least an eight months term
But. the rural members were deter
! mined that they should have as much
as their city and town cousins and
i insisted that the term must be uni
| form. So it was finally agreed that
| the eight months term should apply
to the entire state. II was then also
agreed that in order to insure some
, property tax reduction in all the collll-
| ties. that no supplemental taxes could
i be issued for school purposes in any
/ Of the subdivisions. This move came
almost entirely from the rural coun-
/ ties and was put over because the
| rural counties always have a majority
, in 10th houses. in spite of bitter OPP
| position from the group from the lar
ger cities and towns.
The rural county group, Of course
! was at the beginning Of the session
the group most opposed to any form
Of sales tax. But as the session adj
vanced, and as it became more and
more apparent that it would not be
possible to reduce local property taxes
in all the counties, not just on rail-
roads and corporations, as Mcdonald
now claims, there was q gradual
swing over to the belief that the sales
tax was the only means Of bringing
about reduction in property taxes
and of eliminating the necessity for
local taxes for schools. SO it finally
passed the sales tax, first in order to
rdcuce local property taxes. and sec
ond. to provide State support for the
schools.
All Property Shared Cut.
Dr. Mcdonald maintains, however,