The San Francisco call., 1896-03-27
MAY CONTAIN A JOKER.
A Proposed Amendment to the
Constitution Of the
State.
Bankers, Lawyers and Capitalists
Carefully Studying the
Proposition.

The Legislature of 1895 proposed several
important amendments to the constitution
of California which will be submitted to
the voters for ratification at the next gene
raj election. The proposed amendment
relating to the assessment and taxation of
property may be regarded as the most sig
nifcant as it contemplates the overthrow
of the system of taxation which delegates
to the constitutional convention OF 1879
worked so hard to secure and on which
the main fight for the adoption of the con-
stitution largely hinged.
1t is known that money lenders,
bankers and lawyers, representing insti-
tutions which hold securities of great
value, are studying the provisions of the
proposed amendments ana discussing the
chances of ratification by the people.
There may be jobs lurking somewhere
in the proposition, as the Legislature
which proposed the amendments was not
overscrupulous or exceptionally in
tefligent.
The amendment is numbered 33, and re-
peals sections and 5 of the existing con-
stitution and amends section / to read:
Section 1. All property in the State not ex-
empt under-the laws of the United States or
this constitution shall be taxed in proportion
to its value, to be ascertained as provided by
article and section is hereby declared to in
clude moneys, credits, bonds, stocks, Dues
franchises and all other matter and things
real, personal and mixed, capable of private
ownership; provided that property used for
free public libraries and free museums, grow
ing crops, mortgages, trust deeds, property
used exclusively for public schools and such
as may belong to the United States, this State
within this State shall be exempt from taxa
.tion. The Legislature may provide for re-
duction from credits of debts due bOna-fide
residents OF this State.
Sec. 2. Section of article XIII of this consti-
tuition is hereby repealed.
Sec. 3. Section ofarlicle XII of this consti-
tuition is hereby repealed.
In order to convey to the reader more
information on the subject, the sections
indicated for repeal are republlshed, as
follows:
Sec. a. A mortgage, deed of trust, contract or
other obligation by which debt is secured
snail fOr the purposes of assessment and taxa
tion be deemed and treated as an interest in
the property affected thereby. Except as to
railroad and other quasi public corporations,
In case OF debts so secured, the value of the
property affected by such mortgage, deed of
trust, contract or obligation, less the value of
such security, shall be assessed and taxed to
the owner OF the property, and the value of
such security shall be assessed and taxed to
the owner thereof In the county, city or
district in which the property affected
thereby is situated. The taxes SO levied shall
be q hen upon the property and security,
and. may be paid by either party to
ssuch security; it paid by the owner of the
security, the tax so levied upon the property
affected thereby shall become a part OF the
debt SO secured; if the owner of the property,
shall pay the tax SO levied on such security. it
shall constitute a payment thereon, and to the
extent OF such payment full discharge
thereof; provided that if any such security or
Indebtedness shall be paid by any such debtor
or debtors, after assessment and before the tax
returned by such debtor or debtors, and snail
preceding year.
sec. 0. Every contract hereafter. made by
which debtor is obligated to paw any tax or
assessment on money loaned or any mortgage,
oeed OF trust or other lien shall, as to any in
terest specified thereon, and as to such tax or
assessment, be null and void.