The Speaker then laid before the House, on its second reading and passage to third reading, S. B. No. 2, A bill to be entitled "An Act to make an appropriation to pay the contingent expenses of the Regular Session of the Thirty-seventh Legislature of the State of Texas, convened January 11, 1921; providing how accounts may be approved, and declaring an emergency." The bill was read second time and passed to third reading. (Mr. Curtis in the chair.) SENATE BILL NO. 2 ON THIRD READING. The Speaker then laid Senate bill No. 2 before the House on its third reading and final passage. The bill was read third time. The Clerk was directed to call the roll, and the bill was passed by the following vote: Mott. Neblett. Neinast. Owen. Patman. Perkins of Cherokee. Perkins of Lamar. Wessels. Westbrook. Williams of Montgomery. Wright. Duffey. Burns. Binkley. Duncan. Laney. Bonham. Edwards. Pool. Black, O. B., Estes. Faubion. Fly. Fugler. READING. hand you herewith the letter of transmission and a synopsis of my annual report to the Governor for the fiscal year ending August 31, 1920. The detailed report showing schedules, tables and recapitulation from the various counties were late getting into the hands of the public printer on account of my inability to obtain complete reports from several of the tax assessors and tax collectors over the State, which were necessary to include in the various tables for the final report. Four of these county officials have gotten their annual reports to this office within the last twenty days. For the above reason my annual report went to the printer too late, in their already crowded and over-worked condition to enable them to deliver the printed report in time for the opening of the session of the Legislature. The following synopsis contains the essence of what my annual report will show and all of the schedules, tables of values, etc., are all prepared and the original on file in the auditing division in the Comptroller's Department. Any information that my department can furnish you or any of the members relative to the annual report or of the State's affairs in general will be cheerfully furnished, since we are, Yours to command, M. L. WIGINTON, Austin, Texas, September 1, 1920. To His Excellency W. P. Hobby, Governor of Texas. Dear Sir:-In compliance with Chapter 17, Section 19 of the General Laws of the State of Texas, as passed by the Fourth Called Session of the Thirty-first Legislature, I submit herewith the annual report of the Comptroller's Department for the fiscal year beginning September 1, 1919, and ending August 31, 1920. In transmitting this report I take pleasure in directing your attention to the splendid condition of the State Treasury as of September 1, 1920, which shows a net balance in the State revenue account of $8,840.758.79. I submit the following statement of total receipts and disbursements for the fiscal year beginning September 1, 1919, and ending August 31, 1920: and one stenographer and represents re Disbursements Sept. 1, 1919, to Aug. 31, 1920.. 34,750,685.93 ceipts from oil companies in the State Balance in State Treas ury Sept. 1, 1920....$13,552,115.90 I submit the following summary of property value as shown by the tax rolls for 1919 and 1920, the total valuation shown by the tax rolls of 1919 is $3.200.295,205, and the total value of 1920 is $3,390,954,152 showing an increase of taxable value of $190,658,947. The total taxes charged on 1919 rolls was $24.919,216. The total taxes charged for 1920 is $21,816,528, a decrease from amount of 1919 tax rolls of $3,102,688, this being due to reduction of tax rate for 1920. I submit the following statement in regard to the Comptroller's Department for the fiscal year September 1, 1919, to August 31, 1920. The total appropriation was $128,495.22, and the total expenditures was $120,173.01, leaving an unexpended balance of $8322.21. The total appropriation for the auditing division of the department was $39, 750 and expenditures by this division was $37.046.22, leaving an unexpended balance in this division of $2703.78. I submit the following statement of collections made by the permit division Dean Prohibition Law) of this department from October 24, 1919 (date law was effective), to August 31, 1920: Permit Fees at $5.00 each..$10,905.00 Supplies furnished at cost.. 2,607.13 Total receipts . $13,512.13 I who voluntarily have paid the tax. have information at hand of many, many oil producers in the State who are not paying the tax. In a two day visit into that field who had never paid the tax. If the Legislature would make provisions for salaries and traveling expenses for two capable men to travel and enforce the payment of this tax I confidently believe that a half million dollars might be added to the State's revenue from this source alone. I call your attention to this because it is very important. Provision for the equalization of taxes should be provided for, as required by our Constitution. Article 8, Section 18, provides that: "The Legislature shall provide for equalizing, as near as may be, the valuation of all property subject to or rendered for taxation, (the county commissioners' court to constitute a board of equalization); and may also provide for the classification of all lands with reference to their value in the several counties." the purpose of equalization of taxation in the department. would be the creation of a "State Board I suggest that a probable solution of Classification" as provided for in the above quoted article and section of the State Constitution. Their duties could be presented under constitutional authority and provisions made for certification to the County Board of Equalization, and prescribe their duty in regard to such classification. They are also a constitutional board but on account of being with limited territorial jurisdiction can not procure the necessary ininformation for a general equalization of taxable values as between counties but can only equalize taxation in their respective county. The splendid statement as shown above of the State's finances is largely due to the passage of legislation increasing the State's revenue from sources other than a direct tax and the principal crease of income has been derived from Gross Receipts Tax on oil. The Gross Receipts Tax one and onehalf per cent on oil from September 1st, 1919. to August 31st, 1920, is $3,018,432.73. While a member of the LegisLature and being the author of the bill taxing oil production, I take pleasure in submitting the information that during your last term of office and during the operation of this law there has been received from this one source alone $6,S03.695.18. While Gross Receipt Tax from other sources will show in addition to the oil tax approximately $1,400,000, for the same period during your present term. The above stupendous amounts have been handled on one desk with one clerk It is my pleasure to report that since receiving appointment at your hand January the first of the present year, I have worked out and installed in the general warrant room of this department a modern loose leaf posting system of accounting, such as is used in modern up to date banks of the State, carrying individual accounts, issuing separate warrants and giving daily balances on every appropriation made by the Legislature. This in my judgment was the crying need of this department and has been for all the years, and in this connection permit me to say that I have established the same method of revis |