Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1890-01-11

growing less, local indebtedness is constantly
and rapidly increasing Our county, city, village,
township and school district debts have reached
the amount OF $50, ,22S, 12l.63. The net increase
for the past year was S3,44S,09 These obli-
cations are contracted for local improvements
which the people doubtless need and get value
received from. They consist of public buildings,
bridges, gas plants, water works. street pave.
ments road improvements, etc. They are usu.
ally sumciently necessary to make 1t difficult to
persuade those interested to delay contracting
debts to secure them. Hence the steady growth
OF this class of indebtedness. Something should
be done to check this increase. Otherwise the
rates of taxation for local purposes will
soon become so heavy as to unduly op-
press the business and industrial intrests
OF the State. While. therefore, the enactment
by you, of a statute fixing the maximum beyond
which such debts can not be contracted, would
not bind succeeding General Assemblies, yet 1t
would probably establish q standard beyond
which no one would seek to go except in extra
ordinary cases, and the result of such q meas
ure would thus be highly beneficial. For this
reason repeat again the recommendation made
in my annual message for the year 1887. repeated
in 1883, that no county. township or municipal
corporation be allowed to create general pub
lie debt to exceed ten per cent. OF the taxable
valuation of it's real estate, and that in no case
where there may already be debt in excess of
this restriction, shall the creation Of any further
such debt be allowed until it shall have been re-
duced below this limitation.
TAXATION OF UNINCoRPoRATED BANKS.
have several times called attention to the
fact that private or unincorporated banks are
other banks or other property OF any kind. The
trouble is not with the banks, but with the law
Section 1853 Of the Revised Statutes of Ohio
governing the returns OF unincorporated banks
provides that liabilities may be deducted from
cash, cash items, bonds, stocks and securities
held rs investments. No individual or incor-
porated company engaging in any other kind OF
business is allowed any such exemption. No
one has ever given any good reason why such a
favor should be extended to this particular bus
mess. 1t is denied to all other taxpayers, in
cluding incorporated banks, both State and Ma
tional. The provision is not only exceptional to
the extent indicated, but its validity may well
utes defines the term "credits" as used in
the constitution to mean only the excess OF
credits us the term Is ordinarily used over liza.
bilities. This definition is thought by many to
be in conflict with the constitution, but it has
been considered to Ss 80 equitable that it has
been acquiesced in by common consent, and all
classes of taxpayers enjoy the privilege it ex-
tends. 1t goes no further, however, than TO al.
low deduction of liabilities from credits. 1t
does not allow deductions from cash, cash
items, stocks, or property OF any kind. While
no one would complain II Section 1853 went no
further than to extend the benefit of the defini-
ton OF credits given in Section 273O to private
tionable when alklied to banks, because OF the
provisions OF Seenon 3, Article i2 Of the consti-
tuition, which provides as follows:
1.-THE General Assembly shall provide, by
law, for taxing the notes and bills discounted or
purchased, moneys loaned and all other prep
erty, effects or dues OF every description with.
out deduction) of all banks now existing or
hereafter created, and of all bankers SO that
all property employed in banking shall always
posed on the property of individuals"
This requirement of the constitution would
probably work hardship II strictly enforced,
but, certainly there can not be any just com.
plant il Section 1853 be so amended as to pro-
hibit deduction of liabilities except from
credits. This would be applying the same rule
TO unincorporated banks that is applied to other
banks and to other citizens. Common justice
to other taxpayers demands such q change, and
il should be made.
In the annual message of 1883 called atten-
tention to defalcations by county treasurers, and
made the following recommendation, which was
repeated in the annual message of 1889:
"In almost every instance where such defalca-
tions have occurred, they have been due to the
habit, on the part of the treasurer of accommo
dating friends with loans of money from the
public funds, or making use OF them in business
and speculative transactions on his own ac.
count. 1t is not necessary to say such prac-
tices should be stopped 1t is hard enough for
the people to pay their taxes once. 1t is both
unduly burdensome and eXasperating to have
them thus frittered away and be compelled to
pay q second time. These losses might be large
ly prevented If the treasures OF the counties,
townships and municipal corporations were sub
ject to examination by an expert accountant,
duly appointed for that purpose who might, at
his option and on his own motion, make an in.
vestigation of such public funds, etc., whenever
he might see fit to do so. The present right of
examination conferred upon the Auditor of
State, is practically Of no value to prevent the
Irregularities that lead to such defalcations
since il can not be exercised except under cir
cumstances that put the delinquents fully on
their guard, and enable them to thwart the pur-
poses of the provisions"
The act OF March 27, 1890, amending Section
1929 of the Revised Statutes, enlarged the power
OF the State Auditor with view to preventing
and remedying these offenses, but it did not go
far enough. Our experience during the past
year has demonstrated the necessity for an
official examiner.
THE CANAL COMMISSION AND THE CANALS.
the appointment OF n commission "to establish
the boundaries and lines of canals, canal basins,
reservoirs, etc, by an accurate survey by metes
and bounds, together with the maps and plats
of the same, and to define and protect the own
ership and titles OF the State In and to all lands
belonging to and connected with such canals"
Tho commissioners appointed under this law
have labored diligently and efficiently in the
discharge of their duties. They have surveyed
the Miami and Erie canal and plated almost
tho whole of the same from Toledo to point
near Lockland, in Hamilton County. BY the
expiration of their term OF oflce they will have
finished the survey and plating OF the Miami
Hooking, which understand they are intending
10 give attention to next, but there will yet re-
main the whole OF the Ohio canal, both the
northern and the southern divisions, and the
Walhonding canal TO be surveyed and plated.
So far, in the prosecus,on of their work. these
commissioners have not only established by
surveys and plats and descriptions, by metes
and bounds the canals, basins reservoirs, etc,
necessary for the use and operation OF the
canals, but they have also identified and re-
claimed and established, or have instituted the
necessary proceedings to establish the titles
and to reclaim the possession of valuable Prop
erty belonging to the State in connection with
the canals but not necessary for use Herewith,
to the amount OF over four hundred thousand
dollars, all OF which had been practically lost to
the State, end would soon have been, for the
want of living witnesses, forever beyond IeCov-
cry.
The indications aro that 1t will require two
years more to complete this work, and that, in
finishing IT, still other large amounts of valuable
property will be discovered and recovered for
the State. The statute authorizing this COM
mission should, therefore, be so amended as TO
extend the time within which they may com
plete their labors.
Whatever may be done ultimately with the
canals, II is cortnin that until this york is fin
ished no proposition should be ent ertained TO
part with any portion of them. .fhey are all
paid for, and the difference between the re-
ceipts and expenditures on account thereof is
comparatively small and amply compensated
by tho many benefits that arise Indirectly from
the maintenance, through their operation, OF
the cheap rates OF water transportation thereby
afforded.