Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-02-23

fraud and perjury
These are very grave charges, and ought to be ex'
ahmed fairly and dispassionately, and if they be
true if any of them be true-the law shouic DC
amended.
The present revenue law is undoubtedly the
outgrowth of the adoption OF new organic law,
and its provisions are essentially in harmony with
the doctrines presented by that instrument mat
the present law is in most if not all OF It's proVis
ions constitutional, is now generally conceded
criticism then, of the present revenue law may very
properly be deemed criticism of that provision oi
the Constitution relating to that subject Let II DC
so understood and let be further understood tha
the charges have stated as being made against tt
present revenue law are most OF then In my Juus
mcnt well founded. In order =" ''''A---A-- -
President, the impulse that generated and matured
bad law it may not be Improbable for US to re
view briefly the conditions and circumstances at
tending the creation of it.
For several years the question was sgitateC
Of the necessity for certain amendments to th(
Constitution. The cause of that agitation wa:
not, however, that it was essentially bad
| Constitution, for it had always been spoken o
| as monument of the wisdom, patriotism and
craftsmanship Of those who framed it. Under
| its guidance our favored State made rapid and
healthful progress for more than quarter OF cen
tury and it not until the State had experienced
| a large growth and a considerable development o
her resources that any necessity became ap
na -ent for a change in our charter. But the first
aoita ion of the question met with almost universal
;Td;s.r nee, so accustomed had the people become
70 tbe or, Of things then existing, averse were
thew To the cry OF " a change" which subsequently
haoa,,o q u.r, IS =" shibboleth." And, finally wher
,be S4s.s dsci3e, by her votes that Constitutions
Conventiop sbouIo be called, it was by so small q
majority and by a got so uncertain and unsatisfac
tory in its manner tfas | doubt If it reflected the
true desire of a majority. Du' Mhat was the de
maud of the people, at the tin e. VINO voted ior the
1t not for radical change in or system oi
State Government. 1t was not for rev, ution In
State policy on any question; but, on the contra,
it the universal opinion that but few changes or
amendments we're neeu1u or should be maae ~ aose
changes were reformation in the Judiciary yystem
the abolition OF special Judicial elections and some
slight notifications relating to revenue A Conven.
ton met, and for 152 long and anxious days il In.
bored until it brought forth-not mouse, but an
elephant, apd it is the old question repeated that
now troubles us, "What shall we do with it,"
Mr.. President, in my humble opinion it was un.
fortunate for our State that that Convention met
unfortunate only because it was an unfortunate
time. 1t was an unfortunate time because the DO.
htical health OF the State in condition so pre-
carious that the moral quality of political acts was
partially forgotten in the Generalization Of the day
1t was time when, OF all other, action is most
likely to be forced, but when it should not ne had
1t was ut time OF social disorder and anarchy-of
dsorganization, doubt, fear, anger and hatred 1t
was a revolution. Glass arrayed against class
interest against interest," the poor against the rich
capital against labor. The opportunity for dema.
gogism had come, and it embraced Real
wrongs magnified and faucied ones made to
real until the passion of ffrenzy seized portion
of the people, and law, order and decency were yo-
lated with the sanction and applause of many good
but deluded men. But do not propose to detail
the events or the history of that olution They
are too fresh In our minds.
1t was at this time, Mr.. President near the inceD.
tion OF this excitement and madness that the State
was called upon TO select its delegates to that Con.
venton, and it during the hottest period of that
disorder that the Convention did its extra leg
Il, Vd tsNI Ia,
work is so strongly tinctured with the ideas
then so fiercely put forth - that it comedies
so many Of those demands then made by the wild
thoughtless and ignorant, which the people today
in cool, reflective mood are able to pronounce u.
Just unstatesmanlike and dangerous to the well.
being Of the State But it was the vox popul and
the Constitution is is the idea and work Of the
people as they were, and not really Of the men who
sat in that Convention. 1t is for this and for this
only, that lay blame upon our representatives to
that body. A large portion of them were able
honest and representative men of the State, and
hey should have risen above the excitement, the
nsncerity and the prejudice Of the hour, and
should have exercised for the State that wisdom and
,eason which for the time being had forsaken con
siderable portion OF the people But they failed to
10 it, and they lost their opportunity the result
If their work demonstrates to-day. They listened
more to the voice of an over-eXcited public feeling
han to the voice OF reason; they seem to have
tudied and brooded more over the wrongs that
we're complained Of than over Just and reasonable
emedies for those wrongs, and the effect is now
cen IN growing popular demand for changes and
mendments of their work. / quite agree, Mr.
