The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1907-01-11
MESSAGE
TO THE LEGISLATURE

matter of State taxation. II a system
is good. everybody Is benefited; IL IT
is bad, everybody is hurt: the bene-
fit or the wrong lis not limited TO n
particular class. All that has been &C.
lcomplished has been accomplished
practically in n year. because these
laws were not in-fulI. force until 1906.
the year 1905 being a transitory per
iod. part OF the old laws being In
force and part of the new laws being
in force. Now. To- perfect and to
strengthen these laws and TO make
taxation as just az it Is possible for
human ingenuity to make 1t we want
and need the help of every person and
interest. The demands upon the
State are great: we are young and
growing fast; we must pay as we go
as we cannot create debt: our institu.
tions need money for additions, for in.
lcreased expenses. n new institutions
are needed; we are away down thirty
fourth on the list Of States as regards
our school matters. a standing that
takes a great deal or the pride of our
boast aboat the mount OF coal we
mine, We have almost no roads, In
this matter every citizen should be
broad. liberal and patriotic, n every
interest anxious 60 contribute its full
share. But whoever helps, or whoever
opposes, we must go on In the spirit.
of that just and patient man, Abraham
Lincoln, with malice toward none
with justice to all. but with frmness
in the right as God gives us to see
the right" conscious that no greater
economic misfortune can befall a PEG.
pie than a bad system OF taxation, and
no greater economic benefit coli bless
them than a wise ami Just system of
taxation.
Taxation OF IntIraiate Property.
A reduction in the rates of levy was
necessary in order TO get on the books
intangible property. consisting for the
most part of money, bonds, notes, and
the like. There III only one basis for
the assessment OF this property under
our ed valorem ayRtem OF taxation, I'M
less n special rate Is prescribed for 1t,
and that is, its actual value. A dollar
has but one value. md usually n note
Io:,band has but N value, and that IL
IT'S face value. Unie- he old laws
and methods this properly has very
largely escaped ~ta&ati9a :or two rea-
sons. In the first place, excessive tax
alton. because the rate was so high
that the owners OF this property felt
thai they could not afford TO pay taxes
On IL. II earned Hix per cent. a year
and the rate of taxation in many plac.
cs was nearly onehlLt, and in most
places one:third Of that amount. Think
of the fact that II this property had
feen taxed at its proper value, the
eorcrnment would have taken one
third or one-half of the total income
Of A. in taxation. The second reason
Why this property was not on the
books was hcGauRe 4 would be I'M
justly taxed. ha %lo,a're stated, II It
went on the book, - all. 1t went on
at its full. yal1e. wlI= other property.
eld particularly ~undeveloped real es.
trtc. was. ,ton the books at anywhere
from five per cent upward of its val.
nc. T A and d had $4,000 each in
property. and a kept his property in
money and loaned it out at six per
cent. interest. and he. gave 1t In to the
assessor as the law required him TO
do. h.. paid taxes on the full value, and
1t would take probably oae,third of his
tot,i income TO pay the taxes. B in.
Sc.'ed his money in ~uadeveIoped coal
lani. say, which was assessed. say.
at ole-fourth OF ita value. 1t is evil
den' that A paid four times the taxes
on his property that 3 paid on his.
saying nothing Of the annual increase
Of Bns property, which increase was
not assessed at all under the old law.
because the assessment OF real estate
was only made abodt every ten years.
No government, whether a Republic
or a dcspotfsm. has ever been able to
enforce an unjust law as regards
mems property. In oIden days when
the maximum rate OF interest was fix.
Ell at n certain per cdntum. and death
was the penalty for the violation of
the law, men violated the law when
their money was worth more than the
rate prescribed by law, n~otwithstand.
ing the fact that Eome of them suffre.
ed that penalty. The state. which en-
cages to protect the people in their
rights, does just the opposite, when 1t
is the instrument of injustice to them.
The increase in the assessed value
of this. intangible property under the
new laws has not been as great rs
some persons expected but it has
been fully up to my expectations be-