Message of Governor L. G. Hardman to the extraordinary session of the General Assembly of Georgia, January 6, 1931

MESSAGE
of
GOVERNOR L. G. HARDMAN
to the
EXTRAORDINARY SESSION
of the
GENERAL ASSEMBLY
of
GEORGIA
JANUARY 6, 1931

MESSAGE
of
GOVERNOR L. G. HARDMAN
to the
EXTRAORDINARY SESSION
of the
GENERAL ASSEMBLY
of
GEORGIA
JANUARY 6, 1931

MESSAGE TO THE GENERAL ASSEMBLY OF
GEORGIA IN SPECIAL EXTRA SESSION
January 6, 1931.
MR. PRESIDENT, MR. SPEAKER AND MEMBERS OF THE GENERAL
ASSEMBLY:
The subject of an extraordinary session was considered and discussed by the public and through the press in May, 1930. However, in order that the expense of an extra session might be avoided, the Governor of this State reached the conclusion and made the following statement to the public: "In view of the unanimous decision of the Supreme Court of the State of Georgia in approving the income tax, on Wednesday, April 16, and the desire of the Governor to make further investigation into the act creating this tax, to determine the revenue that would likely be derived from this source in 1929, payable in 1930 and 1931; further, in order that we may ascertain whether it is possible for the educational interests and the operation of the eleemosynary institutions and other state interests to operate on an 85 per cent basis paid out on a monthly percentage-the revenue coming into the state treasury having to be prorated on the basis of appropriation made in 1929; further, in view of the fact that the Governor has now completed plans by which a survey can be made without any expense to the State of Georgia to study the state government and state finances by experts, the Governor of the State postpones for the present the extraordinary session which was to meet on May 1, 1930, at the Capitol in the city of Atlanta."
During the year 1930 the State, from its revenue, was able to exceed the 85 per cent to be distributed on a prorata basis for the year 1930, and reached the amount of 90 per cent, which was paid to the Department of Education and eleemosynary institutions. This is an encouraging condition, compared with the depression in business activities in the State of Georgia and in the Nation as a whole.
Now, in view of the fact that the State was not provided with sufficient revenue to meet the total amount of appropriation for 1930, and to make no payments on the excessive appropriations made for 1928 and for 1929; and in view of the serious conditions of the unfortunate at Milledgeville, Alto, Gracewood, Cave Springs, the cancer hospital, the blind at Macon, as well as the very urgent need of the common schools and the higher educational institutions, and in view of the further fact that the Governor had no authority to provide revenue for meeting these excessive and unpaid appropriations, which was necessary to meet the emergencies in the State of Georgia; and further that there were no other departments of state authorized to create revenue and to provide for the payment of the excessive unpaid
3

appropriations; and further that delay would bring to the State criticism and great suffering at the institutions, especially at Milledgeville and Alto, the conclusion was reached that nothing else could be done except to convoke the General Assembly in extraordinary session to relieve the emergencies upon the State -and yet I would not have you believe that the State of Georgia is in a worse condition than other states and cities of this Union. Compared with other States I believe her condition is most encouraging, in spite of the emergency needs.
With this prelude, I wish to quote that "a public office is a public trust," and the responsibility is placed upon you as well as the Governor of this State to make provisions to meet these emergencies-and I have confidence and faith in the representatives of the respective counties and districts of this State to provide and meet the emergencies heretofore suggested.
Before bringing to you the methods or plans or measures or means from which the revenue mav be secured without materially increasing the burden upon the taxpayers of Georgia, I wish to present to you how and for what purpose some of the appropriations made by you in 1929 have been used, and the property that has been acquired by the State under your direction and under the authority heretofore given; also the purchase of property by the Highway Department in the City of Atlantathe removal of their headquarters to the City causing a saving of $14,400.00 per annum, besides the convenience to the public, which cannot be estimated.
You appropriated for the years 1930 and 1931, $65,000.00 for the upkeep of public property, viz.: the Mansion and grounds and the Capitol and grounds; as well as the sum for the care of the cemetery for Confederate soldiers at Marietta, and other property that has been purchased under your direction and is now being utilized.
MANSION PROPERTY
The Mansion was purchased by a former Legislature at a cost of $74,000.00, to be paid for out of the revenue of the rental of the old Mansion property, the final payment of $308.98 being made on June 11, 1930, and the title held in escrow by Mr. J. N. McEachern, has been delivered to the Governor of the State and is recorded in Fulton County, as well as placed on record in the office of the Secretary of State. When the property was purchased and the deed placed in escrow, there was no plat accompanying it, and the Governor secured the service of a civil engineer and had a plat of the property made, which has been placed on file in Fulton County. A copy also has been framed and placed in the Mansion. In this service it was discovered there was an error in the deed of 23-ft. on the southwest line, which was corrected in the plat and so recorded.
The heating plant of the Mansion was useless, due to the fact that the boiler had burst and could not be used when the Mansion was first occupied by the present Governor. You have today a
4

Quiet-May Oil heating plant, which is fairly satisfactory. You have also improvements on the inside of your Mansion, in the way of repapering and replastering, plastering having fallen in two of the rooms. Your grounds at the Mansion have been improved. They have been sodded and ever-greens put out-furnished by the various Congressmen from the State of Georgia; and the entire Mansion property is now in first-class condition, so that the expense of upkeep of this property will be very small in the next few years.
CAPITOL
Under the appropriation of $250,000.00 made by the Legislature in 1929 for Capitol improvement and authorizing the purchase of the Jackson-Martin property, I submit the following: This property, facing 210 feet on Capitol Square and running back 373 feet, was purchased for $55,000.00, with a guaranteed title, which has been secured and recorded in the Clerk's office of Fulton County and in the office of the Secretary of State. This property is being used, partly for the State Military offices, partly for the Architect drawing plans for the public schools of the State of Georgia, partly for the Chemist of the Geological Department, and partly for the Tax Commission. The other part of the property is rented and a small revenue is coming into the State from that source, which is $90.00 per month.
The Capitol improvements, under contract, have been made, all of which have been within the appropriation made by the General Assembly. These improvements will provide ample room for the caring for of the departments which have heretofore been greatly crowded, thus making it possible to do much more efficient and satisfactory work. .The Department of Chemistry, under the Department of Agriculture, is moved from the Capitol. This was an objectionable department, due to the odors of the fertilizers and the chemical agents, which damaged the interior of the building . . . and other improvements over the Capitol, which must be apparent to every representative; and I recommend that you appoint a committee to inspect the property purchased and the improvements made in your Capitol. Your Capitol grounds have been improved and sodded also.
During the year 1930 the State has come into possession of the Rhodes property, known as the Rhodes Memorial Building for the Department of Archives and History, which, under your appropriation, has been improved within the limit of your appropriation, and is now being used for the housing of the Department of Archives and History, leaving in the Library of the State Capitol the much needed room; and I recommend to you that an inspection also be made of this building, known as the Department of Archives and History.
These purchases and improvements have all been paid for under your appropriation made in 1929.
In the Capitol improvements there will be a rebate on insurance. Discarding the old wiring and rewiring, as well as the
5

protection given by reason of the plastering over the old steel beams, has added much in the way of fire-proofing; and the amount of rebate on insurance from all of the buildings is $1,750.00, due the State-$1,250.00 is the rebate on the improvements recently provided in the Capitol. The improvements will reduce the insurance 40 per cent. In 1927 it was $10,000.00 on a Million-Dollar basis. Today, on the same basis, it will be $5,844.00 ; and for a Million and a Half Dollars it will be $8,766.00. The basis, with the improvements and with the addition of the A. D. T. per hundred will be $14.61. Today, without any other additional improvements, it is 20c. By reason of these improvements, your Capitol is safe, as compared to the condition that existed before. You may have noted that a few days ago the North Dakota Capitol was burned, which was built in 1884, the same date that the Georgia Capitol was begun. There was a small fire in one of the rooms of your Capitol recently, but it was promptly extinguished and handled by your fire equipment inside the building at present, and with very little loss.
FINANCES
Under the appropriations made by the Legislature in 1929. the State of Georgia during the year 1930 has paid an hundred per cent for the following purposes: One hundred per cent of the Sinking Fund, and the interest on the public debt; one hundred per cent on the operation of the civil establishment of the State of Georgia; one hundred per cent on Capitol improvements, and one hundred per cent to the Confederate Veterans, as the law was interpreted by the Attorney General, including the Ordinary fees and burial expenses ; and ninety per cent on all other appropriations, including maintenance, building and improvements. The excessive and: unpaid appropriations made in 1927 for 1928 and 1929 are as follows: 1928, $2,706,945.92; 1929, $2,367,361.53, and for 1930, $2,102,067.88, making a total of $7,458,545.43 to January 1, 1931.
Now, it was for this purpose, in part, that the General Assembly was called in extra session. The details will be furnished you by the State Auditor as to the total amount of appropriations unpaid, and the total amount unpaid to each institution, both eleemosynary, penal and educational.
The serious problem which confronts you is the emergency need and how you will be able to provide the revenue to meet the unpaid appropriations. I submit for your consideration the additional sale of the W. & A. Warrants, which could begin only on the first day of January, 1936. I attach hereto the detailed basis on which these sales could be made, and the revenue that would come into the State by the same. Suffice it to say that if these warrants were sold on a basis of discount of 4 per cent, the State for ten years would receive practically only one-half the amount of warrants sold on a cash basis.
6

W. & A. WARRANTS

It is assumed that(a) The State can secure their money at 4%(b) The State will receive interest at the rate of 1% on their money.
(c) The lessee will meet their obligation promptly.
(d) The rentals will start January 1, 1936, and continue for a period of ten years.
The value of an annuity of $540,000 a year running for a period of ten years has a discount value of $4,286,220.51 on January 1, 1936. The interest necessary to carry this amount for a period of five years is $964,399.60, less $43,397.85 (this amount is the interest the State will receive on their credit balance.) The present value of this annuity is the gross amount of $4,286,220.51 less $921,001.75, or a net amount of $3,365,218.71.
These calculations do not take into consideration any expenses whatsoever.

Balance Due
$4,272,867.83 3,925,146.87 3,561,778.49 3,182,058.54 2,785,251.15 2,370,587.46 1,937,263.92 1,484,440.82 1,011,240.66 516,746.26

-A-

Interest 4%

Rent

$ 192,279.04 $ 540,000.00

176,631.62

540,000.00

160,280.05

540,000.00

143,192.61

540,000.00

125,336.31

540,000.00

106,676.46

540,000.00

87,176.90

540,000.00

66,799.84

540,000.00

45,505.80

540,000.00

23,253.59

540,000.00

Principal Repaid
$ 347,720.96 363,368.38 379,719.95 396,807.39 414,663.69 433,323.54 452,823.10 473,200.16 494,494.20 516,746.41

$1,127,132.22 $5,400,000.00 $4,272,867.78
Interest paid ____________________$1,127,132.22 Principal paid ___________________ 4,272,867.78

$5,400,000.00
Rent of $540,000 for 10 years______ 5,400,000.00
$516,746.41 Amount available to repay last payment. 516,746.26 Balance to be repaid on last payment.

.15 Error in calculations occasioned by using only a 7place table.

7

Balance Due
$13,352.68 12,266.06 11,130.54 9,945.91 8,703.89 7,408.07 6,053.94 4,638.87 3,160.13 1,614.83

-B-

Interest@ 4%
$ 600.88 551.98 500.87 447.48 391.68 333.37 272.45 208.75 142.21 72.67

*Annuity
$ 1,687.50 1,687.50 1,687.50 1,687.50 1,687.50 1,687.50 1,687.50 1,687.50 1,687.50 1,687.50

$ 3,522.32 $16,875.00

Princip,al Repaid
$ 1,086.62 1,135.52 1,186.63 1,240.02 1,295.82 1,354.13 1,415.07 1,478.75 1,545.29 1,614.83
$13,352.68

Interest paid -------------------$ 3,522.32 Principal repaid ________________ 13,352.68

*Annuity

$16,875.00 ______________________ 16,875.00

*Annuity=Interest @ .015 on rent of $45,000.00 paid monthly.

Month

Amount

January -------$45,000.00 February ______ 45,000.00

March _________ 45,000.00

April _________ 45,000.00 May __________ 45,000.00

June __________ 45,000.00

July __________ 45,000.00

August ________ 45,000.00

September _____ 45,000.00 October _______ 45,000.00

November _____ 45,000.00

December _____ 45,000.00

Rate
5/12 of 1% 4/12 of 1% 3/12 of 1% 2/12 of 1% 1/12 of 1%
5/12 of 1% 4/12 of 1% 3/12 of 1% 2/12 of 1% 1/12 of 1%

Interest
Received
$281.25 225.00 168.75 112.50 56.25
281.25 225.00 168.75 112.50
56.25

$843.75t 843.75t

tSix months' interest.

$1,687.50

8

-C-

(Annual) Consolidating A and B

Balance Due
$4,286,220.51 3,937,412.93 3,572,909.05 3,192,002.45 2,793,955.04 2,377,995.53 1,943,317.86 1,489,079.69 1,014,400.79 518,361.09

Interest @ 4 %
$ 192,879.92 177,183.60 160,780.92 143,640.09 125,727.99 107,009.83 87,449.33 67,008.59 45,648.01 23,326.26

Rent and Interest Recd.
$ 541,687.50 541,687.50 541,687.50 541,687.50 541,687.50 541,687.50 541,687.50 541,687.50 541,687.50 541,687.50

Principal Repaid
$ 348,807.58 364,503.90 380,906.58 398,047.41 415,959.51 434,677.67 454,238.17 474,678.91 496,039.49 518,361.24

$1,130,654.54 $5,416,875.00 $4,286,220.46

Interest paid ---------$1,130,654.54 Principal repaid ______ 4,286,220.46

$5,416,875.00

Interest annuity ______ 16,875.00 Rent annuity _________ 5,400,000.00

$5,416,875.00

518,361.09 Last payment 518,361.24 Available for last payment
.05 Error

9

-D-
January 1, 1931-January 1, 1936 Interest Account

Principal
$4,286,220.46 4,286,220.46 4,286,220.46 4,286,220.46 4,286,220.46

Interest@ 4%
$192,879.92 192,879.92 192,879.92 192,879.92 192,879.92

Rate Time
.015 1 year .015 2 years .015 3 years .015 4 years .015 5 years

Interest Received
$ 2,893.19 5,786.38 8,679.57
11,572.76 14,465.95

$964,399.60

$43,397.85

$964,399.60-Interest necessary to carry 5 years 43,397.85-Interest received on deduction

$921,001.75-Net interest for 5-year dead space.

Gross Deduction

Interest

Interest

'Requirements Received

Balance

$921,001.75

$192,879.92 $14,465.95 $742,587.78 $921,001.75* 192,879.92 11,572.76 561,280.62 43,397.85t 192,879.92 8,679.57 377,080.27. - - - 192,879.92 5,786.38 189,986.73 $964,399.60
192,879.92 2,893.19 --------- 964,399.60:j:

$964,399.60 $43,397.85 *Deduction. t Interest received. :J:Interest requirements.

