The Wenatchee daily world. [volume] (Wenatchee, Wash.) 1905-1971, 1908-04-15
THE GUM ACT
In A TANCLE
Lincoln County VIII Have to be Re.
Assessed.-Gunn Gives Inter-
view TO the World.
Gum Talks.

All of Lincoln county will have to
be re-assessed at an expense of thou ;
sands of dollars owing to legal mix
up over the law exempting mort
cages, loans and securities from taxa
ton, generally known as the Gum
Law
It's enactment was due largely to
the efforts of J. H. yesterday, a mem
Der of the state tax commission and
had the approval and support of the
banks in general throughout the
state. In behalf of it, it was argued
that the exemption of such property
would bring millions of capital into
this state for purposes of investment.
In spite of the fact that the banks
favored and worked for the bill, the
Capital National Bank of Olympia has
started suit to restrain the collection
of more than $4,000 in taxes levied
! against it, and is pleading the Gum
act as an excuse for the evasion of
taxation.
In Seattle and Tacoma the bond
holders of the Stone and Webster
corporations have instituted suits in
the superior and federal courts claim
ing that under the provisions of the
Gum law about $300,000,00O in
property subject to taxation has es-
capped the rolls in this state and that
by reason thereof the public corpora
lions involved in the suits have been
unlawfully burdened with more than
their just proportion of taxation. 1t
is claimed the state and federal con-
situations have been violated and in
functions are asked restraining the
collection of the taxes.
The corporations involved in these
suits include the Seattle Lighting COM
pany, the Seattle Electric company,
the Manhattan Trust company, the
Puget Sound Power company, the
Boston Safe Deposit and Trust COM
pany and other big corporations and
| financial concerns.
State Wins Point.
| The suits in the superior and fed
eral courts are identical in character.
/ In the superior court of King county, !
the tax commission has appeared as
of counsel and has gained an impor
tant point. A motion to strike from
the complaint that portion referring
to the exemption of moneys and cred
| its have been granted on the ground
/ that the proper course for the corpo-
ratiOnS to pursue was to seek to man
! damus the county officials to include
moneys and credits on the tax rolls
instead Of seeking to evade their own
| taxes by Injunction because such
property has been omitted.
The same contention was raised by
demurrer in the federal court and
overruled. The result will be that
whatever the outcome in the United
States circuit court, an appeal will be !
| taken to the United States supreme +!
court
| Gum Talks.
! Commenting upon the law, Senator
Gum, who introduced it, has given /
the World the following interview:
1t is a serious mistake to think
that the question of the consti,u-
tiolality of the personal property /
tax law arises from Chap. As of the
Session Laws Of 1897, commonly !
known as the Gum lax Law
THE Laws of 1897 exempted from !
taxation purchase money mortgages ,
and credits for the purchase of real T.
estate. The legislature of 1891 /,
amended this to include the exemp- !
ton of vessels engaged in foreign /
trade. This amendment was vetoed |
by the governor, but passed by the
legislature on June u, 1901, over !
the governors veto. Should the eX-
emption of moneys and credits be
decided to unconstitutional by our /
courts, it will only establish the fact !
that our personal property tax law
has been unconstitutional ever since !
1897. While, for my part, [ believe
the law is constitutional, It is, of
course, a matter to be decided by the |
courts. Regarding the equity of !
the law, however, there can be no
doubt.
Amendment to be Submitted.
This agitation should call atten-
ton to the fact that there will be !
su omitted to the voters at their |
next general election an amendment
| to the state constitution relative to
taxation. This amendment should, !
| by all means, carry, as it will enable !
| the legislature in future years to !
provide modern and scientific meth !
DDS of tax assessment and collection. !
At the present time a large amount
of intangible property, such as the
capital of express companies, sleep
ing car companies, etc, is escaping
/ taxation on account of the impOsSi-
biIity Of devising constitutional
methods for assessing an equitable
tax. This constitutional amend
ment, should it carrs. will provide