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

tiers and things. rcal personal and mixed, capable
OF private ownership" We inserted it because the
Constitution defines these things as property that
should be taxed. Now, according to the position
taken by the majority, that money once taxed to
the depositor could not be taxed again in the bank
il leaned or not. They must have desienedly
Hit II out Tor the banks frequently acquire bonds,
Scrip and like credits with the money deposited
with them. 1t would not be consistent for them TO
include the constitutional definition of property in
their BILL when they take the position that this Kind
Of property should not be taxed.
TAXATION OF MORTGAGES
In Section 3 the majority provide for the assess
ment of mortgages. This provision was not in the
bill originally, but it looked good and they incor-
porated it from ours overlooking the inconsister cy
OF the provision with other parts Of their bill Here
they provide for the assessment Of mortgages, and
yet they lay down the opinion in the first section Of
their bill and say in substance that it shall
not be DONE They here acknowledge the duty and
right Of the Legislature to assess that part of the
money deposited which the bank l0lned on mort
cages. In this admission they acknowledge the
principle to be correct Yet declare against it, when
they in their report hold that deposits taxed to
the deposition not be taxed in the bank, whether
loaned OF not. By this they acknowledge the right
to that partof deposits invested in mortgages
but to that part of deposits invested in county
script, bonds and credits of that kind is double
taxation. Mr.. Leach proceeded to demonstrate that
the provisions OF the minority BILL defining the
duties of Assessors were more complete and specific
ASSESSMENT Ot USsbhNEhhD LAND
Section 7 is exactly the same in both bills 1t
amended to conform to the requirements of the
Constitution providing that land shall be assessed in
small tracts, the old section in the Code providing
that when he thought it necessary the Assessor
could compel the survey of land unsurveved, and
that the expense should be included with the taxes.
AS there where the cost OF survey would be
more than the value OF the land, the committee
unanimously thought it best to take the extraor-
diDary power out of the hands of the Assessor and
place it in the hands Of the Superior Court.
THE IMPORTANT SECTION
Section 364o is the most important section in our
bill The other side devotes large part of their
report against this Section arguing that it is double
taxation. They cite authorities, and the whole
burden OF their argument is that we intend 10 tax
all their property, real personal, ETC.. first and then
all of their capital stock. | will guarantee that
boy fifteen years old after reading that section will
not say that. There has been gross misunder-
standing to say the least, the part OF the major
ity, and the IN msrepresentation has led number of
papers into error. | will read the section "Corpo-
rations associations, and joint stock companies hav
ing their principal place OF business in this State,
shall be assessed with the market value of their cap
Ital stock after deucting therefrom the value Of all
other property assessed to them, and such capital
stock shall not he assessed to the individual owners
thereof" That is just as pliin as the
words of the English language can make it.
To illustrate If the value of the capital stock is
worth than all their property, there would
be nothing TO of the capital stock and again.
If the property OF a corporation Is worth s50,0O0
and the actual cash value of its capital stock is S75
is any double taxation in that proposition, then
am emphatically for that kind of assessment.
IN PRA;rIcE IN OTHER STATES.
/ have taken the trouble to examine the revenue
laws of ten or twelve States without discriminate n
and majority of those commonwealths tax the
capital stock Of corporations in substance on the
same plan as We have proposed. will read:
Arkansas-Gantt's Arkansas Digest, Section 5047,
Gays the term "investment" means and il cludes
all moneys invested in all shares of associations,
corporations, 1ointstock companies, or otherwise
also all shares Of every company, whether rcorpo-
rated not and the next section provides that all
investments, moneys, credits, bonds, stocks, the
property Of corporations shall b; subject to taxa
stock and another provision provides thai this
property must he assessed to the individuals no
deductions provided for.
IOwa-Stocks in corporations are assessed and
taxed at true cash value Shares of banking associ-
afions are taxed at no greater rate than money.
Maine-Stocks and shares of corporations in and
out Of the State assessed to individuals holding
the same i'll the State and deductions are allowed
for the capital invested in machinery goods and real
estate In assessing railroads deductions allowed
for the track of the road and land which it is
str cted.
Alabama-The Codes of this State provide that
stocks are included in personal property, and the
capital stocks of corporations assessed except
much is invested i'll property and taxed otherwise
as property. BANKS are subject 10 regular annual
tax of 60 cents each 500 OF the par value of the
stock which is $780, Railroads assessed for all
their property and their capital stock.
