Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1893-02-24


the operation of the proposed law.
A, because lie has given certain
kind of collateral security, is assessed
and taxed on only one-half of the
value of his property. while B, who
has given another kind of collateral
security, which is just as good and
possibly better, is assessed the full
amount of his property: and c, whose
mere promise to pay is as good as any
mortgage or other security. is
assessed and must pay taxes on twice
the amount OF property that A
does.
The mere statement of the practi-
cal working Of such law can lead to
but one conclusion. viz. that the law
is essentially wrong.
Were such law in force every
debtor who intends to pay his debts
would insist on giving a mortgage tn
the amount of every debt, whether
for borrowed money, for tools and
machinery. for groceries and merchan-
disc. or for the monthly wages of his
hired help. The more mortgages he
could give the less taxes he would
have to pay. ssThe law. instead of
offering any induccment for honesty
in the payment Of debts not secured
by mortgage, would rather Offer a
reward tn those whose credit is such
that they cannot incur debt with
out mortgage security.
Again, this proposed law would
apply to corporations as we'll as to
persons. and many Of the great rail-
road, tclcgraphand other corporations
which have bonds secured 10y mort
gage, covering in many cases almost
liz not quite, the full assessed value of
their property, would take advantage
of its provisions to escape taxation to
It great extent.
A large portion OF allmortgagcs are
owned and held 10y persons and cor
porations residing ont Of this state.
and there is no provision ni law by
which they can be taxed in This state.
hence under the operation OF the
proposed law, the state counties and
towns would lose tiNcs on all property
covered by mortgages Ia the proper
tiOnatc amount ci such mortgages.
and ,he probable and practical result
would bc the covering by mortgages
of Il large part of tile property now
subject to taxation. \ law which
would allow every person to deduct
from the assessed value Of all his
property the actual amount of all his
Indebtedness. and thus make him
liable to taxation on the actual,
amount he is worth in property. il ii
could be guarded against fraud. and
did not deprive the state and counties
of taxes ON property by reasons OF the
debts being owed to persons outside
of the state. and moi subject To taNa-
ton within the state. would have
very much to commend it 10 cur
sense of justice and equality. But Il
law which allows only the one kind OF
security for debt. viz. mortgages to
be deducted from the assessed value
of property which it covers, has
regard only to the shadow and dis.
: regards the real thing. The debt
with the promise to pay is the real
thing. The mortgage is only an
additional security. 1t follows the
debt as the shadow follows the sub
stance. Z The debt exists without the
mortgage. The mortgage without
the debt is nothing. The debt may
be transferred without the mortgage
and it is still a valid debt. The
mortgage, if tranterrcd without the
debt is worthless.
| Hence. lit appears 10 your COM
nlttce. that all attempts 50 tan
mortgage as mortgages. or to eNcmp,
property subject To mortgages from
taxation to the amount of slcli
mortgages. while debts. as debts.
secured or not secured. are not so
deducted from taxable property. are
based upon very erroneous views of
the nature and character of mortg-
ages.
"Thcre is no question but that
farming pays in South Dakota.
remarks NJ. Grigsby of Sioux Falls.
"All that is necessary to render farm
ing very profitable industry are
some brains to guide the grangcrs'
muscles. Here is Mayor Peck. who
farmed l60 acres at arms length last
year. hiring everything done but the
bossing. and he cleaned up 10 per cent
on the output of his farm. reckoning
the land worth $40 an acre. This
ought to be Il good reply to the
'question docs farming pay i'm
South Dakota 1t seems to me that
any of those old down east farmers
WHO would come here and farm as
they do down there could make Il
sm.g fortune i'm len years. All the
rOuI farmers i'm This srrtinn nrp