Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-02-27

Phon sgraI Ihically Reported for the RECORD UNION
BY Willis & Stockholm
SENATE.
SACRAMENTO February 26, 1850.
The Senate met in regular session at 10 a. ~,
President Mansfield 10 the cfwir.
Roll called and quorum present.
The journal OF Saturday was read and approved.
MISCELLANEOUS.
Mr. H17TELL offered the following resolution,
which was adof'ted Resolved, That the Superin-
tendent OF Plf.c Printing be directed to have the
Senate file print Tor distribution on the desks OF
Senators by o'clock in the morning.
On motion Of Mr. WEST, the reference Of Senate
Bill No. 3s3 in reference 70 branch Normal School,
was changed from the Committee on Education to
the Committee tn Publ; Buildings and Grounds.
On motion of Mr. SATTERwHlTE tire vote by which
Senate Bill No. 2ll-in relation to riparian rights
was lost was reconsidered, and the bill recommitted
to the Committee on Irrigation with Instructions to
strike out of the first section all after and including
the word lost"
Mr. RYAN presented petition from the officers OF
the Mendocino County Agricultural Society, request
ing the passage Of the Act before the Legisla-
ture placing agricultural associations under state
control. Referred to the Committee ON Agriculture.
MIR. DAVIS presented petition from 81 firms and
business men Of Marysville, asking The Legislature
not to pass the Insurance bills now before it. Re-
ferred to the Committee on Corporations.
On motion of Mr.. HUDSON, Senate Bill No. l56
was made the special order for Wednesday next, at
3 o'clock.
Mr. CHENEY presented memorial from citizens of
Chico inviting the Legislature to visit that city and
view the location there offered as site for branch
Normal School. Referred to the Committee on
Public Buildings.
TIE REVENUE BILLS
The Senate then took up the special order of the
hour:
10 M An, Apt TO- ior,l
1907, 36l7, 3627 $685. 3629, $3.50, 1864, 36i0 36 j,
3643, 1850, 1851, 1862, 1868, 3673 $685. 3679 $780,
1852, $3.50 and 1851, and to add a new sect on To
be numbered 1864 TO, and to re.enact Section 37l7
Of Title IX of the Political Code, to provide rev.
enue for the support of the government of the
State-being the bill reported by the majority OF
the Joint Committee on Finance and Ways and
Means.
After the first section had been read Mr. MORE
LAND offered substitute for the bill Senate B Il
Nc. 39S-an Act to amend Sections 3607 36i Z, 3627
1923, 3629 1868 1854, 500, 3643, 1850, 3651 1862
S66S, 3673, 367S, 3679 37I7 $780, 1852, 1856, 1885
and 3S5l and to repeal sections $3.50 and 1857 OF
Act entitled Act to establish Political Code ap
proved March u, 1872 relating to revenue, and &c
add two new sections numbered 1864 and 3665-be
ing the bill presented by the minority OF the joint
committee
Considerable discussion followed on the order in
which the bills should be taken up, and it was
agreed that, on the motion of Mr.. NJ IRELAND, the
whole question was open for discussion.
Mr.. MoRELASD took the floor and spoke in favor
OF the minority bill and against the majority bill
He held that the minority differed from the majori
ty mainly in the fact that it proposed to reenac
substantially the law that in force in this State
before the decision OF the Hlbernia Bank ease. H(
object;d to the first section OF the majority bill
first, because it was conundrum second, because i
attempts to reverse every decision OF the Supreme
Court OF the United States and every decision of the
Supreme Court of this State prior to the Hibernii
Bank case third, because, in his opinion, it
lsf,rfiN -
mating; and fifth, because it was unjust.
THE MAJORITY SIDE.
Mr.. PARDEE- Mr.. President, it may be well for me
sir As having been Chairman OF the Joint COMMITTEES
ON Finance of the Senate and Ways and Means of the
Assembly to express my views upon the two bills
that now before the Senate for its consideration
believe IL has been known to most OF the Senator:
here that have been laboring under physical diff
fcuty for the last month from the effects of colo
that has terminated i'll bronchitis Under these cir
cumstances havei taken the trouble to write my
views in manuscript FORM and will ask the indul
the Secretary OF this Senate to read them for me.
Leave was granted, and the SECRETARY read the
speech of Mr.. Pardee, as follows:
SPEECH OF SENATOR PARDEE.
