The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-16


ual. You have him with you always and
"He has been, and is, so much in evil
dence that a class of experts, known as
'tax-ferrets, has sprung into existence,
whose vocation is pursued-not merely
for sanitary ;g reasons s but for t con-
covered into the treasury as result OF
their labors.
There should be no occasion for the en-
ployment of 'tax-ferrets, whose greatest
claim TO favor is that their employment
usually frightens the tax-dodger out OF his
boots. when he finds that he cannot make
''The work that the ferret proposes to
do is the work that the law requires you
to do
tious discharge of your duty, in looking
after omitted property, you can very ma
terially increase assessments, give relief to
honest taxpayers, and compel taxdodgers
to- assume the burdens heretofore borne for
them by others.
BUILDING AND LOAN STOCK.
II now call your attention to matter
that it will be your duty to look after, and
that is the assessment of building and loan
association stock.
During the past year there was much
doubt ard hesitation on the part of some
tax officers in regard to the assessment and
taxation of this class of property, and much
of it escaped the tax duplicates No matter
what your individual opinions and desires
may be upon this subject, we cannot get
around the fact that building and loan
stock Of all kinds, except that held by bor-
rowers, is liable to assessment and taxation.
ut is provided by Article TO- Section 1, of
our State Constitution that The General
Assembly shall provide by law for uni
form and equal rate of assessment and tax
alton, and shall prescribe such regulations
as shall secure a just valuation of all prop
erty, both real and personal, excepting
such only for municipal, educational, lit
erary, scientific, religious and charitable
purposes as may be specially exempted by
law
'Following the adoption of this constitu-
tional provision, the General Assembly, by
law, exempted from taxation the particular
properties named.
Section 3, Tax Laws, provides: All prop
erty within, the jurisdiction of this State,
not expressly exempted. shall be subject to
taxation No one will for moment dispute
that building and loan stock is property,
nor will any one assert that it comes within
any of the classes of property exempted by
the Constitution, and any law passed that
provides for its exemption, SO long as the
constitutional provision quoted remains as
it is, will be invalid.
But this matter has been settled by our
Supreme Court, in the case OF Deniston,
auditor, vs.. Terry reported in l4l Ind, be-
ginning on Page GIT, in which the question
at issue was the liability to taxation of
paid up building and loan stock, in pass
ing upon which the court quotes the consti-
tutional provision hereinbefOre quoted, and
then says: Certainly it will not be con-
tended that building and loan mas ASSOCIATION 10 at
erty which it is here provided may be ex-
empted from taxation. This stock is not
municipal, educational literary, scientific,
religious or charitable property, and so not
of any of the kinds of property that may
be specially exempted by law from taxa
ton.
aft this is true as to paid-up stock, why not
as to partly paid or running stock? Why
should one be taxed and not tax the other!
There would be neither reason nor Justice
in exempting enc and not the other. But
this very point, while not really in issue
in the case referred to, was also decided by
of counsel said: Counsel here intimates
that IL "paid-up stock is taxable so also
should stock be which Is partiaily PAID PAD up;
that stock half paid up should not be as
sessed for taxation, and that fully paid
should To this the court says: IN this
stakeholder who has loaned his money to
the association and has received certincates
fact, paid in full for the stock or has made
only part payment thereon he should In
either case be taxed for the true cash value
of his stock, and that value Will IN general
be the amount paid by him on the stock
The court then concludes: The stockhold-
er who is simply lender TO, creator OIL
the association, as appellee holds his stock
in evidence of such credit, just as he might
hold the promissory note or other obhga-
ton of the association. Whether, In fact,
he holds a certificate of stock or not, or
whatever other evidence there may be or
such credit can make no difference. He is
an actual creditor. The law looks through
names and sees the things which the names
stand for. Such credit, therefore, by
whatever name it may be called or however
it may be evidenced is taxable under the
Constitution as any other credit. Any law
which should provide otherwise would be
invalid. All building and loan stock, there
fore, unless it be that held by borrowers,
is taxable
you will probably hear it from those
whose pecuniary interest it is to antagonize
the assessment and taxation Of partly
paid or running building and loan stock;
that the question of the liability of such
partly paid stock to taxation was not
properly before the court, and hence that
what was said upon the subject was mere
dictum, and not binding, but the question
was infected into the case by counsel repre-
senting the interests opposed to such taxa
ton, and they should be bound by the re-
suit.
"But dictum or decision, it is the opinion
of an able jurist whose experience as
legislator in the enactment Of our present
tax laws and whose recognized ability as
both lawmaker and law expounder gives the
weight of decision to what might otherwise
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