The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1907-12-12
DOUBLE TAXATION
The Ohio Farmer Discusses the
Present Constitutional
Amendment.

In its issue of September %, the
"Ohio Farmer" has a comprehensive
discussion of the provisions of sec
ton 2. article -, Of the Ohio Consti-
tuition, which reads:
Laws shall be passed, taxing by a
uniform rule, all moneys. credits, in
vestments in bonds, joint stock com
panies, or otherwise; also, all real and
personal property, according TO its
true value in money" etc, etc.
The Ohio Farmer" in discussing
this section Of the constitution, OPP
poses the argument Of one of its cor
respondents, Mr.. r. R. Smith, past
master of the Ohio State Grange. The
argument is 50 well carried that it is
printed in full herewith:
Notice the semi colon after Other
wise w. Z. Cushing, a Cleveland
attorney, argued before the State Tax
Commission that this Semicolon sep
arateS the two clauses in a very I'M
portant manner. This seems to us Il
tenable view. and, therefore, that all
values mentioned before the semi
colon are 10 be taxed by q uniform
rule that is. by rule or method uni
formly appliCable to these alone.
while the words also all real and per-
sOnal property according to its value
in money Apply simply to all real
and personal property" And, eyi-
IDENTIFY, all real and personal proper
ty" means visible ana tangible prop
erty as distinguished from invisible,
intangible property described in the
former clause. The former is to be
taxed by uniform rule;" the latter
according to its true value in mon
ey." Note that it does not say at
its true value, etc, as Mr.. Smith in
correctly quotes it several times. This
looks as If the trainers Of the Consti-
tuition expected a scaling down, as
at present, to the values at forced
sale, which makes no difference if it
is general and uniform. Also a rule"
that is uniform" for all notes, stocks,
bonds. etc, may mean low percent
age, as now proposed. on this whole
class OF property (simply for its pro-
tectiOn) and on two grounds: First,
that stocks in railways. etc, represent
the value Of tie rOadbedS, rolling
stock, stations and other actual, Viai-
BILE, tangible property. already taxed
as such. and to tax the stocks held
by A, G and c, also would be double
taxation, which no one favOrS; while
to tax the bonds, would be to tax what
the railways owe, not what they own.
Second, that these evidences of quasi
ownership are invisible, intangible
and inevitably in the main escape, as
shown increasingly year by year for
over half a century. Therefore tax
such visible, tangible property where
it exists. in the hands OF its directors
and managers; tax it, tax it once,
don't try to tax the paper certificates
of stock in the hands of A, B and G,
for if you succeed you will tax double,
and if you fail (as you will, for you
have done so for sc years.. you will
simply repeat the folly OF your fathers
and yourselves.
Still further, even if we were to
Concede (as we do not) that the
trainers of the constitution intended
to tax money stocks, etc, on tn,
same basis with tangible properly,
and that this may have been just,
then, times have utterly changed. In
1851. and for several years thereafter,
money brought to 10 Per cent inter-
est per annum, and taxes We're about
| per cent; NOW interest On safe loans
Is aDout d12 10 per cent anu the rate
OF laAatloh IN many cues; me chi2l
money cehtefs' IS 52 to e per cent
no TAX money at par Naiuo IN such
cltles would be unjust ana therefore,
imp0sslble. 1t would DC collScatlon'
Further, money IS chleHy an lm$tru,
meht or means OF exchange. Mheh
A ana Is swap farms, therc IS no
instrument OF eXchanSG and we tax
Doth farms as DeloFe: buJ IL a, d. I.
D, etc, really swap farms. an down
the me llhe, no lha'Ier row la[' out
use $l0'OOo IN BANK nlll5, soiu: or
bank checks, as an instrument OF GX-
chah&e, ,Why not cohtlhu" TO tax me
1arms, the actual' tah%lD'e properly,
as Delore. aha Eol ttF 10 taE me mere
instrument OF PXcIahsc! IT Is meet
ing eVaheSceht', e!HHlFe, can not ne
located or taNSd. way cohllhue 10
MAKE me lrultieFs eaort! Or. II A
SellS ms larhl ana puts ohe money
INTO the savings BANK III 40 per
cent, me Dahk AT once pn'S 1t ana
many IKE sums rom DINERS, mo
houses, lotsI iatiua' iHCt?I'>,a-I aiislple