The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1882-01-21
Equality of Taxation.


qualities which obtain under our laws as they
now exist. 4 large amount of revenue is nee
essary for the maintenance of good govern
ment and for the education of the people, to
give them the intelligence requisite for sound
appreciation of good government. and to ena-
Bile the voters of the state to act understand
ingly in exercising the sovereign power of
electing their rulers and maintaining their lib
critics and best interests We are not called
upon to discuss in this connection the wisdom
of exemptions from taxation made by the
Federal Government, whether made IN the
exercise of the limited superior sovereignty
committed By the people of the states, through
the Federal Constitution, to the Congress of
the United States, or by assumptions of power
not intended to be granted by that instrument.
Our discussion must be confined to exemptions
from taxation created by the legislation of this
state. Under our laws as at present constitu-
ted, a man who is the owner of house or lot
otground in Baltimore city, or of real property
in county, must pay taxes upon its full value.
and frequently upon larger valuation than
the property could possibly be sold for IN the
market, while his next neighbor may hold
fifty times the amount in mortgages upon real
or leasehold property, the safest and at this
moment the most remuneratlVe investment
which can be made, and pay no taxes what
ever. A merchant owning, or having in his
POSSESSION u SAbGk Oi EbtuS- isAI-t ht sAttstlA.
must pay full taxes ON his place of business,
and on his stock of goods, and besides also q
license tax for the privilege of exposing them
to sale with a view to profit. while his neigh
Dor may own a million of dollars worth of
coupon mortgage bonds Of railroad or other
companies, which are exempt from taxation,
and pay no taNas.
The small manufacturer who works by hand
has, 1t II true. an exemption of his tools from
taxation, but his stock of goods is liable to
assessment, and as he must have house to-
live in, and house to transact his business in.
he Is taxed on both. The large manufacturer
however. Is now eontending that not only his
plant aud machinery should be exempt. but
that the whole capital employed in the bust
ness must also be exempt. although It may
Weld an annual income of fifteen or twenty
per rent. While the Legislature may believe
It cNpcdient to grant special privileges to Gu
terpriSes oi uniried ar uncertain remunera-
ton. IL such enterprises arc believed 20 tend
,o useful ends aud the welfare Of the COM
muni5v. can see no reason WHY the eNemp-
iions or privileges should bc continued long
after the success and prosissbeuess Of the Gu
tcrprises has bcen folly established.
Il cannot be douhied that the prosperity Of
the state will be greatly enhanced BIZ the es-
tsshiishmcn, Of successful manufactures. but
Il Il also believed that to Dr. successful. they
must be- originated BY men who rely morc on
their own intelligence. industry, perseverance
and iuflosnifahir eueg-y, than they DO upon
special privileges aud exemptions granted by
lass. The man who undertakes an enterprise
under ihs. belief that the community intends
10 insure It's support hy Law. will hardly SUE
coed It al the spcv3al privileges the Legisla-
ture ear giant. are youchsated g hlm, while
he Wb0 relies pu has intelligence aud industry,
viii succeed in spite of adverse circumstance
pniy such manufactures as support themselves
wIihont being a burden upon the community
are . bcnehs and spagcc q wealth e. snrh
community. II any one thiug hiss a superior
claim "a he exempted tro1a taxation, IL seems
90 me II shoald BE- the savings Il the poser who
arr making efforts through The instrumental
Is Of homestead ~ ltaildlng associations. ~ u
savinEs institutions. 90 provide themselves
with hssacs foT their iainiiie-.
Tins does no; apply. however, "a barge land
ard loan companies. which have 4uneusc
Sums Invested tnT gaia and protit "a che stock
koidcgs. MANY - these institutions p'aily DO
. banking business and shoald h. taxed %
fhe salne 81 the capital thus profitable em-
ploved The hapks arr subject 70 severe tax
aiion is the Federal tioyernnen,, and their
shares II stock to squal taxafio. with other
property. by the STATE cauntics and Ciiy ami
II uculd scem Iha, other corporations DOING a
business ~ ghs nafmTc Of . banking b1slness,
and receiving Erpht cqnsi ~ greater than
that made rs she hanks. -hoald ENJOY No
greairF uFivileges or immuaisiss than sFe n
lawred q the hsnks.
