The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-02-16
He SAYS TAX Them
Gov. Bailey Expresses Himself
on Proposed Measure.
Does Not Believe in Exemption
Of Notes and Mortgages.
NOT AGAINST CAPITAL
These Securities Should Pay
Their Share, However.
Won't Have the State Levy
Increased.
NOT AGAINST CAPITAL

Governor Bailey is against the propo-
sition to exempt notes and mortgages
from taxation. He is also against any
drastic measure providing that such in
struments cannot be collected unless
listed for taxation because of the fright
which it would give capital
Il believe the legislature should by all
means pass a new tax law" the COVER
nor said to a State Journal reporter to-
day but viii say frankly that don't
think it ought to exempt notes and
mortgages from taxation. That might
work out all right in theory, but don't
believe we are ready for any such ac-
ton. On the other hand 1 would not
like to see any legislation on this mat
ter that would send interest rates soar
ing or drive capital out of the state.
1T is a very difficult problem TO solve.
What we want is law which viii tax
equally ali classes of property. A great
deal of it now escapes. and think it is
due largely to the inequality OF our
present law. If all property should be
taxed equally and made to bear only its
due proportion Of the burden a great
deal more would be listed than at pres
! ent.
1T works this way: A sells B a team
of horses for $3.50 on February Is and
I takes BIS note for the amount. They
{ i've S4uE ny SAQ6 ana the same assessor
assesses their property. The assessor
4 comes around, asks A to list his prop
/ erty and he IS assessed for $3.50 on BIS
/ note. Then the assessor goes to 3 and
/ assesses the team Of horses at $50 on
exactly the same real value that A was
assessed $3.50 for For that reason
A hides his note the next time and does
not list it at all, because he knows he
viii have to pay five times as much tax
as he ought If he knew that he and B
would both be taxed equally it is quite
4 probable that he would be willing to
pay his share Of the taxes
4 Now exempting notes and mort
cages from taxation because they have
| been escaping under our present law
will not equalize matters, but on the
other hand, going to the extreme in
providing for the enforcement of a tax
ON them IS liable to WOrb great hard
snip and injury to the debtor.
"One great reason why land has ad-
vanced so rapidly in value il
Kansas during recent years is the
cheap money we have had 1t has beer
possible to get loans at FIVE per cent
As a result a great many people have
invested in lands, borrowing a gOOc
portion Of the purchase price. Up ir
my county there were more real estat tt
transactions last year than there hao
been before in ten years. Scores OF
young fellows bought farms and Dor
I rowed most of the money to pay for
them, because they were able to gel
I
my county has increased SIS an acre
in value in the past three years. A
great many more deals are now pend
ing, but they have all been held uI
pending the action of the legislature or
this matter. The people from whom
the buyers expected to borrow money
have said that they will not make any
loans until the legislature gets through
with this taxation matter If action
should be taken which Will make IN
terest jump up it will mean much to a
lot of people. have been receiving
personal letters on this subject from
borrowers up in my county, and laSi
night thew sent a man down here tC
I think that notes and mortgage:
should be taxed the same as other prop
erty, but 1 don't think provision shouiC
/ be made to endanger their validity
when it viii still be possible for Othei
classes of property to escape The re
suit of an action Of that kind would b.
to put interest rates up and none.
loaners would make them high enough
: to provide a good margin for emergen
! cies, but I don't think this would resul
, if notes and mortgages are placed ol
I the same footing as all other property
, This sort of an arrangement. it seem
{ to me. would place on the tax rolls
: great deal Of property which is nov
escaping and would make the burdel
much lighter on that which is nov
taxed.
while I am about it. would just li1
to say that I don't propose that tn
state tax levy shall be raised during m
administration. There is no friction be
; tween either branch of the legislator
: and me over appropriations that I knol
Of 7 want to be as liberal as possibl
with all state institutions, but I am OF
r posed to going to the point that wi
: necessitate raising the state tax levy
II I find a disposition of that kind any
. where I viii use my influence agains
: IT.