The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1901-10-17
TAX ISSUE Demolished
Johnson's Demagogic Effort to
Create an Issue.
RECORD OF oouRr DECISIONS

Full History Of Taxation In Ohio For
the Past Tjftecn Years--Tom John.
sons Position shown UntenabIe.
The Democratic party Of Ohio--ut.
terly demoralized and deprived Of
rational issue by the strong, rich re.
suits Of Republican prosperity admin
istrations---state and national has
resorted to the tax question az q life
boat for fast sinking ship. Let us
examine the record of the Democratic
party In respect to the fiscal admin.
istration of the affairs of Ohio. "A
tree Is known by It's fruits"
The last Democratic administration
left the state treasury empty and the
credit OF the state was imperilled.
Governor Hoadly turned over to Gov
ernor Foraker bankrupt treasury, in
1886; and Governor Campbell turned
over the same legacy to Governor Nc
Kinley, In 1892. Under Campbell
there were two sessions Of the legis.
lature, yet not a single act was pass.
ed, or even suggested, to relieve the
state Of its embarrassment. Had II
not been for the $1,335,000 direct
taxes refunded to the state by the
federal government, at the latter end
Of Campbell's administration, Ohio
would have been bankrupt. and It's
warrants would have gone to protest.
When Campbell left ONCE, in 1891.
the total receipts Of the general fund
Of the state amounted to $3,707,6i5.
In 1900, as result of nine years of
Republican administration, this fund
was increased by S5,222.6S0. At the
close Of Campbell's administration,
the state derived the greater part of
its income from taxes levied on real
and personal property. But now.
more than half Of the revenue 10 col.
lected under special laws enacted by
Republican legislatures; and while
the amount collected by direct taxa
tion upon real and personal property
has remained practically the same.
the large increase In revenue IL due
almost wholly to the provisions Of the
laws which we're written in the stat
ute books by Republican Influences.
Let US now turn to the Republican
record In the administration Of the
states financial affairs. The consti-
tuition Of Ohio, Article XII, section 2,
provides:
Laws shall be passed, taxing By q
uniform rule. all moneys, credits, In
vestments in bonds, stocks, Joint
stock companies, or otherwise; and
also all real and personal property.
according to its true value in money"
In conformity with the constitu-
tional provision, the Revised Statutes
Of Ohio have provided appropriate
modes Of assessing and collecting
revenues by means Of taxation. But
for many years, after the adoption Of
the constitution of 1853, there was no
attempt made to tax corporate fran.
chises-in fact but few franchises ex.
listed when the constitution was adopt
ed. In the case Of Exchange Bank v.
Hines, 3 Ohio State Reports 1, the su-
preme court held, that a. corporate
franchise, being mere privilege, or
grant of authority by the government,
was not subject to taxation under Ar
ticle XII, section 2, Of the constitu-
tion.
A Republican legislature pacsed, in
1898, under Governor Mckinley. what
Is known as the Nichols law" to
amend and supplement sections 2777,
277s, 277sa, 2779 and 27SO. of
the Revised Statutes Of Ohio. reg
ulating the mode of taxing ex-
press, telegraph and telephone COM
panies. The corporations attacked
this law with great energy, on consti-
tutional grounds, and 1t was upheld
by the supreme court, In State v.
Jones, 81 Ohio State Reports 492. It
was carried by appeal to the supreme
court at Washington, where, after a
stubborn contest. the law was upheld
In 165 U. 8. Reports 1874; also in 1876
idem, 1855. Under the Nichols law the
state board Of assessors fixed and de-
termined the value of the property
for the purpose of taxation, of express
companies doing business in Ohio in
1895 as follows: Adams Express
company, 33.095.S0; American F.
press company. $499,373.60; United
States Express company, $48S.264.7O;
The express companies opposed
this assessment on the ground that
they were liable for taxation only for
the value of their tangible prop
erty, and not ON their franchises. Or
on the market value Of their capital
stock. The return filed with the state
auditor showed that the Adams Ex-
press company had 10000 shares of
stock, the market value Of which was
from $40 to $3.50. On the basis of
the smaller figure. the value Of the
company's property taken as an en-
tirety was forth S16,800, ,000-its value
for the purpose of income to the
stockholders, or for purposes Of sale.
The company claimed that the value
Of It's property In the state was as fol.
lows: Real estate, $25.170; personal
property. $42,066. The supreme court
of the United States. In discussing
the effect of the Nichols law. said:
"The capital stock of a corporation
and the shares In Joint stock COM
pany represent not only the tangible
property. but also the intangible, in
cluding therein all corporate fan
Chiaaa and all Contracta nriviloSss