USA > Ohio > Ohio legislative history, 1913-1917 > Part 11
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TAX RATES AND BOND ISSUES.
Closely related to this matter of economy in expenditures is the question of proper limitation on tax-rates and bond issues. Fortunately for the people of Ohio the Constitution of 1851 provided a limitation of $750,000 beyond the bonded debt of the state should not be in- creased except for certain specific purposes. It was further provided through the creation of a sinking fund that an amount should be ac- cumulated by the state sufficient to pay the accrued interest and at least $100,000 of the principal annually. As a result of this far-sighted, statesman-like provision the state is free from debt save the so-called irreducible debt which is such only in name.
It is to be regretted that the debt contracting powers of the minor
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political subdivisions of the state have not been more carefully guarded by legislative and constitutional limitations. The experience of the state government as distinguished from the experience of its political subdivisions is an unanswerable argument in favor of such limitation. According to the most recent report of the Auditor of State the total debt of cities, villages, counties, townships and school districts in Ohio in 1880 amounted to $41,297,000; in 10 years this had increased to $62,992,000 and in 1900 it had reached the startling sum of $96,193,000. It was hoped that the maximum of indebtedness had been reached at that time but to the consternation of the friends of economy the debts mounted up to $187,574,000 in 1910; and then as if to put on the cap- sheaf of amazing extravagance and profligate waste these debts were increased in only four years from $187,574,000 in 1910 to $293,099,019 in 1914.
While it is conceded that the greater needs of an increasing popula- tion furnish reasonable excuse for a portion of this vast debt, yet it is submitted that if the burdens of debt are to continue to pile up in the future as they have in the immediate past certain financial calamity awaits us. These debts are not only a problem, they are an ever-increas- ing menace. A rigid limitation should be fixed by law not only upon the amounts of bonds public officials may issue for public purposes but also upon the number of dollars they may collect by taxation. New services and public improvements calling for bond issues which compel the assessment of more dollars in taxes should be authorized only by vote of a proper portion of the people in the political subdivision affected. Unforeseen emergencies requiring immediate and unusual expenditures should of course be provided for. Aside from such infrequent con- tingencies there should be a positive limit to bond issues and to the number of dollars that can be levied as taxes by officials, which shall not be exceeded except by vote of the people. This is government by the people, not government by officials. Such a limit not only as to tax rates but also as to number of dollars assessed as taxes and amount of bonds issued would promote economy in public affairs and thus pro- tect the interests of the tax payers by insuring decreasing tax rates.
SPECIFIC APPROPRIATIONS.
In the formulation of the appropriation bills your attention is re- spectfully invited to Section 22 of Article 2 of the Constitution which is as follows: "No money shall be drawn from the Treasury except in pursuance of a specific appropriation made by law ; and no appropria- tion shall be made for a longer period than two years." The purpose of this wise provision was to keep the control of the public moneys
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directly in the hands of the representatives of the people by preventing expenditures by executive or administrative officers in any manner ex- cept as definitely provided by law. There is no surer way of encourag- ing extravagant expenditures of the public funds than to provide "lump sum" appropriations from which heads of bureaus and departments may make disbursements without specific authority of law. Under such un- business-like methods there are rarely any unexpended balances, ways being found to spend the money where there is no legislative restriction to prevent. Lump sum appropriations are indefensible from every view- point ; they are unbusiness-like ; they promote extravagance; they furnish convenient means for autocratic centralization of power and political machine-building at public expense ; they are contrary to American prece- dent and tradition from the days of Thomas Jefferson down to the present hour and they are in plain violation of the letter and spirit of the Constitution.
The practice of allowing salaries to be fixed by heads of depart- ments, or by the Governor or by heads of departments "with the ap- proval of the Governor," should be immediately discontinued. Salaries should be definitely fixed by law ; no Governor or head of department should have the dangerous power of political coercion involved in the arbitrary authority to fix salaries. Too many things are provided by the statute to be done "by the approval of the Governor" or "upon the approval of the Governor." In most cases the public service would not suffer by striking this monotonous and oft-repeated phrase from the statute.
I earnestly recommend that all appropriation bills be specific in terms and so drawn as to be intelligible and clear without the use of mysterious so-called keys or other theoretical refinements. By no single act can the General Assembly do more to secure economy and abolish sinecures based on political favoritism than by eliminating "lump sum" appropriations and framing its appropriation bills so that their terms are clear, specific and unmistakable. This whole subject is ably discussed by the Auditor of State in his report for 1913 (p. 14-18). What is there said on the subject of specific appropriations as well as the recommendations by this same official in his report for 1914 (p. 33- 34) touching the change in the budget system is heartily approved and the facts and the arguments stated by him in connection with these two subjects are especially commended for your consideration. The further recommendations of the Auditor of State (Report of 1914 - p. 35-38) relative to the establishment of a State Purchasing Department are worthy of your most serious attention. From the logic of the situation and from the experience already had by this state, and by the United
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States Government in the establishment of a General Supply Committee, it is confidently believed some steps in this direction would lead to great saving of the public funds.
