The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-02-21
PROPOSED TAX LAW.
A Letter I'm Opposition to some of
Its Features.

/ galveston. Texas. February lone OF m,
cardinal principles OF taxation laid down b,
the great political economist. Adam smith
Is equality" Recognizing this principle the
Texas constitution provides that "tnxatou
be equal and uniform" Let us see como
OF the instances wherein the prouosed law
departs thcrefrom:
by article 6O6'. ANY person having money
deposited subject to his order check or
urait 10 taxed thereon. BY article $3.50 the
nank IN which the money Is deposited mps,
p@y taxes ON 1t. Article 50s7 provldcs mar
a. peIson shau Dc required TO list MS credits
AZ a Neater value than lie believes can ba
sollected but no such lenienoy is shown tho
banks winch larticlo 50Syl must Nst IN GOOD
aSsu pau- plils receivable. accounts receiv-
paid" "N' Nue anu W
:, every asset is sought to be taxed. hut no
HADiIly is TO be deducted / anu inns re-
SSgnanS Su' tot instance to render land valued at
Siv,uvV at tlat value. on which 1 owe Mr. s.
note Tor S5QJG. part OF tho purchase money
ara Mr s. must render the note also. Cham
yer ~ provides specifically Tor the taxation Of
co,int, u r9aese or A.n. as shown UPON tho
county RECORDS. | may have paid on $4,000 OF
~, aVol, out that matters not TO the assessor.
u MT s. wants to satisfy tho assessor, t5at
tne deDt mas been reduced 10 $1,000 Mr. s.
must Aotlly the county clerk Bnd have hun
maze record OF the pafual payment Tor
his fee. va"
Under the present tax law with referencs
70 lhe assessment Of real estate the asses
cor IS required to value each tract or lot by
itselr and al such sum or price rs be believes
y TO pc tafy worth. Yet Ia many counties
this law has been grossly Violated rho
board OF equalization lays down a cast iron
rule in effect that all unimpIoyed timbered
!and shall ne valued at a fixed price, and all
uhihmi9roVed prairie land sha'l he valued at
a higher Ia much higher hSgi price; when
me TACT is notorious among all Well Informed
men that the larger part Of tie landn SO
elaSsed arc offered Tor sale at two-thrds
or half those values, or less aud that much
is unsuitable at any price. But You have
your right Of appeal,' we are told Anpcfl
10 whom! 70 the tribunal q whose act
undertake to elye any relief IN this direction
There should be the right OF appeal 20 The
district court, with the right to oder evidence
me county Judge, having. already in the
board OF equalization. passed on the question
OF value should not again II in Judgment
on Il.
Chapter IS is apparently intended 10 break
up the business Of building, loan and savings
associations. by taxing specially not only
the amount OF notes ropresentug loans out
standing and secured by r,al estate mortgages
or Otherwise " but also it's eshpres Of capital
the corporation. The Blank Savings aud
Loan company, for Instance hos made onns
aeeregating SSOO,O09 10 100 different pCrHuns
each OF whom with the money thus borrowed
has bought land and built upon II Il modest
home: and Is ronayiug the loan month nv
month. Each borrower is taxed iaItlclo 50d4l
on the fun $1,000 value Of his homo In which
he may have only $500 ~ cash 80 far in
vesteo-no reduction for the 5000 10 owes
ana fhe loan company s taxed on his notes.
Ia many loan COMPANIES borrower rs COM
PEELED TO be stakeholder, and he is thus
twice taxed on bis home, or security and
on his shares Of stock The loan company
may require the borrower 10 cpay the tax
on the loan which Is imposed by article 1886.
1.Ntt FNtaH Nlat FNsrsa
ments shall bs deemed usury. Can the
effect OF such legislation by questioned? Have
We too much capital In Toxasl Haye we no
un Ssvoloped regions 10 be settled, no fertile.
soil TO be made to yield rs in
cTease2 Have we no cities. towns and viii
lagos to be enlarged and built up2 What
Of the heads OF families In Texas
are able TO buy q farm ana pay Tor II on
hand2 Adam Smith snys OF this class OF tax
alton, ''the proprietor Of stock Tor money! !
