The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1893-02-10
TAKING MORTGAGES.
Some of the Evils of Sand-Lot Legisla-
ton Pointed Out.
[From the STOCKTON Nan. Feh. -lhl

From the Stockton Mail, Feb. 7th.l
The decision of Judge Hebbard of San
francisco III the railroad tax case (Which
was, for wonder, against the corpora
tom incidentally brings forward again
Tor consideration that product of sand
lot craftsmanship, the taxation of mort
cages, which is provision OF the State
| constitution. All mortgages are taxed in
California except such as affect railroad
property. This discrimination against a
certain class of possessions Judge Heb
bard decided was not in conflict with the
Federal Constitution, and therefore, be-
ing provided for by the fundamental law
OF the State, must stand. The answer of
every fair-iniuded man not given to the
practice of hunting up legal authority to
| support rank injustice will be that if it
Is not against the Federal Constitution it
ought TO be. = 1t is a clear case of making
fish of some and flesh of others in the
matter OF gathering taxes. The discrimi
nation IS not less poignant because it is
against big corporations and in favor of
the people," Once admit the power to
discriminate at all and the lengths to
which it may be carried is a matter
merely for time TO develop. If a State
may deduct the mortgages held against
other kinds of property i'll making ASSESS
ments and not deduct those held against
railroads, it may eventually extend the
rule TO steamb boat lines, to irrigation
canals, and so on, indefinitely ramifying
the practice Of taking more from some
than from others. If this is not repug
nant to the spirit of the Fourteenth
Amendment of The Federal Constitution
this court doesn't know itself The emil
nent Jurists who sit i'll Washington and
formulate their decisions upon the lines
of least resistance have not touched
upon the point, being content to focus
their superior attention upon the question
OF whether the assessment of railroads in
California included the fences.
We are perfectly well aware of the pur-
pose OF that provision of the State Con-
stitution which makes an exception of
railroads in deducting the amount of the
mortgage from the value Of the property
upon which it rests. The CuU of Sunday
had presentation of the case which was
upside down. 1t is not that the mort
cages upon railroads, unlike other mort
cages, should be permitted to escape tax
alton i'll order that the property itself,
which cannot run away, may the more
surely be made to pay, but that nS mort
gage should be taxed and that all prop
erty should be assessed where it is found
up TO its full eXchangeable value indie
pendently of any obligations resting
against it.
mortgage is ''a badge of lost inno-
cence." If Adam had not eaten the apple
there would be no such thing known in
business. Neither would the note of
hand be known, for everyone would re-
deem his promises without compulsion
mortgage is nothing more than an evil
dence that certain value has passed from
one man to another. 1t is the value that
IS assessable, and not the evidence of il.
The mortgage is made necessary by the
presence OF sin i'll the world. If it is
found eXpedient to assess it, why not
proceed one remove farther and send the
tax -gatherer after Jack Satan?
tbs begging the question and paltering
with grave subject TO argue that mort
gages against railroads are held in Europe
and the Eastern States, while those
against other kinds of property are held
at home by our own fellow -citizens,
where they can readily be found and the
holders made to pay on something that
has passed to the hands OF others. The
mounting demagogues thought this would
be putting the screws to the capitalists
who have the country plastered with evil
dences OF Indebtedness. But the cap
ltallsts merely smiled and added the tax
to the rate of interest. What became of
the demagogues 1t is not worth while to
inquire. Mortgages held in Stockton are
subject to a city tax in addition to the
others, ana accordingly the rate of in
terest on loans made upon property here
IS higher than loans made upon property
III the country. y palmer case OF how
demagogy operates when it is mistaken
for craftsmanship could not be found.
That is why we should like to see a de-
cision of the Federal Supreme Court
covering the non-assessment of railroad
mortgages in this State. The court would
doubtless hold that the discrimination
was in conflict with the Fourteenth
Amendment of the Constitution of the
United States, Judge Hebbard to the con-
trary. Then we could set about amend
ing the provision of our organic law
which we derived from the sandlot and
which has been one cause of the pro-
tracted litigation with the railroads.