Daily capital journal. (Salem, Oregon) 1903-1919, 1905-11-11

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district on a line Of railroad, and re-
lievo the railroads from tho hold-up
game now practiced in some counties
and do away with expensive litigation
that cost the people and the railroads
thousands annually.
state Tax Levies.
The direct tax on property is too
high in Oregon, compared with other
states that are just as well governed.
The levy on property this year for
state purposes is six and two-tenths
mills for 1908 Il was 7.O6 mills. For
ten years past tho average has been
5.i07 mills. In 1894 Il was only three
mills and there has been constant ad.
vance in the state levy. The state
school levy has been advanced from
five mills TO 610. while laws have
been passed dovising new ways Of ap-
portioning tho state taxes among the
different counties there has not been
any perceptiblo check put on the con.
slant increase In the amount taken
from Tho property Of the farmer and
the business man by direct taxation,
and that amount is larger than Il
should be. In most states the state
tax lovies are held down 10 two and
three mills In many states all state
revenues are raised by indirect tara.
tion, and not dollar IL levied on prop.
ofty direct for carrying on tho state
government A happy medium should
be arrived AZ " Oregon IL 20 keep pace
IN development with other western
states. The people who come here 10
buy farms and build homes aud invest
capital are not accustomed 20 state
tax levies ranging from five 10 eight
mills. This league could not help tho
rational development Of Oregon more
effectively than by taking steps 10
limit state tar leyies 10 three mills or
lesa, and changing the tax code 90
that one,half the state revenues At
least shall be raised from intangible
and gross earnings Of corporations.
A Plain Business Proposition.
Tho last legislature appropriated In
round figures ta,9O0,O0O and reduced
the indirect corporation tax. The
amount left 10 be raised BY direct tax
viii be about two million dollars. Ae.
eoFding 20 tho ration OF increase the
next legislature viii have 10 raisa al
least t2,400,0o0 Allowing the pres
ent indirect taxes 10 increase 20 $780,.
600 per year, there would still be two
millions left 10 get out Of the farmer
tho stock Of merchandise, the homes
and personal property. This means
one-sixth shall bespaid by corporations
and lieepses 20 insurance companies,
and five-sixths by direct taxation.
Compared with other states this is too
large a proportion. The property tax
pays five dollars 10 the corporations
and franchises one dollar. They should
pay about equally at the outside, and
the sooner the indirect tax payers all
the better, because the producer and
the business man must first make the
wealth that the corporations take FOR
their services before the state can get
srything out Of them for the fran,
ehises and privileges. This would be
no injustice because it Is only what is
done in other states. The exemptions
corporations enjoy in Oregon do not Sc
cure for the people Of this state any
eompensating advantages or develop
ment. In fact, light taxation amount
ing to exemptions Of hundreds Of
thousands annually have in return been
met with policies Of non-development
and excessive charges in the past ]
That condition this league would ,
change, and is the main purpose Of its
existing.
What This League Stands For.
In calling together this mass con
vention Of the farmers and producers
ana shippers OF famhill county it may 4
be Of interest TO tell just what this
league stands for. The motto adopted
at the Eugene convention indicates
the principle inyOlved-'fA Square
Deal for Oregon" The first address
issued to the people setting forth the
transportation conditions prevailing in
this state rested on four declarations
Of fact that have never been ques-
toned, and were vOuched for by the
transportation committee OF the Port
land chamber Of commerce, as fol
lows;
I. That Oregon had enacted no hos
tile or drastic railroad legislation and
had repealed the commission laws.