-E-
$4,286,220.51 Certificate of indebtedness to be issued by State 921,001.75 Deductions to be deposited with Trustee for interest for five years
$3,365,218.71 Cash value to the State.
I wish to call your attention to the lease contract of the old Mansion which is $1,375,000.00, to be paid annually, terminating in 1972, which on a basis of 6 per cent, would bring to the State $431,260.77, which seems to be prohibitive. The details of the i:;tudy of this sale are also attached hereto, neither of which plan meets with the approval of the Governor.
THE MANSION SITE LEASE
.Th~ Mansion Site lease has a total value of $1,375,000.00, made up as follows:
1. Two years at $20,000.00 ______________ $ 40,000.00 2. Ten years at $25,000.00 ______________ 250,000.00 3. Ten years at $30,000.00______________ 300,000.00 4. Ten years at $35,000.00 ______________ 350,000.00 5. Ten years at $43,500.00 ______________ 435,000.00
Total ______________________ -----$1,375,000.00
10

This lease, if discounted, has a present worth of $431,260.77 on a 6% basis. If we discount the first four sections the lease will have a present value of $381,647.01. If the first three items are discounted, the lease will have a present value of $310,161.44.
It would seem from the above that it could hardly pay the State to discount for any longer period than the twenty-two years, as the price is so prohibitive after we pass that point.
Attached hereto is an itemized schedule for the discount of this lease for 22 years.
$ 40,000.00 250,000.00 300,000.00 350,000.00 435,000.00

$1,375,000.00
$ 40,000.00 250,000.00 300,000.00 350,000.00

Present value, $431,260.77

$ 940,000.00
$ 40,000.00 250,000.00 300,000.00

Present value, $381,647.01

$ 590,000.00 Present value, $310,161.44

Lease Income
$20,000.00 20,000.00 25,000.00 25,000.00 25,000.00 25,000.00
25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
30,000.00 30,000.00 30,000.00 30,000.00 30,000.00

Interest
$18,609.69 18,526.27 18,437.84 18,044.11 17,626.76 17,184.37 16,715.43 16,218.35 15,691.45 15,132.94 14,540.92 13,913.37 13,248.18 12,243.07 11,177.65 10,048.31 8,851.21
7,582.28 6,237.22 4,811.45 3,300.14 1,697.55

Principal Repaid Balance

$ 1,390.31 $308,771.13

1,473.73

307,297.40

6,562.16

300,735.24

6,955.89

293,779.35

7,373.24

286,406.11

7,815.63

278,590.48

8,284.57

270,305.91

8,781.65

261,324.26

9,308.55

252,215.71

9,867.06

242,348.65

10,459.08

231,889.57

11,086.63

220,802.94

16,751.82

204,051.12

17,756.93

186,294.19

18,822.35

167,471.84

19,951.69

147,520.15

21,148.79

126,371.36

22,417.72

103,953.64

23,762.78

80,190.86

25,188.55

55,002.31

26,699.86

28,302.45

28,302.45

--------

$279,838.56 $310,161.44 11

The next is the reduction in the exemption on the sales tax, bringing that exemption as low as $5,000.00, or $10,000.00 as suggested by Mr. Norman, the Tax Commissioner, which would furnish the State, as estimated, $500,000.00 of revenue, in addition to what she is now receiving from the sales tax, which would bring to the first quarter, $1,250,000.00.
I also suggest that a tax be placed on smoking tobacco, in connection with the cigar and cigarette tax; (By the enforcement of the law on cigars and cigarettes, there has been an increase for the year 1930 over 1929 of $230,971.77) ; also on the luxuries, as will be provided in a detail presented to you by the Ways and Means Committee. The lack of enforcement of law requiring the payment to the State of our taxes gives us in delinquent and unpaid taxes $30,000.00 (delinquent) and $80,000.00 (unpaid taxes). I suggest that this be remedied by creating a Tax Commission, which measure will also be presented to this body.
I suggest further that in case you find no other immediate source from which you can supply to the State, without further additional taxes, that one-half of the tag tax, which sum is Four and One-half Million, be utilized for meeting the emergencies of the eleemosynary institutions of the State. The United States Government has recently made available $2,077,000.00, which does not have to be matched and will not in any way cripple the road activities of the State, which could not have been done had not this sum of money been authorized by the United States Government. This emergency fund from the road tax should be applied only to sale of the tag tax of the present year; and whatever remains unpaid of the appropriations by the Act of 1927 and 1929 to be gradually paid from other taxes that you may see fit to provide. The total sum to be derived from the sources suggested will be approximately Five Million Dollars.
It is the opinion and judgment of the Governor of this State that with these revenues properly handled and distributed, there will be added very little, if any, to the burden of the tax payers, since it comes from sales tax and luxury taxes, which is a matter entirely with the consumer as to whether he uses these luxuries or not.
Next, how can such a condition as now exists in the State of Georgia be prevented again? In view of this statement I recommend that an executive budget be created, with the authority that will provide the handling of the income and disbursement of the revenues of the State. Our present Budget Commission Hnd our Budget and Investigating Commission, enacted in 1918 and 1922, are ineffective and worthless, so far as handling the income and disbursement on a budget basis of the State is concerned; and I recommend that those two laws be repealed and that an executive budget be enacted; and the measure is hereby presented for your consideration.
The Budget Commission recommended in 1927 that your appropriations should not exceed $10,667,018.42 for 1928 and $10,813,518.42 for 1929, and in 1929 that it should not exceed $10,-
12

122,162.47 for 1930 and $10,272,762.47 for 1931, which had no influence and was not regarded seriously by the General Assembly of Georgia-their appropriation for each year, 1928, 1929 and 1930, being as follows: $12,330,438.85 (1928), $12,246,082.19 (1929), and $13,202,067.88, estimated, (1930).
Now, in order that our revenue from all sources may be properly coordinated and handled, I recommend that you create a Tax Commission. A bill is also offered for your consideration from that standpoint. With a proper Executive Budget regulation and with a proper collection of the revenues of the State under a Tax Commission, there will be kept in balance any deficit in the future of the State if proper legislation is provided.
CONVICTS AND PROBLEMS
In response to a letter addressed to the Prison Commission of Georgia, requesting that some provisions be made for the care of the convicts who will be turned over to the Prison Commission, without any building provided for them or any work or service that can be rendered the State, I quote as follows: "Hon. L. G. Hardman, Governor, State Capitol, Atlanta, Georgia . . . Dear Governor: Referring to your request of recent date for certain data as to the penal population of Georgia and for suggestion as to the kind of work at which 'idle convicts at the State Farm could be employed and not interfere with free labor or the law pertaining thereto,' and 'what can be manufactured for the use of convicts and for uses at the State Sanitarium,' I respectfully submit the following: 1. There are now in the jails of the counties 101 convicts the Prison Commission has been unable to assign for the reason that all counties which employ convict labor now have more than their quotas and are not prepared to receive more. 2. The number of counties not working convicts is 42. 3. The Prison Commission has been notified by the authorities of 13 counties that they will abandon the use of convicts on January 1st, 1931, and urging the removal of all State convicts by that date. 4. The number of convicts awaiting transfer from these counties is 343 felonies. 5. There are in the jails of the State 101 convicts for which there are no accommodations at the State Farm, and the counties working convicts will not receive them. 6 and 7. Section 18 of an act of the General Assembly, approved September 19, 1908, says: 'The Commission may in connection with the farm work use said convicts in such industrial enterprises as they may deem advisable, and to this end may employ the convicts in manufacturing such implements and equipments or other articles as may be needed for use on the State Farm or road, bridge or other public works and in making shoes and clothing and other articles for the use of convicts and inmates of other State institutions, but the Commission shall not sell or offer for sale articles so manufactured to the public.' This act greatly restricts the use of convicts in industrial work. They could, however, be employed in the manufacture, for State use only, of concrete pipe for highways, all kinds of signs for highways, fur-
13

niture for various State institutions, shoes for inmates of the State Hospital for Insane, the State Prison Farm and the reformatories for boys and girls, and a small textile mill for the manufacture of cloth for uniforms and other uses in these institutions. Several states are manufacturing these articles with large saving in the expense of maintaining their convicts and with much benefit to prisoners so employed. Georgia could use 300 or 400 prisoners in labor of this kind. For two years motor vehicle tags have been manufactured at the State Prison Farm at a large profit to the State, and there is no reason why the articles above mentioned could not be produced with like result. 8. The per capita cost of the state of maintaining convicts at the State Farm is approximately 24.4c for men, and 23.7c for women, per day. 9. See paragraph 8. 10. Convicts now in jails and those that are to be returned by the counties to the State on January 1st would increase the number to be supported at the State Farm by 444 felonies. 11. There are now at the State Farm 742 convicts. 12. There are now at the State Farm 461 men. 13. The women at the State Farm now number 281. 14. The number of male convicts in the various county camps is 3,578 felons and 3,993 misdemeanors. 15. The number of women in these camps is 148 misdemeanor negro women. There are at the State Farm unable to work 228 men and 40 women. Trusting this gives you the information you desire, and assuring you of appreciation of your interest and cooperation in an effort to solve the problem of what shall be done with the excess of prisoners that now confronts this department and the State, I am, Sincerely yours, E. L. Rainey, Chairman."
There are 70 men and 20 women, making a total of 90 in the tubercular hospital at the State Farm. Two years ago there were only 50 tubercular criminals in the hospital, but this number has increased to 70. The capacity has been almost doubled, and the improvements inside the building and the grounds are very noticeable. From a number of these tubercular criminals I am having studied the finger prints of ten, to determine the relationship between finger prints, mentality and character; and, if possible, to ascertain the strength of the mental and moral tendency toward crime, with a view of pardoning these diseased criminals if it is discovered by the study of the loops, angles and whorls that they are not primarily criminals, but that their physical condition is the main factor that has led them to commit crime.
I also addressed a letter to the Chairman of the Highway Board, whose reply is as follows: "December 19, 1930. Governor L. G. Hardman, State Capitol, Atlanta, Ga. My dear Sir: In response to your inquiry of the 17th inst., as to the attitude of the State Highway Board regarding the employment of convicts in highway construction, beg to advise that the Department has at present three camps located in Stewart, Murray and Union Counties. When I assumed the duties of this office little definite information was available as to the performance of these forces and no conclusion could be reached as to the value of such
14

an organization to the Department. It was very evident from the
information available at that time that the camps were being operated at a loss when compared with prevailing contract prices. With the view of improving conditions in these several camps and securing information of a tangible nature, the Board decided to place the three camps under the direction of a competent person, one acquainted with modern methods of construction and accounting. As a consequence, we have secured definite information extending over a period of five months, which information marked Exhibit A, I am pleased to submit herewith. Over the period of time indicated a profitable operation is shown in such case. This to my mind is not a conclusive test since the period of observation extended over a fractional part of year, when in reality it should include twelve months of the year in order that effect of all weather conditions could be observed. Nevertheless, I am constrained to believe that if the forces are properly equipped and employed exclusively in grading operations, they could be used to advantage and at a profit in highway construction. As to the number of camps that could be employed, I am unable at this time to say. That would depend largely on the funds available for equipping and maintaining outfits. In order that you may form an opinion as to the cost of preparing each camp for operation, I am enclosing herewith an estimate marked Exhibit B as to the cost of the equipment required for one camp. The Board has been greatlv concerned about the convict situation, realizing the difficulties under which the Prison Commission is laboring and has endeavored to ascertain our attitude in the premises. Our attorney has made a careful study of the existing laws and advises that the matter of employing convicts is left to the discretion of the Board. A copy of the attorney's opinion marked Exhibit C is enclosed for your consideration. In conclusion, I beg to report that the Board has reached no decision as to the course to be pursued in the matter. Awaiting your further command, I have the honor to be, Respectfully yours, State Highway Board of Georgia, By J. W. Barnett, Chairman."
15

EXHIBIT A

STATE HIGHWAY BOARD OF GEORGIA Cost Statement-Convict Work

Camp No. 1. County Union. Project F-984 Consolidated Report Period, July 1 to Dec. 1, Inc.

ITEM

UNIT

Clearing and Grubbing Acres

Com. and Bor. Excv,--- Cu. Yds.

Ditch Excv. __________ Pipe G. I. 18" _________

" "
Feet

"
" "

"
" "

"" 2340"" _-_-_-_-_-_-_-_-_"15" _________

" " "

Sta. Yds. Overhaul_ __ Sta. Yds.

Crushed Stone _______ Cu. Yds.

Cl. A Cone. Culvert_ __ " "
Billet Reinf. Steel_ ___ Lbs.

Rail Reinf. Steel -----

"

EsT.

QUANTITY UNIT

COST

-

8.5 75.00

33,744

.30

402

.35

102

1.90

102

3.85

118

2.81r

138

1.35

9,000

0.015

824.43 3.00

815.389 21.00

59,553

.05

4,520

.05

ACTUAL ESTIMATED TOTAL EQUIPMENT

UNIT

TOTAL EXPEND!- DEPRECIA-

COST

COST

TURES

TION

TOTAL COST

NET UNDERRUN

73.07 .2676 .2635
1.68 3.46 2.65 1.125 0.015 1.94 14.26 0.0320
.0268

$ 637.50 10,123.20 140.70 193.80 392.70 336.30 186.30 135.00 2,473.29 17,123.17 2,977.65 226.00

$ 621.10 9,030.86 105.95 171.36 352.92 312.70 155.25 135.00 1,599.86
11,627.37 1,908.11
121.13

$ 715.40 4.00
----------------12.93 45.20 70.30 177.41
8.20

$ 621.10 $ 16.40

9,746.32

376.88

109.95

30.75

171.36

22.44

352.92

39.78

312.70

23.60

155.25

31.05

147.95 Over 12.93

1,645.06

828.23

11,697.67 5,425.50

2,085.52

892.13

129.33

96.67

TOTALS

- -- -- --------

- ------ ---- -- $34,945.61 $26,141.61 $1,033.50 $27,175.11 $7,770.50
PROFIT

STATE HIGHWAY BOARD OF GEORGIA STATEMENT OF EXPENDITURES-CONVICT WORK Camp No. 1, County Union, Proj. F-984, Consolidated Report.
Period, July 1 to December 1

DIRECT COST-SALARIES:

"\Varden, Foremen, Clerk --------------$ 2,779.00 Equipment Operators _________________ 105.00 Shop Employes, Field _________________ 3,456.16 Other Skilled Labor___________________ 139.81 Common Labor _______________________ 670.96

$ 7,150.93

EQUIPMENT EXPENSE

Automobile Maintenance:

Tires and Tubes_______________________$

Accessories, Parts, Repairs____________ _

Miscellaneous Expense ______________ _

5.40

5.40

Road Equipment Expense :
Gas and Oil_ _________________________$ 2,215.98 Tires and Tubes______________________ 137.98 Accessories-Parts, Repairs ___________ 1,466.55 Miscellaneous Expense ________________ 47.08

$ 3,867.59

COMMUNICATION SERVICES Telephone and Telegraph _________________ _ Postage ---------------------------------

$ 3.98 17.00

HEAT, LIGHTS, POWER, WATER RENTS
Road Equipment _________________________$ 23.50 Warehouse-Blue Ridge, Ga. _____________ _ 40.00 $

63.50

TRAVELING EXPENSES
Subsistence Transportation:
Gas and Oil -------------------------Mileage and Auto Hire ________________$ Other Transportation ________________ _

$ 41.35
51.60 62.00 $ 113.60

17

SUPPLIES AND l\IATERIALS Office Supplies :
Printed Forms and Stationery _________ $ 26.99 Sundry ------------------------------ 10.54 $

