The farmer and mechanic., 1911-01-10

Judge SEIuford Advocates Change in
Taxing That He Thinks Should BE
Made
(Asheville Gazette News.D

{AShevilie Gazette News.b
To the Editor-There has bean a
good deal said from time to time in
your paper and in other papers OF
the State in relation to double taxa
ton, but no one seems to have any.
thing to say for the under dog
The one who is doubly taxed and who
ought to have relief is the mortgagor,
the fellow who, through misfortune,
has been forced to cucumber his
property. or who. for the purpose Of
max ing desired improvements or of
going into some legitimate enterprise
or business for the support Of him
self and family has borrowed money
and executed a mortgage or deed in
trust for its security After the exrcu-
ton Of the mortgage or deed in trust
upon his property, he is in reality The
owner Of only the excess of the prop
erty over and above the encumbrance 2
upon it, and should not be required
to pay taxes on anything more han
the value Of such excess. II Il tax
lister is the owner of solvent sccur;-
ties. he is allowed 10 deduct all bora
fide indebtedness owing by him from
the am ount of his credits, and insur-
ance companies are also allowed t.
deduct from their solvent credits in
the State an amount equal - their re-
Insurance reserve. Why then IN ,uld
not the owner Of other property.
real Or personal be allowed to de-
duct from the value thereof th,,
amount Of the bona fide encunbTanccs %
against it? He does not own all the
property he only owns the excess over
and above the encumbrance.
Suppose, for instance. that man
owns house and lot or Il farm cortl.
$4,000 and he places on it a mortgage.
or deed in trust for $1,000; he then
has in it only $1,000 which IS IN any
proper sense his property. Then sup
pose further that this borrower ex-
pends this s1.00O borrowed ~ him
for improvements back on the very
property, he is required, under the
law. to report under oath :ha value
Of the improvements and the llst. ta k
ers are required to list the property
at the increased valuation and, IN
such case, the $1,000 is really taxed
three times: once in the property en-
numbered at it's original valuation:
once in the value Of the improvem ents
put upon it, and then as a solven,
credit in the hands OF the mortgagee
or cestui cui trust.
Or suppose the borrower Of this
81 900 concludes to start little mer-
camille business for the support or
himself and family or to buy stock
for his farm, he will not be allowed
.any deduction on the assessed valua,
ton Of his real property. but will be
required under oath to return his,
goods and merchandise OF the stock
upon his farm to the list-taker and t.
pay an ad valOrem tax on the same.
and thus his property is twice taxed
in his handsome in his real estate
and again in his personal property
and then the holder OF the note and
mortgage, If he is honest enough to
list the same, will also be required to
pay taxes OH the solvent credit in his
hands. This is unjust, in fact. is un-
constitutional, for the reason that the
taxing is not uniform. The Constitu
ton requires that the burdens Of gov
ernment shall be borne equally and
uniformly by all the citizens and
ing to their respective holdings
There is always some one ready to
cry out for the money lender, and he
Is constantly crying out for himself
but he is not the one who is being
wronged nor who should be relieved
from this unjust burden.
Some writer's On this subject have
gone so far as TO insist that all taxa
ton on solvent credits should be abol-
ished, and that the man who is fortu-
nate enough as to have money tc loan
should be relieved from bearing his
part. Or any part, Of the burdens and
expenses Of the government. Why
Snouio He An lHteftSt-peaiiIi soi'
vent security is not only property. but
very desirable and profitable proper
ty. Some have argued in behalf Of
this supposedly oppressed class that
they cannot afford to loan money at
six per cent. and pay taxes. Precious
few loan at that rate, but they can
we'll afford to do so. They cannot
loan at the legal rate and pay taxes
and clear eight per cent. on their in
yestment as most Of them wish to do.
but they can realize a greater clear
profit and at much less risk and far
less labor than the man who atteni pts
to do business or to farm on the bor-
rowed capital. Let all who do not
believe this statement try the expert
ment They who put out their money,
not necessarily at usury but al simple