Weekly Trinity journal., 1873-11-01
DOUBLE TAXATION,

bhiouHe W any tIiilg more lnan mere pro-
fessions, the opportunity to carry some of
its precepts into practice will not be
wanting. The legislature, which will as
semhle in few weeks, will contain a
large proportion of the new reform
party" and in the reformation of some
of the existing abuses of government and
law they can count upon the jealous CO.
operation of many members who were
elected as Republicans or Democrats.
Under that section of the Constitution
which declares that "taxation shall be
uniform and equal" decision of the
Supreme Court was rendered last Spring,
which, by too liberal construction, has
been made to declare that all evidences
OF Indebtedness, whether in the fern of
mortgages secured by real estate, or sim
pie book accounts and notes were. bv the
intention of the sectior in question. ex-
empt from the tax%.lion to which real es-
tate and other property is subject. By
the decislo,i n vast amount of the class of
property referred to, which had been list
ed Jy the Assessors, was released from
its due share of the expenses of govern
ment, more than fifty millions of dollars
being released in the city of San Fran
cisco alone. This decision was made un-
der the specious plea that the taxation of
any evidence of Indebtedness is double
taxation," that the property in the pur-
chase of which the debt was created is
already taxed, that by the creation of the
debt no new property was made, that the
mortgage, or other evidence Of indebted
ness simply showed that property having
a certain money value had changed own
ership, and that to assess the property to
the one in possession and also assess to
the one in whose possession it had form
erly been, is double taxation within the
meaning Of the constitution. Undoubt
edly, in a measure this reasoning was
true, but the manner in which the opera
ton Of the law was manifested after the
decision had been reached, showed the
true remedy against double taxation had
not been found. The decision had been
fought for by capital and was made in
the interests Of capital its effect was to
declare that capital should go untaxed.-
Every enterprise, whether of mining,
commerce, agriculture or manufactures,
is made to yield its proportionate share of
revenue to aid in the support of the State
while the money, borrowed of capitalists
at the high rates of California interest to
inaugurate these enterprises, returned
revenue tc the lender, its owner, entirely
free from any such burthen. The advan-
tages which this construction Of the con-
stitution gives the money lender need not
be dilated upon. They were all that he
could ask, but were, at the same time
destructive to the prosecution of any in
dustrial or other interest, which is liable
to have TO call capital to its aid. The de-
cision took the people by surprise-they
were not prepared for such construction
of the organic law of the State, as would
make such discrimination against the
interests of labor and enterprise when
seeking TO develop its resources. Outside
the city Of San Francisco the news of
this decision was received with marked
disfavor, and that he was one Of the jus
! tices concurring, and would be defeated
before the people for his views upon this
question if upon no other ground, was
the chief if not the only reason why JUS
tice Belcher, who stood in the line Of his
own succession, was not nominated by
the Republican convention. The same
reason told against Dwinelle in the can
yass, he being the judge from whose
court the appeal to the Supreme Court
was taken, and who lost many votes in
the interior counties, because of his views
and rulings when the case came before
him for trial.
Unless a constitutional convention is
called, it will be years before the present
instrument can be changed SO as to place
the burden Of taxation where it properly
belongs-on the wealth of the State and
not on its enterprise. That property must
be taxed where it is found is O correct
principle, but it is not correct one which
requires the nominal possessor to pay
taxes on property mortgaged for half or
two-thirds its value while the holder of
the mortgage escapes any taxation what
ever. A more correct principle would
be that which would permit the debt
Or to pay the taxes on the .wholc;; and
have the amount of the sum assessed
against the mortgage deemed in law a
payment on that instrument. In that
method there would be some justice in
the present there is none whatever.
The expense of constitutional con-
vcntion would be considerable, but we
think it would, in view Of the exigencies
Of the OCCASION be the better way. To
have the necessary amendments acted
on by successive legislatures, in the man
ner prescribed by the constitution, in
wolves long delay, and makes the egIs-
lative hall at each session, a battle-ground
for the capitalists, who will bring every
thing to bear upon movement of this
character which will have any probabil-
ity Of success. If passed by the next leg
islature and ratified by the one succeed
ing, it will be at least three years before
amendments can have full effect, and in
the meanwhile, the State and counties are
losing millions to which they are right
fully entitled, and which must be made
up from other sources. There are other
parts Of the constitution which also re-