37.53

Camp Supplies: Fora_g~ and Supplies, Animals ________$ 3,047.88 Prov1s10ns ___________________________ 2,735.:rn Other Camp Supplies_________________ 1,669.:39

$ 7,452.66

Tools--------------------------------------------FMuaetleri-a-l-s---R-o--a-d-s--a-n-d--B-r-i-d-g-e-s-_-_-_-_-_-_-_-_-_-_-_-_-_-__-_-_-_-_-_-_-_--_ Explosives ________________________________ - -- -- - --
General Supplies ----------------------------------

209.96 136.90 6,506.60
316.68

SPECIAL AND l\IISCELLANEOUS Incidentals---------------------------------------- $ 164.15 Equipment Depreciation 5 Months_________________ _ 1,033.50
$27,175.11
Total Estimate for Period _____________________________ $34,945.61 Total Expenditure for Period _________________________ 27,175.11 Net Underrun for Period_____________________________ 7,770.50 Average Cost Per Man Feeding 52% Convicts Per Day ___ .32666 Average Cost Per Man Working 52: Convicts Per Day___1.2645 Average Cost Per Mule Feeding 26% Animals Per Day _____ .91925 Average Cost Per Mule Working 26~(-.; Animals Per Day ____ l.008

18

EQUIPMENT INVENTORY AS OF JUNE 30, 1930 CONVICT CAMP NO. 1, UNION COUNTY

1 Ford Touring Car, ::\Iodel T _______________________ $ 100.00

1 Caterpillar 60 Tractor .'.'Jo. PA760 ________________ _ 1,500.00

1 Ford Truck Ko. 15045340 ________________________ _ 1 White Truck No. 6192 ___________________________ _ 1 White Truck No. 5012B _________________________ _
2 Anvils-Crescent 200 lbs., 100 lbs. ________________ _

10000 280.00 400.00
23.00

1 Compressorc--Chicago Pneu. _____________________ _ 300.00

4 Cages-Convict ---------------------------------- 2,100.00

4 Chairs-Cane Bottom ---------------------------

4.00

1 Forge BS--------------------------------------1 Grader-Adams Road King No. 12 _______________ _ 2 Guns-Automatic 12 Ga. _____________________ _

8.00 400.00 60.00

9 Heating Stoves --------------------------------- 72.00

26 Sets Harness, Double ---------------------------- 280.00 27 1\Iules-17 Good, 10 Unseniceable ________________ _ 3,H00.00

3 Plo~~ ------------------------------------------ 45.00 1 Rock Crusher-Champion Xo. ;3 __________________ _ 1,700.00 1 Range Ko. 8 Imperial _________________________ _ 25.00 2 Revolvers, S. & \V. Spec. :is _____________________ _ 50.00

1 Stove w/ Cover;;-Centers and -water Box Xo. 0--24--C 181.00

2 Saddles-IIorse ---------------------------------2 Shot Guns-E-70--12--32" _________________________ _

40.00 29.00

2 Vise~, 6" --------------------------------------1 \Vagon-One-IIorse -----------------------------10 \Vagons-Army Escort __________________________ _ 10 \Vheelers ',I'. & ::\I. _______________________________ _

10.00 15.00 100.00 680.00

TOTAL ----------------------------------------$12,402.00 Depreciation on equipmrnt based on 20 per cent per year. Total for period of five months _______________________$1,033.50

19

EXHIBIT A

STATE HIGHWAY BOARD OF GEORGIA Cost Statement--Convict Work

Camp No. 2. County Stewart. Project F-947. Consolidated Report. 4 Months' Period, July 1 to Dec. 1, 1930

ITEM

UNIT

EST. ACTUAL ESTIMATED TOTAL EQUIPMENT

QUANTITY UNIT UNIT

TOTAL EXPEND!- DEPRECIA-

COST COST

COST

TURES

TION

TOTAL CosT

NET UNDERRUN

N)

0

Clearing and Grubbing Acres

9.733 75.00 49.98 $ 729.97 $ 482.63

$ 482.63 $ 247.34

Com. and Bor. Excv,-~ Cu. Yds. 43044.0

.30

.211 12,913.20 8,397.42 $ 912.96 9,310.38 3,602.82

Ditch 15" G.

EIx. cvP.ip-e-_-_-_-_-_-_-__-

" "
Lin. Ft.

512.0 82.0

.35 1.50

.275

179.20

.95

123.00

121.10 78.17

20.10 -----

141.20 78.17

38.00 44.83

18" " " " -------- " " 24" " " " -------- " "

330.0

2.00

1.30

660.00

428.73

256.0

3.00

1.890

768.00

485.66

30" "
S. C.

Su" rfac"ing-_-_-_-_-_-_-_-

" "
Cu. Yds.

310.0 1833.3

4.00 .50

2.630 1,240.00

.346

916.65

815.84 591.30

-------- ---43.11

428.73 485.66 815.84 634.41

231.27 282.34 424.16 282.24

GRirpassRinagp S_l_o_p_e_s__-_-_-_-_-_-

Sq.
"

" "

16680.0 630.0

Overhaul Excv. ______ Unit Yds. 61886.0

.05 1.00
.015

.035

834.00

.701

630.00

.014

928.29

536.55 405.15 602.25

40.75 36.68 43.12

577.30 441.83 645.37

256.70 188.17 282.92

Force Account -------

447.25

284.70

284.70

162.55

TOTALS ------------ --------- ---- ------ - ------ -------- $20,369.56 $13,229.50 $1,096.72 $14,326.22 $ 6,043.34
PROFIT

EQUIPMENT INVENTORY AS OF JUNE 30, 1930 CONVICT CAMP NO. 2, BROOKLYN, GA.

l. Ford Touring Car, Mod. .A-2027972_______________$ 400.00

1 Ford Touring Car, Mod. T-14286071_ ___________ _ 100.00

1 Caterpillar 30 Tractor PS3130 ___________________ _ 1,900.00 1 FWD Truck No. 13193 __________________________ _ 800.00 1 White Truck No. GK 91116 ______________________ _ 400.00 2 .Anvils 100 lbs., 97 lbs. __________________________ _ 12.00

3 Cages Convict ---------------------------------- 1,350.00

2 Concrete Buggies ------------------------------- 50.00

101 CChoanicrrsete--l-\-'I-i-x-e-r---R-e-x--N--o-. -1-0-4-2-6-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_--_

15.00 800.00

1 Delco Light Plant ------------------------------ 200.00

11 EDnrgilinl-ePoHsotist--l-\I-a-c-h-in-e--__-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_--_

15.00 40.00

1 Forge-BS Portable ----------------------------- 15.00

1 Grader-Adams, 8' ------------------------------ 300.00 1 Grader-Leaning Wheel No. 2937 ________________ _ 700.00

5 Shot Guns, 4 Good, 1 Broken_____________________ _ 60.00

2 Sets Harness-Lump ---------------------------- 20.00 24 Sets Harness-Complete, Good __________________ _ 286.00

3 Heaters-Small --------------------------------- 21.00

441

HMourlsees--2-0--G-o-o-d-,--2-5--B-a-d--_-_-_-_-__-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_--_

100.00 6,824.00

4 Plo,vs -----------------------------------------1 Range-Majestic --------------------------------

90.00 10.00

2 Saddles-Horse --------------------------------- 20.00

1 Trailer ----------------------------------------2 Vises, 4" ---------------------------------------

20.00 6.00

1 Wagon-One-horse ------------------------------ 16.00

4 Wagons-Thornhill ------------------------------ 400.00 6 wagons-Army Escort __________________________ _ 30.00

21 wheelers, 9 Western, 4 T. & 1\1., 8 Yancey ________ _ 1,451.00

TOTAL________________________________________ $16,451.00

Depreciation of equipment based on 20 per cent per year. Total for five months __________________________$ 1,096.72

21

STATE HIGHWAY BOARD OF GEORGIA Cost Statement-Convict Work

Camp No. 3. County Murray. Project Various. Consolidated Report. 5 Months' Period, July 1 to Nov. 30, 1930

ITEM

UNIT

EST. QUANTITY UNIT
COST

ACTUAL ESTIMATED TOTAL EQUIPMENT

UNIT

TOTAL EXPENDI- DEPRECIA-

COST

COST

TURES

TION

TOTAL COST

NET UNDERRUN

Clearing and Grubbing Acres

2.5 90.00 75.00

$ 225.00 $ 187.50 ------ $ 187.50 $ 37.50

Nl Nl

Com. and Bor. Excv. __ Solid Rock Excv. _____

Cu. Yd.
" "

Ditch Excv. --------- " "

Shoulder Constr. ----- Miles

13,184.0 13,171.0
990.0 2.5

.30

.221296

.90

.57392

.50

.292

250.00 205.47

3,955.20 11,853.90
495.00 625.00

2,917.57 $ 7,559.12
277.20 489.47

228.28 531.40
12.10
24.21

3,145.85 8,090.52
289.30 513.68

809.35 3,763.38
205.70 111.32

Chert Surfacing ----- Cu. Yds. 1,163.0

.70

.50075

814.10 582.37

28.24

610.61

203.49

Chert Surfacing ----- " " 14,438.5

.60

.44483 8,663.10 6,422.70

583.17 7,005.87 1,657.23

Chert Overhaul ------ Sta. Yds. 1,200.0

.08

.07

96.00

84.00 ------

84.UO

12.00

Class A Concrete ____ Cu. Yds.

56.39 20.00 15.6823 1,127.80 884.33

15.00

899.33

228.47

Class B Concrete _____ 18" G. I. Pipe ________

" "
Lin. Ft.

288.0 20.00 76.0 1.80

15.6196 1.66

5,760.00 4,498.45 136.80 126.16

38.00 ------

4,536.45 126.16

1,223.55 10.64

24" " " " -------- " "

141.0 3.00 2.59

423.00 365.16 ------

365.16

57.84

Reinforcing Steel ---- Lbs. 41,687.0

.06

.04216 2,501.22 1,757.50 ------ 1,757.50

743.72

Structural Steel ----- " 124,800.0
16 Lb. Tr. Piling ______ Lin. Ft. 2,067.5

.05

.038766 6,240.00 4,838.00

1.10 1.03

2,274.21 2,127.98

-----------

4,838.00 2,127.98

1,402.00 146.23

16 Lb. Tr. Timber ____ F. B. M. 12,500.0 100.00 90.16

1,250.00 1,127.00 ------ 1,127.00

123.00

Cut-Off Piling ------- Lin. Ft.

263.0

.50

.50

131.50 131.50 ------

131.50

------

No. 1 Excv. --------- Cu. Yd.

39.0 3.00 2.282

117.00

90.00 ------

90.00

27.00

TOTALS ________ -------- ------ ---- ------- -- ------- - $46,688.83 $34,466.01 $ 1,460.40 $35,926.41 $10,762.42 PROFIT

STATE HIGHWAY BOARD OF GEORGIA STATEMENT OF EXPENDITURES-CONVICT WORK

Camp No. 2, County Murray, Project Various, Monthly Consolidated Report. Five Months' Period, July 1 to November 30.

DIRECT COST-SALARIES: \Varden, Foremen, Clerk ______________$ 3,322.88 Equipment Operators _________________ 125.80 Shop Employes, Field ________________ _
Other Skilled Labor __________________ 4,761.90
Common Labor ______________________ 399.50

$ 8,610.08

EQUIPl\IENT EXPENSE Automobile Maintenance:
Tires and Tubes_______________________$
Accessories, Parts, Repairs_____________ Miscellaneous Expense ________________

19.76
100.73 $

120.49

Road Equipment Expense:
Gas and Oil -------------------------$ 2,566.52 Tires and Tubes______________________ 58.07 Accessories~Parts, Repairs ____________ 1,116.45 l\iiscellaneous Expense ________________ 36.56

$ 3,777.60

COMJ\IU~ICA'l'ION SERVICES Telephone and Telegraph ________________ _ Postage----------------------------------

$ 111.23 2.00

SUPPLIES AND MATERIALS

Office Supplies :

Printed Forms and Stationery _________$ 4.85

Sundry ------------------------------

$ 4.85

Camp Supplies: Forage and Supplies, Animals _________$ 4,507.25
Provisions --------------------------- 3,596.90 Other Camp Supplies__________________ 2,190.74 $10,294.89

Tools -----------------------------------Fuel ----------------------------- ------Materials-Roads and Bridges_____________
Explosives ------------------------------General Supplies ________________________ _

$ 151.60
11,346.77 46.50

SPECIAL AND l\IISCELLANEOUS

Incidentals-Equip., Depreciation, 5 Months__

$ 1,460.40

Total Estimate for Period__________________ $46,688.83 $35,926.41

Total Expenditure for Period _______________ 35,926.41

Net Underrun for Period _________________ 10,762.42

Average Cost Per l\:Ian Feeding 69 Convicts Per Day________ .308

Average Cost Per Man Working 69 Convicts Per Day______ .920

Average Cost Per Mule Feeding 37 Animals Per Day______ .850

23

EQUIPMENT INVENTORY AS OF JUNE 30, 1930, CONVICT CAMP NO. 3-CHATSWORTH, GA.

