Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-02-25
%, WEDNESDAY MORNING,

have leave to witbdrawrtbe same Assembly Bill
No. 39I, passage Assembly Bills Nos. 1855 and 395
do not pass Assembly Bills Nos. $50, 3s6 and 3S7
indefinite postponement; Senate Bill No. 270, As
sembly Bill No. 29s, passage; Assembly Bill No
| 221, Senate Bill No. 2S4, passage Assembly Bill.
Nos. 1896, 29S and 1893, do not pass Assembly Bill
| No. 244, passage as amended.
Mr.. BRUNER, from the Committee on Public Build
| ings, report back the following bills: Assembly
Bill No. 140, without recommendation Assembly
Bill No. 217, making appropriation for deficiency in
the fund for the improvement Of the State Capitol
| do not PASS; Assembly Bill No. 32l, passage.
| Mr. STREETER, from the Committee on County
Governments, reported back Assembly Bill No. PIG,
do not pass /; Assembly Bill No. $780, asking that it
| De rereferred to the committee.
Mr.. DIaoND, from the Committee on Roads and
| Highways, reported back Assembly Bill No. 179,
! concerning wagon road corporations, pa sage as
| amended by the committee.
TIE REVENUE BILLS
| The majority and minority reports of the joint
Committee on Revenue and Taxation were read, and
it was agreed that they should be considered to-
| gether.
| Mr.. LEACH opened the discussion He said We
are now entering upon one of the most important
Acts for which this Assembly was convened, and it
is proper We should discuss the question of revenue
to its fullest extent, that the members may act
wisely, intelligently and without prejudice. Tie
] laws for taxation are enacted for the purpose of
raising fsr the support of the machinery of
government Governments are organized for
the protection of society and the maintenance of the
rights OF individuals in their pursuits of life and
| happiness; that the weakest among the people may
find sanctuary under its authority that Justice
shall be meted out, for the asking, to every man,
be he rich or poor high low. Now, sir is it not
tne bounden duty OF every citizen to willingly bear
his share or proportion Of the expense for the enjoy
ment OF these grand privileges and such share should
be paid with promptitude and without coercive laws
But regret to repeat that which is in the knowl-
fhA ~
is almost the rule and this unpatriOtic feeling has
gone 80 far that in years past the assistance OF the
highest Courts OF the land have been invoked to make
| complete the escapement OF taxation Until now
at least one-half the property of the State is un.
Justly bearing the whole burden of the expense of
Government. And the worst feature of this condi.
tion of affairs is that the owners Of this one half are
the class OF citizens least able to bear the taxthe
| class which frequently in paying the tax have tn
| deny themselves and their families the comforts of
life, and, sometimes, even the necessities of exist
| ence.
Is THIS JUST?
Is 1t strange that people complain when the other
half escaping taxation of class that to pay their
share of the burden would not compel them de-
| NAL of hardly luxury? So palpabe had this in
| Justice become onerous the UNEQUAL burden that
| the murmuring of the people was unmistakable and
new Constitution, containing almost an entire rev
enue system, was the result. The people were de-
| termined that the time had come when the burden
OF taxation should be divided between the estate
| holder and those who princey fortunes in
bonds mortgages, stocks, etc.
In the consideration Of the question the duty of
this body is plainly and Enthusiastically set forth in
the provisions of the Constitution. There can be
no evasion or eluivocation. The lines are clearly
| cut and well defined. With full and conscientious
conception OF this fact, the duties demanded of us
have been provided for in the bill submitted by the
| minority. On the contrary the bill submitted by
the majority is nothing but careful skillful crafty
and shrewd evasion Of the requirements of the peo-
ple as expressed in the Constitution.
POLITICAL PLEDGES
To be true to the mandatory provisions of the
Constitution was the greatest trust the people placed
in this Assembly, and each political party pledged
its candidates to strict observance of the spirit
and letter of the new fundamental law and l sin
cerely and honestly feel and say it with all the EN-.
phasis Of my manhood, that could do no greater
violation to those truststhose duties than TO give
my support to measure which is plain evasion OF
the spirit and letter OF the Constitution-the bill
supported by the majority.
