MESSAGE
OF
GOVERNOR RICHARD B. RUSSELL, Jr.
TO THE
GENERAL ASSEMBLY
OF THE
STATE OF GEORGIA
+
ATLANTA JUNE 29, 1931

MESSAGE TO GENERAL ASSEMBLY
Delivered June 29, 1931

Mu. Mu. PRESIDENT,

SPEAKER-MEMBERS OF THE GENERAL

AssEMBLY-

In compliance with the mandate of our constitution that the Governor shall from time to time give the General Assembly information as to the state of the commonwealth and recommend to its consideration such measures as he may deem necessary or expedient, I appear before you today.

The present session of the General Assembly is more important and means more to the future of Georgia than any which has convened since the days of Reconstruction. The eyes of all Georgia are focused upon these legislative halls and you are attended in your deliberations by the hopes and prayers of three million of your fellow citizens. In this solemn hour it is well for us to counsel together on the condition of our beloved state; to view its affairs from a statewide rather than a provincial point of view; to eliminate sectional and factional lines; to consider all of the people as our constituency and to efface self and lay aside personal ambitions in our efforts to remedy the many pressing ills which beset the commonwealth.

The constitution and our scheme of government provides that the three branches of our government,-the legislative, executive and judicial, shall forever remain separate and apart, and operate each within its proper and appropriate sphere. Such recommendations as I may make today and from time to time are not brought to you with any pride of opinion or in an attempt to dictate or direct your deliberations. They are each and all born of an honest and conscientious desire to be of service and are the result of study made of our government as a member of the House of Representatives. No man in Georgia more thoroughly appreciates the many difficulties attending every effort at reform which you may inaugurate here than I do, for it has not been many months since I stood here as the presiding officer of the House of Representatives, an honor I shall always cherish. You have my sympathy in your efforts to solve these problems. You have my cooperation and assistance in every progressive endeavor. Each of us are a part of this administration and the whole belongs to the people of Georgia, and if we are capable of

