MESSAGE OF THE GOVERNOR OF GEORGIA TO THE General Assembly. October 23d, 189.5, W. Y. ATKINSON, GOVERNOR. ATLANTA, GA. GEO. W. HARRISON, STATE PRINTER. FRANKLIN PRINTING AND PUBLISHING Co. 1895. MESSAGE OF THE GOVERNOR OF GEORGIA TO THE General Assembly. October 23d, 18().5, w. Y. ATKINSON, GOVERNOR. ATLANTA, GA. GEO. W. HARRISON, 8TATB PRINTER. FRANKLIN PRINTING AND PUBLISHING Co. 1895. MESSAGE. Members of the General Assembly :. . In obedience to official duty, it is my pleasure to communicate to yon such information as will aid in the discharge of the important trusts confided to you, and to make such suggestions and recommendations as, in my judgment, will promote the interest of the State. Fortunately for me, in the performance of this duty, the reports from the departments of State, made to me in conformity to law, are so thorough and comprehensive that by transmitting them to you, which I will do, I place you in possession of such information that it is unnecessary for me to enter into an extended statement covering the subjects so ably discussed in these reports. I call your special attention to each of these, and ask that1 you give due consideration to the recommendations of these thoughtful, painstaking, and faithful officers. It is a source of great gratification to myself, and it must be to each of you, that you convene at a period in the history of our State when we are enjoying the blessings of Providence in fruitful harvests. I rejoice that the worst of the terrible financial panic which has been upon us is over, and am confident we can look forward to an era of prosperity. While the cotton crop of this year is not so large as we had hope for, the unexpected good price and the large yield of corn, peas, potatoes, rice, and other food crops, places the people of the State in better condition than they have been for years. 4 COTTON STATES AND INTERNATIONAL EXPOSITION. The effort of some of the public-spirited and enterprising citizens of this State to hold this year a great International Exposition, which was at first regarded as an audacious undertaking, has been brought to a happy termination. In its arrangement, variety, and proportions it excels any exhibition of the resources and achievements of the A merican people (with the exception of the World's Fair at Chicago) which has ever been made, and will bring to Georgia visitors from every quarter of the globe, whose impressions of onr people, our civilization, our resources, and our inviting fields for investment will in the near future greatly advance our growth in industries, population and wealth. STATE EXHIBIT. Realizing the importance ot this great event, at your last session you made an appropriation which you directed to be used for the purpose of making an exhibit of Georgia's resources at the Cotton States and International Exposition. The duty of expending this money and making the proposed exhibit was imposed by you upon Hon. R. U. Hardeman, State Treasurer; Hon. J.M. Terrell, AttorneyGeneral; Hon. G. R. Glenn, State School Commissioner; Hon. W. A. Wright, Comptroller-General; Hon. R. T. Nesbitt, Commissioner of Agriculture, and upon myself. The board selected Hon. W. S. Yeates, State Geologist; Hon. Geo. F. Payne, State Chemist, and Hon. R.obert J. Quinn, Assistant School Commissioner, as honorary members, each of whom has rendered us valuable aid without compensation. Mr. George W. Kelly was elected as assistant to the Commissioner of Agriculture, who was the executive officer of the board, and Mr. E. M. Durant was elected as secretary. With this force we under- 5 took to do the work entrusted to us, and feel a just pride in the magnificent exhibit made by the State. At an early period in our work we became convinced that the sum appropriated by the Sfate would not enable us .to make so complete an exhibit of all the resources of the State as we felt it was the duty of the State to make on such an occasion. Fortunately some of the public-spirited and patriotic citizens of the State, who are interested in manufacturing, came to our aid. With their approval and co-operation a convention of the manufacturers of Georgia was called to meet in the hall of the House of Representatives. The convention was largely attended, and as one of the results -thereof money was raised, and a special building erected at the expense of the manufacturers themselves, in which you will find the exhibit of the Georgia manufacturers. The variety, character, and extent of this exhibit must inspire the pride of every Georgian, and when taken in connection with. the exhibit made by the State Board, plaqes Georgia before the world in a most enviable light. Those who come from abroad to visit this great exposition, and views Georgia's resou~ces as exhibited in the State Buildingand in the Georgia Manufacturers' Building, will leave us with a higher estimate of the resources and capabilities of our State and the character and achievements of our people. The influence of the exposition and of the State's exhibit will be of incalculable value in directing to Georgia a vast amount of capital which the revival of business will cause to seek safe and profitable investment. OOMPTRO.LLER-GENERAL'S REPORT. The report of the Comptroller-General presents a number of interesting facts. I call your special attention to two tabulated statements arranged by him, the one show- 6 ing the value of the different classes of property in 1879 and in 1895, and the other the value of the taxable property of our colored population during each of the years within that period : 18i9. City and town real estate ............ $49,007,286 Agricultural lands . . . . . . . .......... 90,493,822 Live-stock .......................... 21,017,634 Farm implements..... .............. 2,971,372 Householrl furniture............. . . . 9,156,404 Merchandise ........................ 12,012,755 Money, etc ........................ 25,513,005 Cotton factories. . . . . . . . . . . . . . . . . . 1,640,000 Iron works, etc. . . . . . . . . . . . . . . . . . . . . 295,640 Bank capital .. .. .. . .. . .. .. .. . . .. . 4,667,ii67 Railroad property . . . . . . . . . . . . . . . . . . 9,866,129 189j, $116,311,095 120,872,ti 15 21,174,632 4,754,651 15,165,146 17,419,116 31,056,175 9,684,286 968,333 13,1 93,68(i 39,\J52,fJ72 STATEMENT~OF PROPERTY RETURNED BY COLORED TAXPAYERS FROM 1879 TO 1895. 1879 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,182,398 1880 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,'>,764,293 1881. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,478,951 1882 ..................................... ,............ 6,589,876 1883..... . . . . . . . . . . .. . . . . .. . .. .. . . . . . . . .. .. . .. . . .. . . . 7,582,395 1884 ....................................... ,.. . . . . . . . . 8,021,52ii 1885 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,153,390 1886. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,655.298 1887..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,936,47\J 1888.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,631,271 1889.... . . . . . . . . . . . . . . . . . . ........................... 10,415,330 1890...... . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 12,322,003 1891 ............................................. 14,196,73.'i 1892........ .. .. .. .. . .. .. . . . . . .. . . .. . .. . . . . . 14,869,575 1893... . . . .. .. .. . .. . . .. .. .. .. .. . .. .. .. . . . .. . .. ..... 14,960,6i5 1894 ....................................... ......... 14,387,730 1895 ................................................... 12,94[,230 The tax returns for the present year show a loss of nineteen million dollars of valuation as compared with the returns for the previous. year. While this-is to be regretted it is scarcely to be wondered at when we consider the depressing effect of the panic upon business and property values everywhere. 7 THE NEED OF A NEW ASSESSMENT LAW. In reference to the value of property as shown by the -Comptroller-General's report gathered from tax returns, it iis my duty to say to you that it does not approximate the real or market value of the property of the citizens of the -State subject to taxation. Under the present system of making tax returns, outside of where the returns are affected by local assessment systems of towns and cities, each man is his own tax-assessor and places upon his property -such value as he sees fit, even himself in many.-instances -~onfessing that the amount at which it has been: returned by him for taxes bears no approximate relation to the real value of the property. While the legislature nominally -fixes the tax rate for the State to be collected from her citizens, each citizen has the -power to fix his own tax rate, and many of theni do fix it at' an unjustly' low rate by placing a value upon their property far below its value :and on a scale much lower than that by which the property of their neighbors are valued. The man who pays taxes upon property unfairly valued at $500, while on property of the same value his neighbor pays on $1,000, is lowering his own tax rate one-half, depriving the State of its just revenue, and placing an unjust burden upon his honest neighbor who values his property correctly. I most earnestly recommend that so .. e plan be .devised by which the State can arrive at something like a just valuation of the propert., of its citizens subject to taxation and protect the man who honestly returns his taxes against impositions from those who return their property at an improper valuation. It is well to bear in mind th'.lt any plan which you may adopt will, when put in practical operation, prove imperfect, but as these defects appear it will be the -duty ofyour successors to correct them and continue to perfect