Evening capital journal. (Salem, Or.) 1888-1893, 1893-04-05
GOVERNOR plSsoyER's VIEWS.

The following letter, bearing date
Salem, March II, 1893, In offered for
publication; Hg
Mr. w. II. spaugh Harrisburg, Or
Dear Sir; In reply TO your letter OF
tlss Goth inst. will say that did not
approve the bill passed nj the last SEES
sion of the legis ature repeating the
mortgage tai Law. did, however,
permit II 10 become law Without my
approval, for the reason that the provis-
Ion alluded " was coupled with An-
other provision preventive Of the great
fraud which for years has besn prsc
tlced In this state, Of escaping taxation
by means Of fictitious Indebtedness
The two provisions we're yoked togetb.
sr-the just with the upjust--and .
veto Of that bill, inssnuch ~ II wat
passed late IN the srssioD, would rn-
doubtedly have besn made AN excuse
for refusal on the part Of the leglsla.
ture TO enact any other or further legis.
lation relative 10 assessment and taxa
tion. Under the existing state Of af.
fairs, II appeared that any change could
not make the matter much worse.
1t is, indeed, true that the law a,
passed. while closing the door against
Fictitious Indebtedness, opens another
door for an escape of the notes secured
by the mortgage from taxation, and
thus In avoiding Scylla we have run
afoui Of Charybdis. For this the legis-
lsture is solely responsible. The we'll
matured tax law which passed the
lower house two years ago, and which
was wrecked In the senate, by which
the mortgage tax law was retained and
perfected, and the exemption on ac
count of fictitious indebtedness was
made impossible, aud by which insui-
snce, telegraph, telephone and express
companies now enjoying comparative
immunity from taxation, were com
PEELED to contribute something like their
just proportion, WAS not even consid
cred BY the lest legislature, and the bill
simply repeating the mortgage tax law
and the provision allowing deduction |
for indebtedness were alone considered
and passed. The law as passed, throw,
Ing a. II will the bulk Of taxation upon
land aud shielding II ~ 1t does the
money-loaner. will not and ought not
70 stand. Taxation should be just and |
equal, and II deduction for indebted.
meas 10 allowed, II should be no guarded
M TO entirely prevent the fictitious
claims which have been made to shield
those best able TO pay.
Very respectfully,
SYLVESTER PENNoyER.
II seems to us the governors admis-
sion that he allowed M unjust repeal-
Ing act, assuming II to be just, to be-
come law, a. he says he did, IL not up |
to his usual high determination TO al
low no unjust legislation to escape his
veto bludgcon. He was implored by
Republicans aud Democrats aud Pop. |
ullsts TO return the Lawton bill with |
his dissent 10 repeal OF tho mortgage
tax law, but for some reason refused to
do 30. To attempt to say the legisla-
ture would or would not have done
this or that, II he had 80 interposed his
objection to what he now terms
"iAw" throwing the bulk OF taxation
upon land aud shielding the money.
loaner, Ii not sufficient excuse 10 salts
~ most people. IL 10 certainly In poor
taste for the governor TO say that the
ia solely responsible. He al.
lowed its work 10 stand, when he could
have thrown upon II the responsibility
Of passing II over his veto. IL there Is
any double taxation resulting from
taxing mortgages aud taxing the land
boo. the governor must share the re-
sponslbllity. People were told the
borrower paid the tax ON the mort
gage. and that u the mortgage tax
law was only repealed all borrowers
could get money =, y lower rate Of in-
lerssl. Under the law ~ II stands, TO
quirlng mortgaged lands to be taxed at
full value 10 the debtor and then ~
quirlng mortgage notes TO be taxed too.
II the law is esforoed, there will be no
rsallxation OF reduction la taxes or In
lsrssi either. II mortgage notes are
rot taxed. ~ they probably will not be,
he mortgage holders will s,ill not Gu,
lowu the rate of interest, and the
much .mortgagcd farmer 10 gres, deal
worss on than hs WAS before. because
V viii have 10 pay jast ~ much In
crest ~ ever, aud vet no deduction
or debt. For tins state Of affairs the
sgtslaturs 10 not alone 10 blame. Il
S--=