REPORT OF THE COMPTROLLER OF THE TREASURY 11

to exempt as taxable income "operating revenues (less related
expenses) of railroads, other public utilities and contract carriers,"
which it is estimated costs the State treasury annually app-
roximately $400,000.00 in revenue. These items are mentioned not
to criticize what was done in 1943, but to emphasize the necessity
of closely watching legislation adversely affecting State revenues.
If we had run into adverse rather than favorable economic con-
ditions in the fiscal years 1944 and 1945 the loss of revenues occa-
sioned by the passage of the two Acts of 1944 would have seriously
embarrassed our financial picture.

While there are other items in our fiscal set-up which could be
made the subject of interesting comment in this letter, I shall con-
clude my remarks at this point in the hope that you will find it pos-
sible to review this report carefully as time and opportunity per-
mit, and I want to assure you that I shall welcome any inquiries for
explanation of information in the report or for any assistance it
might be possible to give in helping you get a satisfactory under-
standing of the State's fiscal condition.

Respectfully submitted,

J. MILLARD TAWES,

Comptroller.