From the reports Of the State officials for the year
1879, find that the total amount of property as.
sessed in this State that year. from which the rev
enue for the support Of the State was derived was
about 5000 600 000 with the property only assessed
| at about onehah Of its full value By assessing
property at its full value the amount OF the roll of
this State sheuld be nearly billion of dollars
also find from the reports that the banks
of the State have at least 800 900 worth of tax
| able property, none of which has been returned to
the Assessors for years There is at least as much
more of the same class OF property in the hands of
private individuals that has escaped taxation To
| show the inequality OF taxation, member of the
Constitutional Convention Of the State Mr. Dudley
took the trouble to investigate the question. The
result of his abors will lie shown in the debates of
December 9th, which was, that while the average
taxpayers paid about six per their gross in
comes, four certain corporations of the State only
| paid tax of seven mills
| These the evils we propose to correct and
when the assessment of the stock of corporations is
taken into consderati H. together with the property
of the banks and individuals that has escaped tax
| alton and the afiup all .fy ot
it must be plain to every that the assessment
roll of the State under such bill as the minority
report shoul be double its present amount and the
| rate of taxation reduced nearly one-hai Is any
one going to be hurt? | answer no. sir for theman
who is compelled to do his duty and pay the debt he
owes society for the security of his person, his
wealth and happiness, is not hurt; only doing under
| compulsicn what he ought to do voluntarily.
TIE TAXATION OF srocKs
The kernel of the whole question is. shall we tax
the capital stock OF corporations? The Constitution
says shall. The Constitution saws the word
property besides other things is declared to mean
stocks, as well as all ether matters and thicgs real
personal and mixed, capable of private ownership
| and further, that all property shall he taxed Now
| what is palmer tan this How could we evade
| this plain duty, even ii we desiredi Nevertheless
the committee we're urged not to assess the shares
| OF certain corporations, aud even one gentleman
went 50 far as to call on pause in our mad ca
reer, ard warned us Of the terrible result that
would follow, namely: That certain cor
|
| tain capitalists would remove to New York
| Now, sir, feel like hurlins back the warning to
him and those whose sentiments he e.boes and
warn them to beware that they carry not too far
their defiance to the will of the people There can
be no greater menace to the we'll being OF country
| than the encouragement and recognition Of an une
quail and discriminating taxation. Because we shali
pass laws compelling class of citizens share with
| us the cost OF supporting the Government these
patriotic Individuals are going to leave the State
| When herd this warning Ut once sought the rev
4 D1a,x-g Of .N,lr
ishment that the Code in that State provides for
stringent assessment of capital stocks and cor
| poratIons than doss the law we propose. In fact
investigated the laws of nearly ali the States and
old Missouri about the only State that had less
stringent laws than we propose.
THEY SAY WE SHOULD NOT TAX
| Stocks want to know why in the name of justice
| man who has his capital invested in this class OF
property, deriving an income which gives HIN all
the luXuries of life should be exempted from taxa
tion and by what course OF reasoning they Justify
the taxation of the who has his capital invested
in real estate and thel ke the extent that he must
bear the share OF him who owns stocks. The ma
ority say stocks are not property AID should not be
| taxed. i quote the following decisions of the
| Supreme Court of the United States which th;rk
| is higher authority than the report OF the
majority: % In the decision OF the Delaware Rail
| road tax case 18 Wallace G. s. Supreme Court
| Rcports) it was held and affirmed that the State
may impose taxes upon the corporation as an entity
existing under its laws as well as upon the capital
stock OF the corporation its separate corporate
property. And tho manner in which its value shall
be assessed and OF taxation however arbitrary
capricious, are mere matters of legislative dis
| cretiou."
| Again: "In the case of Tappan vs. Merchants
| National Bank 90 Wallace Supreme Court Re
ports) the opinion Of the Court was that shares Of
| stock in national banks species of personal
property which is, in sense, intangible and in
| corporal but the law which creates them may sep
arate them from the person OF their owner for the
purposes OF taxation, to give them situs of their
| own. The State within which rational
bank is situated has jurisdiction for the purpose Of
taxation of all the sh .rehoders of the bank both
resident and nonresident aud of all it's shares and
may legislate accordingly
| And again: g In the case Of Harrington vs. Ten
| nessee (vo 95 United States Supreme Court Re-
ports the Court held that the capital stock and the
shares OF capital stock are distinct thinqs
| 1t is subject to taxation like other property The
shares OF capital stock usually represented bv
certificates. Every holder is cestui cue trust to
| the extent OF his ownership The shares are he'd
and may be bought and sold and taxed like other
| property. The capital stock and the shares NAV
both be taxed, and it is not double taxation The
bank may be require to pay the tax out OF its cor
porate fumes, be authorized to deduct the amount
| paid for each stockholder out of his dividends
The capital stock and tn shares of that stock
in the hands Of stoc holders are different properties
aud consequently distinct subjects of taxation
The exemption Of the is rot Of itself an eyemp-
ion OF the other, nor is the taxation CT the one
tax upon the other"
THE BILLS COMPARED.