Jasper County Democrat, Volume 1, Number 25, Rensselaer, Jasper County, 1 October 1898 — STATE DEBT FINANCIERING [ARTICLE]

STATE DEBT FINANCIERING

Democracy Has Saved- Hundreds of Thousands ofj Dollars to the Taxpayers of Indiana.

BMkmi CwponUwM, Expreas Cmb*mlm awl tkm Wealth; Oomk |o Bar Their Share of the State’s Bardeae Under the Beasaeratle Tea lea

The financial condition of Indiana prior to 1891 waa a aocuroe of alarm to Its thoughtful citizens, a condition resulting from the simple fact that the flnanouJ resonroas of the state ware not utilised. Taxation was not only unequal to expenses, bat was grossly inequitable, not only because assessments were greatly below oaeh values, but in addition failed utterly to reach millions of property which contributed no revenue at all to the state. To remedy this evil and thereby secure ample revenne to pay tbs expenses of the state government, and reduce the foreign indebtedness of the state, was the prime object in view when the Democratic leglike tore passed the act’oonoenting taxation, approved Maroh 6, 1891. It is not required that the numerous provisions of the law should be either mentioned or discussed in this connection more than to my that the revenne power of the law provided for the finding and tire aeeeeament of the property of the citizens of the state at its •’true value”—and the provision of the law to enable the assessor to ascertain the closest approximation of “true values” and the act went into effect "from and after Its passage.” To show the immediate benefits accruing to the state by the enactment of the law by a Democratic legislature, the following official figures are submitted, giving taxables in 1890 and in 1891, and showing that under the operation of the Democratic revenne legislation taxables increased $434,966,800 as follows: Increase from 1890 to 1891, $697,081,651; from 1891 to 1892, $12,182,027; from 1892 to 1893. $84,873,185, and from 1895 to 1896, $6,590,706; a total of $451,226,069. For the yean 1894 and 1896 the taxables on the duplicate decreased $16,259,719. leaving a net increase over 1890 of taxes amounting to $434,986,850. The abstract of taxables for 1897 and 1898 has not been published, hence any gain or loss that may have accrued is not included. In 1890 tite rates of taxation upon the three principal items of revenue were as follows: General fond, 12 cents on the. $100; state school. 16; benevolent institutions, 6; total. Si These were the rates for 1891 and 1892. In 189$ a reduction of rate was made, as follows: General fund, 10; state school, 13i£; benevolent institutions, 5; total. 28 ; total reduction. oents on the SIOO. These rates prevailed for the years 1893 and 1894.

In 1895 the rates of taxation ware for* ther reduced, as follows: General fond, 9 cents on the 9100; state school, 11; benevolent institutions, 5; total. Si. And these rates have prevailed for the years 1895, 1896, 1897 and 1893. The taxables for the year 1890 amounted to $887,674,887. from which the revenue on (brae items named amounted to #8.846,093. In 1891 the taxables amounted to |l,855,256,088. the rate of taxation being the same as in 1890, bnt the revenue derived amounted to 94.967,870, a gain over 1890 of 91,419,77 a Jn 1898 the taxables amounted to |l,867,488,065, the rates being the same as in fB9O and 1891. The amount of revenue derived to 94,809,389, a gain over 1890 of |1,461j197. In 1893 the taxables amounted to sl,802,810j850. In this year the rates of taxation had been reduced on tKe three items named to oenta on the 9100,. a redaction of s){ cents on the 9100. The revenue derived amounted to IS,711,584, an excess over 1890 of 9868,492, notwithstanding the redaction of the rates. / ' In 1894 the taxables amounted to 91.* 895.106.415, the rate bring the same as in 1898, and the revenue amounted to 98,691,068, exceeding the revenue of 1890 9748,461. In 1895 the rote of taxation was still farther tednoed on the three items upon which calculations are based to 86 oenta on the 9100, a total reduction since 1890 of 9 oents on the 9100. The total taxables of 1805 amounted to 91,286,050,531, and the revenue derived amounted to 93,916,196, an excess over 1890 of 9337.014. The taxables of 1896 amounted to sl,898,311,887, rates of thxation being the auueaffln 1896. The revenue amounted to 93,281,808, an increase over 1890 of 9978.511. As has been stated, there are no official duplicates for 1897 and 1898, bat It is assumed that the amount of taxables jr these years is equal to 1893, hence the revenue derived by the state in 1897 would show an excess over 1896 of 8878,511, and for 1898. 9878,511. The figures thus show that the new revenue law passed JRr the Democratic party has addod to the revenue of the state as follows: is»i •l'sto.’m IMS .* 1,461,107 16M 863,49* 1694. 748,461 IMS 367,014 IM6 376,611 1667 878.311 ISM 876,311 Vital sMIHm ta itwsM.. 53,*66,473 The finking fund law passed hr a