1 Ford Tudor Sedan No. Al73547 (W. M. Harris) -$ 300.00

1 Ford Phaeton No. A52389 (Jno. A. Carlock) ___ _ 225.00

1 Best 60 Tractor No. 4665-A1739 _______________ _ 1,200.00

1 Caterpillar 30 Tractor No. PS6549 _____________ _ 2,000.00

1 Chevrolet Truck No. 2083L __________________ _ 400.00

1 Chevrolet Truck No. 20830___________________ _ 400.00

1 Mack Truck No. 539-37 ______________________ _ 1,300.00

1 Packard Truck No. 22626 ____________________ _ 580.00

1 Air Compressor-Portable Air Hose and DrilL_'--- 200.00

1 Attachment-Backsloper _____________________ _ 30.00

21 AAnttvaiclsh,m1e0n0t-lSbsc.a, r8if0ielrbs-.-_-_-_-_-_-_-__-_-_-_-_-_-_-_-_-_-_-_-_-_-_--_

60.00 16.00

1 Blacksmith Outfit Complete___________________ _ 61.00

2 Camp Cars Mounted on Trailer Wheels _________ _ 6 Chairs-Cane Bottom ________________________ _

50.00 6.00

1 Concrete Mixer-Rex 2-Cylinder Eng. No. 237 ___ _ 200.00 2 Delco Light Plants___________________________ _ 400.00

1 Forge Hand Bellows_________________________ _ 1 Forge, Blacksmith___________________________ _

10.00 40.00

1 Grader-Russell 8' Spec. ______________________ _ 200.00

1 Grader-Russell Super-Mogul 12'______________ _ 200.00

3 Heaters-Coal ------------------------------- 40.00 29 Sets Harness, Double, Complete_______________ _ 600.00

1 Horseshoeing set, complete___________________ _ 15.00

6 Plows, Miscellaneous_________________________ _ 140.00

371 R~Iaunlegse, -L--a-rg--e-_-_-_-_-_-_-_-_-_-_-_-_-_-__-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_--_

5,000.00 35.00

34 W Scargapoenrss--HSaligpy -1----Y--d-.-_-_-_-_-_-_-_-_-_-_-_-__-_-_-_-_-_-_-_-_-_--_

26.00 300.00

34 Wheelers, T. & M. and Western _______________ _ 1,091.00

Sub-total --------------------------------$15,125.00
Equipment located at Cass Station and Assigned to J no. A. Carlock:
1 Farquhar Boiler No. 17970_____________________ 300.00 1 Rock Crusher, Russell Portable with rollers_____ 2,100.00

TOTAL -------------------------------$17,525.00 Depreciation based on 20% for year. For a period
of five months _____________________ $1,460.40

24

EXHIBIT B
ROAD EQUIPMENT
1 Caterpillar "60" Tractor---------------------$ 4,325.00 4 Caterpillar "30" Tractors at $2,448.00 each_____ 9,792.00 4 4-Yard Hydraulic Dump Trucks at $4,641.00 each 18,564.00 1 Light Truck, cab and stake body_______________ 752.76 1 Ford or Chevrolet Coach for Warden _________ 750.00 4 Trains (3) 1-Yard Wheeled Scoops at $2,355 each 9,420.00 1 12' Road Grader with Back Sloper and Scarifier_ 2,462.00 1 7-Point Heavy Road Ripper------------------- 630.00 1 No. 69 Wiard Heavy Rooter Plow______________ 64.35
Sub-total ________________________________$46,760.11

CAMP EQUIPMENT AND SUPPLIES

5 Steel Convict Cages at $960.00 ________________$ 4,800.00 2 28'x40' Tarpaulins at $91.00 _________________ 182.00 4 16'x16' Tents and Flies _____________________ 348.00 1 Cooking Range and Utensils __________________ 300.00
1 10 H. P. Upright Boiler Heating Unit ________ 105.00 2 500 Gallon Water Tanks at $96.24_____________ 192.48

1 250-pound Ice Box -------------------------- 150.00 8 12-gauge Shot Guns at $39.40 ________________ 315.20

4 S. & W. Revolvers at $26.00___________________ 1 Delco Light Plant and Water Pump___________ 1 Typewriter (office) _________________________

104.00 650.00
97.00

2 Tables ------------------------------------1 Field Desk --------------------------------1 Set Blacksmith Tools _______________________

8.00 65.00 200.00

1 Dozen Chairs ------------------------------
3 Small Heaters -----------------------------90 Cot Pads at $3.20 --------------------------10 Steel Cots at $3.75___________________________ 10 Mattresses at $15.00 ________________________

6.00
9.00 288.00
37.50 150.00

220 Blankets at $3.50 --------------------------- 770.00 33 Dozen Sheets at $9.96 _______________________ 328.68

100 Pillows at$ .75 ----------------------------16 Dozen Pillow Slips at $3.48 __________________ 1 Dozen Water Buckets _______________________

75.00 55.68 12.00

3 Fire Extinguishers at $10.50 _________________ 31.50

2 Grindstones -------------------------------12 Dozen Spoons at $1.50 ______________________ 10 Dozen Forks at $1.50 ________________________ 10 Dozen Knives at $1.50 ______________________ 10 Dozen Cups at $1.50 ________________________
10 Dozen Pie Plates at $1.50 _____________________

5.00 18.00 15.00 15.00 15.00
15.00

: Dozen Lanterns ----------------------------
10 Dozen Towels at $1.65 _______________________

6.00 16.50

1 Dozen Wash Tubs --------------------------1 Dozen Wash Boards ________________________
: Dozen Wash Pots, 30 Gal., at $7.30 each________

12.00 9.00
43.80

Sub-total _______________________________ -$ 9,450.34

25

CONVICT SUPPLIES
90 Sets Chain Shackles at $ .50 -----------------$ 15 Dozen Striped Pants at $20.00 --------------15 Dozen Striped Jackets at $20.00 ____________ _ 15 Dozen Union Suits at $8.25 __________________ _
10 Dozen Pairs Gloves at $4.00 -----------------15 Dozen Pairs Socks at $1.10 ------------------15 Dozen Top Shirts at $20.00 _________________ _
9 Dozen Belts a $4.00 -----------------------8 Dozen Hats at $16.50 ______________________ _
90 Pairs Shoes at $2.65 ------------------------8 Dozen Raincoats at $36.00 ___________________ _
20 Pairs Rubber Boots at $5.25 ________________ _

45.00 300.00 300.00 123.75
40.00 16.50 300.00 36.00 132.00 238.50 288.00 105.00

Sub-total---------------------------------$ 1,924.75

TOOLS 2 Dozen 5-lb. Axes with handles, at $33.00 ________ $ 2 Dozen Picks with handles, at $12.00 __________ _ 6 Dozen S. H. Shovels with handles, at $16.50 ____ _ 2 Dozen L. H. Shovels with handles, at $16.50 ____ _ 2 Dozen Mattocks with handles, at $18.00_______ _
6 Hand Axes at $1.50 -----------------------6 6' Cross-Cut Saws at $7.50 _________________ _
2 Hand Saws at $3.50 ------------------------1 Saw Set ----------------------------------2 Post Hole Diggers at $1.50 __________________ _
1 Small Set Carpenter Tools -----------------3 Pinch Bars at $1.00 _______________________ _ 3 Crow Bars at $1.00 ________________________ _ 2 18" Stilson Wrenches at $3.50_______________ _ 2 12" Stilson Wrenches at $3.50 _______________ _ 2 12" Monkey Wrenches at $1.50 _______________ _ 2 6" Monkey Wrenches at $1.50 ________________ _
. Dozen Wheelbarrows at $95.00 _______________ _
1 Pair," Bolt Cutters _______________________ _
122 WBursehckHinogokBs aarts-$-1-.7-5--_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_--_ 6 Claw Hammers at $1.00 ___________________ _ 6 10-lb. Sledges with handles at $1.00 __________ _ 3 50' Metallic Tapes in case at $2.25 ___________ _ 1 50' Steel Tape in case ______________________ _
1 100' Chain---------------------------------

66.00 24.00 99.00 33.00 36.00
9.00 45.00
7.00
2.00 3.00 100.00 3.00 3.00 7.00 7.00 3.00 3.00 47.50 7.00 1.00 21.00 6.00 6.00 6.75 3.25 4.00

Sub-total --------------------------------$ 552.50 1 Gas Shovel (1 yard) ------------------------$ 8,000.00
TOTAL __________________ ----------------$66,687.70

EXHIBIT C "November 4th, 1930. Subject-Convicts-Legal Opinions. "Hon. J. W. Barnett, Chairman, State Highway Board of Georgia, State Capitol, Atlanta, Georgia. Dear Captain Barnett:
26

Pursuant to your request as to law on the use of convicts by the
Prison Commission, and as to whether or not the State High-
way Board is under any obligation to use convict labor, I beg to
make the following report which embodies my understanding of
the law. The Prison Commission was created by the Georgia
Legislature in the year 1897. Under the Acts of 1903, page 65,
all convicts, whether sentenced for felony or misdemeanor
crimes, and all convict camps were placed under the direct su-
pervision of the Prison Commission. Under the Acts of 1908,
all male felony convicts were required to be apportioned among
the several counties of the State according to population of such counties, said apportionment to be made annually and based upon the latest United States census. This law was subsequently changed, in the year 1916, to provide for the apportionment on the basis of the total number of miles in length of all public roads existing in the several counties respectively on January 1, 1916 (See Section 1207 of the Penal Code of Georgia). There could be no doubt about the fact that the management of the convicts was left entirely with the Prison Commission, and there is no duty on a county to use its convicts or to use any convicts unless it so elects. In Section 1207 of the Penal Code of the State of Georgia is to be found the following provision: 'The Prison Commission shall communicate with the county authorities of the State and ascertain those counties desiring to use convict labor upon their public roads and said counties shall, through their proper authorities, advise the Prison Commission, in writing, whether they desire to use such labor upon their roads, and the number desired.' It is my understanding that this law was passed in 1916. The same law applies to misdemeanor convicts with reference to disposition by the Prison Commission, as applied to felony convicts (See Section 1216 of the Penal Code). Section 1209 of the Penal Code contains the following provision: 'The Prison Commission is hereby authorized, when in funds, to purchase road-working machinery, appliances, and teams, and to equip and organize road-working forces, the same to be used for the construction and repair of public roads, bridges, or other public works in the counties not using their convicts under the foregoing sections, when requested by the authorities of such counties so to do; the work to be done, as far as practicable, in proportion to the convicts which would have been assigned to each county in case the county had worked its convicts.' There is also a provision whereby the Prison Commission may hire its convicts to municipalities in case any convicts should be left on the hands of the Prison Commission, the price stated in the law being $100.00 per capita per annum (see Section 1211 of the Penal Code). From the above references, it is very clear that the whole duty for working convicts rests upon the Prison Commission and there is no duty upon any county to use its quota of convicts. Under Section 1217 of the Penal Code, it is provided that the net proceeds arising from the disposition of convicts to municipalities, or otherwise, shall be used by the Prison Commission either in working roads in counties which
27

have no convicts or, in case the Prison Commission does not de-
sire to work convicts in certain counties of that kind, then the duty is on the Prison Commission to pay the pro rata part of said net proceeds to the counties on the basis of their quota of convicts. In the year 1924, the Georgia Legislature passed the fol-
lowing law: 'ALLOTMENT OF CONVICTS BY PRISON COM-
MISSION. The said Highway Board is authorized to apply to the
Prison Commission of Georgia for the quota of convicts that
any county may be entitled to, which is not working its convicts
on its public roads, the said convicts to be worked as far as possible in the Senatorial District in which the county is located for
whose convicts request may be made by the State Highway
Board, and it shall be the duty of the Prison Commissioner to
allot said convicts to the Highway Department for the purpose of constructing said public roads and to appoint such wardens,
physicians and guards as may be necessary to carry out this purpose. Acts 1924, page 119. Michie's Code, 1926, Sec. 828 (24) .'
'CONTRACTS OF COUNTIES WITH HIGHWAY BOARD FOR USE OF CONVICTS. Any one or more counties may contract with the Highway Board to use their quota of convicts to which such counties may be entitled in the construction of any portion of the State-Aid Road System and the State Highway Board is hereby authorized to purchase such machinery and equipment as may be necessary for the purpose of equipping such road gangs as they may organize, and to pay the salaries of the wardens, physicians and guards as may be necessary to carry into effect the provisions of this Act. Acts 1924, page 119.' You will note that the above two sections are permissible only in so far as the State Highway Board is concerned. These facts certainly do not place any legal duty on the Highway Department to use these convicts unless they see fit to do so. This duty is placed on the Prison Commission of Georgia, and the law specifically designates ways in which convicts may be used by municipalities, by counties, or by the State Highway Board. Under Section 1214 of the Penal Code, the very broadest authority is given to the Prison Commission to organize and equip any industrial enterprise that they may deem advisable for manufacturing implements for use on the State Farm or on the roads of the State, or for making shoes or clothing for the inmates of State Institutions or convicts; but the provision is placed in this section that none of these articles shall be offered for sale to the public. I, therefore, beg to advise that it is my very decided opinion that the State Highway Board is under no legal duty to employ convict labor unless they see fit to do so. Very truly yours, State Highway Board of Georgia, By S. M. Mathews, Secretary-Counsel.''
A conference is being had between the Prison Board and the Highway Board to see if it is possible to make some definite arrangements in regard to the matter, the thought being to create two additional camps to those already provided by the Highway Board.
28

A request was also made of Mr. George A. Fisher, Superintendent of the Auto Tag Plant at the State Farm at Milledgeville, which plant was established two years ago, to ascertain, if possible, what line of work the convicts who would be in possession of the Prison Commission and held on the Farm could do, in keeping with the law, and at the same time serve the institution and save the expense of the upkeep of these convicts by the State, and also bring a profit. His reply, under date of December 27th, is as follows: "Hon. L. G. Hardman, Governor of Georgia, Atlanta, Ga. Dear Sir: At your request I am hereby respectfully submitting various suggestions in connection with the establishment of industrial plants at the Georgia State Prison Farm. These suggestions are based upon my twelve years' experience in installing and operating similar plants in various state penitentiaries throughout the United States. 1. Funds should be available and set aside sufficient to install and operate such plants as deemed advisable at the State Prison Farm in Milledgeville, Ga. One-half of this appropriation should be made available as soon as possible and the other half six months thereafter. 2. The automobile license tag plant now in operation at the Georgia State Prison Farm should be transferred from the Department of the Secretary of State to the new Industrial Department. 3. The Industrial Department should pay to the Prison Commission of Georgia a suitable sum per day for all convict labor used in the various plants. 4. The Prison Commission of Georgia is expected at all times to furnish the Industrial Department an adequate amount and suitable type of convicts so that the various plants may be operated to the best advantage. Industrial workers when trained in their duties shall so far as possible be kept permanently assigned to such and not transferred to other units of the prison system except when deemed advisable and is agreeable to botn the prison officials and the Superintendent of Industries. 5. The Industrial Department shall furnish all the material needed to remodel old buildings and erect new buildings for the purpose of housing the industrial plants contemplated. The labor for such construction work shall be furnished by the Prison Commission of Georgia free of charge. 6. That the various industrial plants shall be conducted strictly under the 'State Use' plan. Products are to be manufactured for use of the other departments and institutions of the State and that these departments and institutions shall be required to purchase same. 7. The Industrial Department should be allowed to use the revenue derived from its products to such an extent that it will be enabled to make itself and the Georgia State Prison System self-supporting. Respectfully submitted, Geo. A. Fisher, Superintendent, Auto Tag Plant."
I shall submit to you a study of the various lines of work
which it is possible for the convicts at Milledgeville to engage
in-in keeping with the Georgia law, which it seems will save a
considerable sum of money to the State of Georgia in such things
as road signs, concrete culverts, shoe industry, textile industry,
29

machine shops and furniture department, which can be operated with a saving to the State of approximately 15 to 40% on the various lines of activity. Detailed information of each of these is herewith attached and will be furnished to you during your
study of a better handling of the convicts of the State. It is encouraging to note that your present Tag Plant is saving to the state $17,000.00 a year; and it is believed with the new tagssaving in metal and in the method in which they are required
to be placed on the car, there will come to the State of Georgia an additional sum over what has been received of approximately $200,000.00 per year. I might mention in this connection that
on account of the method of the request for tags, which has been gotten out by the Secretary of State, there will be saved the expense of something like 150 operatives for three months, which will be quite a saving to the State in the sale and distribution of these tags.

