The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-12-30
DOUBLE TAXATION
The Ohio Farmer Discusses the
Present Constitutional
Amendment.

"Ohio Farmer has comprehensive
discussion Of the provisions of sec.
tion 2, article IL, of the Ohio Consti-
tuition, which reads:
Laws shall be passed, taxing by
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 constitutions OPP
poses the argument of one of It's cor.
respondents, Mr.. 4. Il. Smith, past
master of the Ohio State Grange. The
argument is so well carried that it Is
printed in full herewith:
Notice the semicolon after "other.
wise w. u. Gushing, Cleveland
attorney, argued before the State Tax
Commission that this semicolon sep
arates the two clauses in very i'm
portant manner. This seems to us a
tenable view, and, therefore. that all
values mentioned before the semi
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 AL real
and personal property" And, owl
dentlv, "all real and personal proper
ty" means visible and 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 valse in mon
ey." Note that IL does not say at"
its true value, etc, as Mr.. Smith in
correctly quotes it several times. This
looks as III the framers OF the conSti-
tuition expected a scaling down, as
at present, to the values at forced
sale, which makes no difference II 1t
Is general and uniform. Also. rule"
that is uniform for all notes, stocks,
bonds. etc. may mean Il 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 the roadbeds, rolling
stock, stations and other actual, visi-
| Bile, tangible property, already taxed
as such. and to tax the stocks held
by A, G and G, also, would be double
| taxation which no one favors; while
the railways owe. not what they own.
| Second, that these evidences Of quasi
ownership are invisible. intangible
and inevitably in the main escape, MS
shown Increasingly year by year for
! over half a century. Therefore tax
such visible, tangible property. where
| 1t exists, in the hands of its directors
and managers; tax It, tax II once,
! don't try to tax the paper certificates
| of stock in the hands of a. B and G,
| for IL you succeed you will tax double,
and il you fail Gas 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 noD that the
| trainers OF the constitution intended
| to tax money. stocks, etc, on the
| 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 6 to 10 per cent inter.
| est per annum, and taxes werePbout
] per cent. Now interest on safe loans
| Is about 315 to per cent and the ratio
| Of taxation in many cities. the chief
! money centers, is 3h to Az per cent.
To. tax money at par value In such
cities would be unjust and therefore
! impossible. II would be confscatlon.
Further, money is chiefly an instru.
ment or means of exchange When
| A and b swap" farms, there Is no
| instrument of exchange and We tax
both farms as before. But II A. B, G.
ID, eto., really swap" farms, all down
| the the line, no matter how far, but
use $4,000 in bank bills, gold, or
bank checks, as an instrument OF OK
change, why not continue to tax the
farms, the actual, tangible property,
as before. and not try to tax the mere
instrument OF exchange? II Is feet
ing, evanescent, elusive, can not be
located or taxed. Why continue to
make the fruitless effort? Or. IL A
into the savings bank at 3 to per
cent, the bank at once puts 1t and
many like sums from others into
houses. lots. lands, factories-tangible
property. all of which is taxed once.
Why try Gn vain) to tax 1t twice by
taxing the mere instrument OF eX-
change, worth nothing as money ex.
On this point, however, see the fol-
lowing paragraph:
But, you say, silver and gold have
an intrinsic or bullion value Yes,
and If made into silver or gold ware,
watches, JSwelry, etc, they become
actual tangible property and should
be taxed at the same percentage OF
its market value at which houses,
lands, horses. machinery, etc, are
taxed. or course a very small tax,
say one-half. one-fourth or one.tenth
of / per cent per annum, might be
placed upon the average line OF de-
posits In savings banks, and collected
of the banks, deducted by them from
the rate of interest paid TO depositors,
and justified as reasonable license
fee or amount paid for the protection
of the busines The problem Is com
plicated one, of course. but we are
more likely to solve It II we try to do
so than II we stick to the, outgrown
legislation inserted into the constitu-
tion in 1851, and insist that wisdom
died with the trainers OF that instru.
ment.