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worthwhile achievement there will be credit enough for all. If we are to really serve the people of Georgia it must be in a spirit of compromise and willingness to accede to everyone the right to his viewpoint-in a spirit of give and take, without of course sacrificing any convictions on fundamental principles. If any of the solutions I bring to you do not meet with your approval, suggest others that are superior and I will support them with every power of my being. I only ask that you do not take a purely negative view, for the times and the condition of our people demand constructive action and progressive thinking if we are to restore Georgia to her rightful place in the constellation of states.
We are united in a common purpose; to render faithful service to those who have honored us by public expression of confidence. I am sure that every member of this body desires to deserve this confidence as sincerely as I do, and that our efforts here will be attended by an atmosphere of mutual confidence and cooperation.
PRESENT STATUS OF FISCAL AFFAIRS
It is a matter of common knowledge that the fiscal affairs of the state are in a most deplorable conditiont By the end of the present year-1931-there will be a staggering total of past due and unpaid appropriations to the various institutions of the state and departments of government amounting, in round :figures, to more than $8,876,000.00. Some que&tion has been raised as to the legality of these unpaid appropriations and as to whether or not, technically speaking, they constitute legal obligations of the state. To my mind this discussion serves no useful purpose. The honor of Georgia demands that any and all promises of the state be met in full and it would be as abhorrent to me to repudiate an appropriation regularly made by the General Assembly and approved by the Governor as it would be to refuse payment of the recognized valid bonded indebtedness of the State. It is of course manifestly impossible to pay all of this indebtedness at one time. But we must recognize it as an obligation against the state and lay our plans for its gradual liquidation.
The present financial depression leads us to suggest that this is not a propitious time to impose ne'V and heavy taxes upon those of our people .who are now bearing the burden of government. The estimated revenue subject to general appropriation for 1932-33, provided the sales tax is permitted to lapse at the end of the year 1931, is $10,728,000.00 for each of the years. With the dire consequences of over-appropriating before you, it is scarcely necessary for me to stress the importance of keeping income and outgo balanced. Everybody recognizes that Georgia
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must live within its income and if more funds than this amount are to be appropriated, we must certainly raise additional revenue.
The budget requests for 1932-33 exceed anticipated revenues by nearly three millions of dollars per annum and to bring the general appropriations within this sum will require drastic reductions in appropriations for the next two years. Let me urge you in the name of Georgia, not to appropriate in excess of our assured income without enacting at the same time tax bills which will raise the revenue.
The deficiency in the state treasury represents one of your most trying problems. If, after a careful survey of the fiscal affairs of the state and of the various departments and institutions, you determine that it is necessary to make an immediate substantial payment in order to preserve the credit of the state and the services of such institutions to our people, I suggest that you consider ways and means of realizing immediately on some of the liquid assets of the state, such as the income from the rentals of the Western & Atlantic Railroad.
Nothing but the most pressing emergency can justify pledging future income of the state for any purpose, but if you find that a condition exists which demands immediate relief, the constitutional restrictions on financing obligations of this nature are such that we apparently have no other alternative.
The people of Georgia are expecting this administration to take some definite steps towards remedying the deplorable condition into which the state's finances are drifting. No one expects us to work any miracle or to be able to produce this money by magic, nor to do the people anticipate any increased taxes on those unable to pay. They are expecting this administration to inaugurate a program of economy in governmental affairs in keeping with the program of rigid economy which the head of every household and every individual in Georgia has been compelled by necessity to adopt. This can only be done by cutting the expenses to the bone, and if necessary to the marrow.
All those in the state's employ know that regardless of fluctuating finances their pay is safe and sure, and has the great advantage of being certain. I therefore recommend to you that, without regard for necessary reductions in large sum appropriations, the salary of every person drawing pay from the state or any of its departments or institutions, be reduced either 5 or 10 per cent for each of the years 1932 and 1933, and that this saving be applied to the payment of the deficit. This scale in salaries should apply to every employee of the State from the Governor down, with the possible exception of any who may be drawing less than $50.00 per month.
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This should be accomplished where possible through legislative enactment. The salaries of the Governor, members of Appellate Courts and Attorney General are fixed by the constitution. For my part I will gladly turn back into the state treasury for this purpose the same proportion of my salary that you see fit to reduce the salaries of all other officials and employees.
If you determine that it is possible to do so I feel that the taxpayers of Georgia who are so sorely burdened in these trying times should be afforded the further relief that will come from a like reduction in the salary of every employee of every county, municipality or other subdivision of the state whose compensation is fixed by legislative enactment.
This will work a severe hardship on no single individual and, taken collectively, will mean a substantial saving to the taxpayers of the state. The buying power of the dollar is so much greater today than it was two years ago that this will not actually amount to a decrease in the salary of anyone. I feel certain that if any person feels constrained, on account of such reduction in salary to leave the employ of the government that such person's place can be efficiently and immediately filled from the vast army of our citizens who are unemployed, but are willing to work and are anxiously seeking employment.
This reduction should apply to the compensation of every person who is drawing state funds from any source, for services rendered the state, whether from fees, salaries or wages, otherwise it would be unfair. This proposal is the result of mature consideration of means absolutely necessary to balance the income and expenditures of government, and as an equitable plan to bring into governmental affairs the sarr;e economy which has been by present economic conditions forced upon those who support the government. The average man in Georgia, the laborer, the farmer, the professional man, the merchant and the artisan, are all rendering the same service today that was rendered a few years ago and at a materially reduced wage. The farmer in particular has seen a large part of his income swept away by declining prices, and those who are in the public service should cheerfully continue to serve at a small reduction in compensation while faithfully rendering the same service. I recommend that this reduction be for a two year period only.
REORGANIZING THE STATE GOVERNMENT
One of the crying needs of Georgia today is a complete and thorough overhauling and rebuilding of our present structure of State Government. we have Boards, Bureaus, Departments and Commissions almost too numerous to name and the average

