The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1886-04-15
OHIO'S FINANCES.
A Special Message from Governor
Foraker Regarding Them.
TAXATION or che tiduof rranic and forsfer
Corporations, and the Revaltati0n
of Real Estate Before 1850 AfS
Recommended.

Recommended.
COLUMBUS, April 6.-Govenor Foraker
sent the following special message to the
Legislature to-day. concerning the financial
condition Of the State:
EXECUTIVE DEPARTMENT.,
OFFICE OF THE GOVERNOR, ,
COLUMBUS. o. April 9, 1885.
TO the General Assembly
The finaflciaI condition of the State needs
attention. II is estimsted BY the State AUDI
tor that the experidituree of the State up to
the 1st day Of next July will amount to
about $sQ0,00Q, and that from ,tl1st date until
the LIST day Of next January they win amount
to about 81, 500 600, making total expefidi.
ttre of $2,3o0. 600 to be provided fot out OF
the general revenue fund.
To meet this we had on the first day 81
April cash balance in the treasury of only
about S2o0,000, and it is estimated by the
State Auditor that our total revenues from
the taxes to be collected in June and all
8, ,000, or in round numbers the casual
deficiency of the State will aggregate about
$i@o' 'COO on December 81, 1895,
Ing such dsaciencies. but that i such u indebt- debt
edhess shall ffcvef exceed $750,OOO
It has become necessary not only to use
but to exhaust this power. and q bill has &C
cordihgly been Introduced authorizing the
ss % hS e%ns to q
State in that amount. The Necessity for
this step is so apparent It is hoped the bill
help it viii be necessary to anticipate the the
revenues of next year to the amount OF
$25OO0. Hence. Notwithstanding this loan,
there is imperative necessity for the strictest
But yoti are invited to look further to
Something more important.
lation and WEALTH; tie demands % Oh % our tress. s
next ten years this viii probably continue
fact that emigration to the western States
is decreasing in proportion as that country
flls up and its lands enhance in value.
But while this demand has been increasing
our sources of revenue have been diminish
ing. In 1888 the value for taxation Of the
pF0Persy OF the sta5e a 2, %, shown By
# shranE to sss ST. % and Tor isss ID dwiS. 1SS.
died again to $500, ,913, ,gSd. This loss has been
Sy ssts The STEADY Sf the
structures. Stcp but the loss was greater
than the increase last year, and the result 10
shown in the fact that the GRAND aggregats
personal, amounted in 1885 to but 81, ,670, ,O7s,-
s6s aga.nst $1.67S, TIA .0s1 for 1884, or loss Of
This indicates that our wants and our abfl-
ity to meet them are travelling in opposite
directions. and that unless the tax rate or
casual deficienoies viii continue GO % and grow s1s
larger without power 20 provide for. them
because of the extreme limitation allowed
under the bill abovs referred to. providing
for the issue and sale Of the bonds of the
State to the amount of S760,00O to meet the
emergency now upon US.
The rate of taxation should not be in
creased. at least not until other measures
that seem more just have been tried. The
last election indicated q desire of the peo-
TAX THE IIoUoR rHArFfC.
It is hoped this Legislature viii not ad.
1ourn until an eficient Measure to that eject
ulatIon. yet it does not follow that the reye-
5ue, 5ns..d when t COLLECTED must necessarily be
contrary, it is entirely competent to do with
# as the Legislature may see fit, and it is
least Is per cent. of the revenue so der: we'd
should 60 to the general fund of the State.
And It 10 recommended that any law that
vide. From this source the State would In
such event realize probably s5O0.OO0 to the
great relief Of all present classes Of tax
payers.
FOREIGN CORPORATIONS.
Foreign Insurance.. telegraph, and express
companies doing business in this State are
now taxed upon their gross receipts There
portation, car trust and car equipment, and
sleeping and parlor car companies should
the css i Se
so in the others, and equity and justice to
the State and to the other companies that
are 90 tax taxed & require an amendment of the
The most important matter to which It il
desired to call your attention yet remains to
be stated.
OUR TAX LAWS.
Our tax laws are, in the main, perhaps, al
wise as they can be made under the present
Constitution. IF it were not for its positive
eIemptinr from taxation the bonds of our
State and municipal governments, to the end
that we might not tax our credit and DIR We
our securities away, but keep them at home
and pay the interest Upon them to our own
people But ut ha that is imgracticable and un
The requirement Of the Constitution is
that all bonds, stocks, investments, ETC., as
well as real property, shall be taxed at their
true value in money. Our laws have been
but it is manifest to all acquainted with our
resources that they have lamentably failed;
for all such know w that instead Of grand
duplicate of 81. $40, 079 ,S88, we ought to have
one of at least 1000 millions, and ,000 millions
would more nearly represent the taxable
wealth of the State.
To ascertain how and why there has been
this failure to value property as the law re-
quires, the State Auditor, as result of q con-
ths of the State
printed questions to be answered, calling for
as to the per cent. at which
property, both real and personal. is appraised
These questions, with the answers thereto
80 far as received. and nearly all have
answered, are submitted herew tn.
You will see by referring to them that
THERE IS NO UNIFORMITY OF VALUATION
Of property, one county nth another, the
State over; but that in disregard, If not
positive defiance Of the law, each county
own; and that the valuation of real estate
rarely exceeds 70 per cent. and ranges down.
ward from that point as low as 25 per cent.
Ina hil la
valued all the way from it's full value down
to nothing. In fact the great majority Of the
personal person property Of II the State is not re-
held from taxation. So far an
PERSONAL PROPERTY
fs concerned. the fault is chiefly with the
people who list their property for taxation.
there Is injustice and Inequality in taxation
and that there is no harm in cheat ng the
State. although to do so false return must
This offense against the State and good
morals is too frequently committed by men
of wealth and reputed high character and of
In connection with the recent refundinr
of our State debt, maturing next December,
1t was disclosed that some Of the most prom
held large amounts of these bonds without
having ever paid q dollar of tax on the same,
hayns II bs any n1v them for
suggested for this is that the bonds were
supposed to be on-taxable, but 1t is difficult
to Re patient with such ella m when 1t in ad-
vanced by men of intelligence, familiar with
our Constitut on and its requirements, that
all bonds, ETC., shall be taxed.
While such men disregard and violate the
law, it must be expected that our tax dupli-
cate will continue to decline instead of in
crease with our growth and development.
The harm they do is not measured by the
amount of money of which they deprive the
State: their example is bad and fraught with
evil to the whole community. There should,
therefore, be severer penalties provided for
false returns. and a more rigid enforcement
Of the laws for the listing of bonds and other
securities and credits.
This is especially true of unincorporated
banks. 1t does not seem possible that they
are paying taxes on anything like an equita-
BILE bass as compared with the incorporated
banks of the State.
Take the banks of Columbus for illustra-
ton. They are a fair example. There are in
this city eight unincorporated banks and
seven Incorporated banks reported to do in
the aggregate nearly the same amount of
business. For the year 1885, these banks made
returns for taxation MS follows:
BANKS OF COLUMBUS.
UntncorpOrdted.
Z. Hayden y Co.. ........$ $zI.6d5