TIE SUNDAY OHEGOXIAX. TORTLAyP. SEPTEMBER 24, 1911. ' , .
1 : " " 7 i
FALLACIES OF
PT MEXRT E. REED.
THB delusion and fraud underly
Inc the so-called "single-tax"
programme with -which Orffon
I threatened, ir abundantly Illus
trated by the Clackamas County WU
which l.-Ren Is endeavoring to have
submitted by Initiative petition In ml.
tinder the constitutional amendment
adopted In November. 1I0. authorising
counties to pass local li regulating
lasatlon and exemption. Laat Friday
tne Attorney-General of Oregon ruled
out the. Clackamas County petition,
presented by I "Ken and other Hectors,
on the ground that the constitutional
amendment abore referred to l not
effective bcaM necewary """""
has not been ensc'ed. but I h"
announced Ms determination to brinx
mandamus proceedings for the Pn
of getting tha CUcksmss County lsa-
on tha ballot
I-Ken s bill. It Is ssld. ha-
orsed by tha Oregon 'ns';J"
t.e.ue. who., officers are: I re. dent.
K. S- J McAllister: : r
George M. Orton: treasurer H. .
Stone: aecretary. W. 81 Ken Tha
bill is full of snares and pltfa Is. tha
effect, and perhaps the Intentl.m of
. hlch Is to mlsl-sd the voters, in full
It la aa follows. Including "a title.
a nu.u
?, a loc.l law f-r t. rounty of C.a-a-
I. mpl Irom laaatlm an
the iirproinBis thereon. and
from ! d v.iu. of public ."vie.
,oreoc..l -a fr.n-hlsea and "'"'
l. It .cel. 4 bjr th- peop.e of lh l.
f and of th- rouotr of I
-lina I. That all bua I . labor. lr.a-a.
i . n 1 ih rich! to
ro.-la.-l. -ork at r pr.cllc. II..
..: f.rm. .1 p.rnn.l prnp.nr: and a! lm-p,-m.al.
on. In and nn.Ur all leads
P
hill
t. and h.r.hjr
are .empi-d from
l-x-l-Ml f"r any pui-po-e wllhln Clack,
t .unir. and la lmprne-d
rkamaa
upon
n r tra.l.. latr. - -.- -----
P'of.aai-n w-i-l of a IK-e-en
or Ih. e.rrle of th. police po r
a.wt countr. bl In application o II-
..r.. and P-rmlla thla Intrn.Ud only
to prev.nt Ih. l!l f revenue from
...h Kel and pr-nlla. and to parv.nl
ria.-tlna of f"a thrr.for r.at.r th.n l"
c- of uaulna the permit or ilcnee. and
ta not Ini.ndrd to impair tha pollca poa.r
u I h. countr. cliy or aiale.
M I All tai.a within rlarham.a
I'nunl V ah. II be l.vkd on and coliect.d from
in. aae.aad valuta of all lan.la. aat.r p--era.
d.p."lta. natural irovlhl and oth.r
natural iVaourcea. and on and from lha aa
a..d va.u of public a.rvl- corporation
fiaa--nle.a and rlahta of war. Thla art
not a-t corporation llr.ne. fa ana
tah-rttanre lam.a coliect.d directly br the
a'at. nr au. h lanrta as are oad on.v for
municipal. e.lu.-atlonal. Ilt.rmrr. arl.ntinc.
rrttatoua or charltaole purpoa.-, already ex
empt from taiatloa by law.
tna need not ba deeply irersed In
tha principles of political economy to
aee throuh thla palpable Illusion. Tha
Idea of taxation which It seeks to foist
upon Clackamaa County, and ultimate
ly upon all of Ores-on. was that pre
vallms: centuries aso In Knme simply
to obtain the necessary revenue with
out much repard aa to where tha tax
falls, or tha Interest of tha producer,
consumer or trailer. Only tha end Is
considered and not tha means.
Ikeatrex-tlve K.cce .rawt.
