Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-03-25
DAILY REC02D-UNION sERIEy,
VOLUME l1--NUMBER 28.


amended.
Education-The committee reported back Senate
Bill No 399-An Act in relation to The public schools
Of the State with amendmentsl recommending
passage as amended. The bill was made the special
order for to morrow
Engrossment-The committee reported several
| bills correctly engrossed
Judiciary-The committee reported back Senate
BIZ NO lI4-An Act to amend sections Of the Code
OF Civil Procedure, relative TO the settlement Of
| estates Of deceased recommending passage
as amended, and recommending the indefinite post
ponement Of number Of bills relating to the same
I subject
| Public Buildings and Grounds-The committee
reported back Senate Bill No. 274-An Act to reim
burse the support fund Of the Deaf Dumb and Blind
Asylum Accommodating passage. Also Senate Bill
no NO. 4Io-An Act to provide for the management OF
I the Yosemite yalley-recommending passage.
Mechanic Arts College-The committee made a
port as TO mileage due the committee
State Prlson-The committee took up Assembly
Bill No. 497-An Act to establish State detective
force also, substitute for Senate Bill No. 232-An
Act to amend Seetens los and 100 Of the Penal Code
relating to escapes from the State Prison-recom
/ mending passage aso Assembly Bill No. 1ss-An
Act TO prohibit the employment Of prisoners by con-
! tract-recommend indefinite postponcment also,
resolution recommending the paymenf n 1868 60 to
J. p. Cosgrcve for shorthand servi- taking and
| transcriblng testimony before ii ut committee
\ on State Prisons and also for mil Of witnesses.
NrRoDU0Toa OF 81
| BY Mr.. WATSON of Mone-An 4 to provide for
another Superior Court in the &C Inty of Mono, TO-
BY Mr. TSirn An Act in relation to the re ccoyery
| Of moneys paid public officers
Also, concurrent resolution relating to the Land
| Commissioners bill now at Washington
| By Mr.. MERRY-An Act to repeal an Act in rela-
ton to the assessment and collection Of taxes upon
| personal property III San Francisco.
| ORDER OF THE BAY.
! Assembly Bill No 5lS-An Act TO amend Section
1929 of the Political Code, relative to assessment OF
| property (by Mr.. Camron).
MIR. SAYLE moved to strike out the enacting
clause.
| Mr. CAhRos said the object was TO except savings
banks from taxation 1t is clearly double taxation,
| which never intended. The Constitution
framed law so broad that none can escape taxatonl
but they never intended that any property should
| be taxed twice. man places his money in the
bank. He is taxed the bank is taxed on the same
property. II he loans 1t directly he pays but one
tax. So that there is a discrimination against the
who deposits, while the borrower on his land
escapes the payment of half his tax. The savings
banks in this State have paid to depostors $50 OOO
600 in dividends while the losses have not reached
| S3,00o,O00. The foreign banks can come here
and pay but one tax, while our own bankers are
| taxed double. cannot afford to loan his
money real estate in small sums for the cost OF
searching title will eat up the interest entirely.
1t has been suggested that these men put Their
money in Government bonds. He surprised
that any such advice should be given this. to
withdraw money from circulation.
MIR. Fraser in the chair
| Mr. CowDERY took the a. or and spoke in favor OF
the bill He said: This is the FIST time have
raised my voice this winter l would not do it now
| were it not that am impelled by duty l cannot
evade. | represent in part the people of San Fran
CISCO the great mass Of whom poor. The dis
trct is composed in great part OF small property
| holders and poor people. To come right to the
kernel of this bill. We have heard it stated that
the money deposited in savings banks is the money
| Of the banks. i repudiate the thought. Every
dollar of it belongs to the and women and chill
dren who put it there. If you put your money in a
commercial bank, that money is the property OF the
| bank. The officers can appropriate that money 10
| their own use and commit no crime. II belongs TO
them. They may loan 1t out when they please L
have voice in it voice in the election OF their
| officers. But if put my money in q savings bank,
| that money belongs to me. The bank has no
interest in it. 1t must be loaned for Inc by my
agents. have voice in the selection OF the officers
| That money never ceases to be my money. If my
| agents appropriate that money they are guilty OF .
| felony. II give friend 81 900, and tell him 20
| loan it for me, he cannot be taxed, because that
| money does not belong to him. He is my agent. II
give the money to my agents, the savings banks,
then you say it must be taxed, although there is no
more right to do it than in the other case. | say
this is double taxation in its worst form, and the
Constitution never intended double tas alton. All
the great authorities unite in saying that if you tax
| the same property in the hands of the owner, and
again in the hands of his agent at the same time, 1t
is double taxation.