STATE OF GEORGIA

SUMMARY OF INDUSTRIES FOR STATE FARM

Approximate

Industry

Cost

Building Employs Saving or

Size

Men

Profit

Road Sign -------$15,250.00 25x 40

10

25%

Concrete Culvert__ 35,000.00 20x 40

20

35%

Shoe Industry ____ 15,000.00 40xl00

65

20%

Textile Industry __ 40,000.00 40x150

60

15%

1Vachine Shop ____ 8,000.00 30x 40

10

40%

Furniture Dept. __ 35,000.00 40x200

80

30%

:Men E1nCost Installed ployed

Amt. Paid Prison Com.
for Labor Per Year

Road Signs -------------$ 23,250.00 10 $ 3,000.00

Concrete Culvert -------- 35,000.00 20 Shoe Industry ___________ 15,000.00 65

6,000.00 19,500.00

TE:xtile Industry -------- 40,000.00 60

18,000.00

Furniture Industry ------ 35,000.00 80

24,000.00

Machine Shop ----------- 8,000.00 10

3,000.00

Tag Plant -------------- 30,000.00 Envelope Plant --------- 3,000.00

25

7,000.00

15

4,500.00

-----

$156,250.00 285 $85,000.00

Running capital _________ 93,750.00

Net ReYenue for State
$ 10,000.00 18,000.00 21,000.00 10,000.00 15,000.00 3,000.00 17,000.00 10,000.00
$104,000.00 85,000.00

Appropriation __________ $250,000.00 Total revenue ---------$189,000.00

REPORT OF THE PRESIDENT TO MEETING OF EASTERN-
SOUTHERN CONFERENCE ON STATE INSTITUTIONAL
LABOR, DECEMBER 15, 1930, HELD AT SIR WALTER
HOTEL, RALEIGH, NORTH CAROLINA
In approaching the subject of the expansion and realignment of industries, it is necessary to take into account, certain factors which are inherent in a prison and industrial system. It is well to have in mind the objective for which the prison system was created. It is obvious that the good of the community is the prime object. Its purpose is to retain those in custody who are a perpetual or continuing menace to their community. Its purpose also is to correct the man and woman who have been convicted of crime with the purpose of sending them back into the community with at least a fighting chance to earn an honest livelihood. In the endeavor to carry out these missions, the state official must always remember that it is his duty to keep down the expense to the already over-burdened tax-payer.
Administrative Control:
We have taken the subject, first, from the standpoint of business administration. Without a business control, it is impossible to effectively or economically administer the institutions. Control and responsibility are necessary if your institutional system, both in penal and charitable institutions, are to meet the purpose for which they were designated.
A study is under way which will give you the data on centralized control as it is now used in various states with notations as to advantages of each of the systems used. The National Committee on Prisons and Prison Labor has assembled the majority of this data. Its revision to date in compliance with recent laws and its success or non-success is being studied. This material should be available for each of the states within a comparatively short period of time.
Classifications:
It is the belief of the officials of those states that have classified the prisoners on their admission to the institution, that large savings, both in human beings and in further expenditures of money, can be effected. In fact, this has proved to be true where this phase of prison management has been under way for sometime.
Types of Prisons:
It appears that there are five types of prisons, which are as follows:
(1) The Maximum Securitv Prison for the hardened offender, the defective, the drug addict, the chronic alcoholic, the repeater, and for those with long terms.
(2) The Minimum Security Prison, for those who are mentally and physically sound or comparatively so, and who, in the
31

opinion of the officials, the psychologists, and psychiatrists, are sufficiently trustworthy to be housed in this type of prison.
(3) There is also a middle institution where men can be housed securely at night and allowed to work out in the open during the day. This is known as the Medium Security Prison.
(4) The fourth type is a combination to be used in smaller states or where it is advisable to have a combined industrial and farm prison.
(5) Temporary barracks and road-camps.
A very large amount of material has been gathered and will be checked with the officials of various states where some formulated form of classification is now in evidence. This data will be supplied to you as it is definitized and verified to the point where it will be of actual use to you.
Prison Buildings:
A study was completed by the Architectural Record last spring in cooperation with the National Committee on Prisons and Prison Labor. This study laid the foundation for the work that is being undertaken. The National Committee on Prisons and Prison Labor, and a number of people are working on this subject and a full report is promised by April which will give you suggestive data for prison construction at a minimum cost. This material should be of great value to your prison administrators and state consulting architects in the construction of prison buildings.
Maintenance Industries:
A study is under way in regard to the maintenance industries or services which go to make up the conduct of the prison. Reliable data is being secured from a number of states with the purpose of making available to you better methods of conducting institutions at the minimum cost together with a tye-up of your work program. It is possible through such industries to give a large amount of valuable training to the prisoners in such industries or services without increased cost and in many institutions a marked saving.
These subjects have been brought to your attention, first as they are all a part of the plan to be developed in several states, since with the growth of the prison and industrial population, it is necessary that they be handled in a business-like way, and to meet the unusual and unnatural conditions which come from incarceration or residence in an institution. They merit your very careful consideration.
You have received a number of questionnaires. We know what a difficult task it is to answer the questionnaires and to get institutions to answer them. The fact that many of you have not been able to secure the information should illustrate to you or bring home to you the necessity for a greater control. Some of the questionnaires which have been asked for, may be difficult to answer, but it is our belief that they all tend to secure the basis on which we must work. The purpose has been to find
32

out: (1) The institutional population which you might supply with goods. (2) The commodities which were actually purchased by your State which might be manufactured in prisons and raised on prison farms. (3) The amount of available prison labor for which you must find work and which would be available for some phase of productive occupation.
From the questionnaire which you have been receiving, it is evident that in many states, that a large farm expansion is possible and advisable. It has been clearly demonstrated that there are large fields for work in such enterprises as reforestation, the improving, clearing and draining of public lands and in many cases, increased highway construction. These matters all take ingenuity, courage and perseverance, but in them is an excellent field for prison labor.
Centralized Purchase:
Those of you who have had the questionnaires in regard to the commodities which have been raised and produced, and who do not have a strong centralized purchasing department, will realize that you are paying all sorts of prices for commodities. One need only compare the table of one institution and another to find that the divergence in price is marked and unreasonable. When you were dealing with a few prisoners and a few people in your insane, epileptic and tubercular hospitals, the matter was not so serious, but with the great increase of institutional population, you can readily realize that a more business-like system will have to be adopted than the ones under which many of you are working.
The Eastern-Southern Conference on State Institutional Labor has the cooperation of a special committee of the National Association of Governmental Purchasing Agents of which Mr. Walter Kirkman, of Maryland, is chairman. Mr. Kirkman has been at our previous meetings and would be with us today if it were not for the necessity of remaining in Baltimore to complete the budgets to be presented to the coming legislature. It is our belief that, with the material available and to be gathered by Mr. Kirkman, we will be able to give you the results of the best experience in the country. We trust that you realize the magnitude of the task which is being undertaken by the Eastern-Southern Conference, the New England Conference and those other states which have signified their desire to join in this endeavor. We are all primarily interested in finding more work for prisoners. The office of the National Committee on Prisons and Prison Labor has in process of compilation lists of all kinds of goods which are used by institutions throughout the United States. This list is being broken down into shop functions and should be a guide to what sort of products may now or later be manufactured in our penal institutions.
. This office knows today certain of the products which are used In large quantities. You have geographic and climatic and industrial conditions which enter into the decisions which you are to make for the kind of products you wish to produce and
33

manufacture. If this gathering can at least formulate in rough the particular products which in your wisdom you believe can be manufactured to advantage in your state, you will be able to make rapid progress in finding out whether those industrial articles and farm products can be economically produced and disposed of.
Mapping of Industries for Sta.tes and Localities:
In order to forecast adequately the kinds and amounts of manfactured produced goods, a questionnaire has been sent to the various states. Certain states have replied in whole or in part. Certain others have not made out these questionnaires. The office has been tabulating the returns and is making progress available. This is a very large job. The results obtained are of very considerable value. In addition to the value which this material will have for this conference is the bringing to light of certain things in regard to state purchasing which has been most interesting to the states making out the questionnaire. It has been in effect, taking stock of the situation. As we receive more of these questionnaires, we will be able to better forecast what may be undertaken. This is in reality a finding of a probable and possible market for institutional manufactured and produced goods. We are dealing with large units, and if accurate results are to be obtained, we must have the data from the several states.
Standards:
For the benefit of the institutions who are purchasing goods from any source, standards are vital. If you are purchasing in large quantities and are ordering hospital beds of fifty different varieties, the price that you pay for each variety is high. If on the other hand your penal institution is manufacturing these beds, your productive schedule and your various industrial problems are of a most difficult solution. 'There is no reason why standards cannot be adopted covering the various lines of material you use and manufacture. Your office in cooperation with the Associates for Government Service, Inc., will undertake the development of standards as funds will permit. Proper standardization of goods is most important to your state as it is to all others. Again it should be realized that this is a vast undertaking and reports will be sent to you as soon as the data necessary can be compiled in whole or in part.
Disposal of Goods:
A state in undertaking the manufacture of goods for consumption by state institutions must keep in mind that the goods produced must be disposed of. This is true whether or not there is a mandatory legislation compelling other institutions to buy, as a release is always necessary for goods which cannot be manufactured in penal institutions. The product manufactured must be of good quality and style; the price must be right and then someone must bring this to the attention of the buyer whether it is in your state or another. The Associates for Government
34

Services, Inc., as you know, is a non-profit making organization. This organization should be developed to assist you in your sales problems within your State and also for the selling to institutions in other states. This is a most important function and a necessary part of your industrial program.
Individual State Surveys:
This office is gathering data in regard to each of the states in the Eastern-Southern Conference. This data will form the foundation of a state survey which will be sent you for revision and correction as funds are available. A representative of the Eastern-Southern Conference should be sent to your State to amplify and complete such a survey. It is believed that the summation of the information contained will be of great value to you in the presentation of data to your legislature with possible plans as to what you can do under the given set of conditions presented in your state. This is one of the eventual aims of this office.
Legislation:
It is presumed that, if the facts are before you, you .will desire to work out a plan for your own locality and introduce certain legislative measures to carry out such a program. Legislation enacted by the several states should be placed at your disposal in order that you may have the successful experience of others to assist you in making your own plans.
The purpose of this report is to cover the work which is under way and to indicate the plans for the future. A great task is before us and work will be carried out as rapidly as funds available will permit.
STATE OF GEORGIA SHOE INDUSTRY
December 26, 1930.
The size of this industry depends entirely upon the possible market for the finished product, and inasmuch as we do not have sufficient information on which to base our suggestions and recommendations accurately, we are assuming that your requirements would be similar to those of other States with approximately the same institutional population. We would recommend equipment designed to produce the nailed or McKay shoes, inasmuch as this would not require the complicated equipment necessary for the more fancy shoes, such as Goodyear Welt, and similar types of footwear.
The shoe industry would employ approximately sixty-five (65) men, and would require a building approximately 40'x100' or equal floor space. The building should be well lighted and ventilated, but otherwise the requirements for this industry can be very satisfactorily obtained in any present building.
The trade school value of the shoe industry has proven to be very high, and at the same time the savings or profits to be derived from the operation will amount to at least twenty per cent. This makes the shoe industry of particular value for
35

institutional operation due to the fact that it serve~ a twofold purpose, and that is, of giving vocational training, and at the
same time being self-supporting. The approximate cost of installation of a complete shoe fac-
tory would be in the neighborhood of fifteen thousand dollars ($15,000.00), which price includes complete erection and supervision, but does not include the cost. of building. Where the market for the finished product will keep the plant busy the year around this original installation cost can be absorbed in a short time from the profits derived from the sales of the shoes to various institutions.
A shoe industry of the size and type that we suggest would take care of the State's requirements to a large extent, and if it is found that more equipment is required in order to manufacture a more elaborate shoe, this can very readily be purchased and added to the original installation. However, we have found it to be advisable to start this industry on a relatively small scale, and expand to meet the exact requirements of the various departments with whom this business will be carried on.

Respectfully submitted,

GR:PM.

JOHN R. WALD COMPANY.

STATE OF GEORGIA ROAD SIGN INDUSTRY
December 26, 1930
The attached sheet covering equipment required for a road sign department suggested for the Georgia State Prison Farm at Milledgeville describes the machines necessary in order to manufacture highway markers and similar signs. The Power Squaring Shear, and the small Punch Press now being used for the manufacture of automobile license plates can be used for road signs as well, and therefore the road sign department could be installed in the same building, or convenient to the present auto tag department, so as to utilize the above mentioned machines to advantage.
The equipment suggested for this department will produce approximately seven hundred and fifty (750) to one thousand (1,000) signs per day, depending upon the size of the markers, as small signs can be produced in larger quantities than the larger markers, due to the bulkiness and space required to bake the signs. The road sign department will employ approximately eight to ten men, and all of the equipment can be installed in a floor space approximately 25'x30'. The only requirements for the room or building in which this equipment would be installed are that a good substantial foundation should be had for the large press, together with sufficient head room for this machine, which would be approximately 15 feet.
This industry can be operated profitably in an institution, and the fact that so many States are now engaged in this work, as well as the fact that a great number are seriously considering the installation of the necessary equipment, bears out the statement that the road sign department is a profitable installation.
36

The institution can manufacture the signs and obtain a verjt good financial return, and at the same time the State is assured of receiving a first-class product due to the absolute control which they have over the raw materials which go into the finished signs. This assures them of receiving signs which will remain on the highway the maximum length of time before it is necessary to take them in for refinishing. In this connection we feel the most important feature about the road sign industry is the fact that the State can refinish their own signs, saving the transportation charges to distant factories, and guaranteeing the use of only high-grade enamels for the coatings.
Finally, the road sign industry will give employment to inmates who otherwise would be idle, which, after all, is the prime factor to be considered when prison industries are contemplated. The manufacture of highway markers is a fascinating work for any young man, and the trade school value of the press operations, baking and coating operations should not be lost sight of.
Referring to the cost sheet attached, which was compiled by the officials of the Indiana State Prison, covering the manufacture of highway markers at that institution, will demonstrate the revenue to be derived from the operation of this department. The total cost of signs should be compared with the prices now being paid by the Highway Department, bearing in mind that the Indiana signs are manufactured from the very best materials obtainable. The cost sheet includes signs manufactured from galvannealed steel, as well as black steel, and in this connection we have found that the galvannealed steel signs are much more economical in the long run due to the rust-resisting qualities of the steel, which enables the signs to be refinished a number of times before they have reached their limit of usefulness. The cost of installing the necessary equipment for the manufacture of road signs at the Georgia State Prison Farm will be approximately fifteen thousand, two hundred and fifty dollars ($15,250.00). This price includes complete erection, together with necessary supervision at the institution.
You will" note that we have not included dies for the manufacture of road signs on the list of equipment. The cost of the dies will depend entirely upon the type of signs to be manufactured, and therefore it is difficult to quote accurate prices on this item. However, a number of the States have adopted the policy of classifying the die cost as material cost, and charging this expense directly to the cost of producing the markers. A very complete set-up of dies can be purchased at a cost of approximately seven thousand dollars ($7,000.00) to eight thousand dollars ($8,000.00), and this would include the main border dies for the majority of standard Federal Route markers, together with a quantity of inserts and small directional markers, so that your plant would be equipped to produce a fair portion of the Highway Department's yearly requirements.
In addition to the highway markers there are a large number of steel stampings, such as steel school desk sides, metal serving
37

trays, and other similar articles, which can be manufactured with this equipment. A careful investigation of the possible mar-
ket within the State would reveal a large number of items which could be manufactured at a profit to the institution, and a saving to the department that purchased them.

Respectfully submitted,

GR:PM Enclosures

JOHN R. WALD COMPANY.