citizen of the state has little knowledge of the actual workings of the Government he is taxed to support. The modern trend in government is towards a coordinate and simplified administrative system, and if I know the public mind of Georgia I would say that the citizens of this State are more interested in your efforts to reorganize our administrative machinery than any measure that will be before you for consideration.
A considerable saving can be effected through the reduction in the overhead cost of Government and at the same time efficiency can be greatly increased.
One of the chief troubles of our Government today is the division of authority and responsibility between the various Departments and Agencies. The people are entitled to have an explanation of the proper expenditure of tax money and responsibility for the operation of their Government definite and fixed in responsible public officials, but this is impossible under our present haphazard system, or lack of system.
This is a matter which it will be well for us to consider from the standpoint of the public welfare and not from the standpoint of personal favoritism or sympathy for any individual who may be affected by the proposed changes. Our Government has reached a point of inefficiency in which the necessity for reorganization has ceased to be a personal matter, but is one of public concern.
It is strictly within legislative prerogative to decide the number of changes that should be made, and the departments that can properly be combined or abolished. The past General Assembly created a Commission which has made a careful study of all phases of our Governmental activities and the members of this Commission are also members of your body. They are in a position to explain in detail the reorganized plan of Government which they propose, as a result of their investigation.
I recommend for your most careful consideration the report of their exhaustive investigation. I am confident that this General Assembly will approach this problem sincerely and patriotically and will enact legislation which will give the people of Georgia a Government in keeping with modern conditions. l\1y views on this important question are well known.
Viewed from an impersonal standpoint it is our sworn duty to reduce the expenses and the number of employees of the State as much as possible without depriving the people of necessary services. Regardless of the shape and form the remodeled structure of government may take, I regard it as imperative that all taxes levied by the state be collected through one office.
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A real reorganization will inevitably result in the abolition of certain offices and will cause some of those now in the employ of the State to lose their positions. This is most unfortunate for those affected, but in our scheme of Government it is the duty of the citizens to support the Government and not the Government to support the citizens or perpetuate unnecessary positions and support useless agencies.
TAXATION
The question of taxation has always been the greatest problem of all governments. Georgia is one of the few states in the union which still clings to the uniform system of ad valorem taxation. As the rate of taxation has been increased by counties, municipalities and school districts, the returns of intangibles, property not visible to the naked eye, has gradually shrunk in value. This has caused the rate of taxation to increase in proportion upon the homes, farms and other real estate until this class of property is bearing a grossly unfair proportion of the total cost of Government.
Nobody questions the fact that the uniform ad valorem system in Georgia has long since served its purpose and is broken down. It has frequently been charged, and I have never heard it denied, that real estate represents only one-third of the wealth of the State and yet it is bearing practically the entire cost of Government. The State has made an effort to more equitably distribute the cost of Government by the enactment of an effective and reasonable income tax, but on account of over-appropriations and the unusual financial condition of the State this has afforded the owners and holders of real estate but little relief. While it is recognized that the State ad valorem tax is of itself not burdensome to the taxpayers, I am firmly convinced that the State should retire from the field of taxation on tangible property and leave this as a matter of county and municipal taxation. When this is done, people generally will recognize that the real burden on their property is caused by municipal and county expenditures and they will demand greater economy and more efficiency from their local subdivisions of Government. The savings to the taxpayers by the State ceasing to levy on real estate will do much to balance and equalize our tax system. I therefore suggest that you propose to the people of Georgia a constitutional amendment which will permit the General Assembly to classify property for tax purposes and segregate the returns from intangibles into the State Treasury and also to reduce the rate on real estate devoted to forestry. The end we should strive for is to gradually eliminate the State tax on real estate. Modern conditions demand that this be done, and recommendations to this effect were carried in the party platform adopted by
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the State Democratic Convention at Macon. I also suggest that you consider the advisability of limiting the tax rate which may be imposed by counties and cities.