I.Ike tha Arablat movement In Ksypt
befora Knsland assumed control of af
fairs there, tha bill poasesses area:
destructive force, but haa not within
Itself tha elementa necessary for the
conatruetlon of anythln endurlnc. If
enacted Into law throughout oreon
It will fill the coffers of tha state and
the pockets of Its servants with the
, plunder of the people: tha soli will de
teriorate from the neclect of those who
anoul-l till It: there will be conflicting
assessment of property In tna sever aJ
parta of tha atate and consequently a
vast amount of double tsxatlon: In
dividual Inducement to acquire wealth
will be diminished, and the entire atata
will be thrown Into financial confu
sion. .
Kulnoua competition will arise be
tween countlea In the matter of local
legislation for the assessment anJ tax
ation of property, and possessors of
Urite Incomea will change their resi
dences from one county to another in
order to be able to make their returns
wherever the law may happen to be
moat favorable to them. It la almost
Impoeatble to estimate the bad effects
of auch lea-tslatlon. so vast and wide
spread will they be.
mprnr KseaspleeL
The term "exempt." aa uaed In the
ITten bill, la put there for no other
purpose than to befuddle, aa were the
words "poll tax" In the constitutions!
amendment of 11. under which the
f Ken bill la now proposed. Last No
vember the electors of Orea-on were
led Into adopting lha onatltutlonal
amendment upon the aupposltlon that
they were abolishing and forbidding
the poll tax In Oregon. Now another
attempt la to be made In Clackamaa
County, and perhnpe In other counties.
t.i fool the electors, or aa many of them
as can be fooled. Into believing that
they are going to get a privilege de
nied to nearly every one else, to wit
-exemption'" from certain kinds of tax-
The confused atate of the eo-called
-single tax'- mind Is shown by the
Jutslins of this word "exempt." l"Ren
and his colleagues could not pull the
wool over the ees of the voters by
expressing real mesnlngs In straight
forward Kngltsh. so they make a prom
ise under the name of "exemption
which they never will be able to de
liver. . .
An -exemption." as understood by
the principles which govern taxation,
mens freedom from a burden or the
taking of property for Government
purposes to which other classes of
citixens are liable. Thus. Jr"Pr''r
within certain llmltatlona defined by
atatute. owned by rellgloua. educational
and charitable bodlea la exempt from
taxation In Oregon, while similar prop
erty owned by other classes of cltl
sens is fully tuxed. Such l exemption,
vure and simple. But where an entire
class of propertv la exrluded from pri
mary taxation, aa C Ken proposea In
his bill, no person Is liable; therefore,
there la nc exemntlon,
What l" Ken and hla assoclstes are
undertaking In Clackamas County Is to
-exclude'- certain classes of property
from taxation, and not to exempt them.
nd if he ahall aucceed In excluding
these clssses of property at which he
ta aiming, he will by the Inevitable op
eration of his own messure. Increase
disproportionately the burden of all
property remaining subject to taxation.
Maale Tarn Beally Oaakle Tax.
f'Ken end hie colleagues are mas
aueradlng aa -single lasers" when In
-act they are nothing of the aort. They
nave no right to call themselves a
single tax league." If the Clackamaa
County measure represents their Idea
of a -alngle tax." The pure, unadulter
ated -single tax," as explained by Al
fred IX Crldge. In The Oregonlan of
July t laat. takes the full annual rental
of all land for Government purpoeea.
and there must be no other contempor
ir.eoua tax. uch. also, waa the theory
of Henrv George. Sr.. the father of all
the undenled modern alngle taxera.
Hr George drew hla Inspiration frrrm,
French economists of tha lSlh century,
who held thst sgrlculture waa the only
productive employment, and that the
net product from land to be found In
the handa of the land-owner was the
only fund from which tsxatlon could
draw without Impoverishing society.
As Mr. Crldee ststes the proposition,
il i'..orse. Jr stated It In the
Jiatltmai House of Representatives last J
T.