EQUIPMENT REQUIRED FOR ROAD SIGN DEPARTMENT
Georgia State Prison Farm, Milledgeville, Georgia.
ITEM 1
1. Straight Sided, Single Crank Power Press, double back geared, with four piece steel tie rod frame construction, with hand operated friction clutch, with automatic stop. Distance bed to slide, stroke down and adjustment up 19". Bolster thickness 4". Special slide plate 7" thick. Area front to back, right to left 34"x30". Press to be arranged for individual belted motor drive, including bracket for the motor, with selfadjusting ball-bearing idler, including 15 H. P., 220-volt, D. C. motor, motor pulley, belt and remote control starter. Weight approximately 37,000 lbs.
ITEM 2
1. Complete Spray Outfit, to include compressor, spray booth, spray gun and all necessary hose and attachments.
ITEM 3
1. Special Road Sign Numeral Coating Machine. Equipped with individual motor drive, electro-magnetic chuck and one set of rubber rolls. Weight approximately 2,500 lbs.
ITEM 4
6. Special Oven Trucks. Malleable Iron Fingers for supporting all sizes of signs and markers. Equipped with two solid and two swivel wheels. All wheels are roller-bearing mounted.
ITEM 5
1. Indirect Gas Heated Oven for baking road sign finishes at temperatures up to 350 degrees. Walls, doors and roof will be of standard insulated steel panel construction with patented binding and finishing members. Oven to be equipped with gas heating chambers with vertical radiators and upper manifolds. Intake of fresh air will be through standard air inlets through combustion chambers. Exhaust will be through main top outlet equipped with swinging damper. Positive movement of air through oven will be provided for by means of a 24" disc fan mounted at rear of oven. Oven to be equipped with thermostat for automatically controlling the burners, so as to maintain a constant and uniform temperature at all times.
38

ACTUAL COST OF PRODUCING ROAD SIGNS BASED ON PRODUCTION PERIOD OF NINE MONTHS AT INDIANA STATE PRISON, MICHIGAN CITY, INDIANA. LABOR COST FIGURED AT ONE DOLLAR PER DAY PER MAN. ALL SIGNS MADE ACCORDING TO U. S. STANDARD SPECIFICATIONS

Galvan-

Black nealed

Name

Size Gauge Steel Steel

c,:i

<:.O Federal Route Markers __ l6"xl6" 18 $00.12 $00.199

Federal R. & L. Markers __ 9" x9:lh" 18

.0325

.059

Single Arrow ___________ 16" x8" 18

.0629

.10

Double Arrow ___________ 16" x8" 18

.0629

.10

De

t

our & Mark

eTr e m__p_.__S_h_i_e_l d____

16"

x16"

18

.12

.199

Number Plaques ________ 8"x10%" 18

.052

.085

24" Square, Round and

Octagon Markers ____ 24" x24" 16

.28

.451

Paint $00.055
.017 .028 .028
.055 .018
.116

Packing $00.009
.0044 .007 .007
.009 .0045
.02

Galvannealed Black

Steel

Steel

Labor TOTAL TOTAL

$00.008 .0065 .007 .007

$00.271 .0869 .142 .142

$00.197 .06 .1049 .1049

.008

.271

.197

.0065

.114

.081

.012

.599

.428

December 26, 1930. STATE OF GEORGIA TEXTILE INDUSTRY

The Textile Industry would be the most profitable installatior
for Georgia due to the fact that the raw material is so readily available. This Department would employ approximately sixty (60) to seventy-five (75) men, when operated on a small scale
which we would recommend as an initial installation, and would
produce woven fabrics at a saving of at least fifteen per cent to the State.
A small Textile Plant including a Weaving Department and Finishing Department would cost approximately forty thousand dollars ($40,000.00), and we estimate the floor space required
to be about 40' x 150'. The plant would include sufficient looms
to take care of a variety of widths of cloth, and would be designed to weave sheeting, denim, muslin, and other similar cotton fabrics. We would not include slasher equipment with a small
installation of this kind, but would recommend that the yarn be purchased, sized, and dyed from a reliable source. After the
Textile Plant had been installed and in operation for a short
time, so as to demonstrate the merits of this work, slasher equipment could be installed, so that the institution could size their yarns and effect a greater saving in this manner. For your
information a small slasher costs approximately twenty-five thou-
sand ($25,000.00), and therefore, we do not recommend this large outlay of money for a new industry of this size.
We would suggest a small Weaving Plant, which would cost
in the neighborhood of forty thousand dollars ($40,000.00), in-
cluded erection and supervision at the institution, but not included the cost of building. The building size 40' x 150' or building of equal floor space should have a good wood floor, and
be well lighted and ventilated. The equipment is not so large
but that it can be very readily installed on the second floor of a building, and therefore, no doubt, could be included in the
building with some other industry on the ground floor. An investigation of the purchases made by the various State
Departments covering cotton fabric would reveal the fact that a very large amount of money is spent annually for this type
of material, and inasmuch as the yearly purchases will not vary a great deal the institution would have a uniform market for
the product, and can operate the plant at a uniform production the year around.
Respectfully submitted,

GR:PM

JOHN R. WALD COMPANY.

December 26, 1930. STATE OF GEORGIA MACHINE SHOP DEPARTMENT
A Machine Shop and Repair Shop is a very essential Department for an Institution whether they have a large number of industries operating or not. It is especially essential where a building program is under way, as there are always small re-
40

pairs and new parts to be made up during the erection and construction work.
With this thought in mind we are 'recommending a small Machine Shop Department designed for repair work (general),
as well as automotive repairs. The vocational value of this Department cannot be stressed too strongly, and at the same time
the financial savings, or profits, to be derived will soon pay for the original cost of the equipment required. We would suggest
a room or building approximately thirty feet by forty feet with a good concrete floor, and ample lighting facilities.
This Department could employ about ten men, and is very
valuable from an educational standpoint, as it gives the men employed a splendid opportunity to learn a trade which is much in demand at the present time.
A small Machine Shop suitable for institutional installation would cost approximately eight thousand dollars ($8,000.00).
There are quite a number of small machines which could be included in this Department for tinsmith work, automotive repair
work, general machine shop, welding department, and various other similar machines which will increase the usefulness and revenue of this industry.

Respectfully submitted,

GR :PM

JOHN R. WALD COMPANY.

STATE OF GEORGIA FURNITURE DEPARTMENT
December 26, 1930.
A number of State Institutions in various sections of the Country have installed equipment for furniture factories, and several States are now contemplating this type of installation. It seems to be the consensus of opinion that the trade school value of a furniture department is very great in comparison to other industries, and therefore the furniture industry meets with greatest favor among prison officials.
The type of furniture factory to be installed depends largely upon the kind of furniture to be manufactured, and the possible market for the finished product. Where a high grade product is desired, and same should be produced on a production basis, it is essential that modern equipment be installed. However, where this industry is to be operated on a smaller scale, and the . furniture to be turned out will be relatively simple, it is not necessary to purchase high-speed production machinery.
Our recommendations in this direction are based on investigations which we have made in a number of State Institutions throughout the Country where this industry is now being operated successfully. However, it would be our suggestion that a survey be made of the possible market for the finished product before definite action is taken on this industry, so as to determine more accurately what class of furniture will be most in demand by the various Departments who will purchase the finished product.
41

A small furniture factory designed especially for institutional operation, and included equipment for the manufacture of desks
and tables, straight back chair, and other similar articles, would cost approximately thirty-five thousand dollars ($35,000.00).
This includes all of the equipment necessary, together with kiln for curing the wood, completely erected at the institution, to-
gether with expert supervision. The building required would be approximately 40' x 200' exclusive of the store house for un-
finished lumber, and the drying kiln. The furniture plant would employ approximately eighty (80) men, and judging from the
experience of other institutions, we estimate that the product
turned out can be manufactured at a saving, or profit, of approximately thirty per cent. The plant we have suggested is designed to produce a very high quality veneered desks and
tables, and the equipment which would be included is especially suitable for institutional operation.

Respectfully submitted,

GR :PM

JOHN R. WALD COMPANY.

December 26, 1930.
STATE OF GEORGIA CONCRETE CULVERT PIPE PLANT
The Concrete Culvert Pipe Industry is particularly well adapted for prison installation. The finished product is consumed by the Highway Department, which creates a ready market for the finished material, and simplifies the distribution problem. Concrete pipe can be made at a great saving with inmate labor, and by the use of a modern machine the State is assured of receiving a high quality product.
A large item in the cost of concrete culvert pipe is the freight cost when transporting pipe any great distance, and therefore a very large saving can be effected by having the plant located in the central part of the State, so that the pipe can be transported economically to the various road building projects. Where the raw materials are readily available the Concrete Culvert Pipe Plant will pay for itself within a very short time, and at the same time enable the Highway Department to obtain a high quality concrete pipe at a very much lower figure than is possible on the open market. In addition to the savings to be accomplished the Highway Department would have absolute control over the raw materials entering into the manufacture of the pipe, which fact should not be lost sight of when contemplating this industry. It is very reasonable to expect an inferior product when the raw materials used do not come up to standard, and therefore, it naturally follows that the Department can insure against a poor grade of concrete culvert pipe by keeping tabs on the raw materials purchased.
A complete concrete culvert pipe plant installed at the State Prison Farm at Milledgeville would cost approximately thirtyfive thousand dollars ($35,000.00). This figure does not include the cost of building required, but includes complete erection of
42

the machinery at the Institution, together with expert supervision covering a period sufficient to thoroughly instruct the operators covering the proper methods to employ in running the plant. The building required for this industry is relatively inexpensive, and the floor space required should be approximately
20' X 40'. A number of other items can be manufactured in conjunction
with this equipment, such as concrete posts for highways, which is oftentimes a large item where new road projects are under
way. Respectfully submitted,

GR:PM

.JOHN R. WALD COMPANY.

STATE OF---------------
CONCRETE CULVERT PIPE PLANT EQUIPMENT
1 Hydraulic Lift Concrete Pipe Making Machine with 40 H. P. motor and drag link elevator for making pipes in diameters from 12" to 30", inclusive.
1 Paddle type concrete mixer.
3 Special off bearing carts.
3 Sets Reducing Plates (one hopper and two turntable plates to each set) 31" to 25", 25" to 17", and 25" to 21".
1 Ringturning device for use with Hydraulic Lift Concrete Pipe Making Machine. Spiders for 12", 15", 18", 24" and 30".

43

BELL AND SPIGOT EQUIPMENT FOR MAKING CONCRETE CULVERT PIPES

SIZE

Wall Thickness
in Inches

Packer-Head Unit
Complete With Push Ring

Bell End Jackets

Aluminum
Rino- Pattern With One
Gauge, Kmg

WEARING PARTS IN QUANTITIES INDICATED

Wings

Trawlers

Casings (6" High)

Bushing Rimmers

....,,.. 12"

1"

1

4

1

100

100

6

6

15"

1"

1

4

1

150

50

6

6

18"

2"

1

4

1

150

50

6

6

24"

2"

1

4

1

100

50

4

4

30"

3"

1

4,

1

100

50

3

3

These wall thicknesses are usual for reinforced pipe when ''Cage'' reinforcing is employed.

CONCRETE CULVERT PIPE PLANT, STATE OF GEORGIA
The attached general cataiogue covering the Martin Concrete Pipe Machine describes the process of making concrete culvert pipe, and also shows a number of cuts of the various operations of this equipment. All of the tabulations shown in this catalogue are based on outside labor which fact should be taken into consideration when comparing same with conditions existing in the Institution.
The attached ledger sheets are actual figures obtained from the Concrete Culvert Pipe Plant in operation at the State's Prison at Raleigh, North Carolina. At this point we want to bring to your attention the fact that these figures are based upon thicknesses and net length of pipe greater than is specified as a general rule, and therefore, the cost per yard as well as the cost per foot of pipe will be somewhat higher than would be the case if general wall thicknesses were used. This variation can be shown by comparing the ledger sheets with the tabulation showing the manufacturing cost on the outside market, as the weight per lineal foot of pipe is given in each case, and the resultant increase in cost per linear foot shown as well. If the customer does not require the extra wall thickness or extra length of joint the cost of the equipment is not much lower, but it is generally conceded that the wall thickness as used by the State of North Carolina is more satisfactory and will give results which justify the extra expense of the original pipe.
Again referring to the ledger sheets, the net profit from operation of this Industry in the State Prison at North Carolina was fourteen thousand dollars ($14,000.00) last year. As you will note this profit was obtained from the manufacture of only approximately sixty thousand (60,000) linear feet of pipe together with the sale of a small quantity of pipe on hand at the beginning of the year. Naturally this net profit would be increased by any production greater than that shown on the ledger sheets. In this connection also please note the average market price on which the selling price of the institution-made pipe was based. No doubt these prices are low in comparison to the prices being paid by the majority of the States. The profit of fourteen thousand dollars ($14,000.00) would pay for the equipment within a short period, and if the Plant could be run at full capacity continuously this time would be decreased considerably as the average production possible on the machine is one thousand (1,000) linear feet a day on sizes from 18" to 30" in diameter.
Referring to the list of equipment to be furnished with this Plant, the item Ring Turning Device puts the finishing touches on the inside of the bell during the process of manufacture. Although some users of this machine do not employ this device, it is suggested generally that it insures a perfect joint, and therefore improves the product considerably.
The attached blueprint is a suggested lay-out of the machines which shows the very small space required and the relatively inexpensive structure necessary for this Industry. A foundation for the Concrete Pipe Machine and one for the Mixer will
45

constitute all the foundation work necessary. Provision should also be made for storing the cement and attachments for the machines. With the exception of the above items no other building construction is necessary, as the lengths of pipe can be cured in the open, and for this purpose any relatively level yard space can be utilized.
For the curing process we employ rings or pilots on which the pipe is supported during the curing process. This means not only that level cement floor is not required for the stripping of this pipe, but that no loss due to falling bells will result, and most important of all, due to the length of the pilot being in the female end of the pipe during the spreading period, each pipe will be absolutely true in dimension. This means a great deal to the contractor in installing the pipe, as nothing is more disconcerting possibly, and generally unnecessary, than to have pipe delivered on the job and set down in the ditches to be laid before it is discovered that the pipe is eliptical and out of round in some way.
There is one point that should not be lost sight of, and that is the uniform density of product from start to finish when using the equipment we propose to furnish. From the start of the joint to the finish of the joint the density of the pipe is abso~ lutely uniform. This is due to the fact that the machine is equipped with the hydraulic lift, which permits the packer head, during the process of making the pipe, to be raised at a constant rate of speed while it is revolving at a constant rate of speed, the result is that the ends are as dense as the center.
On the fourth page of the North Carolina ledger sheets attached, giving average cost per linear foot for year ending June 30, 1930, the cost is shown for the old and the new. These headings refer to the old type of concrete pipe machine, and the new machine which was installed at the State's Prison last year. This machine being the same type as we propose to install. It is interesting to note the saving incurred by using a modern type of machine.
The equipment listed is for culvert pipe of wall thickness as indicated, and in net length of joints of four feet.
46

MANUFA,CTURING ACCOUNT
Year Ending June 30, 1930
SCHEDULE "l" COSTS
MATERIAL: Purchases _____________________ --$32,274.65
Plus Inventory 6/30 /29___________ 4,958.52

$37,233.17 Less Inventory 6/30 /30___________$ 4,642.68

Less Raw Material Sold

$32,590.49 861.25

Raw Material Consumed ------------------$31,729.24
DIRECT LABOR: --------------------------------- 6,696.50
OVERHEAD: Supervision (Supt.) -------------$ 2,401.59 Supplies ________________________ 2,815.46 Repairs _________________________ 1,895.70 General Expense ________________ 2,117.46 Depreciation on Plant and Equipment ------------------------- 6,000.00 Defective Pipe __________________ 91.07

$15,321.28 Manufacturing Cost of Pipe Produced __________$53,747.02

2,524'-12" Pipe 2,248'-15" Pipe 31,866'-18" Pipe 13,356'-18" Pipe 10,116'-24" Pipe 7,576'-24" Pipe 4,569'-30" Pipe 1,564'-30" Pipe

PRODUCED

Wght. 73 lbs.