the law. Certain it is that no system which can be adopted 8 can be open to greater abuses or more flagrant injustices than the law under which our property is now returned for taxes. A proper plan for assessment of property for taxation will not only equalize values but place upon the tax books a vast amount of personal effects which now escapetaxation. In connection with this recommendation I desire to suggest that you authorize the Comptroller-General to prescribe and furnish to the tax-collectors and tax-receivers of this State such books as .in his judgment should be kept by them and to prescribe rules directing how these books shall be kept.. This will enable him to require thebusiness of the State conducted by each of these officers. to be conducted in a systematic aud business-like manner,. and will result in a large saving to the State. TREASURER'S REPORT. The report of the State Treasurer will give you am- pie information as to the conditions of our finances~ By reference to this report it will be seen that under the law enacted by your honorable body at its session in 1894 providing for the quarterly payment of teachers that the treasury will have a severe strain to bear. Thepayment, soon to be made, will require the treasurer to advance to the school fund about four hundred thousand dollars. I respectfully suggest that your finance committeemake close inquiry into the effect of this great draft upon the treasury, and that such legislation as may be needed for its relief, if any, be enacted. STATE DEPOSITORIES. Soon after coming into office I undertook, in conformity with the Act of 1878, to make an arrangement with thevarious depositories providing for the payment of interest upon the public funds entrusted to them. As a result of this effort I consummated contracts with all of the banks but two, which two resigned rather than pay intere;;t, which contracts provided for the payment of interest at the rate of two per cent.. on daily balances from March 1, 1895, to March 1, 1896, to be paid semi-annually. I am inform~red by the State Treasurer that the amount of interest due the State for the first six month~, ending September 1, will approximate eight thf.,usand dollars. It must be borne in mind in this connection that the provision for quarterly payment of teachers, which is a wise and proper one, has largely reduced the State's deposits in its various depositories; and for that reason the income from this source can be nothing like so large as it would otherwise have been. It is gratifying, however, to know, notwithstanding this large decrease of deposit, that within the first six months I have been able to make for the State the sum of eight thousand dollars from this unexpected source. I respectfully suggest that the law providing for State depositories be so amended as to remove all doubt that may exist in the mind of any one as to the power of the Governor to appoint a successor when he is unable to agree with them upon the rate of interest to be paid upon the State deposits. 3 SALE OF PER CENT. BONDS AT A PREMIUM. U oder the provisions of the Act approved Decemher I 8, 1894, 499 five hundred dollar bonds on the Northeastern Railroad indorsed by the State were deposited with the treasurer to be exchanged at par for the new three and onehalf per cent. bonds to be issued under said Act. Fortu. nately, however, for the State these new three and one-half per cent. bonds were, when offered for sale, sold to the Columbus Savings Bank at a premium of 11-100 per cent. for each five hundred dollar bond. To have sold a bond bearing three and one-half per cent. interest at a premium during such a financial stringency, is an event in our history ot whic~ all Georgians may well be proud, and speaks volumes for the high standing of our State in the com~nercial world. The sale of these bonds enabled me to discharge -our obligation on the Northeastern Railroad bonds which had one year to run and were bearing interest at 7 per eent. per annum. The saving to the State in the difference between 7 and 3 per cent. for the period that these 7 per ,cent. bonds were to run was the sum of $8,155. PROCEEDS OF SALE OJ;' BO::0,DS. ]from the following statement of the State Treaimer you will see what disposition was made of the proceeds of these bonds: R. U. HARDEMAN, TR., 3 IN ACCOUNT WITH PROCEEDS ARISING FROM SALE PER CENT, BONDS. DR, To amount received from sale 3 per cent. bonds ....... $ 28i,063 80 " " " 8 bonds and premiums not issued in my hands...................................... 3,000 66 To amount received from R. K. Reaves, Receiver North- eastern Railroad. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,800 00 $ ,2::J2,863 46 CR, By amount paid holders of bonils and coupons ....... $ 281,3i4 50 " " " Proclamations for sale R. R. and bond transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,346 29 Hy amount paid engraving, printin!!', and express charges 82i 40 Bonds in my hands not issued and premium.......... 