... Im urnir.lli nil ow.
t-.-e le.Wd and collected
rk.mu County ahall and col-
l-,4 rn. Id. a-eea-d alu-a of land
' . ..rural reaourres. Bparat. from
June. Shearman, who wrote a book on
-Natural Taxation." which Is the main
guide for all our local "single taxera."
repudiated the acheme of George. Br.
to take the full economic rent, as a
"full and rather forced .measure of
taxation.'- George, who knew. what he
was writing about, called his acheme
confiscation.
I'Ken. knowing that his spurioua
"single tsx" bill. If enacted, will not
begin to meet the expenses of Govern
ment, and that other claasea of prop
erty must eventually be trenched upon
to make good sure deficits, judiciously
retalna corporation license fees and
Inheritance taxes. seems popular
nowadaya to stick the corporations,
and aa for Inheritance taxea or death
dues, what rlghta have the wldowa
and orphans that the "single tax
erhool feela bound to respect.
What - sort of a "single tsx
law is la that seeks to tax the
land for all the expenses of Govern
ment, and atlll exposes to taxation In
hrrltancea Involving land which al
ready paya a land tax and will continue
to do ao if the V Ben bill Is enacted for
Clackamaa County? .
There are other forma of taxes which
l-Ren and hla "single tax" league can
not reach If they would. An Important
one of theae la Federal taxea for the
support of tha National Government,
which take the form of corporation
and Internal revenue taxea and tariff
dues, with Incomes taxes coming on.
The "single tax" league cannot exclude
theae Federal taxea from Clackamaa
County, or anywhere elae. by Initiative
or by any other proresa. unleaa It ta
i.kn.r th.n the Government of the
I nlted States. So long as any other
form of taxation. Federal or local,
falls upon the people of Clackamaa
County simultaneously with the spuri
ous -single tax." thera cannot be the
pure and undented single taxation.
Fallacies Are Told.
There cannot be even the equal and
uniform application of the so-called
land value tax. There cannot be any
thing but double taxation, fraud and
confiscation. ITBen and his assoclstes
are strictly speaking double taxera snd
they should csll their organisation
-The ivouble Tax league." and not
the "Single Tax League."
An Important point which the Sin
gle Tax League" loses sight of Is that
If Clackamas County, or the state of
Oregon, or every state In the t nlon.
should entirely exclude from local tax
ation every vestige of personal prop
erty within their respective Jurisdic
tions, such property would still be sub
ject to heavy and disproportionate tax
ation. If all local taxes should be
concentrated upon land, all National
taxes would fsll upon personal prop
erty and In the long run tha owner or
personal property would b. worse oft
than he could ponslbly be. under the
present general property tax. with all
Its defecta.
Then arain. as shown conclusively
by John Icke In his book "On the
Standard of Value." published ""'"
before Adam Smith wrote his 'Wealth
of Nations." If all lands were nom
inally free from taxation, the ownfra
of lands would proportionately pay
more taes than now. because the same
amount of money must continue to be
collected In aome form, and the aver
age profile of lands would only be
equal to the average profits of other
Investments: and further, that the ex
pense and annoyance (annoyance belna
another form of expense would be in
creased If the tax were exclusively
levied in the flrat Instance upon per
sonal property; and hence the land
owner would be burdened with his pro
portion of the unnecessary expense and
annoyance.
Locke ahows that government-may
change the form of a uniform tar. but
cannot change the burden, and that
the change will increase the burden
If the new system Is more expensive
than tha old. Nothing Is plainer than
the fact that the "single tax" system
proposed by lRen will be more ex
pensive than the old system.
Hill Braaea Fraud.
The most braxen fraud of the tTRen
bill la the pretended -exemption." or
exclusion, of all property and bustnesa
from taxation In Clackamas County,
with the excepttona enumerated in the
measure. Concentration of all taxa
tion In Clackamas. Multnomah or any
other county upon land valuei alone,
and exclusion of practically every
other class of property. Is a thing
which f'Ken does not have It within
his power to give: the Leglslsture can
not give It: the peopln. strengthened In
power ss they are with the initiative,
referendum, recall and other attributes
of modern government, csnnot give It:
It is a thine which Is not within the
gift of any man. set of men or lesgue.
