The Bridgeport evening farmer., 1916-07-27

| to this discussion.
 Money on deposit in savings banks | is non-taxabie,
 Stocks in general, both of domestic and foreign corporations, are regard ed as non-taXable. We are not who'll ly prepared to acquiesce in this opin- ion, but the opinion is so generally held by those who are in position tc know Cor at least who are entrusted with the administration of the law) that we hesitate to oppose our owr opinion in the matter. Certain it is that the warrant for considering out of-the-state stocks as non-taxable rests on very highly technical de- cision of the supreme court, and just what the ground is for regarding the ordinary local manufacturing or mer- cantile stock as being exempt from taxation. we do not know. Of cer- tainty,4 the 1915 statute which inn poses a tax on the net earnings of or dinary miscellaneous corporations (not the gross, as in cases of rail- roads. trolleys. gas companies, etc., but the net earnings of such corpora tions), does not exempt their securi- ties from taxation. However. a hold CT of these stocks need not worry for awhile at least, because the general acceptation is that these stocks are tax-exempt.
 By a law passed quite few years ago. and still in force, special tax was levied on stocks of national banks, state banks, trust companies, insur- ancel companies, and bridge compa- nies, and such stocks were exempted | from any tax in the hands of the hold CT. It is perhaps of importance to state this fact, because while, as we have said, ,aN stocks are regarded as non-taxable; yet it is fair to point. out nevertheless, that the foundation for the claim that all stocks are non taxable is in our opinion a little un- certain. and 1t Is well to know that certain stocks are non-taxable in the hands of the holder by special statll- tory enactment, Sbecause of a special tax being paid on them; and this sit uation in our Judgment renders them vastly more secure against any sub. scquent taxing Legislation than stocks in general. particularly out -of-the state stocks
 | We have endeavored to cover m the foregoing list practically all the non. | however, that it is proper to displss of the matter by the mere statement that all other securities are taxable because a certain amount of com ment on taxable securities seems nee. essary.
 The ordinary bond is taxable. Those mentioned in the foregoing classifi- cation as non-taxable are. of course non-taxable, but all others are subject to tax. This means that a public service bond of another state. rail, road bond of another state. city ol county bond either of another state or of Connecticut is taxable. It is pity in our judgment that the Con. necticut municipal bonds are not ta1 exempt. We admit there is an argu
 ment against their being exempted hut we think the balance ofethe ar, gument is the other way.
 Any note, unless specially exempt led, as railroad notes, water compan, notes. etc, of Connecticut companies is taxable, whether it be the note o an individual or of corporation Notes secured by first mortgage or real estate in Connecticut are how
 ever, non-taxable, provided the req
 estate be assessed to at least tn, amount of the mortgage upon it ant
 that the borrower agrees to pay tn, taxes, but any other secured or unse
 cured note is taxable.
 Money on deposit in banks or trus
 companies is taxable, although an ex lemption of $100 is allowed.
 Our statutes proclaim that chose in action, unless exempted, are tax
 able. Just what a chose in action ma,
 be is difficult to say, and we do no lthink, the average statute make would know one if he saw it, We be lteve it is generic classification GOV
 ering every evidence of right or clain which may be sued on in our court and thereby reduced to possession. w Il presume it is proper, but not very I'm portant, to mention here that no erea difference of opinion has develope, ! about otherwise unclassified choses il action, and that they are taxable.
 The taxable status of first mortgag
 bonds issued by ordinary industria Tor mercantile corporations is an in teresting one. First let us repeat tha
 the status of bonds issued by railroad
 and public service corporations-il fact all those companies which pay special tax to the state based on thei gross earnings-is clearly defined b the statute as non-taxable. On tn other hand, the statute, although i imposes a tax on the net earnings o
 other corporations, does not exemp their securities from taxation. Tn taxable atatus of such securities
 therefore, is left untouched by tn taxing laws of 1915, and stands jus
 where it stood before these laws wer
 passed. It has frequently beel selaimed that the first mortgage bond of such concerns as, let us say, tn Il American Tube & Stamping Go. o Il Bridgeport are non-taxable because by analogy with the statute whicl
 makes mortgages on real estate il
 Connecticut non-taxable, they shoul be 50 also. We fear we do not agre with this claim much as we woul like to. It must be remembered tha all property is taxable unless exempt
 ed from taxation, and unless som
 definite warrant can be found for ex
 empting these bonds, they must b
 considered taxable. If such claim ed exemption be based on an anal ogy, it must be a very clear and defln
 ite one, and must conform with al requirements of the statute exemptin
 mortgages. This particular statut exempts money loaned on interes with an agreement that the borrowe
 shall pay the taxes thereon, and SC cured by mortgage of real estate il this state to an amount equal to tn assessed yalHe of the mortgaged land U Fhe atatute applies, therefore, to q