Is properly q citizen OF the world and Is not
Try. lie would be apt to abandon the coun-
try In which bo was exposed to a veSatlous
nquisition In order TO be assessed TO
tax. and would remove his
stock Tor money! 10 some other country 4
where he could either carry on his business 4
Jr enjoy hie fortune at his ease.
Another authority tProf. Nicholson pro-
s5sob 81 poyeai eG sa on mortrase
u land would obviously fall on the Dor
'ower." We need no learned authority TO tell
Is the borrower win surely feei II IN the end.
II is worth while 10 consider a moment
why Texas ls not large participant IN the
which Is prevailing generally IN
he Northern. Eastern ana IN some OF our
Southern States. II 10 true that from our .
normous product OF cotton. grain and cattle:
ringing good prices stimulated by new ana
opportunities Tor foreign export
through our Gulf ports Texas IS relatively
,rosnerouR. But why can not we manufac-
ure Ia Texas raw material into the nnshel /
lroduct? What would be tho ehert. Tor M
tance on the value OF our raw cotton. |.
we're there a cotton mill changing the mccoy 4
thule into goods for the merchants shelf
yhereger there is now cotton compress 4
Preparing a bale for it's Journey 70 the mil
n another state or on q iorelgh shoreE We
ave heard Of cotton mills 10 Georgia. which.
.aving exhausted the local supply OF Eaw
Material reachtd out for more, even 70 as
ant Texas Imagine such conditions IN Texas;
sith home mills demanding the Texas starle!
Would New York and Liverpool sDeeulators,
II would The good home demand then die
ate the price OF Texas cottony But TeHas
as not the experience nor tne ,, sanilsi 10
1ould han, manufactures we must brins mi
hemp foreign CAPITAL TO aid home resources.
hts involves mortgage on the notwithstanding
nact such enterprises and inyestlnentsgl
Iere It Is. in article 52l2 every mortgage.
eed on trust . OF other obligation where
" land or real property eituated in any
ounty in this state is made security for the
ayment OF debt shall be subject 70 TAXA
Ion In tins state IS other prorerty y taxed. I
nd tozethlr with such de5t shall be assessed
nd taxed 70 tho owner Of such security and
ebt IN the county IN which the land o. real
roperty affected Is situated lr todaY,a
ewgpaper we read the following items which
n OF sperial Interest 70 Us AZ this moment.
"puring the last year l75 enterprises, rcp-
lsentlnr 40 Of capital we're chartsren
! South Carolna. Eleven Of these were
1ttoii mills. South Carolina is taking on
.'The eighth cotton mill for Greent!lie' 8.
!, has just heen announced II VIII be eapl-
lilzed for $500 600 The reasons leading 70
g construction are simply that the other
ills are making 20 much money. THIS item
given ss information 10 the people o. Texas.
THE Harrisburg Aiiss.l cotton mills have
cen organized with q capital o. $4,000, Tine
ght Is breaking In on Mississippi. In time
will break 10 on Texas"
The citizens Of some thrifty black land COM
unity In, Texas determine 10 build q cotton
III, Money, enough is subscribed locally 70
uy the site apd put up the building, But
heir resaurtu are insufficient TO buy the
and they have no experience nor
,chnieal knowledge OF such matters. They
Nd man n Massachusetts, willing 70 lend \
per cent the 10000 needed and 70 fur
ish the experienced management which 10
FEertlai proposing to take q mortgage on 4
be whole property TO secure the loan IN l
Massachusetts, the mortgage is taxed as part /
I the real estate, but when the MaEsachuT
etts man locks into the Texas Law be reads !
y article 62i2 that his mortgAEeris 70 be |
axed IN addition 70 the resi- estate and other |