Et,. masses 81 she peess,lc demand that the
inequalities complained q -hail llc remcsifed
So Tar ~ = Is m the power II the t'eheFst A..
sctnhly - srraeis shrm, sad that tbs equality
81 iaxaiian a. prescribed in abe 1853 % fstghts
"a a.. ~ A..
taiurd to the isll extent II the i.uWer ~ che
Legislature
The question II tho iaxasiun aG mortgage
shss has agitatc,i this FcoPle 81 sisr state ssnre
thrir exemption ffum taXet}ua under ii8r law
oil lssu. fhr holirrs 81 large smeunts 81
thr.e debts advocate ihe5s exemption a.
.zrnef,l rnir, Whiir tha masses 81 other prop
cftv halslrrs demand shai thsy shall H. FAXED
ai their true value. a. otsrr Investments. Il
j. asserted by the bolflcr- - mortgage debts,
gbnt thesE TAXATION + a9u4ssg inNaiiun. bar
ilus can omiy rs maintained where the ncri
gage dehs Is sDv The unpaid parchasc Ha6Dey
iar the land. 80 which ca-e H = EASY faF the
Legislature - provide thsi the paytiuu q The
anpaia lsssvisase menry ser land secasrsl by
mortgage thcrcua shaft hs cradited 90 thc
rossessor Of the land and charged 90 the
oWner 81 the mortgage drla. The agreement
that thr nsogtg4soE vii ~ eosapslled 20 pay
the taxes ga ihr debt " the bands at the
,s,arsae4e. Z tallaesnus II The Legislature
makes & RnlaEfsi for the holder of the mort
Gage debt to rxa9s sach taxes frem the mort
sng3E. ard ~ las authorizes the recovery
from siaeh holder. II the asoaul ~ such taxes,
il tor safne have hceH extertei from the
IaoftsaEor-
A mortgage pf land j. an hyposhecasiou II
tha laud a. q security for the payment II
Sam af lsorsey loaned npon the iaish ii is al.
eqascy - assure she certainty Of the repay
meat at the nsaney, ard | canned see the dyi-
tercnee IA pr3nespie, bstweea the hyIuthecs-
ton az real propesty ~ q security, and the
hypcsheeanoa q some Yersnaal Investment
Nhich Is taxable, a. a security. In the onc
cas-. < i claimed 50 lse doahlc taxation. while
ia the other no such eiaitn j. purgeHtlsd 60 BE-
made. a. instance a case IL point: Two
men are owners II sa equal amount % l'Tap-
eriy, the one has real property and ihe oihrr
has a certificate 81 ownership Ut shares IN
bank of equal value Both the real property
and the shares If stock are assessed for the
same amount, and arc OF eqasi value. Both
parties 20 IA an individual who has money TO
loan, and negotiate loan Of equal amount,
the Oue hy a note and III hypOthecatiou Of
his real property. and the other By a similar
note. aud the hypoihecation Of has shares OF
stock Under our laws. the individual hold
ing These two interest bearing uotes, Is free
from taxation on the one hat y assessed with
the value Of the other. Now, II the hypothe-
ca,ion Of the real property makes the taNation
of the debt secured by IT, agency, double
taxation. why does not the hypoSheea1ion Of
the shares OF stock render the taxation OF the
debt thus secured also doHhIe taxation?
Yet, no such argument has ever been used to
my knowledge. IA the latter ease.
This theory OF the taxation OF mortgages ON
real property, working double taNatioH, lex
eept IN the case Of the unpaid portions Of par
chase money. is novel idea, ineuleated by
the holders Of mortgage investments, nOtwith-
standing the Court Of Appeals OF the state
has repeatedly decided that il Is aot double
taxation, and this argument has been success
ful for some time in securing 20 such holders
immunity from taxation. 4 mortgage debt is
personal property, and goes Ia the executor
or administrator as other personal property,
and was always liable To taxation, until the
Ac; of 1870 exempted such debts. except in
the case Of unpaid purchase money, the mort
cages for which had been exempted a short
time before that date. There Is now another
theory, which IS not 30 openly ayowed. but
which Is commencing to be agitatcd by inter
ested parties namely, that nothing bat reel
property should b. tarci. Ii this should sue
coed. it Is clear how deplonable the condition
of the owners of real property would be in this