Omaha daily bee., 1898-12-18

SECOND. Sucn Otner property as may De
used exclusively for agricultural and horti-
cultural societies for school. religious. ceme-
terry and charitable purposes" This clause
IL intended to embrace all the property ex-
empt except that belonging to cities, coun-
ties and the state. Doubtless 1t served the
purpose for which 1t was intended when the
act was passed. but under the changed con-
ditions of our time. when technicalities count
for more In the construction Of q statute
than they formerly did. no opportunity
should be offered whereby private enterprises
may profit at the public expense. With the
increased value which has attached to real
estate, especially In our large cities, 1t Is an
unwiss provision to permit religious, edu-
~cational and agricultural societies to hold
an unlimited amount of land on the pretext
that 1t Is necessary to the purposes OF the
institution. These are all worthy institu-
tions and deserve cordial support from the
public, but the public is entitled to a rea-
sonable protection from the abuse Of these
privileges.
How the Privilege is Abused.
The most glarirg abuse of this privilege
is in the case of institutions of this
character occupying real estate as tenants,
and while the public Is In a measure under
obligation to every worthy educational and
charitable institution, yet 1t occurs to me
that in granting them immunity from taxa
ton, which Is but one method Of contribut-
ing to their support, the condition Of these
grants should be so guarded that no private
property owner may escape taxation by
hiding behind a provision which Is intended
to apply only to institutions which are
deemed to be public benefactors. l believe
that no institution Of this kind should be
exempt from taxation upon anything except
its actual interest. In the case OF leased
premises this must be construed to be a
lease hold interest. Such a construction
Of the statute will undoubtedly work an
injury in exceptional cases. but 1t is far
better that one worthy institution Of this
kind should suffer to a limited extent than
that the entire public be imposed upon by
the many.
adding thereto the ordinary personal and
household effects Of all persons engaged in
the regular army, for the reason that by a
long established custom this has been the
practice. I would also include in this list
all pensions receivable from the United
States and personal property to the amount
Of $500 belonging to every honorably dis
charged soldier.
Another exemption which ] should recon-
mend on the grounds Of economy is the
necessary and ordinary household furniture
Of private families not exceeding In value
the sum Of 5000, together with the provisions
and fuel provided by the head Of the family
to sustain It's members for not to exceed
six months. The reason for this can best
be illustrated by referring to assessments
in the city Of Omaha. OF the 1900 assess
ments made on personal property. $4,000 or
more are made on a valuation Of from $50
to 500, making in the aggregate a total
assessment Of about $780, 900. which pro-
duces a tax Of $14, 400 to the city, 60 per
cent OF which is never paid, thus netting the
city about S., 100. The cost Of making the
assessment and tax list in the city Of
Omaha is about $4,000, fully 60 per cent Of
which is absorbed in making the thousands
Of small assessments, which yield only IS, ZOO
in return. 1t is therefore a losing invest
ment for the city to make this assessment,
and what is true in Omaha's case Is equally
true in every city in the state Of 1000
population or more.
Above all I would suggest that this Sec
ton be enlarged and made to set out
specifically the exemptions contemplated by
the law. Such an amendment will save our
state and county treasures a large sum now
paid out annually for costs in contesting
cases arising out Of the construction placed
upon this section.
Under the Head of Credits.
Another section which expresses its
meaning SO indefinitely as to cause a great
divergence Of opinion in constituting it Is
that which relates to the listing and as
sessment Of that class OF property included
under the head Of credits. Under the
raxap,,o lov IN H0rnn IN thia ctafo thia r1aaa
of property embraces everything in
the nature Of an obligation, for
the payment Of money, except
stocks and bonds and the shares Of
capital stock OF incorporated companies.
The same section also provides that In
listing this class of property the taxpayer
shall be entitled to deduct from the amount
subject to taxation the amount Of all
bona fde debts represented by similar obli-
cations owing by him to other persons or
corporations and the result Of the con-
struction placed upon this section as a
whole is that practically nothing is listed
under this head. A provision somewhat
similar to this Is incorporated in the laws
Of nearly every state, with the exception
that the items which are to be taxed as
credits and the items which may be de-
Quoted from the amount listed as such are
set IOrtn WIN more OF less cleaTneSs IN tne
several statutes. In the state of Iowa de-
auctions are not permitted for any debt
incurred on account of any obligation or
unpaid subscription made to any corporation
or society whose personal property is ex-
empt from taxation, nor any Indebtedness
contracted for the purchase Of any nom
taxable property. In Wisconsin the statute
provides that only so much Of the debts due
to him shall be exempted as equal the
amount Of like debts by him owing. In
Michigan a somewhat similar provision Is
made covering the deduction to which a
taxpayer is entitled In listing property OF
this character, but 1t is provided that such
deduction is only to be made upon an
itemized detailed statement showing in full
the name and residence Of each person to
whom such obligations are owing. In Ohio
a provision somewhat similar to that OF
Iowa is In force. In California, in listing
this class Of property, the taxpayer Is en-
titled to deduct the amount of debts owed
by him to bona fde residents of the state
and no such reduction Is permitted except
upon a sworn statement showing the nature
Of these obligations.
FavOrs the Large DebtOr.
The method Of assessing this class Of
nrODerty Is subject IN tha sap,o rrittcisn