The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-12-18
BY mortssses 4 yielding an In

effects OK n tax on mortgages We hsd that
money is taxable and so is land taxable Money
lis loaned and n mortgage on land IL taken 10
secure the payment OF the money With In
t,rcst. You begin with two distinct pieces OF
property. each subject TO taxation. Are we
TO say that because for the lending OF one
and the mortgasing OF the other to pay u
hack. that ono OF these pieces of property
loses Its identity and no longer cSstsg or
rather that the value of one becomes niduen
in the value OF tho other with no resulting
| increase.
| In discussing a case before u and speak
Ing OF the power OF the state to tax land as
we'll as the mortgage upon It.. the supreme
court OF Pennsylvania said i56 Penn, 1851
| In that case. there are two distinct sun
| tects OF taxation. each OF which Is mnue
| taxable by an expressed provision OF the law
The farm is taxable as land against whoever
may, be the owner. without regard TO the N.
once to tho owner The money is taxed once
to Its owner. They are distinctly dimerent
taxpayers. and nay taxes upon distinctly di-
| This states the cnse precisely. The mort
gage only represents the money II secures
III man has TO Mace mortgage upon MS
real estate. that may or may not be his mis-
fortune. That the owner subjects II to,
debt In no way changes the relation oil me
i State to 1t as n subject of taxation. The
relation of tho owner of the property has been
somewhat changed for by the mortgage debt
he has admitted others to share OF what
oan be produced. or the ,ncomc from II, nut
under our Constitution neither the money
loaned nor the land pledged as security, can
be exempted from taxation. Both are SUB
iect TO taxation and each Is subject TO aa-
sessment against the owner. The land is
visible and can not he hidden from the rs
SCISSOR hence II Is always taxed, The mort
lgagc represents the money and must be placed
upon record. and u the money which is
represented by the mortgage can he reached
for taxation. who will say that 1t liz unjust
to tax II or that II ought not TO be taxed
IL should be horne IN mind that 1t Is the
mortgage holder that objects 10 taxing II or
devlsing . way of reaching II FOR taxation
The man who owes tho money that is Sc
cured by the mortsnge VIII have hts tax rate
reduced In the proportion that the money
borrowed bears its share, Under the present
system the mortgage holder uses the courts
and governmental machinery In enforcing his
rights and contributes nothing for his equal
lprutection. while the mortGagor bears all tho
taxes and fills the cash box of the mortgagoe
with interest.
or the tax imposed IN It's bill on the pro-
portion Of the capital stock OF telegraph,
telephone express. sleeping car and other car
companies the commission in its report saws:
This method of reaching all tho property
of such companies VI the state for taxation ls
now IN force. but affects sleeping car COM
panics alone. II is practically the same "a
that which we have adopted TO reach rail
reads for taNation-a tax upon the value of
their property uS shown by tho market value
OF their bonds and stocka-~it being IN pro.
portion that the value of the property within
the state bears 10 the whole value of prop
corporation taxed Tho law will reach about
! 81 600 oOo worth of express company property
for taxation that hns never paid any tax ~
this state and probably that much more
of telegraph. telephone and car company prop
erty.'
Numerous United States and state sunronr
court decisions are quoted as indicating a
settlement of tho contention that state Gni
not tax the proporiouate value Of the prom
eriy OF the corporation within It's borders on
tho basis of prnportionStc value Ia the whole
stocks and bonds.
Attention is called by the commission &c
+ tho fact that It desgnates as n privilege
e tax the tax now termed in tho Revised stat
utes franchise" tax, and that it has pro
T. ylded an Advancement whereby 1t is hoped e
:, compel foreign corporations so keep thei
Il privilege taxes paid M.
y Referring to the tax on gross receipts o
o certain corporations provided for In chaptc
IL of It's bill the commission remarks tina
the list OF companies subjected there
N TO by them has been very much enlarged. an
Ia the tax materially Increased 10 many IL
:, stances Continuing on this subject II says
~ ''It will not be questioned that the stat
It has the power 10 tax the gross receipts, "
n presume. as provided for in as much us thi
: Kind of tax has been paid by number q
l.. persons, companies and corpora tons hereto
@ fore on business done within this state. IN
n deed the decisions warrant tho taxing OF tn
o entire gross receipts oil corporations on outi
n ness zone pS mem ineiuulnR tne Ply iau
o OF interesthte ousl nS EepIssen,,a pY INA
It ~ 10 me flsht 70 tH~ the gross rVT XIII
u nese ,bov 40 in Texas' sonls, question may b,
II raised But we have been taxing foreign IN
surance companies thls WY iol SOM in ms
,n, g.; "'' i,e "nndiiions ip,@osod bv In
. Stat, before the right to do business hore
n granted and wherever persons IN the state q
= guI po'isl ,Ie'1ou ~ we SUI ~, "
:, foreign cornornttops comniaint can not b
II made II then tue manufacturer and scllo
OF tho refined products Of petroleum "a aa
"a other State who has been been E"anted per
n mission to do business IN this State rs 70
re- CURED TO paw his tax he can not complain s.
Il long as those locutrd within the stale sr
IL taxed in the came way
/ mo attempt is made Ia the bill which "
rs submit to fotter commerce betwccn the Statf
il nor TO deprive citizens Of other states OF an
l. right they may have under orr Constitution
~ The tax imposed is equal on Hl affected ~
ST tlcles of daily consumption and Of oommo
a. uso and utility are being held and eontrolo
g by corporations whose property interests an
le profits are very great. Their prone;ty, beii
r in large degree intangible, II Is difficult
al reach II for the purpose OF taxation by dife
no methods Resort is had, therefore. TO a ia
I'd upon their gross receipts from business II
of State having created tho corporation or ha'
of ing granted the permit to do business 20
corporation created by another state ON n