So long as the National Government
shall endure, there will be direct and
Indirect taxes for the support of that
Government: there win re moireci
taxes In the form of tariff dues for
revenue or protection, or both; there
wilt be. aa now seems likely, direct
taxea In the form of taxation of In
comes from whatever source derived.
All these tsxes. and all other taxea.
whether levied by National, state, coun
ty or city government, will be passed
on to the people by the law of dlffu
lon. and by the people paid. l"Ren
cannot stop these taxea. No man can
atop them.
All our "single lexers" overlook de
liberately, or through lack of knowl
edge, the taxes to meet the ordinary
expenses of the Fnlted Ktatea Govern
ment, known as Federsl taxes. These
are now largely collected through tar
iff dues and have ranged from 137.27
per capita In 1 to ti 01 per capita
In In 110. these Federal taxea
were fT.lo per capita, and Oregon-!
ahare on the basis of i7I.75 popula
tion was about f4.s00.000. Multnomah
County'a ahare. on the basis of ijt.
;l population was about ft. (30.000. of
which amount. Portland with I07.2M
people, stood for nearly tl.S13.000.
"Single taxers" as a rule make little
allowance for these taxes when thsjr
aae achemlng to overburden property,
although they have to be paid by the
people. It seems hard to realise that
the Federal Government tapped the
state of Oregon for well on to 13.000.000
In the census yesr 110. yet here are
the figures snd they are approximately
correct. While the Government taxes
are not levied per capita, their Inci
dence gives them the effect of a per
capita tax.
Federal Taxes Heavy.
Mr. Crldge. In his letter to The Ore
Ionian of July 7. lsst. frankly admits
that on account of Federal taxes, which
he says are the "heaviest of any sin
gle Item of all our many taxes," It
would be "Impossible for the people of
Oregon to establish the absolute sin
Hi. tax." Internal revenue collections
In Oregon for the year ended June 20.
Ull, Including the Federal corporation
tax 'authorised In 1J09. were a little
Bhort of $1,000,000.
Caver-ame at Tax aa Incomes.
. On top of all our taxation, we are to
have a Federal Income tax. as provided
by the pending lth amendment to the
Constitution of the I'nlted States. Thla
amendment haa- already been ratified
by SO of the states and will probably be
adopted within the next two years by
a aufflclent number of additional states
to make It a part of the Constitution.
It Is as follows:
Artlole XVI. The I'oBrrm shall hava
power la lay and ro.'l.ct taxrs on Incomes
from vhat.-t.r source derived, without ap
poxtioamcai amB4 the awvaxal aiaiae aad
SINGLE
without regard ts any census or enumera
tloa. the merlta or demerits of "the" Fed
eral Income tax need not be discussed
here. There are those who will praise
it and those who will condemn It. At
any rate. It seems destined soon to be
a part of our taxation system, and
there win be plenty of howling in Ore
gon when the Government swoops down
on Incomes In general for part of1ts
revenues. Two points In regard to the
Income-tax rare clear. towlt: -
First It marks the beginning of the
real downward trend of tariff dues for
revenue or protection. It mlirht. as In
Kngland 3 years ago. mark the begin
ning of free trade.
Second Tnder the operation of an In
come tax law, the Federal Government
will draw revenue from sources In Ore
gon which It does not now touch.
I'nder the llh amendment, when rat
ified. Congress may pass a law taxing
Incomes from whatever source derived.
The tax will Include rents from real es
tate, snd such taxes the Supreme Court
of the I'nlted States. In passing upon
the Income tax law of declared to
be a tax upon the land Itself. In mak
ing thla ruling -the Supreme Court
simply gave legal effect to what was
already an economic maxim.
Gsrverwaaeat Tax Rente.
When the Income tax law Is enacted
by Congress, owners of real estate In
Oregon will pay a Federal tax on their
rents. If all local taxation Is Imposed
upon land, and the Federal Govern-
RESULTS THAT WOULD FOLLOW
OREGON.
