HOUSE OF REPRESENTATIVES.
FRIDAY, February 18, 1881--9 a. m.The following described bills were introduced, read the first time and severally referred to appropriate Committees:
By Mr. CARTER, for the Revision Committee [H. R. 389]: For an act concerning Churches [Where Church or vestry is neglected for two years, three persons shall have power to tak possession of the property and exercise the same authority and reorganize as the original vestry.
By Mr. WRIGHT [H. R. 390]: To amend Section 1 of the act of March 14, 1877, to provide for the distribution of the surplus dog tax in the hands of Township Trustees.
By Mr. McSHEEHEY [H. R. 391]: Authorizing the tax in Indianapolis for building a Market House.
By Mr. CHANDLER [H. R. 392]; In relation to promissory notes, bank checks and bills of exchange, and to designate the holidays to be observin the presentment, acceptance and payment of the same.
By the Revison Committee [H. R. 393], Concerning public offenses and their punishment. Read twice by title only and made special order for Thursday, February 24, at 10 o'clock a. m.
page: 202[View Page 202]By Mr. KENNER [H. R. 394]: To provide for the publication of legal and official matter in newspapers.
By Mr. WILSON, of Morgan [H. R. 395]: To establish a school for truant boys, and defining the duties of certain officers connected therewith; establishing rules for governing the same, prescribing penalties, etc.
Mr. FULLER [H. R. 396]: Regulating the mode of transacting business of foreign corporations doing business in this State, requiring deposit, appointment of an agent to accept process, and adding penalties for the violation of the provisions thereof, and fixing the fees of certain officers for the performance of service therein required, and declaring an emergency.
By Mr. MOODY [H. R. 397]: To fix the times of holding Circuit Courts in the Counties comprising the Thirty-fifth Judicial Circuit, and declaring an emergency.
By Mr. TAYLOR, of Logansport [H. R. 398]: To encourage the destruction of woodchucks. [Bounty of twenty-five cents.]
By Mr. FLOYD [H. R. 399]: Supplemental to the act of June 10, 1852, defining felonies and prescribing punishment therefor. [Keepers of ill-fame or assignation houses shall be punished by imprisonment--not less than one nor more than three years.]
Mr. Cummins bill [H. R. 135] to legalize certain acts and proceedings of the Board of Commissioners of Blackford County was read the third time and passed-yeas, 71; nays, 1.
ASSESSMENT FOR TAXATION.
The reading by sections of the bill [H. R. 204], concerning taxation, pending at the time of adjournment on yesterday was resumed.
Mr. RYAN moved to amend Section 169 as follows: The County Auditors of the several Counties of this State shall have power, and it is hereby made their duty to cause by open notice in writing, all agents, State and County, of Trust Loan, Insurance and other Companies organizations, partnerships and persons loaning money in this State, to report to him immediately after the 1st of April in each year, in writing, under oath, the amount of amounts of money held by any and all persons in this State by loans from the said principals, where the same is held, and the period of loan.
Mr. CARTER thought if this amendment prevailed every alien person having money loaned in this State would be taxed about 2 per cent. on the money in the State and 2 per cent. where they lived, making 4 per cent. In case they receive 6 per cent, interest they will have 2 per cent. left on their money, which is entirely too little. He thought it wrong for the House to legislate against capital; that if it were not for the corporations giving employment to the poor people and workingmen, they would be starving for the want of daily subsistence. He thought it time that the House should stop in this matter, and hoped the amendment would not prevail.
By Mr. FALL: Thousands of dollars are brought to this State, loaned out without any tax upon them at all. They avoid the asssessment of tai in other States where they live, and under existing laws they avoid it here.
Mr. RYAN--The purpose of this amendment is to enable the proper officers of this State to tax such capital as is not otherwise taxed. Any man who has done business in connection with a public office knows that at least one-fourth of the capital in this State escapes taxation. Why? Because it is covered up by, these mortgages--Loan Companies--in such a way that the money is taxed at home where the stockholders reside, and not taxed here. The officers have no means of arriving at the truth of their statements. The result is that the bulk of the capital escapes taxation. This provision does not require a person to pay taxes twice, but merely reaches such capital as has not been otherwise taxed. There is no reason why this money should not be taxed upon the same principle that you tax the land upon which the mortgage is made. There is no harm in this amendment anywhere, and it may do good. This amendment is in the interest of the people and not against the legitimate interests of capital. I hope it will become a part of this law.
