AFTERNOON SESSION.
The Senate resumed the consideration of the bill [H. R. 204 concerning taxation.
Mr. BROWN moved to strike out Section 51, relating to tax on "gift book stores."
Mr. SPANN opposed the motion to strike out.
On motion by Mr. LANGDON, Section 51 was referred to a Select Committee, viz: Messrs. Spann, Brown and Chapman.
Mr. YANCEY called up his motion to reconsider the vote by which two amenmendments and one substitute for the seventh subdivision of Section 8 was rejected on Saturday, the casting vote being given by the Lieutenant Governor.
This motion to reconsider was rejected by yeas, 20; nays, 26.
Mr. BELL saw unfairness in Section 53. The proper way to tax pawnbrokers would be to tax the amount advanced on pledges during the year, and he offered an amendment to that effect.
Mr. KRAMER failed to see any reason why this section should be retained in the bill.
Mr. SPANN suggested these men only advance about one-quarter or one-third of the cash value of property left in their hands.
Mr. CHAPMAN moved to strike out the section. It s simply the work of reiteration, as this section is covered by the provisions of another section.
Mr. MENZIES could see no reason why the section should not remain in the bill. Its purpose is to send the Assessor after a class of property that will escape listing, unless the Assessor's attention is particularly directed to it.
Mr. SPANN opposed the motion to strike out this Section 53. The bill would then leave a loophole for the escape of a large amount of a certain class of property.
Mr. CHAPMAN--It does not make any officer more vigilant to increase the bulk of a law; making it more unwieldly too cumbersome, and less liable to be understood. This section is applicable to every corporation or person who loans money on collateral. It is too sweeping an assertion to state that all who borrow money from pawnbrokers are thieves and gamblers--many in indigent circumstances pledge their property in order to raise a little ready money.
The great desideration in any law is to express its object in as few words as possible.
The amendment was rejected.
Mr. MARVIN moved to add to Section 3 a proviso that when any real estate has been specially taxed for the building of a free gravel road through the same, it shall not for the same year be taxed for common public highways also. He said page 83, Section 4, Acts of 1877, show what lands are taxed for that purpose, and page 87 show how much can be taxed in a year. While lands are being taxed year by year for free gravel roads, the same land should not be assessed the same year for other roads. It may be a hard task to regulate this so as to make it equal, but it is a new thing to allow the people to build free gravel roads in this State and justice should be shown to those thus taxed.
Mr. SPANN insisted the proviso would bring about confusion, and that those paying tax for free gravel roads have their lands enhanced in value by that kind of improvement.
Mr. MARVIN feared the putting of hardships on top of hardships on lands having to pay taxes for free gravel roads, and desired his amendment adopted in order to afford relief to this class of farmers.
page: 11[View Page 11]Mr. GARRIGUS saw no reason for releasing free gravel road land from assessments to aid in building other County roads.
Mr. URMSTON called attention to the fact that Sectino 3 simply describes what kind of property shall be taxed, and submitted that the proviso, being in the nature of an exemption, could not properly be attached to this Section, unless shown to be for educational, benevolent or scientific purposes.
Mr. FOSTER favored the amendment.
Mr. TRAYLOR thought the amendment should not be adopted.
Mr. KRAMER moved to amend Section 19 so that the production of a tax receipt or duplicate thereof shall be evidence of tax paid in another County. This section, without the amendment, would leave it discretionary with the Auditor somewhat, as to what evidence is given to show tax has been paid in another place.
M. BELL opposed the amendment, thnking the filing of an affidavit as required by the bill sufficient truth.
Mr. WOOLLEN suggested the tax receipt or a duplicate thereof be required in addition to the affidavit. He moved such an amendment
Mr. BELL insisted the section was well guarded. If the Auditor felt any doubts as to the affidavit he can require further evidence.
The amendments were both rejected.
Mr. Sayre moved to amend Section 19, so as to require the evidence to be both "written and verified."
He thought this amendment ought to be adopted because the section gives a good deal of power to the party interested, and if such power is to be be given it should be made to depend upon written evidence sworn to, in order that it may form a publie record for the inspection of the public, so that the power given may not be abused.
The amendment was adopted.
Mr. BELL moved to amend Section 54 by striking out the words "and the books of all corporations." The section provides for a species of inquisition that should not be tolerated. As this section now stands, any Assessor or Deputy Assessor would have the right to examine all the books of any Manufacturing Company or any bank in the State without let or hindrance. This would be dangerous.
Mr. MENZIES thought this section would prove a littel wholesome to corporations in this State. It thei books are all right and.straight, they won't object. This section is meant for corporations who are covering something up.
Mr. BELL--This attacks every corporation, private as well as public. Both ought to be compelled to pay their full quota of taxation, but they should not be subjected the inquisition proposed by this section. The present law furnishes a remedy for any refusing or who are suspected of not properly reporting effects for taxation, and books can, by due process of law, be brought out for proper inspection. No officer should be trusted with a blank floating search warrant of this kind.
Mr. WILSON did not think it right to presume that public officers will take advantage and abuse the powers granted to them. Every well-regulated corporation ought to have its books in shape so that any one can understand them at sight, and these smaller class of corporations should not object to an inspection to which the banks of this country are and have been subected to for many years.
Mr. CHAPMAN proposed a substitute restricting the right to examine book to the County Auditor.
Mr. MENZIES said the amendment would open a wide door for construction. It would give a right to go, upon a proper showing, and examine the books of a Telegraph Company. Now, there would be a contest as to the meaning of the words "a proper showing."
Mr. CHAPMAN should vote to strike out the entire section unless it is modified. If there is no right to examine books of individuals, there is none to examine the books of corporations for the purpose of bringing money into the coffers of the State. Justice should be done in all cases.
