Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-02-23
REVENUE AND TAXATION
IooyrrSUED rRoM FIRST PAGE.l

ran0rfs ~ an tne SWINE 7
have seen, for the average amount OF deposit by
Zach denO=itor is comparatively small sum, and it
Is the testimony of all who have connections with
tbis c'ass of institutions that the majority OF the
ieositors are poor people, and that the larger por
,io, If denosIts are the accommodations from wages.
ne effect of this law then, is the monstrous,
in that it imposes unjust burden upon those least
able to bear it, and whom 1T would be more Just 10
eycuse from any burden Of taxation whatever.
There is another consideration to be mentioned,
Mr. President, Of still greater Importance. The law
is enforced only against few. 1t IS not enforced
splinst all, and never will be; and this failure
makes the system still more vicious against the few
that will not seek to evade even bad law make
The assertion which found upon evidences that are
sufficient to my mind, that in large majority OF
cases the depostors in savings banks were not az
sessed this wear for their deposits. believe the
assertion, and | think the belief is very general
and if it be well founded the conclusion is clear and
unmistakabe that perjury IN TINS state Is now pIac
tlced to an alarming and deporable extent IL Is
always difficult to enforce bad law, and that por-
ton Of a community upon which a law particularly
bears is generally competent to Judge as 70 the
quality OF that law, whether good or bad, and are
quite likely to treat 1t with respect or contempt &C
cordiup to its quality. Nor is this libel upon the
people or a dscredit to them. L believe the people
OF this State to day are mostly abiding citizens
and are willing to yield obedience TO any law not
ruinous to them. The exception consists only
of those men who are quite willing every
body shall be taxed but themselves. Such
men will always evade taxation by most
always have but the OF the people have no dis
position to evade Just taxation, but an unjust system
ike the present, which in many cases is discrim-
mating, By imposing double taxation, and when
amounts nearly to confscation, Will be resisted by
men who design to be good men, and who VIII Justify
themselves in evading that system, even when they
resort 70 practices that must violate the public con-
science This, Mr.. President, 10 demOralIzlng and
the question is can the State OF California afford
TO impose upon the people laws and burdens
which inevitably lead to such consequences
shall not stop here to discuss the utility OF savings
banks. have heard it asserted upon TINS moor mat
they ought to be wiped out; but that is a sentl
ment which believe is shared by but few IN this
State. That they are of great public benefit, as
sumo; but that question is not proper factor in
this discussion Whether they be a blessing or an
evil their property rights ahoud be held as sacred
as any in the State and if they are to be abolished
let it not be accomplished by contiscation acts
| come now to discussion OF the other propo-
sition presented in these amendments, which,
formulated is, that the taxation OF the eapi-
tal stock of c1rporations, besides being double
taxation in form and effect, goes Extensively much
further bv laying tribute upon hope, reputation,
sbi business advantages, superior business quallt-
cations energy and industry. This change IN the
policy Of the State by which the stock OF corpora
tons has become taxable property Is, suspect, Que
an agitation begun anterior to the calling of the
Constitutional Convention, and which reached its
elimination during the deliberations of that body
and the manner in which that convention dealt with
the subject shows to my mind that with TINS, as
with other matters, the ma ority OF the men com
posing chat august body were more impressed by
the COMPLAINTS and demands of an excited body OF
the people and by the fancful and Incorporate
theories born in the maddened brains OF men lusting
for revenge, than by the natural promptings and
conclusions Of their unbiased and sober Judgments
That some Of the complaints made against corpora
ton were well founded, do not deny; but while
the form of complaint was made to take a
general character, and involved all cor
porations in stigma, yet the real parties
whom 1t was alleged had imposed upon the people,
81 only of he mr.
corporatious. Now while it was well for that
con7ention redress all just grievances, so far as it
could and TO place curb upon all corporations by
whose arrogance and injustice the people were in
any way injured and wronged, still submit TO the
good sense and candor of men that political economy
and craftsmanship never before recommended as a
remedy for the wrongs complained oil here That they
should be taxed to death. If a transportation COM
pany charges excessive freights and fares is your
remedy by new system of taxation? If they are
guilty of discrimination i'll their dealing with the
people will you correct the justice by sappng on
another tax If the gas and water companies OF
San Francisco serve YOU poorly and charge you
damnably, do you think you Will get better and
cheaper water and gas by increasing the taxes OF
these corporationsg Yet this plan seems to have
been thought of in that Convention and in the last
Legislature II this be not the theory of our pres
cut system Of taxation Of these institutions, can
think Of Int one other, and that IS that they are
able 70 stand cinchins. But have heard 1t SAID
that the rich corporations heretofore have Lot
paid their Just burdens of taxation that they
have been dishonest and IN some way have
escaped their full share for the support OF the GOV
eminent do not know whether not this be
true but will assume it to be true. Then, ask,
will the present system of taxation make them hon
est? Ii the State cannot collect from them when 1t
imposes single tax, can II do better When IL Iul-
noses double tax But i'll this desire to reach and
punish the greater and wealthier cerporations-for
en- see no other motive under all the circumstances
we must have lost sight OF the fact that the most,
or many oil the most important industries of the
Stare are carried by corpor atoms, and that IN
this age of invention and vast business enterprises
they cannot he carried without the advantages Of
e rporate power that the development OF the re-
sources Of the State and her rapid and healthy pro-
gress in wealth and good government depend largely
in the future, they have ~ the past upon corpo-
rate wealth and corporate strength ana aDlllty 10
forward great enterprises Now any system of tax
alton that bears unjusty a0d discriminatory upon
corporations is a system fraught with danger aud
disaster to the State. Such is our present system
To illustrate the working o. our system snail Call
your attention 10 the assessment this year
Of certain corporate institutions in my own
neighborhood The Odd Fellows Hall Association
Of Marysyile is corporation for social and beneVo-
lent purposes There are two lodges in that city.