V
U'Ren'a county taxation bill would cause ruinous competition between, counties In the matter of asess
ments, and possessors of large Incomes would move from countyto county In order to be where they
could make their returns under the most favorable conditions.
Clackamas County bill alms at exclusion, not exemption, of certain, classes of property from taxation.
Permanent effect of proposed single tax legislation in Oregon would be double taxation.
Federal taxes, which amount to about $5,000,000 per year In Oregon, prevent adoption of so-called single
tax In thla atate. . .
Government Incoma tax law, to be enacted In near future, will add burden to Oregon landowners by tax
ation of Incomes from rent. ;
Acquisition of land in Oregon was true labor, and product of that labor is true wealth.
Single tax would abolish all local assessments and vastly increase amounr to be raised annually by
taxation. "
Single tax would flood Oregon with labor from other states and force down wages.
Single tax will not meet all expenses of government, and other- .classes of property must be trenched
upon to make up deficits.
Single tax legislation seeks to stick public service corporations whose share of assessments has ln
creaaed 1 17 per cent In Oregon, and 201 per cent In Multnomah County since 1902. .
Speculation In land will thrive under single tax.
Single tax, by overburdening land, will halt Improvements.
Land value tax can be shifted to tenants, contrary to single tax theory.
Farmers' assessments will be Increased under single tax.
All Oregon suffering from abnormal Inrreasea In assessed values for the purposes of taxation.
Remedy for present conditions lies not In single tax. but In enactment of taxation law having all the es
sentials of uniformity.
ment falls upon the' same land for part
of Its support. It Is easy to see what a
tremendous burden land will have to
bear.
"To levy taxes on the rent of land."
It has been well said, "and also upon
the land itself. Is therefore double taxa
tion upon one and the same property,
whlcji In common with all other un
equal and unjust taxes cannot be dif
fused, and for ti ls reason should be
regarded aa in the nature of exaction or
confiscation, concerning the incidence
of which nothing can be safely predi
cated.". Hoea not this situation -make
out a clear case of double taxation
against the so-callod "single taxers?"
It Is a favorite argument of the
"single taxers." both of the George and
Shearmen groups, that land vnlue Is
the only kind of property which cost
the original owner nothing In either
wealth or labor: and that property In
ground rents was In every Instance
originally acquired either by under
taking to bear the cost of government,
as In feudal times, or by gift or theft,
as In some modern Instances. We may
expect to be regaled by this sort of
philosophy next year, and by the fur
ther assertion that the state of Oregon
never has pledged itself to exempt
ground rents from taxation, or to limit
the amount of ground rent which shall
be taken "for public purposes. In other
words, the "single taxers" will main
tain that the state Is under no obliga
tion to respect the right of private
ownership In land, and thst It may at
anv time resume ownership of the land.
No one who has the slightest ac
quaintance with the-early history of
Oregon will concede for a moment the
"single tax" contention that land In
Oregon was'acqulred without wealth of
labor. To do so would be to count as
nothing the pioneers who crossed 20O0
miles of trackless 'desert to save Ore
gon to the aoverelgnty of the United
States, their privations in the new
country, their dreadful wars with the
Indians, and their desperate struggles
to plant their homes In the wilderness.
"Whether the State of Oregon has the
right In law or morals to set aside In
any manner the right to private prop
erty, and socialise all land. Is not a
matter of Importance here. But If the
tate la obligated In any way It Is In
the direction of private ownership end
against socialisation.
C'wagrcwa Protect, settlers.
When the first settlers were perfect
ing their provisional government In
July, 184$. when they had only a pos
sessory or squatter's title to the land
upon which they were living, they vol
untarily contributed to the support of
government such amount as they chose
to pay. each reserving the right to dis
continue his aubscrlptlon upon the pay
ment of arrearages. In 1S43. the pro
visional government having become
more firmly established by reason of
the Influx of Americans, the people
adopted, as part of their new organic
law a proviso from the Northwest Ter
ritory ordinance of 1787. authorising
the provisional government, should the
public exigencies make It necessary for
the common preservation, to take any
person's property or demand his par
ticular services, provided full compen
sation be made.