Mr. LEACH said in refutation of the argument
that the savings banks the agents of the depos
tors, that the banks could not have considered
themselves as agents, as they did not divide the
profits of the institutions equally among the depos
itOrs and stockholders. The Bank Commissioners
report shows that, "on the first day OF January,
1879, twenty savings banks owed twenty depositors
million dollars in such single sums these
1876 o0O SS7, ,0O0 S68.000, S64, 000 $4,000, ETC.,
down to $4,000, the lowest. The average largest
deposit in each bank was therefore, over $4,000.
Twenty banks also owed 2,065 depostors, in sums
exceeding 5000 each, over 81, 100000, an
average to each depositor of over SiO GOO" Even if
the position of the friends Of this bill was correct,
now in the face Of the Constitution how can this
body pass a law eXempting any credit or class of
credits? A deposit is credit-a due from the
bark and the Constitution defines all credits and
"dues as property, and further declares that
call property shall be taxed Deposits are credits
| credits are property, and all property shall be
taxed, is the voice Of the Constitution There is
counterfeit evasive terms about this bill 1t ssys
the Assessor must exact from each person state
ment sel ting forth all his property except credits
represented upon pass books Each political party
pledged its candidates to strict observance in let
ter and spirit of the Constitution. 1t
chargei during the campaign that would violate
| the pledges, but we hurled back with indignation
| such imputatiOns. Can we ask expect the masses
the people : to respect the laws we frame
here If We their representatives, disregard the
\ mandates Of the higher one-the organic law Of
their devising? Let the people have practical,
working test of the new system of revenue embod-
| led in the organic law The opponents well
afford the experiment, as for years past they have
! enjoyed unusual exemptions from taxation If all
the prophesied ills follow the experiment, const-
tutiOnal amendm mt to the chapter Of revenue will
| be popular measure. The new doctrine of revenue
| was deliberately adopted by the people, and if you
| deny them the opportunity for an unqualified test
|
| Gated what yo consider evil IL still remains in
the fundamental law, and an embittered strife in
politics will ever follow until subsequent Legisla-
ture is secured which will give them the satisfaction
of practical and effective trial OF the tenets of
! taxation.
| Mr.. HARRISON said it was well enough to discover
| what the real purpose is. The question is Is this
bill compatible with the Constitution? Read Article
13 Section l. and you will find that all property
not exempt under the laws Of the United States
shall be taxed" That credits shall be taxed The
NhIC linorr i.
| you going to violate the Consttution2 IT, when
man has money in the bank 1t is not a credit then
there IS no such thing as cre-it known in business
life. Now by using the word !" pass books in this
| bill, the language is about this: The Assessor
must exact statement of all real and personal
property, except credits" Does the Constitution
except credits What clause is there in this bill
that cepts creditsf The people established this
Constitution in opposition to those gentlemen who
favor this bill, and they look to US to enforce its
provisions, irrespective OF double iaxation they
are pleased to construe IL. Now what are pass
books Pass books are used i'll the ordinary trans
actions of life. Merchants, butchers, market men,
all give pass books. They are simply account books
md deidua account books that show the relation be-
| tween the person and the trader. Where is any
| such doctrine taught, that because man happens
| to have passbook that therefore he shall be re-
lieved from taxation? II you pass this bill you de-
stroy the Constitution As Mr. Cuthbert so well
said the poor people ask for no favors. They only
ask for justice, and II you pass this bill you deny
| them simple justice.
Mr.. McIsrosH did not consider the banks as
agents. These banks getting rich by borrowing
money OF depositors and loaning it out The cry Of
double taxation comes only from the rich managers
of these institutions. The commercial banks not
raising their voices. 1t is the who has enriched
himself out of the depostors and has shrked taxa
! ton.
| Mr. BEsyRTT-It is the same old cry of double tax
ation supposeeverY man knows it was the battle-
cry at the time the Constitution before the peo
| Pile. 1t was ;held then by every man that is op-
posed to it now that double taxation was anything
that included the taxing OF anything but tangible
property 1t is now reduced d0ws in the course OF
events until it applies to savings banks alone 1t is
conceded that it is not in any other case double tax
alton Now, the position of the gentleman who in
troduced the bill seems to be subyersiye of the
plain requirements OF the Constitution. The ques-
| ton is whether the depostor has credit or not
There is no question but that he has credit. IL
that be So he ought be taxed like anybody else.
The depositor puts his money in the bank, and the
bank loans it as pleases 1t is loaned in the name
| of the bank and the mortgage is in the name OF
the bank The depositor has no interest or right in
| the mortgage or security. He can Lave no claim
upon it under the law. The mortgage is not credit
to the depostor but TO the bank. The depositor is
the owner Of the deposit at all times, and he can
| withdraw it at any time under the rules OF the
| bank The special pleading about poor men and
poor widows amounts to nothing. The question Is,
are these deposits credtsf and II they are, they
must be taxed.
| NJ c,rou-Tbat these savinps hanks ought to be