Mr. KENNER said the only thing he could see in the gentleman from Delaware (Mr. Ryan's) amendment was that the officers would be enabled to know whether these mortgages were taxed or not. He hoped the amendment would not prevail, as it sought to tax the property of other States, and moved to lay the amendment on the table.
The motion was rejected.
Mr. FLOYD said these corporations are protected by the laws of the State. They come among us for gain and for that reason they ought to be taxed.
Mr. HUSTON thought the tax should be paid where the evidence of the indebtedness is made and hoped the amendment would not prevail as it is pernicious and would have a tendency to lessen the supply of capital.
Mr. RYAN thought the amendment was either not understood or misinterpreted by the gentlemen attacking it. It is not the purpose of the amendment to tax capital in Indiana that is already taxed in Ohio or elsewhere. The amendment contemplates no such thing, but simply provides and imposes a method whereby the Auditors of this State may cause such an investigation to be made as to enable them to determine whether or not there is any money invested in their Counties and imposes no other liabilty. There is no desire to load capital beyond what it should bear, and it should bear its equal propotion of taxation.
Mr. MOODY--I hope this Section proposed by the gentleman from Delaware (Mr. Ryan) will not meet the approval of this House. I am surprised to find gentlemen who voted with me, and, by their manly courage, their eloquence, and devotion to justice, favored a reduction of the present rate of interest in this State, favoring a law that seeks to impose a tax upon the very money we do, and should invite to come and remain among us in order to make possible a low rate of interest. Honorable gentlemen on this floor say that capital needs no protection, and that they believe in protecting the laboring man. So do I, Mr. Speaker; but do I do so by following the blind zeal of a man or a class of men who can offer nothing better in support of proposed legislation than abuse of men and corporations who simply seek an investment of their capital in our State. I believe, rather, Mr. Speaker, in appealing to the common sense of men, and asking them to apply the same test to this question they do to all others. If I understand the gentleman from Delaware, this section proposed by him as an amendment to the law seeks to impose a tax on all money loaned by any person, partnership, corporation, association or organization, resident of any foreign State and loaned in this State. This tax, if imposed, can affect but two classes of men, the lender and the borrower, and the higher the tax the higher the rate of interest necessarilly must be. It seems to me that this question is easy of solution, and may be comprehended by any one. If you tax the notes and mortgages of a man who lives in the State of Ohio and has loaned his money to a citizen of this State, you say directly to the borrower, and not to the lender: "You must pay the tax thus imposed upon my money by the Legislature of your State." I believe Mr. Speaker, that this section is not in the interest of any man and will serve no good end, and I am therefore opposed to the amendment.
page: 203[View Page 203]Mr. GIBSON favored the adoption of the amendment because he thought it right that capitalists of this country ought to stand on the same footing as capitalist of other States.
Mr. WRIGHT: I can not see that the amendment can do any harm. Section 19 specifically provides that if a person assessed can make it appear to the Assessor that he is held for tax in another State, County, Township or city, he shall not be again assessed for the same year. The amendment simply authorizes the County Auditor to call in and examine under oath, persons loaning money in this State. I do not believe, sir, that any member upon this floor has any doubt bu that thousands of dollars are loaned in this State not paying a dollar of tax in this or any other State. You talk about the array of capital against labor. Let me tell you, there is no danger of a conflict between capital and labor in this country, so long as capital restrains itself within proper bounds. I tell you that the American laborer is the most patient soul on this earth, and will put up with his position until it becomes unbearable. The American laborer is satisfied capital is an aggressive thing that will impose upon the rights of the people. I hope the gentleman's amendment will pass. I have no fear as to the condition of capital. Capital upon this globe has always had the best of it. The maxim of every American statesman in a Republic like ours is: "Take care of those who are least able to take care of themselves." [Applause.]