There is no subject in all Government that has as many angles and stimulates, as many theories, or that is as controversial, as taxation. We all know that real estate is now being taxed out of proportion to its value and income as compared with other property. Taxes on this class of property, levied by the State, the various counties, municipalities and local school districts, have increased to the point almost unbearable and is forcing farms and homes to be sold for taxes and depriving citizens of Georgia of their property and their rightful opportunity to earn a livelihood. The taxation problem can not be solved by voting new taxes or new forms of taxation to meet new and additional expenditures. It is essential, as I see it, and as the overburdened taxpayers see it, that all new forms of taxation which may be by you devised shall actually displace a portion of the tax now levied on real property.
I wish to impress upon you that I am not greatly concerned as to the form which tax relief shall take, but I am concerned and the taxpayers are deeply concerned that relief shall be afforded them. The only certain way to insure reduction in taxes is to reduce expenditure. The only safe way to reduce expenditures is to hold the budget of both local and State Government within safe limits.
Increase in expenditures of counties and cities is one of the largest elements in our constantly mounting taxes. If every subdivision of Government in Georgia could eliminate all waste and extravagance and duplication of effort and really secure a dollar in value for every tax dollar spent, we would at once experience a drastic reduction in the cost of Government which could either be applied to reductions in taxes or needed improvements.
EDUCATION
Education is a paramount duty of all enlightened governments and we all recognize the importance of adequate educational facilities in the development of our State. The State wisely guarantees to every child an opportunity to obtain instruction in the elementary branches of an English education. The growth of our educational system must continue, but progress in education, as in all other governmental activities, must be made with due regard to the ability of our people to pay. The people of Georgia contributed taxes amounting to the large sum of eighteen million four hundred fifty-five thousand two hundred and fiftyone dollars and twenty cents ($18,455,251.20) for the support and
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maintenance of their common and high schools during the fiscal year ending .June 30, 1930, and for the year 1930 the State appropriated seven and a half million dollars for this purpose, and paid of this amount six million eight hundred fifty-two thousand three hundred and twenty dollars and seventy-three cents ($6,852,320.73). While we view with proper pride the progressive elevation of our educational standards, the expansion of physical equipment, the improved facilities of instruction, the increases of pay for teachers and the broadening of the varied curricula, we are compelled to consider the problems which the new standards force upon some of our school units.
I am convinced that the State, through its Department of Education, should have closer contact with the various school units, and should exercise active supervision over all expenditures of State funds. School officials and governing boards should conscientiously scrutinize their school cost to the end that all possible economy may be effected and that expenditures shall be reduced to the lowest minimum without impairing the quality of instruction.
In view of the fact that thousands of graduates of our public and high schools do not avail themselves of college training, it is my opinion that the educational authorities of the State should devise as practical courses of study as possible, laying special stress on vocational training.
The one cent a gallon tax on gasoline, which has been allocated as an equalization fund for the benefit of the poorer communities of the State, has proven to be the salvation of many rural school units during the past two years and has been their one sure source of revenue. Our equalization fund amounts to approximately two and one-half million dollars annually. While it would probably be more just and desirable to obtain the money for this fund from some source other than the tax on the users of gasoline and motor fuels, under no circumstances and for no reason should the equalization fund for the common schools be diminished or decreased at this time.
UNIVERSITY SYSTEM
All Georgians take pride in the fact that the first State University on this continent was chartered by the General Assembly of Georgia and also take special pride in the splendid work being done by our Institutions of higher education and teacher training. The various units of the University of Georgia should receive as liberal financial support as the condition of the Treasury will justify. Georgia has twenty-five branches of the University system. This necessarily divides the sums appropriated to higher
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education to such an extent that none of our Institutions, taken singly, receives an appropriation comparing favorably with that
of our sister states. It is well for us to consider the advisability
of combining and coordinating some of these Institutions in order to increase the advantages and benefits of the monies expended on higher education.
If you find it impossible to abolish, or combine any of the various units of the University system at the present session, I recommend that the General Assembly make provision for a thorough survey of the entire University system by a competent body, non political in character, in order that we may arrive at a just and fair conclusion as to which units of the University system may properly be eliminat.::d or marged. If our system is properly correlated it can be amply supported by the State and a complete and thorough survey should certainly enable u~ to eliminate over lapping of work and duplication of effort and will furnish valuable information for a proper basis of appropriation in the future. Approximately two and a quarter millions of dollars annually was appropriated in 1929 to the various units of the University system for maintenance. If this amount' be effectually and properly expended it should provide us with institutions of higher education of the first order.

