The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-04-19
TAXATION.
Letter from M. Wheeler
IN RELATION TO CORPORATION
TAXES.
He holds that they are Just and Ought
20 be Paid.
MOLINE, April IS. 1875

$500
TO be Paid.
MOLINE, April IS. 1875.
To the Editor Of The Union.
Taxation is one Of the ever recurring
questions which provoke more discussion
than all others put together.
The rapidly accumulating capital OF the
country and the ever changing nature OF
investments makes il almost impossible TO
reach the whole capital CT the state and
compel the whole to pay It's part towards
the maintenance Of law and order in socIe-
tv, 30 necessary to its own security. lug
men Of small and moderate means
easily reached. because the whole OF tEe oI
possessions are TO be seen, ana mucn ie
ing has been manifested at times ~ tne
alleged injustice OF taxing sucn men uPon
amounts borrowed OF the capitaIst u pu'
narmanent improyernents on their little
p1,iaces ar for other purposes in their bust
ness while the loaner escapes taxation on
the amount, or if taxed himself, complains
always and bitterly that
THE LAW WAS UNJUST
in that it taxed the same amount twice,
To the writer the idea OF the law
holding, practically, that indebtedness Is as
valuable commodity" is quite as olo
as himself though 1t may be new TO your
correspondent Of April !.
I suppose widely differing opinions
will be held on these points so long as
the revenue of the state is raised by prop
erty tax, from the fact that it is almost I'm,
possible to conceive OF law 30 framed
that it would not work injustice to some.
Two men may own properties OF the same
pecuniary value and the one may pay an
annual rental or profit equal to nearly one
fourth its total value and the other from
the use to which it is put or tor other
causes be totally unproductive, and yet
both would be required to pay the same
tax. 1t is the misfortune of the man, not
not the fault of the law. The one adds
yearly to his capital and the others is as
steadily diminishing by the amount Of his
tax.
The revenue law Of this state is an earn
est effort to reach by taxation the yearly
accumulations of number one and thus
necessarily tighten the load on number two
and all other tax payers. And TO this end
the 3rd section of the law provides that,
1.-The capital stock of all companies and
associations now or hereafter, created un.
der the laws of this state, shall be so val.
ued by the State Board of Equalization as
to ascertain and determine, respectively,
THE FAIR CASH VALUE
of such capital stock, including the fran
chise, over and above the assessed value o.
the tangible property" and the same sec
ton provides that the shares OF the cap
ital stock shall not be taxed in this state
The companies are required by law t
make out sworn statements OF the amour
of their
/. Paid up capital stock.
2. Indebtedness, except for ordinary eX
penses.
g. The cash value of the capital stock
The State Board assume that the casl
value of the capital stock is a just measur
of the actual value of the tangible proper
ty, i. e., real estate, and tools, machinery
or personal property permanently used
the business, and that the Indebtedness
measure.in part, Of the lie OF credits el
tended by the companies to others j. g.
The notes and accounts due them, and
part a measure Of the stock or matters
purchased but not paid for, for the sea
on's business. They therefore add, in cac
case, indebtedness of the company to til
cash value of its capital stock as sworn T.
and then measure the sum of the two
the amount of tangible property found
the assessor, and if the statement OF Il
company as thus ascertained, is found
exceed the amount of the property touu
by the assessor then the difference is a
sessed as
CAPITAL STOCK AND FRANCHISE,
as provided for in the section of the la
referred to. But it may be said that Il
Indebtedness is not in part measure
the material or stock purchased but II
paid for, al 1t tods paid for, Well, if pa
for it must have been through the prof
accumulated, and
NO ONE WOULD CLAIM
it should not be taxed. And il may
claimed that the Indebtedness is not,
fact, or may not be. measure of the Iii
Of credits extended to others, but if it
not, what is it a.? If il is a debt, it was co
tracted for valuable property or consider
ton which is taxable, aud if the stock {m
teriaD is paid for, aud their accumulate
profits enable them to extend large lii
of credits to their customers, then.
least, the amount of the assumed indet
edness must be in the increased value
the capital stock over the tangible prope
" and should therefore be taxed rs cap
al stock and franchise" They swear til,
have paid such an amount represented
their capital stock for their permane
property real and personal. But t
Board see that it may not be worth tn;
and permit them to swear to the actu
cash value ( the same, and within {
meaning of the law at voluntary sale
as provided for in case Of other proper
assessed. And at this point
CONFESS HESITATE,
because it seems unaccountable that m
to whom we have been accustomed to 10
as experts in valuation and lights ia
nance should have paid so much more
their property than they swear it is ACT
ally worth.
TO illustrate; The action of the Sta
Board, the drift Of the statements of t
companies, and the utter falseness of I
claim set up for them, that it is like (;
sessing a man on his farm, and then on t
deed to it. let me give the figures of Q
company for 1874 as per the report of t
State Board Moline Plow Co., capt.
stock, $40O, 000-cash value, $l35, 720,
debt; assessed valuation OF "tangi|
property" Sl24,962.
The difference between the cash value
the capital stock and the tangible prop
~ found by the assessor is $lO,75S. No
the Board equalizes these three amour
to bring them to the same level as the
sessments in other counties Of the st;
by deducting AZ per cent froul each amou
as follows; Tangible property from $l2
s62 to $74,977; capital stock in excess
tangible property from $l0,72S to 1914
capital stock, cash value, from $l35, 720
SSl 49,, aud this last amount is the to
LII.