" 109 "

" 162 "

" "

152 264

" "

Per foot

" 243 "

" 390 "

" 370 "

69,819'
214,542 Tons Pipe (without Steel-12" & 15") @ 6.1755 ----------------------------$ 1,325.51
7,032,293 Tons Pipe (with Steel-18", 24" & 30") @ 7.4544 ---------------------------- 52,421.51

$53,747.02 47

TRADING AND PROFIT AND LOSS STATEMENT Year Ending June 30, 1930 SCHEDULE "2"
SALES-Allowance for Pipe Shipped_______________$85,696.46 COST OF SALES :
Cost of Pipe Manufactured ________$53,747.02 Plus Pipe on Hand 6/30 /29 _______ 24,766.97
$78,513.99 Less Pipe on Hand 6/30/30 ________ 23,291.52
$55,222.47 Less Defective Pipe Charged to Man-
ufacturing Account _____________ 586.52 Manufacturing Cost of Sales ______ 54,635.95 Plus freight on Pipe Shipped _______ 16,285.81
Total Cost of Sales ---------------------$70,921.76 NET PROFIT FOR 1930_____________ $14,774.70
NOTE: Net profit shown above represents the difference between cost and the amount allowed plant for pipe shipped during the year 1930. Allowance to plant which is shown above as sales is based on estimated AVERAGE MARKET PRICE, DELIVERED, which is as follows:
18"-90c; 24"-$1.50; 30"-$2.20 per foot.
(All pipe shipped to projects let since April 21, 1930, sold at cost prices, therefore there is no profit anticipated for the coming year.)
48

BALANCE SHEET June 30, 1930
SCHEDULE "3" ASSETS
Plant & Equipment -------$48,517.06 Less Depreciation _________ 28,500.00

$20,017.06
Raw Material Inventory -------------------------$ 4,642.68 Finished Goods Inventory ________________________ 23,291.52

LIABILITIES

$47,951.26

DUE MAINTENANCE FUND:
Plant & Equipment AccounL ______ $20,017.06

OPERATING ACCOUNT:

General Ledger Balance,

6/30 /30 -----------$ 6,397.89 Accrued Depreciation __ 6,000.00 Accounts Payable _____ 761.61

$13,159.50 $33,176.56 SURPLUS -----------------------$14,774.70
$47,951.26

49

AVERAGE COST PER LINEAR FOOT Year Ending June 30, 1930

EXHIBIT "A"

Cost

Cost

per Ton per Ton

12"

12" & 15" 18"-24"-30"

Material ________________ 3,1373 4.4162

.1145

Labor Overhe

-ad

-

-_-_-_-_-_-_-_-_-_-_-_-_-__-_-

2..91214402

.9240 2.1142

.0337 .0772

Manufacturing Cost ______ 6.1755 7.4544

.2254

Average Freight Cost ___ 2.0309 Delivered Cost _________ 8.2064

2.0309 9.4853

.0741 .2995

01 0

PIPE SHIPPED

84'-12" 580'-15" 56526'-18" (old) 2760'-18" (new) 15600'-2,i" (old)
40'-24" (new) 5805'-30" (old)

.2995 .4473 .7682 .7208 1.2521 1.1525 1.8496

25.16 259.43 43,423.27 1,989.41 19,532.76
46.10 10,736.93

15"
.1710 .0504 .1152 .3366 .1107 .4473
PROOF.

18" (old)
.3577 .0748 .1712 .6037 .1645 .7682

18" (new)
.3356 .0702 .1607 .5665 .1543 .7208

24" (old)
.5829 .1220 .2791 .9840 .2681 1.2521

24" (new)
.5365 .1123 .2569 .9057 .2468 1.1525

30" (old)
.8612 .1802 .4122 1.4536 .3960 1.8496

30" (new)
.8170 .1709 .3911 1.3790 .3757 1. 7547

81395'

$76,013.06

Cost of Sales as per Profit and Loss Statement________________________ $70,921.75

Plus difference in cost of pipe on hand 6/30/29 _______________________ 5,200.06 $76,121.81

Less difference in price of defective pipe 6/30/30 ---------------------

105.00

Fractional difference

$76,016.81

$3.75

'EXHIBIT B

ITEMIZED STATEMENT OF MATERIALS

Yea,r Ending June 30, 1930

Cement

Sand

Stone

Disbursements ______________________$12,754.06

3,168.84

7,377.90

Less Amount Due 6-:-m-29____________ ________

25.54

Steel 10,215.26 1,349.47

Total 33,516.06
1,375.01

Net Disbursements _________________$12,754.06 Plus Amount Due 6-30-30 ___________________ _
Purchases for Year 1930____________$12,754.06 Plus Inventory 6-30-29_______________ 1,054.90

$3,143.30 21.72
$3,165.02 300.00

$7,377.90 111.88
$7,489.78 557.50

$ 8,865.79 --------
$ 8,865.79 3,046.12

$32,141.05 133.60
$32,274.65 4,958.52

$13,808.96
,C..1..t Less Inventory 6-30-30_______________ 1,003.60
$12,805.36 Less Raw Material Sold______________ 758.25

l\Iaterial Consumed _________________$12,047.11

l\IATERIAL COST PER TON OF PIPE

12" & 15" Cement _____________1.6624

18"-24"-30" 1.6624

Sand ________________ .4640

.4640

Stone _______________1.0109

1.0109

l::-,teel ________________ ____

1.2789

$3,465.02 62.50
$3,402.52 40.00
$3,362.52

$8,047.28 698.50
$7,348.78 22.50
$7,326.28

$11,911.91 2,878.08
$ 9,033.83 40.50
$ 8,99:3.33

$37,233.17 4,642.68
$32,590.49 861.25
$31,729.24

PROOF

3.1373

4.4162

214,642 Tons Pipe (Without Steel)

7,032,293 'rons Pipe (With Steel)

@ 3.1373 @ 4.4162

673.40 31.056.01 31.729.41 (Dif. due to fractions)

PUBLIC PRINTING: In reply to a communication addressed to the Department of Public Printing of the State of Georgia, I submit the following from Mr. Josephus Camp, Superintendent: "Total net amount due and unpaid for publication of constitutional amendments during September and October, 1930-$16,120.00. Amounts due, to be paid from 1930 printing fund:
Stein Printing Company__________________________ $18,586.49
Georgia Baptist Publishers----------------------- 1,747.12 Wylie Loose-Leaf Company_______________________ 703.62 Adamson Printing Company______________________ 67.75 Walter W. Brown Publishing Company____________ 361.50 Miscellaneous ________ ________ __ __________ __ __ __ _ 100.00
$21,566.48
In consideration of the publication of the Constitutional Amendments provided by the General Assembly in 1929, which General Assembly directed the Governor to publish these Constitutional Amendments in "one or more of the newspapers in each Congressional District for two months immediately preceeding the next general election," for which Constitutional Amendments there was no appropriation made, only the usual appropriations made for the Contingent Fund, which was entirely inadequate to pay for the publication of the Constitutional Amendments, as provided by the General Assembly of 1929. Therefore, the Governor recommends that the Legislature provide revenue to pay the $16,120.00 due for these publications, as well as the $21,566.48 shown in the Public Printer's report.
CONFEDERATE PENSIONS: I would like again to call attention to the Confederate Pension payment during the year 1930. According to the ruling by the Attorney General of the State, which provides for $50.00 a quarter, this sum has been paid promptly each quarter; and in the 4th quarter it was paid early in the quarter, and the Confederate Veterans have received every dollar for 1930, under the ruling as above stated. Further, the burial expenses and Ordinary fees have also been paid in full, thereby leaving nothing_ unpaid as relates to Confederate Pensions, in accordance with the ruling of the Attorney General. At no other time in the history of Georgia has a more prompt payment been made to the Confederate Veterans. The following is a statement furnished the Governor by General Lawrence, Pension Commissioner: Number of Pensioners paid for 1929:
Soldiers ____________________________2,190 Widows ____________________________4,084
TotaL ___________________________ 6,994 Number of Blind Veterans paid in 1929__________________ 52 Number of Disabled Veterans paid in 1929_______________ 31
52

APPROVALS FOR YEAR 1929: Widows whose husbands never drew a pension ___________ 26 Widows succeeding their husbands on rolL _______________ 109 Soldiers ------ - ----------- -- - - ---------------------- _ 18
DEATHS: Soldiers, 540; Widows 676. Total 1,216.
STATE SANITARIUM AT MILLEDGEVILLE Perhaps one of the most urgent needs of the State today is caring for the unfortunate at the State Sanitarium at Milledgeville; and in response to a letter addressed to Dr. Swint, Superintendent of that institution, I herewith submit to you his report, and the conditions and needs: "Milledgeville, Ga., 12-15-30-Governor L. G. Hardman, Atlanta, Ga.-Dear Governor Hardman: In compliance with your request of Saturday, will state that the present population of the Hospital is 5,360, composed as follows: White males, 1,553; White females, 1,938; Total whites, 3,488; Colored males, 837; Colored females, 1,035; Total colored, 1,872. The total patient capacity of the Hospital is about 4,000, and this is estimated on the basis of allowing 80 square feet of floor space per patient, vix., 40 square feet for sleeping and 40 square feet per patient for day-room service. Therefore, this gives the Hospital an overcrowding of about 900 patients actually on the wards. That is why we have to refuse admission to new applicants. Up to December 1st, we have had to refuse admission to 459 applicants during the current year from January 1st. "The new psychopathic hospital building, completed several months ago, has about enough equipment for us to open as soon as funds are available for its operation. This building has 48,100 square feet of floor space including basement that contains many treatment rooms. The building was completed and opened on February 18, 1929. It has a floor space of 62,580 square feet and 450 beds. The total balance due the Hospital on maintenance is $432,000.00, composed of $250,000.00 due on 1929 appropriation and $182,000.00 due on 1930 appropriation. Total balance due on 1927 and 1929 special appropriation for new buildings is $572,253.58 and $34,881.99 due on 1927 special appropriation for waterworks, making a total of $607,135.57 due on special appropriations, or a grand total of $1,039,135.57 due on maintenance and special appropriations. I am enclosing financial statement sheet (attached) of the Steward that gives a detailed explanation. If there is additional information you would like to have, we will gladly and promptly give it. Very sincerely, R. C. Swint, Superintendent."
There are approximately 150 insane persons in the jails of the State at present.
53

MILLEDGEVILLE STATE HOSPITAL, MILLEDGEVILLE, GA.

STATEMENT MAINTENANCE AND SPECIAL APPROP.RIATIONS WITH PAYMENTS MADE AND BALANCES DUE AS OF DECEMBER 15, 1930

EXPLANATORY

Maintenance

Appropriated in 1927 for 1929 Maintenance --------------$1,200,000.00 Appropriated in 1927 for New Buildings ________________ _ Appropriated in 1927 for Water Works ________________ _

Appropriated in 1929 rfor Completion and Equipment

New Buildings -----------------------------------Appropriated in 1929 for 1930 Maintenance _____________ 1,300,000.00
Appropriated in 1929 for Additional New Buildings, Enlargement Storehouse, Extension Water Works, etc, ___ _

New Buildings Water Works

$ 500,000.00

$80,000.00

50,000.00

500,000.00

Total $1,200,000.00
500,000.00 80,000.00
50,000.00 1,300,000.00
500,000.00

TOTALS ______ ------------- _____________________ -$2,500,000.00

LESS
Payments during 1928 on 1927 Appropriations___________ _ Payments during 1929 on 1927 Appropriations ____________ $ 950,000.00 Payments during 1930 on 1929 Appropriations ____________ 1,118,000.00 Payments during 1930 on 1929 Appropriations___________ _ For Completion and Equipment New Buildings___________ _

BALANCE DUE BY STATE AND UNPAID
On 1929 Maintenance ----------------------------------$ On 1930 Maintenance ---------------------------------On 1927 Appropriation for New Buildings_______________ _ On 1927 Appropriation for Water Works _______________ _ On 1929 Appropriation for New Buildings_______________ _

250,000.00 182,000.00

$1,050,000.00 $ 202,185.63
60,560.79 195,000.00
20,000.00
$ 287,253.58 285,000.00

$80,000.00 $45,019.72
98.29
$34,881.99

$3,630,000.00
$ 247,205.35 1,010,659.08 1,313,000.00
20,000.00
$ 250,000.00 182,000.00 287,253.58 34,881.99 285,000.00

TOTALS ___________________________________ -------$2,500,000.00 $1,050,000.00 $80,000.00 $3,630,000.00
SUMMARY Total Balance Due on 1929-1930 Maintenance Appropriations --------------------------------------$ 432,000.00 Total Balance Due on 1927-1929 Special Appropriation for New Buildings__________________________ 572,253.58 Total Balance Due on 1927 Special Appropriation for Water Works ------------------------------ 34,881.99

GRAND TOTAL ___________________________________________ ------------------ -----------------$1,039,135.57

STATE SANATORIUM AT ALTO
Another urgent need is the State Sanatorium at Alto. A letter was addressed to Dr. Haygood, Superintendent of this institution, whose report is herewith submitted: "His Excellency L. G. Hardman, Governor of Georgia, Atlanta, Ga., 12-17-30The capacity and present case load of the sanatorium are set forth in the following table :

White

Colored

Beds for Men Womeri Children Men Women Children Total

Total 75 75

75

31 30

29

315

Occupied 90 57

72

22 28

17

256

The per patient-day is approximately $2.35. From previous and current years appropriations the State still owes the sanatorium balances as follows:

Balance Due on 1929 Maintenance Appropriation_'--_$58,458.06 Balance Due on 1930 Maintenance Appropriation ___ 35,000.00

$93,458.05

UNPAID 1929 SPECIAL APPROPRIATIONS For: Nurses' Home -----------------$20,000.00 For: Central Heating Plant_ __________ 10,000.00 30,000.00
$123,458.05