3,000 66 Balance on hand. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.315 55 $ 2il2,864 46 This balance is now on deposit with the Mt>rd1ants Bank of this city, a State dE>pository, to meet the outstanding bonds of the Northeastern Railroad, all of said bonds having been paid by me, with the PXc ception of elevPn (llJ five hundred ($500) dollar bonds and coupons which will make outstanding bonds and coupons ...............................$ And as above stated, I have on hand .................. . 6,0i7 50 5,315 55 Leaving a balance of.. . . . . ......................... $ i61 95 Which amount wf' can get from the receiver of the road, or by thl' issuance of one of the bonds now in my hands, as vour Excellency may determinine. 11 It is proper for me to call your attention to the condition of some of the past du':l coupons on the bonds of the Northeastern Railroad which I have not seen proper to advise the treasurer to pay, and suggest that you decide the course to be pursued in reference thereto. Coupons attached to these bonds, amounting to the sum of eleven hundred dollars, which were past due at the time the State was notified of the default of the road on payment of interest have not been paid. These bonds indorsed by the State contained the provision that. whenever there should be a default on the part of the road and notice of such default given the State, that the Governor should seize the road and operate it so a~ to protect the State as surety on these bonds. .Had the, State been notified of the default of this road at the time these coupons matured .it could have at once seized the road and operated it from that period. Its failure to seize and operate it from that time, secure an income therefrom' and protect itself from further loss on maturing coupons was due to no fault of its own, but was the fault of the bolder of the bonds, declining to give the State notice of the default of the road. Under these conditions I have thought proper to refer the matter to you, that it might be disposed of as you thought just. CONDI'rION OF NORTHEASTERN RAILROAD. Since coming into office I have found it necessary to go to considerable expense in putting the Northeastern Railroad in good condition. Among other extraordinary expenditures incurred wa-s in the purchase of an engine, for which we paid four thousand dollars. We were paying fifteen hundred doilars per year as rental for an engine, and under the contra0t were required to keep the same in repair at our own expense. This policy I did not deem 12 wise to continue and therefore made the purchase as above stated. SALE OF THE NORTHEASTERN RAILROAD, As provided by law, and advised by Act of 1894, after advertising same according to law, that part of the Northeastern Railroad lying between Athens and its junction with the Southern Railroad was exposed to sale in the city of Athens on the 16th of April, 1895, and bought in by me, for the State of Georgia for the sum of one hundred thousand dollars, this being the only bid made. The deed to the property has been made to the State and properly recorded. I snbmit herewith a statement showing the running expenses and expenditures of the road from date of seizure by the State to date of sale, and from date of sale to ~eptember 1st: Statement of Earnings and Expenses of the Northeastern Railroad of Georgia from November 20, 1893 to April 16, 1895, Inclusive. I I I Earnings. Expenses. Net Earnln~-1 Deficit. ~ov., 1893.................... $ 2,354 11 $ 1,53553$ 81858!$ ........ Dec., 1893 .............. .. 7,883 74 5,259 40 2.624 34 .......... Jan., 189-L ................ . 5,995 66 3,597 59 2,398 07 ........... . Feb., 1894................ . 5,021 51 3,1132 84 1,088 67 .......... . Mch., 181:14.................. .. 6,84-l 27 3,943 22 2,901 05 .......... . April, 1894............... 3.977 58 3,i39 84 237 74 ........... May, 1894................... . 3,374 81 3,193 95 180 86 .......... June, 1894.................. 3,321 04 2,928 75 392 29 ......... .. July, 1894.................. . 3,296 16 3,007 06 289 10 ............ Aug., 18!l4....... . 4,108 82 3, 728 02 380 80 ... .... . ... Sept., 18!l4................. 3,894 12 3,223 73 670 39 .......... . Oct., 1894................... . 7,074 33 4,392 39 2,t181 94 Nov., 1894.................. 8,455 25 4,169 62 4,285 63 ......... . Dec., 1894.. ................ 6 108 70 4,084 fi8 2,024 12 ........... . Jan., 1895.................. 4:567 18 3,410 66 1,156 62 ........... Feb., 1895................. 4,091 98 3,342 09 749 89 ........... Mcb., 1895 ................. 5,751 97 3,315 68 2,436 29 April, 1895.... ..... ........ .. 1 -2-,6-74-6-7 1 3,339 79 ----- .. ...... .... ..... -----1 665 12 --- $ 88,795 90 $ 64,144 74$ 25,316 28 $ 6n5 12 13 Statement of Earnings and Expenses of the Northeastern Railroa