MESSAGE OF
HIS EXCELLENCY
GOVERNOR
EUGENE TALMADGE

TO THE

LEGISLATURE OF GEORGIA

I
600 1496

JANUARY 13, 1933
STEIN PRINTING CO,, ATLANTA, GA,

Message

January 13, 1933.

To The
Legislature of Georgia

lVIEMBERS OF THE GENERAL ASSEMBLY OF GEORGIA: I know that you realize that this session of the Legis-
lature is facing the gravest financial and economical crisis that has ever been faced by any Legislature, at least since the adoption of our present constitution.
Indeed a parallel of conditions to-day can hardly be found.
We have had financial panics in the past but the reserve wealth and resources of the people were never before exhausted as they are to-day.
I realize that you, who constitute the legislative branch of our Government, are directly responsible to the people and the burden is on you to enact such legislation as will enable the executive branch of the Government to carry out the mandates of the people when you have adjourned and gone home.
Campaign promises and pledges are sacred and every official who comes in office should give his first consideration to carrying out the promises made to the people of the State.
There is dire need and suffering among the people of our State. Their homes, furniture and other property is being sold under tax fi. fas. and mortgages.
One of the quickest possible remedies from a part of these taxes, which would be enjoyed by people generally of the whole State, is the reduction of the cost of automobile tags. This was one of the principal issues advocated by
2

me in my campaign before the people of the State last summer and bears the endorsement of the people. They expect to buy their tags this year for $3.00, and you can give this to them in a few days. This will allow a poor farmer to drive a $12.00 car without having to pay $11.25 for a tag. The reduction of the automobile tag to $3.00 would leave with our people over three million d~llars to supply their needs, to help buy gasoline, to help buy school books, to buy clothing and other absolute necessities of life. I do not know of anything that would help the people of Georgia more and help business more than to put three million dollat s in the pockets of the people of the State.
It has been the policy of the Revenue Department to extend the time for buying tags each year until the first of March. If you will give us this S3.00 tag this emergency will be met and the automobile owners can get their tags at the reduced price before many days have passed.
There is another emergency I wish to call to your attention:
The county officers of this State are in trouble about their guaranty bonds; treasurer's bonds, tax-collector's bonds, county school superintendent's bonds and other bonds that they are required to give by statute. This trouble arose because of the failure of so many banks over the State. When the banks failed with countv funds in them the officials and their bondsmen were held re~ponsible for this money.
\Ye had a meeting of county officers recently at the Capitol. This meeting was attended by many of the county officers and members of the General Assembly, and a committee was appointed at that time to draft legislation to definitely define and limit the liability of officer's bonds. This is another matter of especial importance.
I think if a county designates a bank as a depository and if the State designates a bank as a depository and the county officials keep their money in such bank and it fails, that the county officials should not be held accountable for that money.
3

Under the present law the ordinary of a county can declare the office void if an official has not given bond by the 10th of January. I think pending legislation will defer action of the ordinaries and give the General Assembly of the State time to act in this emergency.
Teeth should be put into the law that will force invisible wealth to pay its fair part of the cost of Government and in this way the tax rate on both tangible and intangible property can be lowered. The present high rate of the combined State, county, municipal and local school district ad valorem taxes is confiscatory and is resulting in the loss
of thousands of homes in the State. In order for this to be
effective for the year 1933, it is necessary that you enact legislation as quickly as possible. This is another reason for my request that you remain in regular session at this time.
I think in such an emergency the legislature should pass legislation this spring that will he! p the taxpayers and not wait until August or September when it will not protect the taxpayers for the year 1933.
My countrymen, there is another emergency in this State that needs attention before the winter is over. Ad valorem taxes in a great many instances are not being paid and in a great many instances the county officers whose duty it is to sell the ptoperty fat taxes are not doing it. Why are they not doing it? Because they know that they can not sell it and if the county bids it in they will have the property on their hands and will be out the advertising fees. This is a wise business precaution they are exercising.
Due to the non-payment of taxes our schools are in danger, especially is this true in our rural schools. A great many of them are faced with the problem of shortening their tetms and closing their doors. We all know that there is scrip in the hands of the teachers in some parts of Georgia where the teachers have been doing their work and have not received their pay.
The first duty of the State as I see it, after protecting a man in making an honest living, is to provide for our
4