Mr. MEREDITH said, after consideration of the bill, he thought if the interest of the community were properly considered that the bill as it now stands is in the best shape for getting the entire amount of tax that can be got from the property of the State, justly due, and, therefore, was opposed to any amendments offered.
Mr. LEE thought every man in Indiana ought to pay his taxes. This bill making provision for that only, he could not see why any member should oppose this amendment.
Mr. TETER--It appears to me that this amendment is wrong in theory, false in logic, and bad in the consequences. For reasons, I will simply refer to the gentlemen who have already spoken. I am opposed to the amendment.
The amendment was adopted.
Mr. RIDPATH, (Mr. ----in the Chair), moved to amend the bill by striking out Item 22, Section 77, being the words "Every annuity and royalty, and description and value." He gave as the reason for so doing that the item would be inoperative after the adoption of the amendment as made by him on yesterday.
Mr. MILES was opposed to striking out this clause, as there many persons who had patents and copy rights, and owners of coal mines, who are receiving royalty for the whole mine, and there should be some way of reaching them.
The amendment was agreed to.
Mr. RIDPATH moved to strike out item 30, being the words "number of melodeons and organs and value."
It was agreed to.
Mr. RIDPATH moved to amend by inserting the words "and other musical instruments" after the words "piano fortes," in item 29 of the schedule.
It was adopted.
Then the House took a recess until 2 p. m.
AFTERNOON SESSION.
Mr. HUSTON moved to amend Section 77 [in relation to real value], bynserting "And I further swear that all bonds, securities, etc., that I held on the first day of April last, that were by law exempted from taxation, were my absolute property"
Mr. HUSTON thought if a man on the first of April possessed Government bonds or Treasury notes, that the law of the United States exempts, and he makes oath to that effect, he most certainly would be entitled to the exemption. He hoped the amendment would prevail, as it avoided misunderstandings between the Assessor and the party assessed.
Mr. COLE interposed an objection to this amendment, as its object was to prevent the assessment of property belonging to persons who would convert the same into greenbacks about the time of assessment, thereby avoiding tax.
The amendment was rejected.
Mr. WALKER moved to amend Section 167 by striking out the words "alphabetically arranged" and insert "arranged by Township, cities and towns."
The amendment was adopted.
Mr. BUSKIRK moved to amend Section 73 by inserting after the word "therein" the following: 'Which return shall be prima facia evidence of the facts therein recited."
The amendment was adopted.
Mr. MURRAY moved to amend Section 121 by striking out the word "County" (residing in his County), and insert the word "Township."
The amendment was adopted.
Mr. MURRAY moved to amend Section 136 by striking out the words "Cause the Assessor of the proper Township to assess and return;" to insert in lieu the words, "Assess and apportion."
It was agreed to.
Mr. MURRAY moved to amend Section 140 by striking out, in line six, the words, "County Treasury," and insert the words, "Township Assessors."
Mr. THOMPSON favored the bill as prepared by the Revision Committee, that is, to leave the power of equalization in the hands of the County Commissoners and Trustee, and not transfer this power to the Township Assessor.
The amendment was adopted.
Mr. CAIN moved to amend Section 180 (concerning the redemption of personal property) by striking out all after the word "with" in line 6, and insert in place thereof "'20 per cent. penalty."
Mr. WALKER moved to amend the amendment by making it 10 pr cent.
The amendment to the amendment was agreed to and the amendment as amended was agreed to.
Mr. CARTER moved to amend Section 181 [pertaining to redemptions] by inserting after the word "Companies" these words: "Except National Banks and Building and Loan Fund Associations."
The amendment was adopted.
Mr. WALKER made an ineffectual effort to have this bill [concerning taxation] postponed to Thursday next at 2 p. m.
Then the House took a recess till 7:30 p. m.
NIGHT SESSION.
The bill [H. R. 204], concerning taxation, (containing two hundred and ninety odd sections), was read the third time. Numerous amendments were offered and placed on file to be considered when a Constitutional quorum shall appear.
Then came an adjournment.