Mr.. President; As Chairman of the Committee
on Finance, suppose it is expected by the Senate
that will submit some views in support OF Senate
Bill No $50 in addition to those presented in the
majority report which has been printed and is now
in the hands of the Senators. No subject eng 'ges
the attention of the legislator upon which constiIU
encies sensitive that of taxatisn. No Other
subject is ar-reaching, and none however wisely
devised, is regarded with much disfavor. The
right exercised by the State in taxing Its subjects is
the most arbitrary OF all governmental functions
Tax ton is forced CO tribution to the support o
Government, and as it Is brought home to every
citizen each claims and exercises the right to cri
else and challenge the fairness of the principles
which it is based. The great point to he attained
sfufp
bic. The members CT the committees of the tive
houses having this subject under confederation
seemed, individually, TO realize the importance o
the sal ject, and to have evinced desire to ca
with it as to hrng the product of their labor;
within the equities of Il lule have suggested
and yet there is a vide divergence in the concu
sions reached by the minority and majority.
Taxation is a necessity Of government, and maS
not be avoided, but wise statesmanship admon
ishes us that the system whereby the revenues os
State are levied and collected should be framed Will
such care and Skill that this attribute OF discOur
agement shall not fall too heavily upon those forms
of individual or associlted effort The great vers
of form in which properly value finds expression
has given rise to shsrpy-defncd differences of opn
ION as to the methods OF assessment and the chie
difficulty will encounter this floor in harmon
izing conflicting views viii grow out of the subtle
ties Of distinction between The values of actual
and ownership OF property, and the prospective
and hypothe teal profits OF such use and ownership
The point at which you will find it mos
difficult to avoid double taxation will be in
the effort to distinguish between evidences Of
ownership and the tangible things such evidences
stand for. The relation of many persons to the
same property may assume endless.variety OF form
1t not always easy to clearly perceive thai we do
not create property by regarding these various re-
lations as in each value. 1t is the object
of Government to tax property in individuals: il
shoud also be KEEP. clearly in view that any system
of taxation, to be just, should distribute the bur
dens Of taxation without prejudice The mos
dangerous unjust AMI inequi,abe method of foster
ing one interest or discouraging the many forms
which property may take, is by fostering on the one
hand by way of exemptions and obstructing on the
other by inequitable taxation. The one great lead
ing difference land for the present | viii
ignore other differences that may exist be
tween the views as expressed by the majority
and the minority reports now before this
senate relates to the method Of assessing fhs
certificates of stock which represent the interest
shares OF individuals in the property of the corpora
ton. The majority report advocates methed oi
assessing to indiyi usls the premium which may be
existing upSn the par value of any stock. The bill
accompanying this report, ard reported fayorably
upon by the majority (Scpate Bill No. 2S0), embodie:
this principle The minority report advocates
plan to assess to the corporation all its property
franchises, all matters and things capable of private
ownership of which it may be possessed and also o
assessing to the corporation the marketable value o
tie stock after rstSubtracting therefrom the value
of property assessed to it. The argument presented
by the majority against this proposition might be
deemed sufficient and, in fact, is capable Of but
little additional elaboration The consider
atiOns to which it gives rise are obvious
and easily exhausted. The capital stock OF
corporation, when represented by certificates Of
shares is nothing more nor less, and can be nothing
more, than an evidence Of the proportional owner
ship Of individuals in the property of which the
corpc ration may be possessed II all the property
owned by a corporation is assessed to the corpora
ton, then all the property values which constitute
the basis upon which the value of the shares rest
has been repre- ented in that assessment. 1t is well
known to every one familiar with the subject thai
in practice property is not assessed at that value al
which IL sometimes finds market. Stocks OF mer
chandise are not assessed upon the basis or est
mated at the price az which particular piece o
goods or some single piece of ware would sell, bu,
assessed in gross. Land has not been, and will
not hereafter be assessed up TO the full market price
at which it WIS purchased or ut which it would
change hands.
Ii has been the universal Gu tom, and will con
tnue to be, that real estate in cities and towns is
not assessed to the valuation placed upon it by the
owner. The Assessor does not fix that aluation
upon the house and lot in town. or farm in the
country, which would be determined by the price al
which the owner OF such property would part with
it. and this rule holds good with every species 81
property held in individual or private ownership
Now, there is this distinct difference between the
value of property owned by corporations and the
quotabe value OF certificates OF shares OF the cap
tai stock of tha: corporation that the selling price
of such certificates of stock indicates the estimate
l. :. L II