The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1889-02-08
OUR SALEM LETTER.
Feb. ssi, 1859.
Editors Dsmoeraf /:

hdiforS Danoerdf
Twenty.three more days for the Legls-
laturs. The week has been taken up most
ly by the local water bill Of Portland.
That Is It has underlled everything else.
The Eugene sewerage bill was put on the
boards first The great question IN both
cases being the taxation of the bonds to be
Issued to carry out these enterprises. The
discussions before the House were by no
means edlfylng. In fact each speake
seemed to aim u show how little he knew
on the subject OF taxing bonds OF a mum.
eipaiity. And on this point many reasons
were given pro and con that were very
thin. For instance one gentleman
champion was asked to answer question
growing out of his statement that these
bonds would 90 out of the State anyway as
tiye per cent bonds were not our capital
seekers, "what difference then would 1t
make whether taxed or not" lie answer.
ed that foreign capital would not take them
because II was feared abroad that our leg
isia,ure would declare them real estate and
tax them where issued To man OF com.
mon sense this seemed ridiculous. Mort
cages are SO declared in this State for the
purpose of the mortgage tax law, but bonds
which are promissary notes really bear no
telation to the soil and float rs personal
property and can float as nothing else. II
the gentleman had said VIC can sell the
bonds here with five cent interest II not
taxed and eight per cent II taxed thereby
saving forty live thousand dollars annually
to Portland, II they are not taxed,he weuld
have been plausible at least. But his an
swer was like the balance of reasons given.
The TACT Is II the bonds bear five per cent
interest our banxs will make II desired by
selling one per cent on them tax or no tax.
They will find II they take them with in
terest at five per cent, a ready Eastern
market with apremium offered OF one to
three rcr cent. Taxing municipal bonds
Is question of importance to the muni.
cipality that gives the money really which
the bonds represent. And where the
scheme Is for sewerage or pure water all
going To the health Of the community, the
bonds should not be taxed. But for any
other object, usually speculative as subaI.
dies they should be taxed. This distraction
however was not made, but we think II IL
justified by precedent. Though IL was ad.
mitted by those favoring the measure In
their innocence that there were no prece.
dents for exempting municipal bonds from
"A Ia
The scene looked like bankers conven.
ton. IL there was bank In Portland not
represented on the floor of the House BY
their officers Il would be standing fact TO
| reveal. Bowditch STYLED the measure as
"a bill 10 enrich the bankers"
In former letter VIC said there were
| three thousand dollars paid out for clerk
hire the last session, when II should have
been between ten and eleven thousand
| dollars. How much Of this was meriior.
ious Is the question with the economist.
1 Senator Irvine's measure would have test.
/ cd this point, but he was voted down.
| Probably one fault of il.
On Tuesday evening next before the
/ Joint convention Of both Houses, the life
! sized picture OF DIR. John Mclaughlin will
be presented - the State by lion. John
| Mimic and received by Governor Penney.
or. As both of these gentlemen are known
| 10 be successes on like occasions this Is one
l of great promise. No man In Oregon
dead or alive deserves higher praise from
her children than Or. Mclaughlin, and We
| predict that Mr.. Minto will substantia,e
this fact.
X. II. Dearborn, the patient, newly ap
pointed Postmaster Of Salem has teer
confirmed. This Is deserved compilmen
20 MIR. Dearborn. Now II new incum
pent could follow In the national institu
ton OF Indian extraction In this count,
some government patronage might hov
there through democratic hands for fou
years. But this no doubt Is too late.
Few real estate agents pop up here II
the morning as II they were mushroom
So long as the vagrant laws are In fore
they cannet starve. Several excited pee
| pie 60 out daily with smoked glass to Sc
II the "boom" isin sight. We look for cand
and bread wagons to be converted Int
| real estate ofiices-as every other plac
nearly Is occupied by them. Piping time
are coming to Salem.
| SoJoURSER.