SCHOOL BOOKS

The high cost of text books has become quite a problem to parents of moderate means attempting to educate their children. The too frequently and unnecessary changes in State text books in the past several years, have resulted in much unnecessary expense to parents. There is a widespread and general dissatisfaction because of the present burdensome plan of book adoption and the two great expense of text books.

Considering the present condition of the State's finances free

school books are out of question at this time, and in order to

stabalize and reduce prices and to afford text books at the lowest

possible cost, I regard it as imperative that there shall be adopted

a stringent uniform text book law which shall applylto every com-

mon school unit in the State receiving any funds from the State

Treasury.



I further recommmend that the State Text Book Commission be empowered and directed by proper legislation to formulate a system which reduces the present excessive prices of school books based upon the following principles:-

(1) That the Text Book Commission be empowered and authorized to have books for the common and high schools of this State printed by contract, by the lowest and best bidder. That

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to carry out the provisions of this authorization, the said Commission be empowered either to rent plates, buy manuscripts, employ competent authors, or to pay royalties, or do any other act or thing necessary to permit it to have text books printed by contract, if this be considered advisable by the Commission and the most economical method of obtaining satisfactory books.
(2) That the State Text Book Commission be empowered and authorized to contract with the publishers of any text book, for the purchase of text books in quantities sufficient for the children in any of the grades of the public schools of this State, based on estimates and the school census, and that such Commission be authorized to set apart a revolving fund from the appropriation made to the common schools of this State for this purpose, not to exceed the sum of five hundred thousand dollars for any year; said books to be furnished to the user at exact wholesale price.
(3) That said Commission be authorized and empowered to contract with any publisher of school books for the use of any book which it may be possible to adopt at a lower cost than now possible by either having the same printed by contract or purchased in quantities, provided the publisher will agree to have such book handled through the agency of distribution created and recognized by the Commission, without any profit to the distributor.
(4) That all school books chosen and selected by the Text Book Commission by either one of, or all of these methods, be distributed by the County School Superintendents of the respective counties at actual cost and that all of such superintendents be required to give a good and sufficient bond for the proper handling of said books and faithfully accounting for all funds received therefrom.
In my opinion such a system will result in a material reduction in the cost of school books. This plan will entirely eliminate the excessive profits heretofore received on school books and will result in a substantial saving. The State now pays each county school superintendent fifty dollars per month, out of school funds, and in practically every county this is supplemented from the county treasury. The various county superintendents of schools can easily work out a system whereby teachers of various grades can handle these books without any undue burden being placed upon them or upon his office.
STATE HIGHWAYS AND HIGHWAY DEVELOPMENT
In point of public interest and amount of money handled, the Highway Department occupies a very prominent place. Due to the increased revenue afforded this Department by the tax

legislation of 1929, substantial progress has been made in the completion of our system and under existing conditions we may reasonably hope for further improvement of all of our roads within the near future. The cost of construction is lower than ever before in history. Recent work on our system has afforded employment to thousands and accomplished much in alleviating the distress incident to the present economic depression.
The people of Georgia may well felicitate themselves upon the fact that we will soon have a splendid system of highways without having accumulated a tremendous bonded indebtedness in its construction. Most of our citizens now agree that it would be unwise to issue bonds for highway purposes. The "pay-asyou-go" system has been thoroughly vindicated.
Our highways are being built by those who use them and are financed by taxes imposed upon motor vehicles and motor vehicle fuel. This class of taxpayers are not only paying for the construction and maintenance of the State road system, but they are also contributing approximately two and one-half million of dollars annually towards the common school fund and a like amount to the various counties of the State for the maintenance of county roads. In my opinion, any further diversion, for any purpose, of the funds devoted to road construction and maintenance, within the next two years, would be inadvisable and ill timed.
In the early stages of highway construction a policy of requiring the counties of the State to assist in meeting the cost of highway construction was adopted. This policy has resulted in creating a moral obligation of the State to the various counties amounting to around twenty million dollars. It caused the issuance of millions of dollars of road bonds by the counties and resulted in increasing the already excessive county taxes upon the homes, farms and business interests for the purpose of paying interest and redeeming bonds. Under such a system it is impossible for the poorer and weaker counties to obtain roads. This is the direct cause of the good highways of the State being broken by stretches of bad roads through counties unable to contribute to highway improvements. Regardless of the merits of this policy at the inception of our highway system, there can be no excuse for its continuance in view of the present revenue of the highway department. I suggest that you consider the advisability of passing a law prohibiting further contributions by the counties to the building of State roads.
The Highway Department should inaugurate the same program of economy which the present condition of the treasury renders it imperative for the other departments to adopt. Salaries and the overhead cost in this department should be cut to the lowest
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possible minimum. The people will obtain the immediate benefit from any sums that may be saved by a reduction of salaries or administrative costs in this department in the construction of more roads and by affording employment for more people through increased construction.

The total amount of so-called certificates of indebtedness to

the various counties by the Highway Department is assuming

alarming proportions. There is grave doubt as to the legality

of this indebtedness and as to whether it represents a legal de-

mand against the State. These certificates are unquestionably

moral obligations of the State and these, in many cases, represent

increasing and excessive taxes on owners of farm lands and small

homes who voted bonds in their efforts to secure the benefit of

highway improvements.