ftemocratio legislature levied a tax of 8 cents on the SIOO and went into operation in 1898. ▲seaming that the tax duplicate for 1897 and 1898 will be in amonnt equal to the duplicate of 1896, the revenue derived from the sinking fond tax will be ss follows: 1893. *1,309,310,950 0890,693 1994. 1, *93,106,415 998.591 1995. 1.999,050,581. 885,818 1889. 1,999,e«1.95T. 991,799 Aaaam’d 1997. 1,999,641,937. 897.799 Assum'd 1999. M99.841.a57. 887,799 Total from Sinking Paid.. *8,898,415 Total Increase of Revenue . 5,989,475 Brand t0ta1..... *8,817,899 In this is seen an increase of revenne almost equal to the foreign debt of the state in 1890. In 1890 the foreign debt of the state amounted to $2,546,615.12. It now amounts to $3,816,615.13, showing a redaction of $3,330,000, every dollar of the rednotion bearing irrefutable evidence of the wisdom of Democratic financial legislation. Hon. J. O. Henderson, auditor of state, in his report of 1892, takas occasion, in giving the figures showing the immense benefits accruing to the state as a result of Democratic financial legislation, to say: "The first year’s operation of the new revenne law-has vindicated the wisdom of its passage a thousand fold, and the wholesome results attained proclaims it at once the most equitable and the soundest tax measure Indiana has ever known. For the first time in the history of the state the burthen of taxation is fairly and equitably borne. For the first time in our history tax dodging is not only disreputable, but a losing business. Indeed, an Impossible business if the taxing authorities possess the ability, courage and honesty to do their whole duty. Under the powerful search light of the new law, property sequesters cion is both a dangerous and a difficult thing. "Never before in the annals of the state has corporate wealth been compelled to bear its just share of the public burden. "Today the dollar of the rich man, of the hank, of aggregated capital, is compelled to contribute to the publio treasury equally with the dollar of the humble citizen. "The new tax law is founded on the sound doctrine of honest, fall value appraisement. One dollar is taxed at 100 cants, whether it be invested in lands, prod note, hank capital, factories or luxuries. "Under the benign ministration of this measure millions upon millions of •property heretofore sequestered has been placed on the tax duplicate. ” And tills additional property, as the tax dnriicates show, aggregates $434.966,850, and thus the revenue derived from it amounts to $5,989,475. It was this measure that at onoe solved the financial problems which confronted the state. It emancipated the state from its financial trouble and gg and substituted confidence for It was as Ur. Fairbanks said at Fort Wayne, a "Democratic measure” evincing that the Democratic party had clear conceptions of the supreme needs of the state and the ability to afford the relief required. This eminently wise and indicioas revenne law which Auditor Henderson said in his report bad "vindicated the wisdom of its passage a thousand fold” was vindictively opposed, from its incipiency, by the Republican party and this opposition has been maintained at every step sinoe 1891 to the present time with the partisan zeal as blind as bigotry and as relentless as corporation greed. £stt evident hi the implacable h<£» tility to just and equitable assessments and taxation, it is only required to produce the declaration of G. W. Fairbanks.

On June 88, 1899, one year subsequent to the time when the new Democratic revenue law went into operation, the Republican party held its state convention at Fort Wayne, and the Hon. O. W. Fairbanks, now United States sentor, presided over its deliberations, and upon accepting the honor of the position conferred upon him, made a speech in which he referred to the new revenue law passed by a Democratic legislature. The present, in the light of all. the facts, makes the reproduction of the remarks of Mr. Fairbanks strikingly opportune, because they bring into tin boldest possible prominenoe the well founded belief that his railroad investments and his large fees ah a railroad attorney prompted his hostility to one of the wisest laws that ever found a place upon the statute books of the state. In the oonrse of bis remancs, Mr. Fairbanks said: "The people of Indiana expeot as to relieve them from the cTnel and nnjust burden imposed upon them by the Democratic tax law. "They well understand that whenever Democracy has been invested with power in the state, the debt has been increased until the harden has beoome unbearable. ' < "They have no oonfidenoe in Democratic financiering, and well founded is their distrust. "The creating of a defit in this rich and splendid state of upward of 99.000,000 is a flagrant aboss of power. "The people will always loyally support the state and pay the taxes necsksary to defray the expenses of the government honestly and economically Intax law M a

