Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1922-10-20
PROPOSED new C0NSTI-
TUITION REACTI0NARY
By WILLIAM H. HOLLY

are NaStis more NaluADie. Moreover,
under the terms OF our present CON
sutuaon, If any part of the canal or
+ the water power derived therefrom
IS leased leonsent of the people being
hadD there must be reyalaation OF
the property for the purpose of de-
termlning the rental every tenth year.
In the new constitution the period is
extended TO twenty years.
/ The railroads were evidently well
/ represented in the convention, for Sec
tions y, IL, Is and Ia of Article Al,
which required every railroad doing
business in this state to maintain an
office here, prohibited a railroad from
consolidating with a competing line
and from issuing any stocks or bonds
except for money, labor or property
actually received, and made void and
hcuuous, increases of stock and in
debtedness and provided that the ex-
erclse OF the power and the right of
eminent domain should never be so
abridged as TO prevent the taking by
the General Assembly of the prop
erty and franchises of incorporated
companies already organized, and sub
jecting them to the public necessity,
the same as individuals, was omitted
from the new constitution. These
were valuale safe guards and should
have been retained.
Revenue Provisions.
1t was dissatisfaction with the sys-
tenn of raising revenue provided by
the old constitution that was respon-
sible for the calling of the convention.
We were told we would be furnished
with an up-to-date method. Well, we
have been. 1t is system that en-
ables the rich to keep within the law,
yet puts heavier burden upon the
people of moderate means. Ii has
been unpleasant for the wealthy TO
have to either violate the law by re-
fusing to file a schedule or filing one
which was false. Now they may pre-
sent truthful schedules, yet pay little
or no greater tax.
lntangibles, that is notes, bonds,
stocks, ETC., will not be assessed. In
stead tax will be levied on the in
come derived from them.
A man owning a house or building
in the City of Chicago worth five
thousand dollars, will pay taxes on
it amounting to about one hundred
and mortgages of the value of fifty
thousand dollars will pay on those
securities (assuming the interest rate
to be six per cent and the tax rate
three per cent, which is about the
highest rate suggested) ninety dollars.
And the widow with a few thous-
and dollars life insurance money in
vested in bonds, upon which she has
to depend for her support, will have
to pay the same rate as the man who
has million dollars worth Of such
securities. The rate is not graduated,
as the Federal income tax.
Another income tax is provided for
in the constitution. Its purpose is to
compel all that great body of people
who have little property and are de-
pendent on their labor for their sup
port to bear a greater proportion OF
the burden of taxation. When this
tax is imposed, all implements of
agriculture and labor will be exempt
and the term implements of labor is
broad enough to include all the ma
chinery of a great factory. Besides,
the taxes paid on property from which
income is derived and as stocks OF
goods, leased buildings and ground,
ETC., may be deducted. The man of
property after making these deduc-
tions will have to pay but little. The
wage Garner and the salaried man will
have nothing to deduct except the
general deduction of $1,000 plus
$4,000 for each child under the age
of 16 allowed to everybody.
When these provisions go into
effect, we will all have to file two in
come tax schedules. The man of
property will pay little or no addi-
tional tax, but millions of dollars will
be taken from the pockets of the men
and women whose living comes from
their earnings and not their invest
ments.
This general income tax may be
graduated, but the highest rate may
not be more than three times the
lowest. The Federal tax rates on the
larger incomes is eight times that
upon the lower.
Another clause of the revenue arti-
Gle is particularly obnoxious. 1t pro-
vides that AREAS devoted to forests
or forest culture may be classified for
or exempted from taxation" This
opens the door to all sorts of corrup-
ton and favoritism. Ii it is adopted
and the legislature enacts laws to
carry it into effect, every mining
corporation owning coal land which it
does not desire to work, may escape
taxation on such land by planting a
few trees on it. Every real estate
speculator holding land for an in
crease in value will put out enough
trees and shrubbery to make that land
ian area devoted to forests" The
taxes that these owners of forests"
escape will have to be paid by the rest
of us.
But that is not all the new consd-
tuition does for those who go in for
forestry. The old constitution pro-
hibited grants of money or credit by
the state to any one. The new not
only authorizes but commands the
legislature to grant subsidies to those
who grow trees. (Sections 81 and l57).
The Courts.
The proponents of the constitution
point out as one Of its good features,
the unification of the courts of Cook
County. That may be a good thing
so far as litigation involving prop
erty of great value is concerned, but
it means a denial of justice to the