The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-02-06
ANOTHER SURPRISE.
Bale Waggener Proposes In
come Tax to Legislature.

The tax committee did not reconsider
its action exempting notes and mort
cages from taxation at it's meeting last
night. 1t was the general talk that it
will be taken up at some future time
and reconsidered, however.
Bale Waggener sprung a surprise
on the committee just before it ad-
journed last night by stating that he
expected to frame an amendment to
the bill and provide for a graduated
income tax This met with appreciation
from several members, but Senator F.
Dumont Smith questioned its -constitu-
tionalty. Waggener asserted that a
constitutional provision of that sort
can be framed.
It is becoming more and more evil
dent that Bale Waggener is the big
man of the taxation committee. He
knows more about the subject twice
over than some of the members, and
he comes very near running things
even if he does belong to the minority.
There viii yet be a sharp contest over
the exemption of notes and mortgages
from taxation. Some of the Republican
members say that such a provision If
passed by the Republicans would en-
danger the success of the Republican
party in 1904. Others who are not con-
sidering the politics of the situation say
that the exemption viii work out with
more justice to the poor man in the
end.
Those who insist on the taxation of
notes and mortgage say that it would
be very wrong to allow the rich money
lender to escape taxation on his loans
This sounds very just and right on the
surface, but the advocates of exemption
argue that It viii not work that way,
and there is great weight to their argu-
ment when it is carefully considered.
They allege that the borrower, who is
generally a poor man and least able to
stand the burden of taxation. would
virtually pay taxes twice on his mort
gagged property. In the first place he
would pay his direct tax on the property
as assessed. Then it is alleged the
money lender would raise the rate Of in
terest sufficiently to cover the taxes on
the mortgage, which is undoubtedly
true so that the borrower would prac-
ticaIy pay the tax on the mortgage,
also, thereby making him pay a double
taxation on his mortgaged property.
There was considerable discussion last
night over the question of the percent
age of valuation. Waggener suggested
that property be assessed at one-fifth
of its value. This brought opposition
from Peck of Cloud. who insisted on an
assessment at actual value Represen-
tative Francis suggested that the actual
value be first taken, the constitutional
exemption be subtracted from that, and
the assessment be one-third of the re-
malnder. It is common practice at pres
ent to assess property at One-third and
tdfNt AilT tOltHtll QlAOAdl tAG4ID tlO4 Oh R-Uu
out Of that, thereby giving an actual ex-
emptiOn Of $500
Waggener and Smith finally agreed
with Francis. and an informal vote Oh
the matter was taken, standing IA to D
for the proposition.
Waggener, VINO is a railroad attorney
and who knows all about railroad taxa.
ton, proposed that railroads and other
corporations which refuse to pay their
taxes or which neglect to list all their
property for taxation be placed in the
hands of d receiver. This caused a snniie
among the members of the committee
as Mr.. Waggener's road probably fuses
more over its taxes than any other road
in the state.
Waggener also suggested that the
penalty of $500 placed on railroads for
not showing their books to the railway
assessors be raised to 81, 000, which was
promptly done.
It was also decided to leave the lieu
tenant governor and attorney general
out of the board of railway assessors
hereafter. At present they. with the
secretary OF state, state treasurer and
state auditor, constitute this board.
The two tax commissioner viii be sub
stituted for the attorney general and
lieutenant governor.