I- W - „.-r '\'*4 4 # .. «? '* ■ the finenctal credit of &« state. "The state was running in debt at the into of nearly $600,000 per annum ••The eastern holders of the beads demanded that* Interest when it wm due. “Current expenses had M be met, and the Democratic legislature passed the present tax law ss the best expression of its financial wisdom. "I misinterpret the signs of the times if the people do not repudiate the law and the Democratic party at about one and the same time in November next. "No law ever retted more unequally upon those who should bear the burden, than does this. "The people already heavy laden with unjust taxes are compelled to submit to additional exactions. "Farmers have been compelled to pay on their farms and improvements, and householders on their lots and houses beyond all reason and right, all of which yon should remember is the enforced tribute of the Democratic party. "How long will tiw patient people endure these things? "How long will they elect Democratic members of the legislature who do not possess the discriminating ability to plaoe the financial affairs of the state on a brood and conservative basis and who will not more carefully legislate in the interest of the people? Too much money is wasted in profligate and expensive administration of this state. "The people are paying too dearly for the privileges they enjoy, but so long as the Democratic legislature Is in authority they are powerless.to escape. "There is one way to core the tax law, and that is to radically revise It "The inequalities oan be effectually removed in that way. - "And it should bo so revised that it will effectually relieve the farmers and householders from the present grievous burdens so unjustly imposed.” Mr. Fairbanks manifestly drew his inspiration from his corporation association and hi* desire to render them service by dodging taxation. Nor was the convention, over which he presided, more fortnnate in its declaration. It sought to secure the friendship of those who for years had sequestered the taxables, and declared: "We arraign the Democratic party of Indiana for enacting an unequal and unjust tax law.” The declaration of the Fort Wayne convention and the speech of Mt. Fairbanks constitute a remarkable blending of stnpidity and enpidity, for which Republican platforms and Republican speakers have won a wide recognition. Nor is the impudenoe of the party less pronounced, for now they are claiming to have redooed the debt of, the state, but in so far as it has been redooed, Democratic legislation has supplied the means by which the redaction has been accomplished. This fact is clearly shown & the official figures already produced, hot in view of some of the declarations of Mr. Fairbanks, it seems expedient to add a few more official figures to still farther demonstrate the wisdom of the “Democratic tax law.” This Democratic tax law, which Mr. Fairbanks denounced in his Fort Wayne speech, and which he declared had imposed “unjust hardens” apan the people, sought first, to find "the true oasis value of property,” and second, to find millions of property in the hands of corporations, which paid no tax at all, and plaoe it noon the tax duplicate. These laudable purposes were attained and 09 injustice was dona any citizen of the state. Mr. Fairbanks declared that the people of Indiana "have no confidence in Democratic financiering” and this, he •aid, at a time when "Democratic financiering” had added to the tax duplicate, taxables amounting to $397,581,551. His inordinate partisanism so distorted his vision and perverted his judgment, so incapacitated him for stating foots regarding a measure relating to the welfare of the state, that to gratify his implacable hostility to the Democratic party, be beqame one of the most blatant enemies or Indiana, and this, too, not because the tax law worked any injustice to any citizen of Indiana, but b&Suae the Democratic tax la w, by inaugurating righteous proceedings, unearthed millions of property, the owners of which were sequestering. This tax appears from fhslicord. The tax law placed upon the duplicate at once railroad property of the state, amounting to $94,832,874, which previously had escaped taxation, and it is well understood that this act of justice to the people was the cause of Mr. Fairbanks* hostility to the "Democratic tax law-” Since 1890 the "Democratic tax law” has diwovered and pat upon the dnplicate, bank property to the amount of $1,263,651. It has discovered corporation property amounting to $623,800 and telephone, telegraph and express property amounting to $5,-249,092, a total of $7,029,548, and if to this sum is added the railroad property that had escaped taxation, $94,832,874, a sum total of $101,862,417 Is placed to the credit of the state and to the wisdom of the Democratic party in shaping financial legislation. . Bat now, when Mr. Fairbanks and the Republican party dare not mention -the “Democratic tax law” to oatoh the vote* of farmers or practioe duplicity upon the rank and file of the people, when under the operation of the "Democratic tax law” and the sinking fnnd law, the debt of the state Is disappearing, Fairbanks and' the Republican party, with ijnpndenoe as thiok as the armorplate of a battleship, are claiming that the Republican party is reducing the debt of the state, when if Fairbanks and the Republican party oonld have had their way, the financial affairs of the state would be in a more deplorable condition than in 1890. Republicans joyously refer to William Jennings Bryan as a "dead politician,” bat they wifi find him, A. D. 1900. the iiveel oorpee they ever saw. Mark Banna, tit# bow corruptionist, MiU maintains Ms petition of bosom Mend and boo* oompantoa of Major