Graham guardian., 1906-04-20
ltS
Solomon Commercial CO.
SOL0M0NVLLE

Had the debt been assessed, and
also the money in the hands of the
person who had mortgaged his
property for money, il would be
double taxation. But this is not
the case. The solvent debt was
assessed and also the land upon
which mortgage was given. If
an attempt had been made to as
sess the solvent debt and also the
money in the hands of the bor-
rover, together with the land he
had mortgaged, the borrower
would simply deduct his liabilities
from the assessment and offset the
money.
In illustration of the theory of
the assessment of solvent debt
being double taxation the court
says:
"By slight stretch of the i'm
agination it is easily assumed that
there may be ten men, nine of
whom are absolutely destitute of
money, real estate or other ma
terial forms of property white the
tenth has one dollar and nothing
else. This dollar was originally
owned by man No. l, but by u
succession of loans, from one to
the other, is now tho property of
man No. 10. If debts are to be
taxed the debt owned by each of
nine of these men, payable to him
by the next man, is taxable. Let
us assume that the tax is 10 per
cent Then on the debt of one dol
lar due him from hls neighbor each
of these nine men owe the taxing
power ten cents while the tenth
man who has the dollar owes ten
Genus upon that uollar. Therefore,
the ten men owes the taxing power
$l.00 which is the aggregate of
their material property! Now as
sumo that the tenth man pays the
debt of one dollar which be owes
to man No, 8 and that man No. 9,
and each man in sequence, with
this same dollar, pays his indebt
edness. The dollar finally comes
back to man No. |, all debts have
been satisfied, and the aggregate
material wealth of the ten is neith-
er diminished or increased. 1t re-
mains as it was before, Sl.00; and
if the tax were now levied, it could
reach that dollar alone. In this
extreme illustration IT is evident
that all the tangible property of
the entire ten men would be re.
quired to pay the tax levied upon
them If the debt due each man
from his neighbor is to be taxed,
1t is manifest also that the burden
Of the entire series of taxes rests
directly and indirectly upon that
one dollar"
In the face of the statute, it is
beyond us how the court could
make use of the above language.
This far fetched proposition does
not apply to the case at all. Man
No. l SHOLD be assessed with
solvent debt of Sl.0O Should the
assessor attempt to assess the other
eight of the remaining nine men
with solvent debt of Sl.00, each
would Immediately take advantage
of Par. 1885 of the revised statutes,
which reads; "Whenever solvent
debts are assessed, the person as
sessed may deduct theretrom his
liabilities" When man No. 10 is
reached, who has the dollar in his
possession, he takes advantage of
the same stotute. He has the dol
lar but owes for it, therefore, he
cannot be taxed. 1t certainly
seems clear TO us that only one
dollar can be taxed, and that to
man No, | This is precisely the
method thst has been persued in
the cases in this county.
That portion of the statute
which provides that whenever
solvent debts are assessed, the per.
son assessed may deduct theTefronS.