schools and give our children the opportunity of a "common school education in the elementary branches of the English language." Watch our common schools and protect them.
During the war when the price of cotton was forty cents a pound, and they paid $3.00 for a bushel of corn meal and everything else was high, the cost of government increased, salaries were raised, bureaus and boards were en] arged to give the people jobs because we had plenty of money and taxes were easily paid.
\Ve must cut the cost of our Government. The only way I know to do it is to abolish every Department that we can do without. After you do this, start with the Governor and cut his salary, and follow this all the way through.
The people of Georgia unqualifiedly and almost unanimously demand substantial reductions in the cost of Government. I recommend that you give close study to determine what activities of the State Government can be discontinued entirely, or continued on a smallet scale.
I also wish to call your attention to the State's unfulfilled obligations to her Confederate pensioners. From what I hear they are very much in need of their pensions and this General Assembly should pass measure providing for the payment of these past due obligations promptly. Lee surrendered at Appomatox in April, 1865, nearly 68 years ago. You will see from this that even the boys who fought in the Confederate Army at fourteen years of age would be 82 years old now. There are very few surviving Confederate veterans.
I recommend the enactment of legislation, if possible, that will insure the prompt payment of these pensions in the future.
I also want to call your attention to the fact that in our State Government there are positions of a subordinate nature where the subordinates working under elective heads have terms extending over and beyond the terms of the elective heads of the Departments. This should be corrected. No commission of a subordinate should extend be-
5

yond that of the elective head of the Department appointing him. The head of any Department should be given the right to dismiss a subordinate employee of his particular Department for cause.
I wish to call your attention to the agitation for a general sales tax. Recently the State of Mississippi placed on a 2% sales tax with a $1,200 exemption. I am also informed that they have not reduced the ad valorem taxes in Mississippi but the sales tax comes as an additional tax. Any sales tax should be approached with extreme caution, as it taxes the bare necessities of life-the coffin, the plow point, the widow's bonnet and the corn meal of hungry children, are not exempt from the general sales tax.
The present State deficit, as of December 31st, 1932, (and all figures used are as of December 31st, 1932), according to the State Auditor, is $7,575,231.87 on a cash basis.
It is important to note that the actual collection of ad valorem taxes by the State decreased in round figures one million dollars from 1931 to 1932.
There is due to the common schools on the Barrett Rogers fund $932,500.00 and under the general appropriation to the common schools $2,189,817.28.
There are unpaid pensions to Confederate veterans and their widows, on years prior to 1932, the sum of $659,020.00. There is also due these pensioners the December 1932 check. There is $99,000.00 available to pay the December pensions, and there is also available $63,000.00 to pay on the indebtedness to these Confederate pensioners prior to 1932.
The State is due our charitable institutions for maintenance for 1932 $663,190.55, and for buildings $547,164.15.
The State is due the University system $1,232,018.28.
The total amount of money expended by the State for all purposes in 1932, was around $30,000,000.00. This is too much. The entire cotton crop of the State for the
6

