Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-02-26


supreme right of "A Government. The right TO tax
goes to the root, and overturns every other Eight.
Neither you nor can hold possession OF piece OF
property if the State under its right to tax, shall
money OF you, and give you a mortgage upon my
property but that mortgage you hold is held sub.
ect to the PRIOR right Of the State to the property
and the State can step in and take the property
away alixe from you and from me. say, then, that
the exercise of the right of assessment and taxa
ton ia the exercise of right where the hand is COW
cred by no velvet. 1t is the
IRON HAND OF POWER
And should never be laid upon any man. ~unless it
be justly laid there-and should not, sitting here
legislator vote for or support any bill for rev.
enue or taxation that will lay this iron hand unjustly
or wrongly upon any man. be he high or be he low.
Today Mr. Speaker, California sits in sackclo;h
and ashes The gentleman who has just
taken his seat, who so eloquently occupied
the attention of this House for the last hour has
lruly pictured the condition Of California to day.
She sits in sackcoth and ashes While other parts
OF our fair land are rejoicing in returning prosperity
we are PROSTATE in the dust While in other par
! of the country manufacturers are thriving and
everything IS prospering, we on the downward
road, and the end is not yet.
Some of you have heard my iunuries for the re.
porto the Bank Commissioners | wanted that re-
port for this occasion. | knew what that report
must show But since have it not, have taken
few facts from report in the San Francisco Chroni-
ce which purports to be taken from the report Of the
Commissioners, and call your attention TO it, On
July /, ISIS, there % savings banks in this
State to-day there are but 81. IN one short year
onefourth OF the savings banks in aiIfornia have
been swept out OF existence. During the past year
the savings banks Of California have increased their
real estate taken for debts, in the of 81 392-
525 70. They have been compelled, say, during
the past year,
TO TAKE THE HOMES OF yHE PEOPLE
OF California that were given as security for loans
to the amounted almost one and half millions of
dollars. Real estate everywhere has deprecated in
value. Out homes that few years ago were worth
$4,000 are not worth So 600 TODAY and predict
that you will the time when the ''5" VIII be
49," if not css. The decrease in loans during the
past year has been 81, ,414922 "a. The decrease of
deposits in the savings banks during the past year
has been SO. 5l2 1856 The decrease of deposits in
commercial banks has been 50, 1856 166, and the
money locked up in the suspended savings banks
81, 729,529, making grand total of Withdrawals
during the past year of s23 3JS, 10. And if you
add to that as you rightly should add, the reduc-
ton of capital IL the commercial banks of So 275
coo, you have grand total OF shrnkage during the
past year of 81, ,G73,l29. have just this to say
right here and now, if you want to repeat the eX-
pertinent for one year more
CHAOS WILL CONE AGAIN
In California. Thirty-two and hall millions in one
year. and say 10 you, continue this unhoy raid for
one year more, and there will be widespread bank
ruptcy and ruin here The strain is well nigh un-
bearable. The merchants in San Francisco in Sac
ramento, and III all the cities OF California mer.
chants of unstained regulations, men who have
fought the battle OF life for 20 30 years in Cali
fornia, being crushed out OF existence. How
long is this going to continue Is not it about time
to put on the brakes! Is not it about time that
wise legislators and political economists should
pause and think little? IL seems to me that it is
The sue is not what the gentleman from Solano
said it was in his sreech yesterday. 1t is ques-
ton OF the taxation OF stocks The taxation Of stocks
has almost nothing to 90 with it. saw then, and
appeal TO you foT confirmation of what say, that
business failures are the order of the day and have
been failures of prudent men failures Of men
who are economical in the management of their
business There is a widespread
LOSS OF CONFIDENCE
Every man is afraid of his neiehbor and even the
gentlemen who have preceded me are afraid of me
afraid OF the bill | advocate. gentleman even
said yesterday that the bill was intended as a shrewd
evasion of the Constitution. 1t seems 10 me he
could not Lave read the bill. think shall be able
to show him that it is not OILY not an evasion of the
Constitution but itsa str ct adherence that nstru
ment Isay there are enterprises being started
in California. Show me the man that has the nerve
to put money into enterprise in California to-day
You can't point him out. There is no such man
Men waiting with bated breath to know what
you are going TO do The country is filed with idle
men. The streets of San Francisco echo to the
tread OF men who are out of employment saw
whose fault is it? Whose fault is it that the
thousands in San Francisco
TREAD THE STREETS IN WANT OF BREAD?.