The CORPORATION was formed many years ago for the
purpose of erecting building suitable for the pur-
poses OF the Order and for business purposes The
capital stock sum equal TO the estimates OF the
cost of construction, and was divided into several
hundred shares. These shares were taken by the
lodges and by individuals at the par value OF SO per
share. The building known as Odd Fellows Hall
is three-story building the first two stories being
rented for business purposes. As the lodges be-
came able they bought the stock, until now | be-
lieye they the owners OF all but very Few
shares By wise management they have heretofore
realized fair dividends from rents, all of which have
gone into the funds Of the lodges, to be expended
for benevolent purposes That corporation was as
sessei this year according TO law. The building,
furniture and lot all the property OF the corpora
ton, were assessed at their full cash value,
and the lodges assessed for the stock
IS oil lnln Ghn
II | as an individual had owned the property
OF the corporation, there would have been but one
as 5ssnent. Is there any more property now, than
if it were owned by an individual? Certainly not
vet that organization earning and appTopriang its
moneys solely for benevolent purposes, pays two
taxes, while the wealthy individual who owns a
similar property right by its side, used Tor similar
purpose, pays but one tax. The Masonic Hall Asso-
citation is another corporation for similar purposes.
IL has like property and is assessed in the same
wav In 1878 the Farmers Cooperative Union of
Suffer county Incorporated It's object was to con
struct warehouses along the Feather river for the
storage Of grain It now has several buildings used
only for that purpose and the farmers OF that coun-
" are the stockholders. TINS year, besides being
assessed for all the property OF the corporation, the
stock was assessed for 81 SO per share The prop
erty OF the corporation assessed for 81 $40 and
the assessabe value OF the stock was fixed at $40
S00 making total assessment OF SIS I40 with only
the amount of property first named. The Hon.
George Oheyer the Secretary of that corporation who
was a member of the Constitutional Convention and
an advocate of the adoption OF the new Con-
stitution in letter to me- very truly says: " Were
this property held by an individual or firm, there
would be but tax the tax upon tie
property itself. This" he says, lis clearly a
discrimination against this kind Of enterprise. 3"
Again, the " Marysvle Wooen Mills is a corpora
tiOn engaged in one of the most important indus
tries Of the State Its properly consists of its build
ings machinery, etc, such as naturally pertains to
that business This year all of its visible property
was assessed and in addition the stock Of the
poraton was assessed at SO per share to those
stockholders whose coAsciences would not permit
them 70 withhold it from the Assessors. presume
that all the Marysville stockholders gave IN their
stock Now this corporation is composed OF a few
business men of means and enterprise, and Is en-
gagged in an industry which tends directly to benefit
the State and one which-like other kindred enter
prises-the State should foster rather than dscour-
age The Inauguration OF that enterprise was at
tended with considerable risk. One or two men
could not take it but several men were willing to
combine their means and purpose in an experiment
which, If successful would greatly benefit the city
and the state. By industry, skill and perseverance
that corporation has reached ourshing con ltion,
and its stock is held above its par value This
di;on of things is due largely to the genius, skill
and interchangeable slabors OF o1e;kman, who acts
as its Superintendent. Ii is taxed twice and why
Simply becSuss it is well managed and is profitable.
Suppose Mr.. Knight we're removed from its manage
ment- and that you Senator C0nger, were placed at
its head Not being skilled at that business sunless
Won have had experience at that craft-it would
cease to pay dividends, It's stick would become OF
little va ue representing only the value OF the cor
rarate property and the assessment wdssld be only
upon the latter. Under your managemsn. there
would be but one tax Nos il is easy to see upon
what conditions further taxation of corporations
depends 1t is not taxation OF property, but OF
ranntatiop skill, superior business qualifications
and industry Surely the State ought not to exact