TAXATION.
Intimately akin to the problem of economy just considered is the question of method of assessment of property for taxation. From the days of Magna Charta and the Bill of Rights down to this very moment the question of taxation has been of the greatest interest to every self- governing people. Singularly enough the American Revolution itself grew out of this very matter. The then King of England insisted not only that his government should levy the taxes but also that he should appoint the officials who were to assist the property for taxation. He insisted that his appointed tax-gatherers would be more efficient than those chosen by the people; he urged that it was inadvisable to have the taxing officials responsible to the people but that they should be respon- sible to him alone. But the people did not take kindly to this argument and the American Revolution was the result. Thus born out of a tax- ation controversy the United States has always upheld the doctrine that taxation is a question which should be kept under the immediate control of the people. Experience as well as instinct teaches the people of Ohio that there is no more certain way of building up autocratic, centralized power than by surrendering control of taxation matters. These in- volve not only the method and amount of taxation but also the valua- tion of property, which is the basis of the taxation. Our present system provides that those who levy the taxes and make the charges which are to be met by taxation shall be elected by the people, but that those who fix the value of property for taxation shall be appointed by some central authority remote from the people. The agency which fixes values for taxation is as important as the agency which fixes rates; the power of the people is gone if either agency is entirely beyond their control; appointment of taxing officials is the emblem of authority first seized by those ambitious for strongly centralized government. Upon what theory of government consistent with American ideals can it be main- tained that some central authority here in the state capitol can appoint better taxing officials for the counties and townships than the people themselves can elect? Why should the state be divided into alleged "taxing districts" unless it be to evade a clear requirement of the con- stitution providing that county officials shall be elected? The inevitable tendency of a system of taxation wherein the officials are appointed by some central authority is to make possible and probable the construction of a vast political machine destructive to the right of self-government.
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No such tremendous power should be trusted in the hands of any Gov- ernor or other single official or in any agency subject to his control.
The Warnes Law, so far as it provides for appointment of deputy tax commissioners or district assessors, boards of complaint and local or deputy tax assessors should be immediately repealed or radically amended. Rule by officials must give way in this instance to rule by the people. If there was one issue above all others fully and emphati- cally decided by the voters at the recent election it was that the tax assessors should be selected by the people instead of being appointed by a central executive power. The people demand that their right to local self-government be restored in this regard. It is recommended that this demand be complied with as one of the primary duties of the 8Ist General Assembly.
Without going into a review of the problem of taxation it is perti- nent to draw attention to the fact that Ohio is the only state in the Union in which the local tax assessors are appointed by a central au- thority. Until recently the people had directly elected their tax assessors. It is recommended that this right be restored to them. . The one argu- ment urged in favor of the new system against the old one is that of alleged greater efficiency. The claim is certainly open to dispute. Effi- ciency can be obtained without such arbitrary centralization; but even admitting the claim temporarily for argument's sake, the plea is insuffi- cient. It is not only contrary to treasured historic precedent and to the democratic traditions of our race, but the present system is in viola- tion of the spirit and the very letter of our constitution. Efficiency is a great thing; but self-government is greater. The people are the source of all executive and legislative power and are the final court of settlement. If they want the executive to appoint their tax assessors or other local officials, they can grant that authority. But they have not done so. Whatever reforms be advisable or necessary in our taxa- tion system, they must be predicated upon the will of the people con- stitutionally expressed.
In restoring to the people home rule in the valuation and assess- ment of property for taxation, it by no means follows that state super- vision must be abolished.
Without going into details, it is suggested that the work of the local assessors be placed under the direction of the county auditor who should be required to perform without additional compensation the work now done by the district (county) tax assessor and over him there should be placed a strict supervision by the State Tax Commission to secure uniformity and efficiency in taxation throughout the state.
One of the many objections most vigorously and properly urged
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against the present system of assessing taxes is that it tends too greatly toward centralization of power and makes possible the construction of a huge political machine. Against this tendency the people without re- gard to party lines have registered prompt, emphatic and effective pro- test - and this protest should be heeded in legislation and administration.
LIQUOR LICENSES.
