The daily journal. (Salem, Or.) 1899-1903, 1903-01-14


The constitution requires that the
Legislative Assembly shall provide by
law for uniform and equal rate of
taxation" AS a step to that end, the
law provides that all property shall be
assessed at it's true cash value. In
order TO be uniform Il is not essential
that property should not all be as
sessed at it's true cash value. This
requirement would as we'll be attained
III all the property assessed at the
same proportionate part of its value.
But the law is violated in letter and
In spirit when no uniform basis for
assessment is fixed in any OF the coun-
ties. In some It ls assessed at one
quarter, in others at one-third, in 9th
ers at one-half OF it's cash value, and
knowingly done in open violation of
the law, and no means has yet been
found to compel a proper observance
of the statute.
Attention has ben called TO this
matter by every executive before me,
but IL seems that prior legislative bod
les have either not had the time or
the inclination to do anything to cor
rect existing evils in the plan of as
sessment.
The subject is so difficult TO prop
erly adjust that | do not believe II
possible in the hustle and confusion
of short session to frame a law re-
vlsory of present statutes and meet
ing the many obstacles in the way
of a consistent assessment and tax.
alton plan. Attempts at each session
have proven abortive. and have but
made confusion worse oonfounded
| therefore earnestly urge that you
provide for the appointment by the
executive OF a commission to prepare
a general assessment law, to be re
ported to the next legislature for
adoption or rejection. This has been
done in other states, and wherever
IL has been tried IL has resulted in par
TALLY correcting the evils of Unequal.
ity and and non-uniformity.
Taxation Of Corporations.
a large proportion of the taxes OF
many of the States Is derived from
sources other than the general land
and property tax. Real estate here is
bearing an unjust proportion Of the
taxes for both the State and local pur-
poses Personal property and money
largely escape taxation. This is not
as II should be, and some remedy
ought to be found and applied for
carrying into effect the letter and
spirit OF the constitution, which re.
Quires all taxation to be equal and
uniform. The period through which
we are now passing is characterized
by combinations of capital. as well
as OF men. Individual Initiative in the
larger enterprises is almost unknown.
Corporations with large capital organ.
tied in other States, are constantly
coming into and doing business OF all
kinds here, and in most cases cannot
be or are not reached for the purpose
of adequate taxation. Our efforts in
the past have been, and should con.
dnue 10 be, directed TO the securing
of the investment here OF capital, cor
porate and individual. from other
States. The efforts that have been
made In this direction are being re-
warded. and from every State in the
Union men OF wealth and managers
of vast corporate enterprises are com
ing among us, lured hither by the
richness of our mines, forests and
fields and the salubrity of our climate
II should not be the purpose OF leg
islation intended TO tax this wealth 10
the discriminating and unjust. Such
a course would nullify the efforts we
are making toward commercial ad-
vancement and industrial develop
ment. But that this wealth should
contribute fairly, equally and uniform.
ly with other property OF the State.
all must concede. and those who come
here to assist us in our upbuilding
as we'll as for their own betterment,
claiming the equal protection OF our
laws, cannot oppose an objection 10
such a course
What might be done in this state by
a conservative system of taxation of
in indicated by the
amount Of revenue derived for State
purposes from insurance companies
alone. Under the statutes, they each
pay license fee and an annual tax
Of two per cent. upon gross premiums |
less losses and premiums returned. |
For the year 1899 these companies |
paid $26,371.4S in taxes and SO S60.33 |
In license fees; for 1900 they paid |
IN taxes $3l ,24SS4 and in license fees |
S4.277.36; andf or 1901 they paid in /
axes 33.9SS40 and in license fees
"a. 1864.
No objection is urged against these |
axes and license fees, nor are they |
considered unjust. and the system |
which has been applied in the cases
II these companies ought 10 be grad
lally extended to other corporations
loing business in the State.
The Secretary OF State in his re-
'ort TO the legislature In 1901 shows
hat for the two years ending Decem-
'er 81, 1900, there were filed the ar
icles OF incorporation Of 67S corpor-
.tions. with a capital stock aggre-
,ating 1927, ,2S3. 10000, whilst he esti-
mated that there were at least 2500
orporations doing business in the
'tate. Between December 81. 1900, !,
nd September 80 1902. there were
led articles OF incorporation Of $50
with a capital stock OF
2s1 ,569 ,9s1.0O.
Why may not a system be devised I
)r making each and all of these cor I
orations. organized as they are under I
he laws OF the State, contribute di- !
actly to the expense OF State admin 7
a.