It is now apparent that it will be many years before the State Highway System is completed. Additional mileage has been added to the system on several occasions since the passage of the act requiring the counties which contributed to the State system to await the completion of the system before having their money refunded. It is my opinion the best public policy will be, not only to discontinue county participation in building State roads, but to propose to the people of Georgia a constitutional amendment recognizing this indebtedness and enabling the General Assembly to repay these counties the sums advanced the Highway Department in gradual annual payments not to exceed ten per cent of the total amount.

These certificates are held by a hundred and fifty Georgia counties in greatly varying amounts and their gradual repayment will be a step toward reducing the present county tax rate. The county tax rate is in many instances excessive on account of the payments which must be made on bonded indebtedness.

Any reduction of county taxes throughout the State will be reflected in the prosperity of all the citizens of Georgia and is an end much to be desired. Such repayment will not materially lessen highway construction in those counties where funds have not been advanced to the State, especially in view of the constant increase in the revenue from taxes on gasoline and on motor licenses.

The State Highway System belongs to the State and we should as speedily as possible make its maintenance and construction strictly the State's business. we are committed to a "pay-asyou-go" policy in our highway work, but we will never have a strictly "pay-as-you-go" policy so long as the counties are permitted to place a lien on the property of their citizens for the purpose of providing funds to use for State highway construction.