Where is the man that dare give them empoymeut2
Where is the man that dare ipaugurate enterprises
there, anywhere else in California to give EN-
ployment to these idle men?
The gentleman yesterday made light Of the idea
Of the exodus of capital He is himself journalist
and knows too well for to tell him that capital
is travelling away from the STATE on wings of the
wind, and even that is too slow for it. and it goes bv
telegraph. There IS constant stream Of values
passing rom California, and say again il has only
to continue another short twelve-month and the
rmest house in the State of California viii crumbie
to the dust.
was somewhat embarrassed about the manner
in wbi h would present this question of double
taxation, but thesgentleman from Solano has en-
tirely disenlharrassed me They have taken the
ground boldly that te capital stock OF corporations
and he certificates Of shares two separate and
distinct things and properly subject TO taxation,
and the gentleman referred to decisions of the
Supreme Court of the United States sustain that
view With reference to that point haven't more
than dozen words an that is this Such an asser-
tion does violence 20 any II ans common sense and
hardly needs argument to disproye it.
AN ILLUSTRATION.
| will Illustrate briefly. Say that five farmers.
living in some secluded valley, determine in their
interests, to engage in the Improvement Of their
stock. | am not speaking of the kind OF stock the
gentlemen are talking about but stock as farmers
understand IT. They determine to sead East and
import some animals. They want $1,000 for that
purpose. They have no money. They have ranckes
and fine improvements and old Money bags lives in
the neighborhood and he has the money These
five farmers 90 to him and each borrow
s., l,c00 and for this purpose give their notes for
the money. They take the money and 60
East and purchase their bulls, and their stallions
and their rams and their corresponding mates, and
bring them on and commence the improvement of
their stock. The Assessor comes to MOneybags TO
assess him. He assesses him for those IOtes. That
is right He goes down s. 600 for the notes Then
he comes TO you farmers. You have formed a cor
poraton. Now, according to the argument of the
gentlemen from Napa and Solano, the next
point of assessment should be your capital
stock which $4,000. of which
you have paid up half. They say that the
Constitution says the second item should be your
clnita stock. say it is no such thing. Down goes
your capital stock at whatever it may be WORTH
Then he goes TO your farms and assesses the
animals which you have invested your money in
How many times is that property taxed ? Is there
any Justice in that? There is only COO in money
there, but it has gone down the Assessors books
for SI5 coo. Now they say the Supreme Court of
the United States says that is not double taxation
Wei, you know better. There is no argument that
can make any man, who has grain OF common
sense, believe that that is not
DOUBLE TAXATION.
Now, go little farther. Half a dozen of you en-.
gage in mining enterprise, and you make loca
tion-say at Virginia City; you incorporate a com
pauy in San Francisco Your capital stock is
$500. .00O You put that amount actually into the
mine You issue shares of stock to each other for
the money paid in. Now, in the first place. all your
property is in Virginia City. There is not dollar
in San Francisco The visible property is assessed
and taxed in Virginia City as 1t should be But
that does not answer. The gentlemen from Napa
and Solano say that the Assessor shOut 20 on and
tax YOU and your capital stock in San Francisco for
$500 000 and in addition to that they must tax you
on the certificates Of shares which you have in your
pocket and vet they cite the decisions Of the
Court to show that this is not double TAXATION
Then they are taxed three times-once in Virginia
City and twice in San Francisco. Well it is not
double taxation, it is treble taxation.
Now We come down to the assessment of stocks
again, and wart to say here that the Constitution
does not say that you shall tax the capital stocks
there is no such thing in the Constitution IL has
been frequently asserted here that if we fail to tax
the capital stock OF corporations, we violate our
oaths to support the Constitution. | say the Con
stitution nowhere says you shall tax the capital
stock of corporations. And if it did say So 1t
would talk nonsense; for the capital stock of cor
poratlons is mere fgment of mans BRAIN 1t has
substance. 1t is hardly the shadow of ANYTHING.
Take an example. Take the Consolidated Virginia
mine. That incorporation has all its property in
Virginia City Suppose the Assessor assesses the cor
poraton stock at s, ,ooo, 900, and the assessment
y levied at two per cent, there is $780,
600 taxes goes upon the assessment roll
They fail to pay up. The collector calls on them as
his habit is, and wants the money They say, "An
we have is the corporate seal and box OF steel
pens you can take those" What are you going to
do +? How is the Tax Collector going TO get his
money! Go to Virginia City and levy upon the
mineg think not. How, then, is he going to get
it? The gentleman says,