same year, at the prevailing price, was around $23,000,000.00. In other words the expense of our State Government last year was $7,000,000.00 more than our entire cotton crop in Georgia for that year at prevailing prices.
Appropriations made in prior years which have not been expended, and against which no contracts have been made, are not a logical debt, nor a moral obligation. And, I recommend that all unpaid appropriations of prior years, against which no contracts are outstanding, be cancelled. During the year 1931, the State Highway Department expended $20,776,450.90. During the year 1932, the State Highway Department expended $15,477,367.97. The outstanding indebtedness of the Highway Department on December 31st, 1932, was $10,961,000.00. Of this amount $9,000,000.00 was for contracts let in advance.
A partial audit of the State Highway books shows that they have anticipated their revenue until June 30, 1933. Of course this anticipation of revenue can only be speculative.
I am of the opinion that the anticipated revenue by the officials of the Highway Department has been overestimated.
To anticipate revenue and make contracts from six to twelve months before the money is in the Treasury is had practice and should be discontinued. In fact, it is a violation of the budget law that was passed by this body at the extra session of 1931.
My interpretation of this law is that no department can act without first submitting its proposed expenses to the budget commission and this can not be approved for amounts in excess of their income for 90 days. This is a guarantee that the Department will have cash on hand to pay for the contract when it is completed.
The people of the State expect as nearly 100 cents out of a dollar of Highway money as possible to go into road construction and road maintenance.
7

I respectfully recommend that your serious attention be given to the laws controlling the Highway Department, which branch of our Government expends over half of the revenue of the State.
The members of the Highway Board are appointed for terms of six years and the people of the State have no direct control over them.
The Governor must be elected by the people every two years and is directly accountable to them. Under our law it is the duty of the Chief Executive to see that all laws of the State are carried out.
I recommend the enactment of clear provisions of law giving the Governor the authority to put a stop to extravagance and waste of the State's money in any and all Departments and to see that the State's money is expended in accordance with the wishes of the Legislature.
Another thing I wish to call to your attention, and I am sorry that our General Assembly can not control this. To my mind the gravest danger which confronts us is the war time freight rates and transportation rates in this country. In other words the railroads are persisting in charging the war time rates when everything else has gone down.
They are charging as high rate on a forty cent bushel of meal as they charged when meal was $3.00 a bushel. They are charging as much for hauling a $35.00 mule as they charged for hauling a $300.00 mule.
Exorbitant transportation rates stifle production. Exorbitant transportation rates in the long run will put the railroads out of business if this is not corrected.
During my term of office as Governor of Georgia, I pledge the people of the commonwealth my efforts, not only in Georgia, but in the Convention of Governors of the whole United States, to have our Interstate Commerce Commission and our Public Service Commissions wake up to the fact that railroad rates must be proportionate to other things.
8

With the building of paved highways there has developed in this State transportation by trucks and busses. We need legislation regulating the size and weight of busses and trucks that go over our public highways. This is needed for a two fold purpose, to protect the road-bed and to protect the safety of travelers on the highway.
It has been called to mv attention that the State Board of Education has held the adoption of text books and has entered into contracts for new text books that will make it necessary to discard nearly all of the books now being used in the elementary schools of the State and will force patrons of the school to purchase new books almost entirely.
I think this is very unwise, considering the present financial distress of the people.
I understand there is a resolution concerning this now before you.
It is useless for me to dwell at length upon the condition of this State at this time. I am sure you members of the Assembly, fresh from the country, have left behind you women and children, barefooted, ragged, ashamed to go to church and ashamed to go to school. Farms are being offered for sale with no bidders. Honest, God-fearing white people are walking the roads looking for jobs and finding none. There are ever increasing bread lines in our cities.
We need patriotism to-day as much as we did in the days of the sixties or in the Revolutionary War.
In every crisis that has confronted the people of this
State in the past we have risen to the emergency.
The people have placed upon you and me the grave responsibility at this time to save the ship of State from foundering in the storm.
While men who think are prone to differ in their ideas, I am sure that calm deliberation on the problems we face will result in an agreement on the vital questions and the course to be pursued.
9

In the interest of the State I am willing to make every
sacrifice necessary, and I know that you are actuated by the same spirit.
In these unusual times it is impossible to be guided by principles of conservatism to the extent that it is wise to be under normal conditions. Let us face conditions as they are and look for the truth as to the remedy. \Ve can not then go far wrong because "Truth cuts through the clouds, shines like the sun and like the sun it can not be hid."
(Signed) EUGENE TALMADGE
10