"From the current special appropriations the sanatorium has not received $10,000.00 for the development of a central heating plant nor $20,000.00 for the building of a Nurses' Home. These appropriations fall short by 50% or more of the fund required for these projects. However, such facilities constitute grave needs of the institution. When we are financially able to increase our census to the capacity of the hospital, we will be faced with the problems of housing an additional number of nurses and attendants for which we now have no quarters for so doing. On our waiting list of applicants are many who are in urgent need of our service. At present, due to the large number, it is impossible for us to admit adult whites in less than from six to eight months after applications are accepted. On our waiting list at this time there are 81 white men, 93 white women, 8 white children, 5 colored men, 9 colored women, but no colored children."
The Sanatorium at Alto, erected for the treatment and cure of tuberculosis and for distributing information over the State for the proper care of those affected with tuberculosis-and the prevention of the spread of the disease to those who might come in contact with them, has to the amount of about 60 vacant beds; and there is on the waiting list 196. Many of these if they are unable to get proper treatment at an early date will advance to
55

the stage where they would be incurable. The State has her investments in building, equipment, nurses and doctors to take care of these, with the addition of nurses home to care for the nurses who look after and serve the sick. Delay in the operation of this institution would mean the death of some of her citizens. This institution, the State Sanatorium at Alto, for treating tuberculosis, is a most valuable unit to the State, and a most valuable contribution for the treatment and cure of tuberculosis; and through this institution and organization, by the expenditure of a reasonable sum to her units to canvas the State for the discovery of the tubercular-by cooperation with the Health Departments of the Counties and the local doctors, we will be able to meet the need in the State at a much lower cost in the treatment of these tubercular cases than could possibly be done by erecting another building at Alto. With these additional units and the cooperation of County Boards of Health and local physicians-and cooperation with the Department of Agriculture in the testing for tubercular animals over the State; and with a .new hospital at Alto for the treatment of the early cases of tuberculosis in children, the State would in a few years be able to eliminate largely the tubercular infection of its various types, both the bovine and the human types. No greater work can be done, and on a more economic basis, than is thus proposed. There are but few States that have a more modern equipped central plant for the treatment, cure and dissemination of information, than Georgia. A number of the states have plants or units to be operated for the discovery-with the cooperation of the County Board of Health and local physicians, but Georgia has the advantage of both a central and units, and has now started one unit for the discovery and location of the tubercular-and with the cooperation of local health authorities, there can be no greater service rendered the State than this. I therefore, recommend that the necessary funds be provided for utilizing the central plant at Alto and the other additional units as referred to above.
STATE BOARD OF HEALTH
This department of the State was removed from across the street on Capitol Square into the State Capitol, where it now has the most modern-equipped laboratories, an increased capacity for the manufacture of the serums for the prevention of typhoid fever, diptheritic anti toxin, toxin-anti toxin, and treatment for rabies; it furnishes the distribution of yeast for the prevention and treatment of pellagra; also the analyses of the water supplies of the respective sections of the State; and by reason of the new quarters that have been built for the laboratories, there has been an increase in the manufacture and distribution of typhoid vaccine of over 25%. With the manufacture and distribution of these serums, the time will be when typhoid and diptheria will be, it seems, a thing of the pa.st, which heretofore were two of the most horrible diseases attacking the human organism. The Administration Department has also splendid quarters and equipment. No State now has a better administra-
56

tive or laboratory equipment than has Georgia. A most wonderful advancement has come to our citizens along this line in the last 20 years. In addition to these splendid quarters, which provides ample room for the filing of the registration of births and deaths, there will be sufficient room to supply all the needs along that line for ten years. The Secretary of .the State Board of Health also has supervision of the Administrative and Laboratory Departments, as well as the State Sanatorium at Alto and the institution for mental defectives at Gracewood. This latter institutions is to be moved-there has already been purchased the Phinizy property near Augusta, a most valuable contribution for the handling of the mentally defective children of our State. This acquisition was completed in the year just.past, 1930.
The Department of Health cooperates with the Department of Education and the Department of Public Welfare (which has also been moved into very delightful new quarters), looking to a proper sanitary condition of the educational institutions, especially the common schools of Georgia, whose suggestions and helps are of material benefit to the children of our State attending our common schools. One of the financial advantages in moving the State Board of Health into the State Capitol is that it relieves that department of rental. It also relieves them of an insurance, which was formerly paid, before they moved into the State Capitol, on $12,000.00 of equipment, which is now cared for without any expense to them.
We have in Georgia the Steiner Clinic for the treatment of cancer, for which the State appropriated $100,000.00 for the year 1929 to better equip for the treatment of a greater number of our citizens, and to provide for the State as a whole to have the advantage of the treatment of cancer at this Clinic; and in view of the great malignancy of all forms of cancer, it is of imperative need that the appropriation made in 1929 be made available as quickly as possible for the erection of a building and equipment to give an opportunity to the citizens to be relieved, or cured, of cancer, who are now dying over our State for the lack of early treatment.
It is also important that the Academy for the Blind at Macon, one of the most terrible afflictions coming to mankind, should have every consideration that it is possible for the State to give it.
The School for the Deaf at Cave Spring is in need of a hospital to care for their students and to better equip their plant. By reason of the lack of sufficient appropriation, they closed earlier in the year 1930 than heretofore.
In answer to a request of Dr. Bowdoin, Deputy Commissioner of the State Board of Health, I attach hereto his letter.
DR. BOWDOIN'S LETTER
"December 19, 1930. Hon. L. G. Hardman, Governor of Geor-gia, Atlanta, Georgia. Dear Governor Hardman: In compliance with my promise I am writing you about the results obtained in our State in the reduction of deaths of mothers and infants. As you recall, in 1924 the State Medical Association
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requested that the State Board of Health take charge of the midwife situation in our State, and to adopt such rules and regulations as thought best to bring about better control. This was done. That year we had 658 mothers to die in child bed. Through the Federal aid given we were enabled to put on twenty-seven nurses to work among our mothers, and the result has been most gratifying. In 1929 we lost only 549 mothers, and the first ten months of 1930 compared with the first ten months of 1929 show 72 fewer deaths of mothers. In 1924 only one state in the Union had more deaths from puerperal causes than Georgia; now there are four. The deaths in 1924 were 657; in 1929, 549, a saving of 108 mothers, and to this number may be added 72, making a total of 180 mothers. The effects of health work and the application of scientific preventive medicine in the saving of babies' lives in Georgia are still more striking. You will recall that our death rate has always been high. This rate, of course, is influenced by our larger negro population, but the figures just released by the Census Bureau show that only five states in our Union showed reduction in the deaths of children last year, and Georgia was one of them. Work among mothers for mothers and their babies is effective; money spent in this field yields the largest dividends. The investment for the entire health work in Georgia is about four cents per capita. No Federal funds are available now, having been withdrawn over a year ago. We now have only four nurses. Will you pardon me, Governor Hardman, if I mention another result of preventive work among our people in 1918? In our insane asylum records an item shows that 15.8% of new admissions were due to brain syphilis. The Federal Government assisted the states by making an appropriation to fight the veneral diseases, with the result that in 1927 the new admissions giving positive Wassermans had dropped to 9.5%, a saving in maintenance alone of about $18,000. Federal aid was withdrawn, and the last report shows an increase of syphilis in the cases admitted last year to 12.8%, costing the tax payers of Georgia $33,515.76 to take care of them. There is no reason for brain syhilis with our knowledge of the disease, as it is only in the advanced stage of the disease that the brain is affected. If we had the funds to educate the people to seek early treatment, and when they were unable to pay for it, to furnish if free through cooperation with our medical societies, we could eliminate almost entirely this expense to our taxpayers, save the individual from illness and thereby preserve our manpower. You might also be interested to know that through the stimulus given the work by Federal appropriation in the war work the Wassermann Department of the State Board of Health was established, that in 1918 there were 789 Wassermanns, and last year 32,760. I hope that this data is what you requested me to furnish you. Yours very truly, Joe P. Bowdoin, M. D., Deputy Commissioner of Health."
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SUMMARY
DEFICITS-In the beginning of this Summary I wish to urge upon you the reading and study of the Summary presented to the General Assembly in 1927, given below, as well as the Message of 1929. "I recommend that deficits should be discontinued or provisions made by which the State can legally create them.
REORGANIZATION OF BOARDS AND INSTITUTIONS"! recommend a reorganization for economy and efficiency and a reduction in some of the departments, hoards and institutions.
STATE GOVERNMENT AND STATE FINANCES-"! recommend to you a study of our State government and State financing with an idea of reducing the expenses in State Government and if possible, increase the efficiency. There is a considerable demand in the State government for support as well as institutions, and I recommend a study of the tax question, and if possible make provisions for increasing revenues and new sources of revenue looking to the support, maintenance and improvement of the institutions of Georgia.
BANKING DEPARTMENT-"! recommend to you a thorough study of the Banking situation and that all taxes which support the Banking Department go through the State Treasury, and that they be paid out by appropriation and vouchers as other departments of the State. I further suggest that the expense of liquidating banks be reduced.
STATE HIGHWAY DEPARTMENT-"Since this department consumes the largest sum of money that comes to the State of Georgia, and since good roads are most desirable and one of the greatest assets to the State, I recommend a reorganization of this Department for the purpose of reducing expenses and increasing efficiency and economy of this Department. (Which has been done.)
DEPARTMENT OF AGRICULTURE-"As the Department of Agriculture, as well as the Department of Roads is a matter that has been extensively discussed before the people of Georgia and they having expressed their views on the two Departments, I recommend a reorganization of the Department of Agriculture and that such changes in the Department as may appeal to your judgment as being best, be made and reductions in its operations be provided as in your judgment is wise.
SINKING FUND OR INSURANCE DEPARTMENT"Since it is desirable that the property of the State, as well as the property of the public institutions of the State, be safeguarded and protected by insurance, I recommend that a department or provision be made under some other department, looking to the safety and saving of insurance to the State of Georgia.
EDUCATION-"! have called your attention more or less in detail to the condition of our educational institutions, and I recommend that a thorough study and sufficient appropriation be
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made to put them on a basis of service and efficency. I recommend that we better equip these institutions for the service they are required to render the State.
HEALTH DEPARTMENT-"No subject that comes before you touches more directly every citizen of the State, than does the Health and Welfare Department, and I recommend to your consideration an investigation and the necessary investment to place this Department of your State on a basis that will provide better service in every element that it fosters. (This has been done.)
FORESTRY-"! suggest to you the very great need of the Forestry Department and such provisions be made as will put that Department on a higher and better basis than it has heretofore enjoyed.
STATE CAPITOL--"! recommend to you an improvement of the conditions so as to better utilize the space now housed by the State Capitol.
MOTOR VEHICLE TAGS AND TAXES-"! recommend that the matter of motor vehicle tags and taxes be thoroughly considered in order that we may arrive at a more efficient and less expensive method of handling tags than we do today. (This has been done, saving the State $17,000.00 per annum.)
LAWS-"We cannot hope to maintain the highest state of our government unless we enforce our laws, and I call your attention and ask your helpful consideration of this Department."
MESSAGES OF 1927 AND 1929 I would also urge you to read the items on State Government and State Finances, as presented on pages 4 and 5 of the Message of 1927; also the item on Deficits of this same Message. On page 14 of the Message of 1929 I would ask that you read the item of "Interest Paid on Borrowed Money."
INTEREST The estimated total amount of interest paid, as presented by the Auditor, including the discounts on W. & A. Warrants, is $2,196,539.33, based on reports from institutions and schools as of February 21, 1930.
ALLOCATION OF FUNDS AND REVENUE RECEIVED BY THE STATE TREASURY
There was allocated in 1928, $13,955,668.22; in 1929, $16,764,405.11; in 1930, $20,264,025.57. This includes the $540,000.00 each year for the W. & A. Rental, making a total for the three vears of allocation, $50,984,098.90; and in the General Fund for the three years, 1928-29-30, $30,000,000.00, making a total of $80,951,657.40. In the year 1930 on an estimate of $20,264,- 025.67, allocation, and $11,100,000.00 to the General Fund, you have received from all sources, revenue amounting to $31,346,801.00. So far as I am informed, the largest revenue ever received in one year into the State of Georgia for distribution.
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ADEQUATE SUPPORT It is the opinion of the Governor of Georgia that this sum of money if pro"perly administered and distributed, according to the needs of the various interests of the State, should take care of and furnish adequate support. In addition to the above sum, under the reorganization program as recommended by the Commission appointed by the Governor-saving $800,000.00 as estimated, you would receive $32,146,801.00 for distribution.
PLACING OF REVENUE IN STATE TREASURY It seems to me the only method by which this could be done is to place all the revenue in the State Treasury and have it properly distributed to all the interests of the State.
APPROPRIATIONS There will be the sum appropriated which was appropriated in 1929 for the purchase of land and Capitol improvement, $250,000.00, and $20,000.00 which will be paid during the year 1931 from the lease of the old Mansion property; $1,750.00 for reimbursement on the fire insurance projects of the State, making a total of $271,750.00. There will also be available in 1931 the sum that has been used for the Mansion improvements. These amounts will be available to check from the Treasury for other purposes in the year 1931.
COMMON SCHOOLS According to the report of the State Treasurer, the common schools received in 1926, $4,934,189.65; in 1927, $5,438,313.67; in 1928, $4,708,633.47; in 1929, $5,387,290.66; in 1930, $6,853,320.73. The 1930 payment to the common schools was by far the largest in any one year. The percentage of increase paid to the common schools for the year 1930 is 27%.
PUBLIC ROADS The largest sum that has ever been paid during one year to public roads was in 1930, the sum being $15,569,651.60, a percentage of increase of 22%. The next largest sum paid out to any interest fostered by the State was to the common schools$6,852,322.73.
ALLOCATED FUNDS
The allocated funds in 1926 were $22,642,209.42; in 1927, $23,668,791.48; in 1928, $24,252,361.43; in 1929, $24,607,255.88; in 1930, $31,346,801.00, making the largest sum of allocated funds paid out in the history of the State.
PAYMENTS FOR ALL PURPOSES
The total payments to all purposes for the year 1926 was $26,406,211.10; in 1927, $27,008,211.48; in 1928, $26,849,853.63; in 1929, $29,615,607.25; in 1930, $34,960,806.28. The total percentage of increase of payments for all purposes in 1930 was 27%.
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GIFTS
1. The property acquired by the purchase and gifts during the present administration is as follows : Gift by the Rhodes family of the Rhodes Building for the Archives and History of the State, known as the Rhodes Archives and History Memorial Building.
2. The building for the treatment of tuberculosis in children given by the Masons of Georgia, located at Alto, Georgia.
PURCHASES
1. Purchased by the State the Jackson-Martin property at a cost of $55,000.00-paid for out of the appropriation made for Capitol improvement and lands.
2. The Highway building on Capitol Avenue and Capitol Square, at a cost of $55,000.00-paid for out of the Highway fund.
3. The Flint Building at Experiment, Ga.-paid for out of the appropriation made by the Legislature.
4. Two buildings at Milledgeville at the Sanitarium, which are completed and equipped-one of which is housing 400 patients. The other building will house 300 patients, but having no money to maintain these patients, it is unoccupied.
5. The Phinizy property near Augusta, Ga., for the mental defectives on which $25,000.00 has been paid, leaving $25,000.00 unpaid.
6. The enlargement of the tubercular hospital for criminals at the State Farm, which has been completed and paid for.
7. Two other buildings for which money was appropriated but not available, are the Hospital for the Deaf, and the Cancer Hospital in Atlanta.
Now, with the sum of $31,346,801.00 for all purposes paid out by the State, is shown as percentage increase of 27%.
The unpaid appropriations for the years 1928 and 1929 amount to $7,458,545.43, which is in excess of the revenue provided. The Attorney-General ruled that an unpaid appropriation made either by the State or institutions is unconstitutional and illegal, and is not a legal obligation of the State, but a moral one.
Now, should you provide revenue for the payment of $7,458,545.43, added to the total sum of $80,984,098.80 would make $88,443,644.23, you would have paid out for the years 1928, 1929 and 1930.
The question now before you is, what disposition you will make of these unpaid appropriations? Will you provide revenue for the payment, or will you decline the payment?
L. G. HARDMAN, Governor of Georgia.
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