The same objections and criticisms have been lodged against the existing system of issuing liquor licenses. If direct and undisguised effort had been made to formulate a system of licensing the liquor traffic whereby the saloons would be dragged into politics and made part of a monstrous political machine doing the bidding of the chief executive and his agents, no plan better calculated to accomplish that purpose than the present one could have been found. Under its operations the licensing authority could be and perhaps has been used to control the political activities of those subject to the terms of the license law. It is a matter of common belief that in many instances applicants for licenses have been given to understand that the issue of licenses would depend upon the political activities of the applicants; whether or not this belief is well founded, such a result is the natural outcome of the system.
Why was the law adroitly drawn so as to provide that each county should be a "licensing district"? Why was the date of issue of licenses so fixed as to be in convenient proximity to election day? These ques- tions we cannot answer; we cannot know of the motives of others; we may not penetrate the portals of conscience. Let us judge not that we be not judged. We can only know of tendencies and results ; and against evil tendencies and results it is your duty as legislators to guard. It was clearly the intent of the constitutional convention in framing Section 9, Article 15 of the Constitution, to prevent the granting of liquor licenses directly by the Governor of the State or indirectly through boards, commissions or other agencies appointed by him. A reading of the constitutional amendment and the debates in the Convention at- tendant upon its passage leads inevitably to the conclusion that the present license law does not conform to the will of the people as ex- pressed in their ratification of the constitutional amendment. It was the evident purpose of the Constitutional Convention which framed the amendment and of the people who ratified it, that the issuing of liquor licenses should be in the hands of some local authority and that the regulation of the liquor traffic should be removed as far as possible from partisan influence.
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In order that any amendments to the existing law may be in har- mony with the clear intent of the Constitutional Convention and of the people as expressed in their ratification of Section 9, Article 15 of the Constitution, it is recommended that consideration be given to the illuminating debates on this question in the Convention and to the word- ing of the Section itself, a portion of which is as follows: "License to traffic in intoxicating liquors shall not be granted unless the place of traffic under such license shall be located in the county in which the person or persons reside whose duty is to grant such license or in a county adjoining thereto." The present system is clearly in conflict with the spirit, if not with the letter of this provision.
A system which permits and encourages an intimate political rela- tionship between the State House and the liquor interests of the state is unwise from every viewpoint. So long as the liquor traffic exists in Ohio it should be as far removed from political manipulation as possible ; at any rate all possible political connection between the State House and the saloons should be severed.
In formulating amendments of the liquor license law, or in drafting a new measure if the present law shall be repealed, constant reference should be had to two guiding principles which it is believed should be adhered to in all legislation relating to the issue of liquor licenses.
Ist. The licensing authority should be decentralized by taking from the Governor's appointed agents the power to issue licenses.
2nd. Careful provision must be made to secure vigilant and uni- form enforcement in every section of the state of all the laws for the regulation of the liquor traffic. Violation of these laws would breed anarchy and contempt for all law ; it must not and will not be tolerated.
The State Liquor Licensing Board should be abolished and legisla- tion enacted to provide for the appointment, by and with the advice and consent of the Senate, of a state liquor traffic inspector who in turn may appoint not to exceed ten deputy inspectors, all at moderate salaries to be fixed by law. The chief inspector and the deputies should be re- movable by the Governor for non-performance of duty. There are at present three members of the State Liquor Licensing Board each draw- ing an annual salary of $5,000 and 28 inspectors with salaries ranging from $1,300 to $1,800, per annum. The salary of the state liquor traffic inspector should be less than one-half what is now paid one of the three state liquor license commissioners, and inasmuch as the force of inspectors would be only about one-third the present number it is evident that in this item alone there will be a considerable saving to the state and at the same time ample provision will be made for the rigid enforcement of the laws regulating the liquor traffic.
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The disbursements by the State Liquor Licensing Board from Nov. 15, 1913, to Nov. 15, 1914, were approximately $288,000, i. e., it is costing about $24,000 per month or nearly $1,000 per day to administer the present license system. Probably more than one-half of this amount consists of salaries and expenses of the County Liquor Licensing Boards in the several counties. The office of county licensing commissioner should be abolished and the power to issue licenses be vested in some appropriate local authority consisting of an official or officials already elected and their salaries already fixed by law. Some have suggested the courts or an official appointed by them as the proper authority to have charge of the issue of licenses; others have suggested the im- paneling of a jury to pass upon the applications for licenses under the jurisdiction of the court; and still others have urged that a board con- sisting of certain designated county officers already elected and paid should have charge of the matter. Any one of these plans will save more than half the expense of the present licensing system, greatly re- duce the number of officials, carry into effect the expressed will of the people that the licensing of saloons should be under local authority, and deprive the Governor or any other state official of the dangerous power that would be his if he were allowed to control the issue of licenses to traffic in intoxicating liquors. Section 18 of the existing license law provides that "the license year shall begin on the fourth
Monday of November." This should be changed because the close proximity of this date to the time of the annual election facilitates the partisan manipulation of the issue of licenses which the law should seek to avoid. The date of the beginning of the license year should be as far as possible away from the time of primary or general elections. It is therefore recommended that the license year be made to begin on April Ist or some other convenient date approximately midway between the November election and the August primaries. It is further urged that, subject of course to revocation, licenses be granted for two years instead of one, beginning with the year 1915, in order that the issue of licenses may not come in any year in which will occur a national, state or county election. This arrangement would remove the issue of liquor licenses to the date most remote from political activity and thus reduce to a minimum the opportunity for partisan manipulation.
