Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-04-29
WHOLE NO. 10,3OS.

management of the suits by the Attorney-Gen-
erill no opinion is given. The condition of the
suits is believed 10 be such as to insure a hear
ing OF the question involved before the Supreme
Court. The status of the suits has been altered
by the Attorney General since the stipulation
Was nrSt made. by procuring bill of exceptions
to be settled and filed. and also by procuring an
other stipulation The report is signed BY Terry,
Wharton.
minority report, filed, answers the first two
questions aS above, Ii then states that the
Attorney-Gcneral, by the stipulation, ~ did in
tend TO waive the right of the State to recover
penaltleS interest and counsel fees and the
stipulation was entered into by him for the ex-
press purpose of carrying ont that intent. In
point OF law, however the rights of the state
to receive said penalties interest and counsel
ices VIII be fully restored when the unauthOr-
lIe1i acts OF the Attorney General set aside
and annulled by proper proceedings" The mi
I norlty further state that, in the present condi-
uon OF the record, the state is not entitled TO re
cover; that the management of the suits has
not been such rs to best guard the rights of the
state, and that the AttOmey-General has coun-
tenanced the claim of the railroads TO be re-
leased from all liability beyond the face of the
tax. The record in the SAN Bernardino case is
not IN such a condition as To best insure a full
hearing of the legal questions involved. and
steps should be taken 10 set aside all proceed
iiSS had 10 date upon the various StipulationS
made with the railroad. This report is signed
by irwin, Barry, Storke Nell, McClaSkey and
Wallace,
y
I ment OF mortgages, came up for second reading.
Wallace moved as an amendment 10 strike
ont from and including the word % for. in line
81, down 10 and including the word assess
mcnt, IN line 81, page 5, and insert " For
purposes OF assessment and taxation the value
Of a mortgage, deed of trust, contract or Obi,ya-
uou, by which debt Is secured, shall be its
caSh value 0SCCrtalued rs herein prescribed;
such cash value shall. prima iacic he taken to
De- the amount expressed ON the tace thereof:
IN an csSes 10 may be shown 10y proof,
iyf ne purpose of reducing the amount
ni tlc prlma iacie cash value thereof
thai the cash value of the property affected
in"frhN Is less than The value pNprrSspl luson
lnr are thereof or that the unpaid amount of
iAD drh -cyurcd thereby j. less than the
HaHmt mruiioucd therein as the amount
't'i7,d thereby provided. that the
ea>h Naiut Ola mortgage. deed ottrlSt, contract.
cor obligation, 10y which unpaid ucrltiubr
bonds are secured. shall not he reduced below
the cash value OF the property affected thereby.
or the average cash value of such bonds during
the year next preceding the assessment
Johnston moved the following substitute
for both amendment and substitute strike
ont, commencing with the word for" in line
-, page >. printed bill down to and including
the word " thereon, IN line - page g. printed
bill and insert in lieu thereof the following
\ mortgage deed ot trust, contract, or other
obligation, 10y which debt is secured must be
assessed at lis actual cash value"
Johnston spoke at length in favor of his sub
sttute. He very much doubted the wisdom of
passing at this time the amendment offered by
the gentleman from san Francisco. He thought
that the Constitution as il existed could not be-
improved upon. As IL now stands il does not
conflict with the Federal Constitution lie had
always been taught that the state could select
tne objects to be taxed, hut those of the same
class should be taxed alike. His proposed sub
Stltutc was honest was just what the Governor
convened the Legislature 10 pass. and was what
the whole people demanded When the
Chief Executive ConVeneS the Legislature
and by proclamation indicates what legis-
latlon Is desired, then the Legislature
should exercise that power. He was in favor
OF taxing railroad property in the same Wnv
that individuals were taxed. He then at length
explained the difference between the mortgage.
and the debt. mortgage could never be worth
more than was the property upon which it was
given, while the debt might be Il sum largely in
excess. He claimed that his substitute was
plain, easily understood, devoid of the use OF
any superhuous words. while that of the mem
Der from San Francisco was not plain and
filled with meaningless words. He said ii
was folly to talk of assessing bonds SuCh
Il thing was an impossibiity. They may
be the property of parties living in Europe The,
average cash value. he held, should not enter
into the calculation at all but mortgages should
be assessed ut their actual cash value. Thou
sands of mortgages, he said, are on record
where the amount due is much less than the
amount expressed on their face He claimed
that nothing but the broad declaration of n
principle should ever be placed i'll Il ConStitu-
ton. His substitute was honest fair and lust
and he could not see how any member on the
floor could afford to go on record as voting
against it. It says that all property shall be
assessed at its actual cash value This is all the
people desire.
Campbell Hershey Wallace and Coleman ad-
dressed the House at considerable length upon
the subject.
Johnston's substitute was lost by a vote of %
ayes To 40 noes
Wallacc's amendment was adopted by n vote
of 81 ayes To % noes.
Storke moved to amend the amendment by
striking out of the last words of the section cor
the average cash value of such bonds during the
year next preceding the assessment" Lost
ayes 49, noes a.
Coleman moved to strike'out, Provided, that
the cash value of Il mortgage. deed of trust CON
tract or obligation by which unpaid negotiable
bonds are secured. shall not be reduced below
the cash value of the property affected thereby
or the average cash value of such bonds during
the year next preceding the assessment
lost-ayes 23, noes II.
Johnston moved to amend by adding to the
section the following: " The assessment of any
mortgage. deed of trust, contract or other obli-
CATION by which debt is secured shall not be
increased beyond the amount of unpaid princi-
pal thereon at the time Of such assessment bv
any Board of Equalization, whether State or
county,
Adopted-ayes -, noes -.
Caminetti made constitutional argument
against the bill
bill be postponed one day and amendments
printed. LoSt-aycS II. noes 80.
The bill was then ordered engroSsed printed
and to third reading. and made special or
der for Tuesday Immediately after the consider
alton OF bill II.
The Speaker read n telegram from Mr. Mofitt,
and also from his physician, saying that he was
unable from sickness TO attend the session.
Camnetti introduced a concurrent resolution
relative to the improvement of the Sacramento
river. Referred to Il committee of five. COM
posed of Caminetti, Cutter, Stephens, Ryan and
Murdock