The Douglas independent. [volume] (Roseburg, Or.) 187?-1885, 1884-03-22
Mortgage Tax Decision.

cidsd unconstitutional by the United
States Circuit court. The, Scottish
loan company brought the suit to re
strain the Sherias Of the several coun-
ties in the State where the company
loaned money and have their mort
Cages recorded, from collecting the tax
Judge Deadly places his decision on
the ground that the law is special and
in violation of the State constitution,
which prohibits the passage of special
or local laws for the assessment and
collection of taxes. The gist of his
opinion is that the law provides for tie
assessment of mortgages on land which
is situatcd in but one county OF the
State, to the exclusion of mortgages on
land in more than one county.
Without questioning the legality of
the learned judges decision, as the
same may be reviewed by a higher tii-
bunal, it is but just to say that the
opinion is labored and contains state
nents and reflections on the farmers Of
Oregon that comes with a bad grace
from the bench In the opinion, after
stating that the land is appraised for
taxation about one third Of its cash
value, he says: Gas an illustration
take the case Of farmer in Linn coun-
tv. He owns farm worth in cash
$4,000. He borrows from some per
son or corporation in Portland $4,000,
and gives mortgage upon his farm to
secure the payment Of the same. The
county assessor, chosen by himself and
.leighbors for the special purpose, esti-
mates the cash value of the farm for
the purpose of taxation, at not exceed
ing $4,000, and it may be at only
$4,000. From this false valuation the
farmer is allowed to deduct his indobt--
edness at its par value and thereby es-
capes taxation.
This reflection of the learned Judge
upon the farming community and the
various assessors Of the State, that they
are elected to evade the statute and vio-
late their oaths of Office, is an assump-
tion without facts to sustain it and is
against reason and common sense
The cash value of property is what it
will sell for in the market, and it is
doubtful if there is a county in the
State where the entire body of lant
would bring within ten per cent. Of its
appraised value, if offered at auction
after due advertisement. A particular
farm that a purchaser might fancy
would perhaps bring more. But VIZ
doubt if there is piece of land in The
State that has been sold for taxes, thac
has brought its appraised value LIE
the farmer in the case illustrated BY
Judge Deadly apply to Portland or for
4eign capitalists who have invested the;
money, TO-. an additional loan to pay
the tax the Judge would impose upor
him, and settle the unpaid balance O
his store bill consequent upon the fail
ure of crops, and he will be met with :
refusal. When the capitalist comes t.
foteclose the mortgage and sell the lane
to pay the principal aud interest Of til,
loan, the chances are nine to one tha
it will not bring the amount and ther,
will be Judgment over against th'
borrower.
Judge Deady assumed jurisdiction o
this case not on the ground that tht
federal constitution OF law had bee!
infringed upon, but solely on til,
ground that the plaintiff is a foreigl
corporation. BY coming here to dC
business under the laws of this State
the Scotch company, in justice, becomes
subject not only TO the privileges bu
immunities of our State. The Stat,
Supreme court has passed upon the va
lidity of this law and held it constitu-
tional. A law of congress makes tht
Interpretation of State constitution
and law by the Supreme court of tn,
State, the rule of Interpretation to b.
followed by the federal courts. Not
withstanding the decision of the Stat,
court in holding the law constitutional
Judge Deadly claims that our Suprom,
court failed to pass upon the question
upon which his opinion is based.
The learned judge while he suggest
methods by which the money powe
would escape taxation and the burden
of supporting the State and local gov
ernments would be fastened upon th,
farmers, he does not deny the right O
the State to tax all mortgages on til,
lands within its territory.
If the law is technically defective it.
principles and objects are right. 1t i,
but just and equitable that the money
whether it belongs to foreign corpo-
ration or the local citizen, should beal