Weekly Trinity journal., 1879-04-26
From the Morning Call" April III
TAXING MORTGAGES.
What Certain Delegates to the Con.
ventiOB Thought of the PROPOSE
tiOn when Before that Body
All Agree that IL il Double
Taxation.


l shall first give the section as it wa:
finally formulated, and then some of the
speeches OF those who now favor the pi o.
posed Constitution.
Section 4. A mortgage, deed of trust,
contract, or other obligation by which d
debt is secured, shall, Tor tie purposes o
Assessment and taxation, be deemed lnC
treated AS nm interest in the property at
fecled thereby. Except AS to rairoaC
and other quasi pubic corporations, II
case OF debts 81 secured, the value of II,
property affected by such mortgage, deco
or trust, contract or obligation, less the
value of security, shall be assessed anc
taxed to the owner thereof in the county
city OF district in which the property af
tected thereby is situated The taxes 81
levied shall be a ein upon the propert,
aud ecGity, and may be paid by either
party to such security ; ii paid by tht
owner OF the security, the tax so levied
upon the property affected thereby shall
become part of the debt so secured il
the owner of the property shall pay the
tax so levied on such security, il shall
constitute II payment thereon. and To the
extent OF such payment, n full discharge
curity of Indebtedness shall be paid by
any such debtor or debtors after assess
ment aud before the tax levy, the amount
Of such levy may likewise be retained ~
such debtor or debtors, and shall be cons
pued according to the tax levy OF the pre-
ceding year.
w. w. Moreand, vigorous support
er of the new Constitution, was the ac-
| linowledged leader of those wFo sought
to tax mortgages, etc. He said, "Tht
result may be, in some degree, double
taxation"
James s. Reynolds, of San Francisco
said Most of us were elected with th'
understanding that we would lax mort
cages, etc. but imagine that no on'
expected us to punish people with dou'
BILE taxation. Let us tax all property
once and no more"
Jacob r. Freud (Workingman), ofSar
Francisco, said: THE weight of the ta'
will fall on the borrower. and not on thu
lender. The men who are now crying fu
this provision will curse when they come
to see what effect it will have"
james S. Reynolds THE adoption
of this measure will only make the poor
man pay double taxes"
DR.. james Caples, of Sacramento
County, said "The adoption OF thi:
section will subject the Convention tc
ridicue."
| @. w. Gross "The proposition will
increase the burden of the debtor or Dor
rowing class, by making them pay double
taxation because they must first pAy
taxes on the full value of their property
and then on the mortgage in the shape o
increased interest"
! Morris NJ E,tee said | do not believe
that the farmers want such All amendmen
adopted | understand that some mem
bers representing the farming interests
have held caucus and decided this ques
| tion. | was told when entering the hal
that there was no use in arguing the ques'
ton, as it has already been settled outside
Of the Convention. l do not believe iha
the farmers ofthe State will endorse tn,
action of their delegates. Theamendmcn
will produce double, and, in some cases
treble taxation. | have been shocked il
read ing thst the author admitted it to bt
! double taxation. A man will deposit hii
money in oank. Hs will give it in as mon
ey in banli to the Assessor. The Assessor
will then tax it to the bank as money loan
ed on mortgage. A mortgage is not prop
erty.
w. j Tinnin, of Trinity, said | hope
the farmers will yet decide to allow them
selves to be taxed the sameas the miners
and not ask to be exempted from thei
! Just proportion of She burdens OF State.
know that the propos sition will cause dou
/ BILE taxation, and it will fail mainly on The
poor people but will support it, because
it will bring upon the tax list two or three
millions OF property in San Francisco
which has hitherto escaped taxation.
A. p. Overton, OF Sonoma, said 81
am in favor of taxing mortgages, though
ut present | have no mortgages that are
taxed. But ifany man wants to borrow
my money, he will have to pay higher in
psy the tax. | believe that interest has
been reduced on account Of the decision oi
tn Supreme Court in the case Of the Hi
/ berna Bank. believe that cheap capi
| tai is a benefit to the community, and it i:
to the interest oithe farmers to have it,
james s. Reynolds (Workingman
said Great is humbug, and the man
who expects to be sent to the Legislature
is his prophet. The taxation of morlga
pes is double taxation. 1t is false pre-
tence. 1t is untrue that the people de.
mand it. The large property holders OF
San Francisco do not pay their just pro
portion of taxes, but the adoption of this
amendment will only make the poor man
pay double taxes. | appeal to the Work
ingmen to retracs their steps, and come
back to solid gIound."
Gen. Voney E. Howard said, q" ] am
! in favor of double taxation, and il is just. "
Henry Larkin. Of Eldorado. said, Il
want all men TO pay taxes on what they
are worth, and no more. No man ought
to pay taxes on what he owns and then
on what he owes /; lis unjust"
c. w. Cross-''The main cause OF
I dissatisiaclisn is 10 be found in the deb