with Mr.. George in the strict4res con-
aimed il his essay already referred to when be says
The Constitutional Convention which sat in your
ity two years ago was undoubtedly more than
air representation of the average intelligence Of the
tate but, as a body, as is proved by its work
new nothing OF the very first principles of peitical
conomy" AgG4n further on he says: "The n en- OF
,hom am most afraid not the men who think
he existing state of things all right, and their
-rnt,ort l. tho,
proceed 10 action coon as they get idea half
'ay into their heads; the who jump at con
usions without making sure of the intermediate
teps the men who feeling that something is
'rone are for anything for a change These are
ne men who lost TO California the grand opportunity
resented in the Constitutional Convention, and
no, assert-using the expressive language Of the
lme gentleman-'' jumped from the frying. pan into
ne fire."
repeat then, Mr.. President, that it was an unfor
mate time for that Convention to meet and !.
ssert that by reason OF the popular excitement
ting among certain classes holding the balance Of
over in politics az that time; by reason of ar.
bnormal sympathy artfully excited over real and.
naginary wrongs; by reason of Ignorance, apathy,
)wardice and want OF independence, and by reason
that potent and insa5iate desire of some men
ways to be found on the winning SIDE the trainers
the Constitution were mlSled into incorporating
that instrument theories OF taxation wholly
nAmerican, entirely vicious and destructive of the
tate if long enforced and literally carried out.
he amendments offered by the bill under con-
deration Will, think, in part and very largely,
1rrect the evil Now Mr.. President. / would not
g justified in taking up the time of this Senate in
discussion Of the different theories of taxation
the theory taught By that convention. Those
latters were quite fully discussed year ago. The
mendments offered do not reach that theory in all
s breadth. While we do not believe for instance,
theory of taxation that holds unsecured solvent
ebts to be property, within the true meaning Of
nat term, and therefore taxable still we would not
e justified at this time in attempting TO uncover
S badness. What seek by this bill is to reach
ne greatest wrongs which result from the enact
tent of last winter, and which the experience OF
ear has taught the people-or should have taught
lem-cannot much longer be endured. One OF
nose wror IS has been the attempt to tax the
loney5 of depositors in savings institutions.
Wherever that attempt has succeeded a wrong has
cen done by imposing double taxation and where
ne of the class has escaped from the operation OF
le law an additional wrong has been done him whS
as not escaped by still further increasing his bur
ems But we were told year ago by the friends of
ne present law that double taxation was i'm
osed under it upon this class OF persons; and it
as further asserted by them that the Constitution
id rot contemplate double taxation. II they have
OF changed their minds or this proposition by this
me fear it would be a futile task to attempt
yain to reason with them upon the subject. 10
ndertake to demonstrate the truth OF our PROPOSE
on is much like trying to prove an axiom as
seem awkward, but We Will present one case, the
atement of which, to mind, covers the whole
latter and completely demonstrates the monstrous
iiquity OF the present law. In the town where
Ou live there Is a savings Dank-an incorporated
without capital stock-conducted on
urely mutual basis It's business is to receive the
loneys of its members-its depositors-and TO iu-
est or loan the same on such securities as its
hosen officers may determine under the restrictions
law. Each depostor is member OF the cor
Grafton and has voice in its management and IN
he selection Of its officers Each depositor receives
rom the bank pass book a book containing the
eceipt Of the bank Of such sums of money as have
cen deposited The bank has received from its
epositors in the aggregate the sum OF $4,000
1bich it has loaned out upon real estate security
low, the law says the bank is the Of all its
moneys and securities but that is only fiction OF
he law For the purposes Of its business it is the
wner, but for no other. The real owners are the
epositors and in effect the bank is only their agent
II trustee. How is this property taxed under the
resent law Every mortgage security, or rather
he debt it secures assessed to the bank at its full
ace value, and the bank pays the tax upon the
500, 900. The effect of this payment of tax is to
limnsh the rate Of dividends to the depositors by
ust much as the average rate of taxation OF the
,ank. II this be true then the depositors pay the
AK, and they have been once taxed on the amount
II their deposits But this is not all il the present
avs be enforced. If YOU are depositor in that
)ank the Assessor comes TO you, and among other
luestions he asks you if you depcsitor in that
1ank If you say no he asks you TO swear to it, and
1ou have committed perjury. II you answer yes,
md tell the whole TRUTH he you for the full
.mount Of your deposit and you pay the tax upon
t. II all the other depositors have been as honest
yourself the original $500 600 is assessed to the
lepositoys, and they collectively pay another taS
upon it. Now, whenever you are able to ascertain
that you have paid your last tax apon that money
under the present pleasant syytsm you get your
bank book and sit down to figure what your money
has done for you in year. YOU are likely 10 %
happier when you sit down than when you get up
Yon find that your agent-the bsnk-deducted from
vo4r rate OF dividend say 2 per cent.-the average
~ osad and