The substitute was rejected--yeas, 15; nays 29.
Mr. COMSTOCK offered a substitute authorizing the County Auditor, upon affidavit of the Assessor, that he believes property is not properly listed, to examine books of corporations.
Mr. WOOD said he was opposed to the substitute of the Senator from Wayne, and in favor of the section in the bill. The Assessor has a right under present laws, and by the terms of this bill, to search for property on every farm. They can hunt out every horse, cow, hog and sheep, and all the rye, corn and wheat in the barn. Why should not the Assesor have the right to hunt the intangible property of all corporations which is kept upon their books, and no where else? If they can hunt everywhere for tangible property to assess, why not examine all books of every corporation to hunt for all intangible property. All property should pay its full tax.
The substitute was rejected by yeas, 17; nays, 27.
Mr. BELL said the question was presented fairly and squarely whether an officer can be permitted without restraint to examine books. That this amendment is full of danger, no lawyer will dispute. Of so great importance has this matter been considered, that in almost every Constitution it is provided a person's property shall not be subject to unreasonable search. No petty officer should have the right to require all books of a corporation submitted for his examination at his own sweet will. No such outrages should be permitted. Suppose some Deputy Assessor, who has some spleen to gratify, or spite to inflict, takes up day after day in the examining of books for the very purpose of annoying, you can do nothing with him, for he is in pursuance of his duty under this section as it now stands. If an examination is wanted of private books, some affidavit should first be submitted to justify it.
Mr. BROWN regarded the words proposed to be stricken out as about all there is in the section. The constitutional provision referred to was not intended to prevent a rightful inquiry. While not approving of the section as it stands, he opposed a nullification of it. Where an invidual sequestrates his property, the law makes provistion. No such provision affects corporations or affect individuals. The section ought to be guarded so petty spite and malice should not be allowed to work out its ends.
Mr. COMSTOCK thought it apparent that the section was not in such shape as the Senate desires, and in order to a careful consideration he moved to refer this section and pending amendment to a Select Committee to consist of Messrs Bell, Brown, Spann, Wilson and Viehe, with a view of harmonizing the section.
Mr. Viehe opposed the amendment as well as the section as it stands. Corporations should be protected against unreasonable search, but this section evidently will have to be reconstructed before that can be accomplished under it.
The motion to refer was agreed to.
Pending the consideration of Section 59--
A MESSAGE FROM THE GOVERNOR
was laid before the Senate by the Chair viz.:
EXCUTIVE DEPARTMENT,
INDIANAPOLIS,
Ind., March 8, 1881.
Gentlemen of the Senate and House of Representatives:
The Constitution provides that the Governor shall, from time to time, give to the General Assembly information touching the condition of the State, and recommend such measures as he shall judge to be expedient. My official duties since my inauguration, during the late regular session, have been so onerous and your
page: 12[View Page 12]own opportunities to acquire a knowledge of the condition of the State through your Investigating Committees and through other means have been so considerable, that I do not regard myself as being possessed of any important information relating to the condition of the State of which you are not in possession also. Some of the measures which I had the honor to recommend to you in my inaugural address have been adopted. An adoption of the others has been proposed in pending bills, and they are now in a condition to be considered by you. I renew my recommendation of these pending measures. I specially urge the passage of the bill, with whatever change or additions may be deemed expedient, providing for ascertaining the best way of reclaiming the vast body of lands, the natural means for the drainage of which is through the Kankakee River. The important bill concerning taxation ought also to receive your early attention, so that there may be no failure to pass the clauses providing for taxing the receipts of Teleagraph, Telephone, Express and Fast Freight Companies, etc, instead of taxing merely their visible property.
The exigency which has rendered it necessary for me to call you together in special session could not well have been avoided. The extraordinary labor imposed upon you by your undertaking critically to consider the vast body of legislation proposed to you for adoption by the Commission appointed by the act of 1879 to compile and revise existing statutes has required you to occupy much time in the Committee Room and upon the floor in that work, which otherwise would have been spent in considering ordinary legislation.
Many important changes of existing law have been proposed by th Commission. It is proper that these shall receive careful attention, in order that they may, so far as they shall be adopted, not represent what is deemed best by the Commission merely, but reflect the deliberative judgment of each House. In the progress of the further consideration of these proposed enactments, amendments will doubtless from time to time be found to be necessary. I venture to suggest, however, with the most respectful deference, that hasty amendments will be not less likely to work harm than a too inattentive consideration of the enactments proposed. Even the Commissioners will not always be able to perceive at the moment their entire scope and effect, nor how far they may introduce inconsistencies and ambiguity, which will leave the meaning of the law uncertain until it shall be determined by the Supreme Court. There is a subject which at first view may be deemed of little comparative importance to which I wish to invite your serious attention. In referring in bills to the title of acts meant to be amended there have been frequent instances during the regular session in whch these titles have been recited incorrectly, and at some stages of not a few bills passages or words have been changed, the effect of which has been in some cases to alter or to obscure the sense, and in others will be to convey the idea to uninformed readers that the measure has been imperfectly considered. Such faults in laws are ever a fruitful source of litigation and of consequent expense. The way of avoiding them is easy, and is familiar to such of your members as have had previous experience in legislative bodies. It is earnestly hoped that a diligent effort will be made to finish the work which you have in hand within less than forty days, allowed by the Constitution for a special session, and that a constant desire will be felt to restrain expenses where it is not obviously proper. While not withholding appropriations where they may be necessary from the public welfare, it should be your constant effort to make the burden of taxation as light as it can be made, consistently with a wise administrationof the affairs of the State.
ALBERT G. PORTER, Governor.
The Senate adjourned till to-morrow.
