administration in behalf of the great masses of the people of Texas
have been under fire for nearly two years, and have repeatedly
received the emphatic endorsement of the Democratic voters of our
State, and have been approved and re-affirmed by the organized
Democracy in convention assembled. The platform of the opposition
party demanded the repeal or modification of many of these important
laws, and that party, its candidates and its platform were repudiated
and defeated by about 150,000 majority. Desperate efforts have been
employed by sinister agencies to discredit these laws, and to defeat
the operation of these reforms, but the people have willed otherwise,
and the laws have come to stay. Such changes as may be sought by the
friends of the laws to strengthen them, and which may be dictated by
experience, may, with propriety, be made, but these laws were demanded
by the people; they were enacted by their trusted representatives, and
in spirit and substance they should stand.
They are just and right and ought to stand. The result of the recent
political contests involving these laws and reforms strikingly
demonstrate that the agencies of corrupt and sinister special interests
can not dominate and control in Texas. The patriotism of our people and
the freedom of speech which obtains in Texas make it certain that her
incorruptible electorate can be safely trusted to uphold the public
official who keeps the faith and redeems his pledges made to them.
Those who have contended that modifications and exceptions in their
interest should be made in the laws enacted by the last Legislature
might have placed their propositions upon the Democratic primary
election ticket, and thus tested them at the ballot box, or they could
have uncovered their schemes in the last Democratic convention, and
these plans were suggested time and again as open to them. This course
was open under the law, but they chose rather to undertake the defeat
of candidates who stood for these laws. In this they signally failed
in every instance. The State Democratic Convention, following the lead
of nearly all the county conventions, endorsed the laws as they stood,
and placed the party candidates upon a platform committed to their
perpetuation. The enemies of the legislation and reforms enacted by the
last Legislature chose to submit their demands for repeal, changes and
modifications thereof in the Republican State platform, which of course
binds all representatives of that party faith. Democrats are bound by
party action, by the verdict rendered at the polls, and by the platform
made by its convention.
The Democratic platform declaration with respect to the laws enacted
during this administration is as follows:
"We heartily endorse * * * the acts of the Thirtieth Legislature
enacted in obedience to platform demands, and we rejoice at the
emphatic endorsement given said laws and administration by the
Democratic voters of Texas in the recent primary election."
The measures of commanding importance enacted during the present
administration are in the interest of justice, equality, good
government and decency. They have resulted in no harm or injustice to
any man or to any legitimate business enterprise within this State. The
truth of this statement has already been demonstrated, and any effort
to emasculate, destroy or weaken them would be a fraud upon the people
and a betrayal of the Democratic party. These laws became effective in
the midst of a great national panic, and Texas has been and is in a
better financial and economic condition to-day than any State in the
Republic.
* * * * *
To effect needed reforms and to check evil tendencies, laws were
enacted by the last Legislature to the following effect:
1. The keeping of gambling houses and the exhibiting of gambling
devices was made a felony.
2. The practice of drinking intoxicating liquors on railroad trains was
prohibited.
3. A law passed requiring contests of local option elections to be
promptly instituted, and providing that otherwise the legality of such
elections should be conclusively presumed.
4. Authority was granted district judges, on proper showing, to
prevent by injunction the sale of intoxicating liquors in prohibition
communities.
5. A tax of $5,000 was levied on express companies shipping
intoxicating liquors into prohibition districts, the effect of which
was to take the express companies out of the liquor and saloon business.
6. An effective bucket shop law which prohibits gambling in cotton and
other futures, thereby guarding against depression in the prices of
the farmers' crops, as a result of unnatural speculative or gambling
transactions.
7. To encourage and promote agricultural development, a separate
Department of Agriculture was created, and has been organized, and
is at this time actively promoting, with the facilities at hand, our
agricultural interests.
8. The occupation tax on useful occupations was repealed.
9. A law prohibiting the free-pass evil was enacted.
10. A law against nepotism was passed.
11. Charter fees of corporations were increased in a just and fair
amount.
12. The depository law enacted keeps in circulation State funds and
the rates of interest secured yields a return largely in excess of
the entire expenses of the State Treasurer's office, and provides a
handsome yield in interest on county funds heretofore deposited in
banks without interest.
13. Laws increasing franchise taxes, and gross-receipts taxes, and
securing the listing, rendition and assessment of the railways'
intangible values for taxation, were enacted, and their operation has
resulted in shifting a large portion of the burden theretofore unjustly
borne by the individual property taxpayers to those who had been
evading and escaping taxation.
14. A mine inspection law for the protection of laborers engaged in
mining business, a law against black-listing, and a law lightening the
labors of trainmen, enginemen, and telegraph operators and to protect
the public, and other just laws, were passed for the benefit and
protection of workingmen.