Connecticut The revised statutes of this State
provide that the shares OF the capital stock OF any
bank, trust insurance, turnpike, bridge plank
road company shall be assessed to the individual
holder, deduc;ing from the actual value OF such
stock much of it's properyas is otherwise assessed
and the only stock exempted is that of religious and
agricultural associations. The cashier OF every
banking association, under oath is required to make
out list of all its stockholders residing out Of the
State, and the bank is compelled to pay per cent.
per annum such shares, and this is also required
OF every other corporation liable to taxation.
kansas-The Kansas laws are almost the same as
we propose.
New York-The capital stock of companies shall
be assessed to the company at its actual value; al
lows deductions OF real estate, personal property,
together with its surplus profits or reserved funds
exceeding 10 per cent. OF its capital
Massachusetts-This state has very elaborate laws
for the assessing and taxing OF corporations. The
capital stock OF corporations except banks of issue
and deposit, are Ia ed by the State Goa missioner
ian official corresponding with State Board of
Equaliz.Iion) at the actual cash valGe the first
day Of May, deducting their real estate, sructur,s
machinery, assessed by the local Assessors The
capital stock of railroads aud telegraph companies
are only assessed upon such portions Of the whole
valuation of the who capital stock as is rypor;ion-
al to the length OF that art Of their lines lying
within the State tax is also levied on the gains
OF corporations. The corporation itself must pay
the tax-the tax not being levied on the sh reho'd-
crs. Upon failure of a rporation to pay its taxes
the Supreme Judicial Court may epjoin the further
prosecution of the busi OF the corporation until
all taxes due paid, with cists Shares of the
capital stock of foreign corporations, if owned by
citiZsns of the omnonwealth, taXei to the in
dividua by the local Ass ssors for their full value
without deductions.
Missouri to the Revised Statutes Of
1872 the capital stocks OF corporations in this State
are not taxed.
Pennsylvania-All stocks, except of blnking and
foreign insurance companies are taxed at the rate
of onehaf mill on each per cent of the annual
dividend. or if there is dividend declared three
mills on the value Of the capital stock. The tangi
BILE property is otherwise regularly taxed.
Mr. LEACH proceeded at length to show the SUI
psriority OF several minor sections OF his bill
those OF the majority bill. He said that the minor
ity proposed the addition of new section which
provided for the manner in which the State Board
OF Equalization shall assess, the railroads operating
in more than one county. The section also pro-
vides that the Board OF Supervisors after receiving
the epportionment from the State Board. shall APP
portion the value to the various subdivisions OF the
county. The other bill simply says the road shall
be assessed, but does not provide the method.
A SAVING PROPOSED.
Section 1865 is another new section to the Code.
1t provides that the smcnt made by the County
Assessor shall be the only basis of taxation for the
county, subdivision thereof, except incorporated
cities, and may also be taken such basis in incor
porated cities when the proper authorities elect
Will save the expense OF tne election 2SeSS
ors, etc, for special assessments for schoo' road
purposes and like, and the assessments for such
purposes viii be made from the county roll And
for this i. has been provided in bill that
all property shall be entered the roll to the dis
trict in the county to which it belongs Mr.. LEACH
explained that the greater part of the remaining
sections were almost exactly alike in both bills.
The minority had changed Section 315A at the sug-
gestion OF the State Board of Equalization. Here
tofore taxes became delinquent ON the first Monday
in January Now, as that is the time the new Off
60 into office, it was necessary to give the old
officers time to settle up their books before going
out of office So the time OF delinquency was made
one week earlier.
REVIEW OF MAJORITY REPORT.
Tie majority say 1t is apprehended that the
chief ground of opposition to the bill presented
herewith will be blsed upon the fact that its fl s.
section declares that no property shall be sub
ject to double taxation The double taxation which
is thus sought to be obyisted arises mainly if
exclusive " in reference to the taxation of stocks in
corporations formed and doing business in this
State" Now the objection we raise is, that while
pretending to tax stocks they do not practically
sess them at all.
They say again " II is beyond controversy that
the stocks issued TO the stockholders Of tile cor
poration is but certificate showing the interest
whSb the holder has in the entire Of the cor
poration; Just as decd is merely the evidence OF
the interest which the grantee has acquired in The
property described therein" There IS wide dis.
tineton. deed has no other tran an intrinsic val
ue-a value commensurate with the t oGble of re-
producing it. IL is not negotiable You cannot
hypothecate it; and is only the evidence of owaer-
ship Bus it is different With share OF s.oc-it is
the value OF the property and the evidence II owl-
i. "a