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

The subtraction of the amount of
mortgages from the assessed value of
real estate is an Independent hobby.
By it and other sfearfully and wonder
fully made" so-called reforms they
promise to make all poor men rich and
all rich men poor. A bill to carry out
the idea was introduced into the pres.
ent legislature and it was recommended
that "the bill do not pass" The fol.
lowing are the reasons given:
But aside from any question of con-
stitutionality, it is the opinion of your
committee that such a law would be
very unjust in It's practical workings
We will suppose A, B and G are
neighbors, owning real and personal
property of the same kind, amount and
value. A borrows a certain sum of
money equal to half the value of this
property, for which he gives his promis-
sorry note and to secure payment of the
same executed mortgage upon his
property. B borrows the same amount,
for which he gives his promlssory note,
to secure payment Of which he pro-
cures the Endorsement of a responsible
friend. Cborrows the same amount,
and being man Of good credit, he
gives his promissory note without 9th
er security. Now these three men own
property of exactly the same kind and
value, each as the other, they are each
indebted in exactly the same amount
and for the same consideration as the
other, and each has given to the credit
or an obligation by which payment can
be enforced. Each is worth, in prop
erty, exactly the same as the other.
But under the operation of the pro-
posed law, A, because he has given a
certain kind of collateral security, is as
sessed and taxed on only one-half of
the value of his property, while B, who
has given another kind of collateral Sc
curtY, which is just as good and pos
sibly better, is assessed the full amount
Of his property; and G, whose mere
promise to pay is as good as any mort
gage or other security, is assessed and
must pay taxes on twice the amount of
property that A does.
The mere statement Of the practical
working of such a law can lead to but
one conclusion, viz, that the law Is es.
sentially wrong.
| Were such law enforced every debt
or who intends to pay his debts would
insist on giving a mortgage to the
amount of every debt, whether for bor-
rowed money, for tools and machinery,
for groceries and merchandise, or for
the monthly wages of his hired help.
The more mortgages he could give the
less taxes he would have to pay. The
law instead of offering any lnducement
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
without mortgage security.
Again, this proposed law would ap-
ply to corporations as we'll as to per-
sons, and many of the great railroad,
telegraph and other corporations, which
have bonds secured by mortgage, cov-
ering in many cases almost, it not quite,
the full assessed value of their proper
ty, would take advantage of it's provis.
ions to escape taxation to great ex-
tent
A large portion of all mortgages are
owned and held by persons and corpo-
rations 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 cover
ed by mortgages to the proportionate
amount of such mortgages, and the
probable and practical result would be
the covering by mortgages of a large
part of the property now subject to
taxation.
Hence, it appears to your committee
that all attempts to tax mortgages as
mortgages, or to exempt property sub
ject to mortgages from taxation to the
/ 4 l. H. l. u H. ~Az