15. The law known as the "Robertson Insurance Law" having for its
object the better protection of the policy-holders in Texas, and to
promote investments in our State, was passed. The practical operation
of this law is to require the investment of seventy-five per cent. of
the Texas reserve of life insurance companies doing business in Texas,
in Texas securities, and to require the deposit of such securities in
the State Treasury, or other depository designated by the law. It is
also provided that the deposit and investment features may be waived by
the Commissioner of Insurance upon substantial showing under the terms
and conditions of the law.
16. The "Full Rendition Law," as it is called, and the "Automatic Tax
Law," having for their respective objects the rendition and assessment
of all taxable property at its full value, greater uniformity and
the adjustment of the tax rates and tax burdens in keeping with the
absolute requirements of the government.
17. A uniform text-book law, providing for the adoption of a uniform
system of text-books for all the public free schools of the State was
passed.
18. A law prohibiting insolvent corporations from doing business in
Texas was enacted.
19. A law prohibiting lobbying, and many other useful laws, were passed
in the interest of the people.
* * * * *
In the administration of the State government during the past two
years, an earnest effort has been made by the Executive and all
other departments of the public service, to give the people a clean,
efficient, and economical government.
That the full measure of our success may be ascertained, and the
people more fully informed, the most careful and rigid investigation
into the administration of every department of government and into the
management of each State institution is invited and suggested. That the
laws should be properly enforced upon all alike, no law-abiding man
will deny. The Constitution provides that "the Governor shall cause
the laws to be faithfully executed," and every means and power that
could be appropriately exercised has been brought into requisition to
meet this mandate of the Constitution. No one should be strong enough
to escape the power of the law, and none too weak to receive its
protection.
The mandate of the Constitution is clear and the duty of the Governor,
with respect to enforcing the law, is plain, but the Governor's powers
are not adequate, and adequate statutory powers as contemplated by
the Constitution should be promptly provided by legislation suited to
present conditions as well as for future contingencies.
Obedience to all criminal laws should be a condition in liquor dealers'
bonds, and jurisdiction for suits for breach thereof should be given to
the district courts of Travis County.
The transactions of the Treasury Department are set out in detail
in the State Treasurers annual report for the fiscal year ending
August 31, 1908. The report, together with the tables accompanying
the same, contain much useful information, and it is suggested that
an examination of the same will be useful and profitable to the
legislators.
At the beginning of this administration, the Comptroller estimated the
deficit for the fiscal year ending August 31, 1907, to be approximately
$300,000, and possibly more. However, as a result of careful and, we
believe, efficient administration, aided by more effective revenue
legislation, the deficit was avoided, and the State has been able to
meet all of its current obligations for the past two years, and at all
times to maintain an adequate working surplus in the State Treasury.
Instead of a deficit, as predicted, on August 31, 1907, the State had
met all of its obligations, and had a cash balance of $692,612.81 to
the credit of the general revenue, and at the close of the fiscal year,
August 31, 1908, after paying all claims when presented, the State had
to the credit of the general revenue fund a balance of $888,985.61.
This very satisfactory financial condition was secured and has been
maintained under the operation of the present tax system without
additional tax burdens upon the individual property-tax payers.
Interests theretofore escaping and property theretofore unrendered have
been required, under the new laws, to contribute more to the support of
the government, thereby lessening the burden upon those who were under
the old laws bearing more than their just share.
To illustrate: Under the operation of the intangible tax law,
$173,698,318 of intangible values of railways and bridge and ferry
companies were listed for State and county taxes for the year 1908. The
physical values of the railways increased under the new rendition law
from $100,166,782, in 1906, to $157,822,790, in 1908. The intangible
tax law, and the full rendition law has added to the tax rolls more
than $250,000,000 of railway and other corporate values theretofore
escaping taxation. The credits of money of banks and bankers and
of others than banks and bankers are not now being properly listed
for taxation; still there has been a great improvement, as the tax
rolls show that they were increased from $42,112,424, in 1906, to
$80,717,825, in 1908; an increase of more than 91 per cent. These are
prominent illustrations of property values heretofore escaping, which,
under the new laws, have contributed to the reduction of the ad valorem
tax rate of 20 cents on the one hundred dollars in 1906, to the low
rate of 6-1/4 cents on the one hundred dollars in 1908. The average tax
rate in the counties throughout the State for 1906 was 55 cents on the
one hundred dollars. This average rate of 55 cents was reduced in 1908
to an average rate of 40 cents on the one hundred dollars for county
purposes by the operation of the new laws. The individual citizens who
have been paying taxes upon their homes and farms at a fair valuation
will pay less taxes in 1908 in proportion to value than they have paid
for the support of the State government in any year since 1860, and
as the receipts from other sources to the credit of general revenue
increases, the ad valorem tax rate for State purposes will be reduced
in proportion.
