The Sully County watchman. (Clifton, Dakota [S.D.]) 1883-1894, 1893-02-24

the same as the other. But unde
| the operation Of the proposed law
| A, because he has given certain
kind of collateral security, is assessed
and taxed On only one-half of tn,
value Of his property, while B, wht
has given another kind of collatera
security, which is just as good anc
possibly better, is assessed the full
amount Of his property; and G, 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 a law can lead to
but one conclusion, viz, that the law
is essentially wrong.
Were such a law in force every
debtor who intends to pay his debts
would insist on giving mortgage to
the amount of every debt, whether
for borrowed money, for tools and
machinery, forgroceries 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. szThe law, instead of
offering any inducement for honesty
in the payment of debts not secured
by mortgage, would rather offer a
reward to those whose credit is such
that they cannot incur debt with
out mortgage security.
Again, this proposed law would
apply to. corporations as well as to
persons, and many of the great rail
road, telegraph and other corporations
which have bonds secured by mort
gage, covering in many cases almost
if not quite, the full assessed value of
their property, would take advantage
of its provisions to escape taxation to
great extent.
A large portion of all mortgages are
owned and held by persons and cor
porations residing out of this state,
and there is no provision of 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 taxes on all property
covered by mortgages to the proper
tionate amount Of such mortgages,
and the probable and practical result
| would be the covering by mortga ges
Of large part of the property now
subject to taxation. A 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, if 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 not subject to taxa
tion within the state, would have
very much to commend it to oul
sense of justice and equality. But
law which allows only the one kind O
security for debt, viz, mortgages tt
be deducted from the assessed valu,
of property which it covers, ha
regard only to the shadow and dis
regards the real thing. The deb
with the promise to pay is the rea
thing. The mortgage is only al
additional security. 1t follows tn
debt as the shadow follows the sub
stance. The debt exists without til
mortgage. The mortgage withou
the debt is nothing. The debt ma
be transferred without the mortgage
and it is still valid debt. Th
mortgage, if tranferred without tn
debt, is worthless.
Hence, it appears to your com
mittee, that all attempts so ia:
mortgage as mortgages, or to exemp
property subject to mortgages from
taxation to the amount of sucl
mortgages, while debts, as debts
secured or not secured, are not 81
deducted from taxable property, ar
based upon very erroneous views @
the nature and character Of morte
ages.
, "There is no question but tha
r farming pays in South Dakota,
T remarks ri. Grigsby Of Sioux Falls
"All that is necessary to render farm
, ing very profitable industry ar
! some brains to guide the granger
muscles. Here is Mayor Peck, VIII
farmed 100 acres at arms length las
year, hiring everything done but tn
bossing, and he cleaned up II per cen
on the output of his farm, reckonin
, the land worth $50 an acre. Thi
ought to be good reply to til
question-'Does farming pay
, South Dakota 1t seems to me tha
; any Of those old down east farmer
who would come here and farm 9