COMMISSIONS.
One of the methods whereby much power has been placed in the hands of the executive in recent years has been through the gradual increase in the number of Commissions appointed by the Governor. No doubt much of good has been accomplished by some of those Commis-
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sions ; others have accomplished little or nothing and should be abolished in response to an unmistakable public demand for their elimination and for a positive check on the further extension of executive authority by the creation of additional expensive Commissions of doubtful value; some of these dealing with subject matter of great importance and possessing potentialities of great good to our people should be reorgan- ized so as to promote economy, secure a higher degree of efficiency and bring their control and management closer to the people. Reorganiza- tion of Bureaus, Commissions and departments of government should not be undertaken for light and transient causes. But where it be apparent that government can be made more responsive to public needs and greater economy secured by such legislative action it should be taken, not in any sense for partisan purposes but for the promotion of the public welfare.
DEPARTMENT OF AGRICULTURE.
The 80th General Assembly provided for the establishment of an Agricultural Commission consisting of four members with annual salaries of $5,000 each. It is believed that much money can be saved without any impairment of efficiency in this department by a legislative reorgan- ization. I suggest that there be created a bi-partisan State Board of Agriculture to consist of nine members who are to serve without com- pensation and to be elected by the agricultural interests of the state if a practical and legal method of doing this can be found or if not to be appointed for appropriate terms by the executive or other proper authority. This Board should have general charge of the administrative affairs coming within the scope of this department and should have authority to select a Secretary of Agriculture who should be the active head of the department and should have power to appoint the chiefs of bureaus therein. In this as in all other cases salaries should be definitely fixed by law. The Farmers' Institutes could properly be car- ried on in connection with the agricultural extension work of the Ohio State University. The management of the Ohio Experiment Station at Wooster should be in the hands of a Board of Control to be ap- pointed by the executive and to serve without pay. In providing for these various appointments the principle should be constantly borne in mind that actual practical farmers should be appointed to all positions having to deal especially with the agricultural interests of the state.
Without making any invidious comparisons it is only the plain truth to state that agriculture is by far the greatest single industry in Ohio. On its success depend the comfort and prosperity of our citizens. The department administering the affairs of this great industry should be
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conducted with the highest degree of efficiency and without any purpose to promote the political fortunes of any individual or party, but only to render the greatest service to the people. I commend this whole subject to your earnest consideration. I have no pride of opinion in the suggestions made. Perhaps your deliberations will reach wiser solution than has suggested itself to me. If so the people will be the gainers and will approve your labors.
ELECTIONS.
No doubt the Secretary of State will have important recommenda- tions to make touching amendment of the election laws. At this time I desire only to suggest for your consideration the advisability of pro- viding by legislation for a system of registering and voting by mail. Such a law must be most carefully drawn in order to prevent fraud and preserve the purity of the ballot. Its enactment would preserve the right of franchise to thousands of our voters who now by the exigencies of their vocations are prevented from registering and voting. In this connection I also recommend that the so-called students voting law providing for the disfranchisement of students, once vetoed by Gov- ernor Harmon, but subsequently placed on the statute books be repealed. Ohio can not afford to place a penalty on desire for knowledge.
WORKMEN'S COMPENSATION.
The humane principle of workmen's conpensation is here to stay. The present law was placed on the statute book by unselfish, non- partisan effort; it is hoped that no amendment will be made to the law which will in any way decrease the benefits now enjoyed by work- ing men under its provisions and that so soon as the state of the insurance fund will admit of it the amount to be paid to injured work- ing men or their families in case of death or total disability shall be increased. Because of the unfortunate industrial condition in the whole country many thousands of workingmen are out of employment in Ohio. To alleviate this distressing condition I recommend generous appropriation for the establishment of three additional free public em- ployment offices and further legislation for the proper regulation of private employment agencies.
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