Under the operation of the tax laws of the last Legislature, the
property values on the tax rolls increased from $1,221,159,869, in
1906, to $2,174,122,480, in 1908. The amount of taxes paid in 1906
on the tax rate of 20 cents on the one hundred dollars, amounted to
$2,435,412.92, and in 1908, with the tax rate of 6-1/4 cents, the
total tax amounts to $1,358,826.55; an increase in assessed values of
$952,935,411, and a reduction of $1,076,586.37 in the total amount of
ad valorem State taxes levied for 1908 as compared with 1906, and a
much more equitable distribution of the taxes has been secured.
The valuation of property assessed for taxes, the rates and the amounts
of State ad valorem taxes for the years 1906, 1907, and 1908, are as
follows:
1906--Valuation, $1,221,259,869; rate, 20 cents; amount of taxes,
$2,435,412.92.
1907--Valuation, $1,635,297,115; rate, 12-1/2 cents; amount of taxes,
$2,040,625.58.
1908--Valuation, $2,174,122,480; rate, 6-1/4 cents; amount of taxes,
$1,358,826.55.
Receipts to the credit of the State's general revenue for the year
1906, 1907, and 1908, from special corporation taxes and from all other
sources, not including the ad valorem taxes on tangible and intangible
values, is shown below; $375,418.94 received from the United States
government in 1906 not included:
1906--Amount of receipts $1,826,682.26
1907--Amount of receipts 2,024,434.80
1908--Amount of receipts 2,416,218.46
The county tax rolls for 1906, 1907, and 1908 disclose the gross
inequalities obtaining throughout the State prior to the recent tax
legislation, and they further show that an earnest effort was made in
the large majority of the counties to comply with the laws respecting
rendition, assessment and equalization. In a few counties, however,
the law was ignored, and the conduct of the tax officials of such
counties was little short of unconscionable. These counties received
the full benefits of the reductions in the State ad valorem tax rate
from 20 cents to 6-1/4 cents, and the State school ad valorem rate
from 20 cents to 16-2/3 cents, and received the full benefit of the
increase in the apportionment of the available school fund, but by
the dereliction and disregard of duty on the part of their trusted
tax officials they contributed practically nothing to the increase of
values resulting in such general good. This is so manifestly unfair
and unjust that an effective remedy should be speedily provided by
law. It is inconceivable that the oath of office prescribed by the
Constitution, to say nothing of the oath prescribed by the new statute,
and to which all tax officials must solemnly subscribe, should be so
lightly considered by some men who have been honored with official
station. Each county and each citizen and corporation of the State
should contribute a just share and no more of the taxes necessary to
support the State government and to maintain the public free school
system, and no county, citizen or corporation through the dereliction
of tax officials should be permitted to share in the benefits of
reduced rates, and the increase of school funds when they fail to do
their part. They should not be allowed by official dereliction to shift
their just share of the taxes to the taxpayers of other counties and
communities. It is just to say that the people of some of the counties
where the law was disregarded repudiated the derelict tax officials
upon their first opportunity.
Article 5124e, of Chapter XI, of the Acts of the First Called Session
of the Thirtieth Legislature should be amended so that suits for
removal from office may be instituted and prosecuted either in the
county of such officer's residence, or in the district courts of Travis
County, at the option of the Attorney-General. Laws should also be
enacted providing that resignations or expirations of terms of office
shall not abate action for removal from office, and the law should
further provide that county officers who are removed from office for
malfeasance or misfeasance or for any dereliction shall not thereafter
hold office in this State until their eligibility is established and
restored by act of the Legislature.
In this connection, I invite your attention to the respective annual
reports of the State Tax Commissioner and the State Revenue Agent. The
data and the difficulties encountered in the laws enforcement, and the
suggestions made by these faithful officials, will, I believe, be of
much value to the Legislature in improving our system of taxation and
in enacting legislation to secure equality and more uniformity in the
distribution of its burdens.
