Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-01-04

economy. The total estimates for current
expenses during the next biennium made
are so large that It win be necessary for
you to investigate thoroughly the needs
Of these different institutions before maxi
ing the appropriations. Promlscuous junk
citing is expensive and In the past has not
given beneficial results It Is, therefore,
sincerely recommended tifht a Joint COM
mittee be appointed for the purpose OF
visiting the several state institutions and
nquiring into their actual needs before
the appropriations are made
Care OF state Finances.
The Indebtedness OF the state should be
decreased while the state Is prosperous.
BY an act Of the last legislature provision
was made for payment of the outstanding
Indebtedness Of the state. That act will
insure the payment Of the debt within a
within reasonable bounds The current ex-
penses must be kept within the income OF
the state: IL will not do to increase the
public debt at this time
The constitution OF the state will not
permit the permanent school fund to be In
vested In any otheI sesuri .s tnan reg 5d
United States and state securities The
field for investment of this fund should be
vestment equally as safe that would in
crease the interest return to the fund. II y
were Invested In municipal bonds, school
would be benefited on account Of the In
tefest being paid at home 49,, $50,
,ntsb,e I1r Of he state about 500 Go each
year. large part OF this floating Indebted
ress has been taken up by the state treas.
urer for the benefit of the permanent school
fund There will be. therefore. about $500.
900 OF the permanent school fund each wear
TO be renvested on this account alone;
II Is urgently recommended that this leg
Iplature submit an amendment to the con.
stitution, so that the permanent school
fund WIN not remain idly IN the hands o, OF
Is paid of. Times and conditions change.
Therefore II viii be for the best Interests
stItution be amended 80 that future leFis-
latures may determine from time to time
what class of additional securities shall be
available for the investment of this fund,
Taxation of Mortgages.
The new revenue law OF 1908 has brought
about one of the most uniform assessments
Of property. ever had. But there Is SUI, SUI
provide for a more equitable distribution OF
the burdens OF taxation among the property
Under the present law real estate that IL
mortgaged is assessed for taxation purposes
at its full value to the owner of the LAND
without any deduction whatever for the
cunt Of the mortgage. In addition to this
mortsSge e held 6E resident Of a tst
encumbered with mortgage should be bur,
dened with greater taxation thansa piece OF
real estate OF the same character and value
that IS not mortgaged.
Again. under the law, II the mortgage II
great many of them are, no tax Is Levied
against 1t because mortgages are construed
il siipposed 10 be assessed where the ownei
of the property resides. IL domestic mort
cages are to be taxed, then certainly foreigi
thing to do is to tax all mortgages, botl
foreign and domestic. as an interest In rea
estate. Being assessed as an interest II
real estate they would then be assessed To-
taxation purposes where the land is and no
where the MORTGAGE lives. The value o
the mortgage should then be deducted from
the value OF the mortgaged estate and tn
owner OF the real estate assessed upon tn
equity he possesses.
such a law would increase the rate OF inter
est because Nebraska is not yst credi
tors state. II such is the case the posi-
:. pility OF an increase in the interest rat
~ may be avoided by permttn the prtvileg
OF contract whereby the owner of the lam
may. II he chooses, pay the tax on the in
terest of the mortgage. He could afford I
do that and be none the worse on tina
domestic capital that is available for tn
investment of mortgages, Is driven out c
the state norresldents may be expected
raise the rate OF interest as they no dout
will do when there Is no longer competitio
by domestic capital.
During the past ten years We have bee
bountifully blessed with good crops an
prices The people of this state have Doe
paying on their indebtedness and az
D vested at home. The present law discrim
mates against domestic capital and in m
opinion IL II FORCING the residents OF tn
state TO invest their capital in securitit
and lands of other states. The preseF
system plainly imposes a double tax upo
mortgaged property. when the mortgae
is held by a resident of this state and
that extent II increases beyond measuI
the tax upon that class OF property. II
not fair to the residents OF our state an
i Is against good public policy to cor
tinue the pernicious system of the presel
law In this respect.
Exemption of Debts.
Another amendment that is needed I
=---=e==-----=