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CHANGING TIME OF INAUGURATION OF GOVERNOR
So far as I am advised no other state of the nation is operating under the system which obtains in Georgia, of electing a Governor and General Assembly in November, often on issues of present and vital importance, and preventing their assuming office until the following June, thereby delaying the opportunity to enact into law any principle advocated in the campaign or in the party platform.
The present system causes much confusion and is certainly not conducive to good governrrent. To my mind there is no good reason for its continuance. With full knowledge that such legislation will shorten my term as Governor by six months, I recommend the submission and adoption of a constitutional amendment which will enable the Governor and the General Assembly to take office in January following their election in November.
PRORATION OF FUNDS
It is a matter of recent history that the common schools bear the brunt of the suffering caused by excessive appropriations. It has often been the case in Georgia, when appropriations exceed revenue, that the total amount of the appropriation to all of the various Departments of State, her employees, and the various Institutions, have been paid in full at the expense of a material reduction in payment of the appropriation made to the common schools.
Common sense and good business policy dictate that the total amount of our appropriations should in no instance and for no purpose, exceed the revenue of the State. In order to prevent any discrimination in the future against the beneficiary in any appropriation item, I suggest for your consideration the adoption of a constitutional amendment prorating all funds and evenly scaling the salary of every official and employee of the State, beginning with the Governor, in event any future Legislature and Governor may be so unwise as to make and approve appropriations in excess of the assured revenue of the State.
HEALTH
The question of public health is one of paramount concern. We realize the necessity of preserving the health of our people and protecting them from contagious and communicable diseases. All funds properly expended for this purpose are certainly a wise investment.
Public Health Work in Georgia has been carried forward rapidly and efficiently and has become quite a factor in the life of our State.
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The State has various splendid institutions for the treatment of mental disorders and other classes of unfortunate citizens. Enlargement and maintenance of these institutions constitute a considerable item ifn our annual budget.
All are agreed as to the necessity of the State continuing and fostering this important work, and I am sure that it will appeal to the humanitarianism of this Assembly and all of our citizens. I am convinced, however, that certain economics can be eff/ected in this work, as well as in other Governmental activities, without impairing the efficiency of these institutions or their ability to serve the people.
I am further convinced that many patients who are amply able to defray the expenses of their treatment, are being treated in the various State Institutions at the expense of the taxpayers. There has long been a provision in our law that the Trustees of the Milledgeville State Hospital for the Insane at Milledgeville should investigate the financial condition of those afflicted with mental disorders before admitting them to that institution, in order to ascertain whether such patients have sufficient estate to enable them to contribute towards their maintenance and treatment. So far as I am informed, no charges have ever been made against a patient of the more than five thousand who are receiving treatment at that institution. No person should be denied admission to any of the State's Hospitals on account of poverty or inability to pay, nor should any person possessed of an estate be a charge on the already overburdened taxpayers of our State.
I recommend that by appropriate legislation you provide a sure method whereby the State will receive compensation for the treatment of all patients in State Hospitals and eleemosynary institutions in every instance where such patient is possessed of an estate sufficient to defray all or a part of the expense of his treatment.
Existing departments have many employees whose duties require them to travel over the State and these employees, under proper instruction, can make proper investigation of the financial condition of such patients at very little additional cost.
LABOR AND THE WORKMEN'S COMPENSATION ACT
We have long realized the necessity for the most cordial and sympathetic relations between capital and labor and at this very critical time in our industrial life any agitation calculated to engender feeling between those employed and their employers would be peculiarly unfortunate.
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. Th_e workmen's compensation law has been in operation m this State for a number of years, and while many people do not ~pprove of such a system regarding it as paternalistic, we realize it represents the advanced thought of both the employer and the employee and that it is established as a part of our present day system of government. I therefore favor legislation to liberalize these laws for the benefit of the workmen. Under the present law the employee is only entitled to hospital treatment in the sum of one hundred dollars. In my opinion this is woefully inadequate and works a hardship in many cases, and I recommend that this benefit be increased to a maximum of five hundred dollars, and that you further consider the advisability of lump sum payments to employees who are totally and permanently disabled, without regard to agreement of the parties, in order that such employees may have an opportunity to embark in business, or become selfsupporting and not have their limited weekly payments cease, leaving them without means of support or opportunity of earning a livelihood.
REDISTRICTING THE STATE As a result of the slight increase of the population disclosed by the 1930 census, our State has suffered the loss of two Representatives in the National Congress. We are now only entitled to ten Congressmen instead of twelve. It therefore becomes your painful duty to redistrict the State by rearranging the counties on the basis of population, into ten districts. Much apprehension is felt throughout the State that this important matter will degenerate into political log rolling and consume much of the valuable time of this Assembly. I have full faith in the patriotic ability of this Legislature to dispose of this matter at the present session in a fair and just manner without being influenced by personal appeals or considerations. I call on the present twelve representatives in Congress to aid the Legislature in arriving at a proper plan of redistricting the State.
Under the provisions of paragraph one, section three, article three, of our Constitution, it is also our duty to apportion representation in the House of Representatives among the several counties of the State on a basis of population, as disclosed by the 1930 census and directed by the provisions of this constitutional provision.
BANKING LAWS AND BANKING DEPARTMENT The tremendous loss sustained by our people on account of the failure of banks throughout the State has emphasized the need of the most rigorous and careful supervision of our banking system and the necessity of adequate banking laws. Present economic conditions have no doubt aggravated bank failures, but the fact remains that our banking laws and Banking Department should either be made a real agency for the proteH'ion of depositors
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and creditors of our banks in time of stress as well as prosperity, or the Department should be abolished and the laws repealed.
Supt!rvision of banks is one function which, when assumed by the State Government should be most scrupulously and carefully exercised. If the State is unable to afford protection all pretense should be removed for no depositor should lose money which has been deposited in banks in the confident expectation that it would be protected by the laws of the State.
SCHOOL CODE Our present school laws in Georgia are vague and conflicting and I suggest for your consideration the matter of clarifying them by writing a new code of school laws. There is very little connection between the State Department of Education and the various school units. In my opinion they should be brought into more definite and binding relation and the responsibility resting upon each should be positively fixed. Our common school system is not the result of careful planning. It is irregular in operation and often weakest and most inefficient at the most expensive points.
REVISION OF THE STATUTES The General Assembly at its 19!29 session created a Commission instructed to prepare and revise the Statutes of this State. There has been no revision of the Georgia Code since 1910. This Commission has completed its labors and has contracted for the production of a new and revised Code, including the acts of this session, which contract is subject to the approval of this General Assembly, and this question will be before you for consideration.
I invite your attention to the printed reports of the various Departments of the Government, which will be before you, for information as to the scope of their activities and the nature of the work they are doing.
I wish to assure the mem hers of this General Assembly, collectively and individually, that I am fully cognizant of the tremendous responsibility which is yours. I stand ready and willing to assist you in every way possible. If my ten years experience as a member of the House of Representatives can be of the slightest aid to any one of you, it will be a privilege to have you call on me. I hope that the members of this body will feel free to come to my office for conferences on the people's business.
The great seal of Georgia bears the words "'Visdom, Justice and Moderation." May the spirit of moderation pervade our deliberations, may wisdom direct our efforts, and equal justice to all our people be the result of our labors.
Respectfully submitted, RICHARD B. RUSSELL, JR.,
Governor.
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