APPENDIX G
ADDRESS OF THE HON. W.D. WILLIAMS IN REFERENCE TO THE FULL RENDITION
LAWS
I am altogether sensible, gentlemen, of the honor which you have done
me by inviting me to discuss before you that act of the Thirtieth
Legislature of Texas commonly known as the Full Rendition Statute. I
am fully aware of the honor done me, as I have said, and yet I am not
averse to accepting the invitation. I have heard so much said about
this law; I have heard it so wildly praised and so extravagantly
denounced; I have heard its promoters and all who were concerned in the
enactment so severely condemned on the one hand and so unreservedly
lauded on the other; I have read so many editorials in favor of full
rendition and so many more against it, that the fever of strife has
been set to circulating in my own blood, and I have come at last really
to desire to speak my own thoughts on this subject. And especially
is this true when I am afforded to-day the opportunity of addressing
upon this issue the body of distinguished citizens which is assembled
here before me, and which represents the opinions, the aspirations and
the sentiments of the commercial classes of my own State. For this
too is true, gentlemen, that however much I may in some particulars
and on some occasions dissent from the prevailing beliefs of what is
called the business world, I am now and always compelled to admit
that the leaders of commerce are not only keen of intellect, but that
they are full of courage, ready to give weighty reasons for the faith
that is in them, loyal and patriotic citizens, commanding the respect
and admiration of the world, true and sincere friends and generous
adversaries.
That statute, which is generally called the Full Rendition statute,
was enacted at the Regular Session of the Thirtieth Legislature, and
is published by official authority as Chapter XI on page 459 of the
General Laws of 1907. By provisions of this act, assessors are required
to list the property for taxation at its reasonable cash market value
or, if it has no market value, then at its real and intrinsic value.
Practically this is what is meant by the words "full value rendition,"
that the rendition shall be at the reasonable cash value of the article
or thing which is listed. But it is well settled by repeated decisions
of appellate courts that where the word "value" is used in a statute
and is not limited either by qualifying words or by the context of the
statute, it has the same meaning as if it had been written "reasonable
cash market value," or "real and intrinsic value."
So that, as respects its actual intent, the Full Rendition statute
brings into operation no new principle and does nothing more than to
deprive our assessors of a common excuse, sometimes honestly made and
sometimes not, of misunderstanding the meaning of the word "value,"
as used in former statutes upon the same subject. The act was not
intended to and did not introduce a new practice in the assessment of
property for taxation, but on the contrary, was aimed at persuading or
compelling obedience to methods already established by law, but fallen
into partial or total disuse.
The Constitution of 1876, which is now in force, commands that "all
property in this State shall be taxed in proportion to its value," and,
as already explained, the word "value," as used in this connection,
means fair cash market value, or if the article has no market value,
then its real and intrinsic. The Constitution fixes the same standard
of compensation as does the Act of 1907, and if the latter is correctly
designated as a full rendition law then is the Constitution itself also
a full rendition Constitution.
Now, when we are inclined to complain of the trials and hardships of
the present, it is sometimes the part of wisdom for us to recall for
a moment the conditions and circumstances which surrounded us in the
past. For it is by such a comparison alone that we may truly know
whether our situation has indeed changed for the worse, or whether our
complaints are justified.
We have had an ad valorem general property tax in Texas since the
beginning of the Anglo-Saxon government within our boundaries. The
Constitution of 1836 gave to the legislative department of the Republic
an absolutely free hand to shape laws for the raising of a public
revenue at its sole will and pleasure. "Congress," so it was written,
"shall have power to levy and collect taxes and imposts, excise and
tonnage duties." Article 2, Section 1. This authority was sufficiently
broad to enable the Legislature of an independent sovereignty, such as
Texas then was, to determine what persons and what property should be
burdened for the support of the government and what persons and what
property should be exempted. There was no limitation upon the power,
nor any restrictions to prevent whatever discriminations Congress
should see fit to enact.
With this unlimited charter in its hands, the first Congress of Texas
met together in October, 1836, the founders of a new nation, a truly
representative body, great in intellect, great in character and
courage, but greater than all in devotion and loyalty to the eternal
principles of right and justice, which are now, always have been and
always will be the principles of Democracy also. And those ancient
heroes in home-spun, being thus the sovereign legislative body of an
independent people, legislating as well for the planter, with his
broad and fertile lands, tilled by his hundreds of slaves, as for the
wandering hunter and scout, whose Kentucky rifle and pouch of bullets
and horn of powder constituted his sole possessions, passed that
act, entitled "An Act to raise a public revenue by direct taxation,"
approved June 12, 1837. And, after this manner, there came into
being the first "full rendition" statute, which was also the first
statute for the direct taxation of property enacted under Anglo-Saxon
domination in Texas.
For, by this act, Congress required all property owners and all
agents and representatives of such owners, to make out and deliver to
the proper assessing officers inventories showing the value of all
their properties, and to swear that same were just, true and faithful
valuations and lists. If the assessor believed any valuation offered to
him was too low, it was made his duty, summarily and without notice or
formality, to call to his assistance two neighboring citizens, to be
selected by himself, and the three of them were required to persuade
and encourage the reluctant property owner into those straight and
narrow paths where duty leads and virtue is its own and only reward.
From the assessor and his chosen helpers there was no appeal. That
which they said was the full value was the full value, both in law and
in fact, and there was an immediate end of the controversy.