The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1913-08-19

III tHfS ~ WRat
the State, counties and towns are COM
PEELED 10 do under the uniform ad
Ndlorem rule OF the present Consti-
tuition The combined state, county
and town taxes in towns in North
Carolina of the first class Will aver
e not less thar sac on the 500,
and this Is exactly 40 per cent of the
income derived from $40 loaned at
the highest rate al!owed by law.
In a certain town in this State lives
a widow who owns sic, 600 which she
got from the insurance on the life Of
ner husband. / lend that money out
FOR this widow at the highest rate al
lowed by law. The combined State, |
county and city taxes are sass on the
$I0o, so that at the end of the year.
Wnen ! pay this widow $500 in in
terest. she must at once turn over
$265 OF il TO the Can
TINS woman raise her boys to be in
tensely patriotic when she feels tina,
the government which owes her pro-
lection is taking bread from the |
mouths Of her children. Such "A law
IS an atrocity. It is such a monster
That it is not enforced. It's as I'M
profitable as it is unjust. Some one
mas said that nobody pays these taxes
but a few ultra-righteous, the widows
and orphans, the idiots and ~lunatics.
Experience has taught that il is
SIMPLY impossible to get solvent cred
it's on the tax books wherever the uni
form ad valOrem rule prevails. The
records in the treasury show that we
get less taxes today from solvent cred
ITS than We did before the war.
Under the terrific bombardment
that is being made against it through
out the country, it is not to be won
dered that the uniform ad valorem
rule is passing away. Already nine
states permit the classification Of
property for taxation and amendments
are pending in three others. The Su-
preme Court OF the United States has
repeatedly held hat classification OF
property for Of taxation is
in no way to the Federal
Constitution. have recommended to
the governor of our State that in case
the State and the railroads do not
reach an agreement as to rates, thai
the best and only thing to do is to
place the railroads in a special class
for taxation and make the rate so
high that it will yield a revenue to the
State in keeping with that being paid
the railroads by the people of the
State. If the railroads are going to
charge us a higher rate it is nothing
but right that we should charge them
a higher rate.
NO system of taxation will be sue
cessful that does not get the property
on the books, and it is impossible to
get intangible property on the books
when the tax is more than a fair per
centage of the income from the prop
erty. No inQuisitorial board will To-
cate that vast body of wealth in NORTH
Carolina known as intangible securi-
ties SO long as the people feel that il
is being taxed beyond that which it is
able to bear. Impose a fair rate anC
, public sentiment Will force this prop
; erty to the surface. a man simpl,
:. has to be about as honest as his neigh
| bOrs require. The history Of every
!. State n of every country shows tina
/. as the rate of intangibles has increas-
! ed they have gone into hiding, and a:
the rate was reduced they have com
: to the surface. Having levied {
/ reasonable rate or intangibles, tn
most rigid laws could be enacted tt
e require the listing of this kind O
y property for taxation. The Legislature
e could provide that if a man failed t.
f list a solvent credit, he would forfeit
n all interest, and it could further pro
: vide that when the owner of a solver
credit brings suit on the same in GU
! courts, he must swear that the credi
: has been listed for taxation as re
quired by law.
e Il am profoundly convinced that
e separation of State and local revenue
e will bring about az era of good feel
II ing between the several counties an
O between the counties and the State
Is Much has been said in recent year
e about equalization, but there can b
.e no equalization without segregation
e All attempts at equalizing values be
IS tween the counties AVE miserabl
% failed, and will continue to do SO UT
der the present system. This failuT
is grounded on the Law Of ~self-presel
lie walton. One county cannot be mac
a to believe that another is listing il
le property at it's true value. But ono
in you segregate the sources of State an
county revenue. one county is nc Ion
IN ger concerned about the listing of til
or property in the other. Each count
I'd will be confronted with the neceSsi,
~ of raising a certain amount of none
e, for local expenses, and whether the
IN will meet these expenses by a trl
Id and a lower rate of taxatio
or or by a low valuation and a high IA
q. Of taxation. Here the law Of Sci
an preservation will compel true valu;
"a Itiop Wherever the Dl2n has bee