When Oregon was organised as a ter
ritory in 14. Congress was particular
to require that the new territory should
not pass any law "interfering with the
primary disposal of the soil: . . . nor
ahall the lands or other property of
non-residents be taxed higher than the
lands or other property of residents."
On the subject of taxation in general.
Congress laid special stress upon the
principle that "all taxes shall be equal
and uniform, and no distinction shall
be made In the assessments between
different kinds of property, but the as
aessments shall be according to the
value thereof."
All taxation laws passed by the ter
ritory of Oregon conformed to the rule
laid down by Congress, and when Ore
gon became a state Its constitution re
quired that all taxation should be equal
and uniform, and the Legislature waa
directed to prescribe such regulations
as would "secure a Just valuation for
taxation of all property, both real and
personal."
If the state should now concentrate
practically all taxes upon land values.
It would do so in the face of the fact
that every person who has bought land
In Oregon since 1848 has Invested with
the distinct understanding expressed
by law. both organic and statutory,
that all the burdens of government
would never be shifted to land. All
titles to land In Oregon were acquired
under the land act passed by Congress
In 1S50. and Its several amendments.
Tha coming of the settlers to Oregon, ,
TAX EXPOSED
snd the cultivation of their land was
labor. If there ever was labor. The
product of that labor the Oregon of
today with - property valuations ap
proaching Jl.000,000.000. Is wealth In
the highest sense of the word.
The early Oregonlans had- not been
long at work when the Government
took the first census in 1S50. yet they
were able toVhow a per capita wealth
of 3S1. This wealth rose steadily de
cade bv decade until It reached 1SS2
per capita In 1890. In 1900 It had fallen
back to $1530. but in 1904 it rose again
to $ISS3. In 1S04 the average wealth
per family In Oregon, for real and per
sonal property, excluding the ownlngs
of public service corporations, was
$3370. as compared with $2902 for the
remainder of the United States.
All these results have been achieved
without the "single tax.-' If Oregon
had had the "single tax" In any of its
forms during tlfc long period of severe
liquidation between 190 and 1900, prac
tically all land would have been so
cialised or confiscated by double taxa
tion. Special Aasesameate Abolished.
According to Shearman, the apostle of (
tha school of "single taxers" who re
pudiates Henry George. father and son.
the exclusive tax upon ground rent'
would lose Its entire character If the
state were allowed under any pretense
to collect It from personal property or
Improvements. It is a fundamental
principle of such a tax that it be col
lected only Out of rent. It must, there-
ADOPTION OF U'REN'S
fore, when payment is refused, be col
lected only by selling the taxed prop
erty to someone who will pay the tax.
This means that all -money for all the
purposes of government must he col
lected out of land values. Whereas
streets are made and sewers laid In
Portland at the expense of property
ahuttlng upon a particular street or
contained within a particular district,
under the "single tax---the cost of street
and sewer Improvements would be paid
out of a general tax levied upon land
values. All money would be raised
from a common source, and the tax
payer having the strongest pull with
the officials would be the one to get
the first and best streets and sewers.
It Is easy to see the fallacy, of the
"single-taxers " contention that no
more money would be required for the
purposes of government than is now
raised under the general property tax.
Under '"single tax-' all Improvements
would he made at the common expense
and all special assessments for local
Improvements would be abolished. Tn
Portland alone several millions of dol
lars of additional money would have to
be raised every year to meet these special-
assessments. So great Is the
amount that would be required that it
Is Impossible to make any estimate of
It.
Our "single-tax" advocates hold out
as an Inducement to the man who
works with his hands for his dally
bread that "single tax-- in Oregon would
cause a general and permanent advance
In wages. Estimates of the probable
advance vary according to the state of
mind of the "single taxer" making the
calculation. Some think wages would
Increase 25 per cent, others 60 per cent,
while still others figure on 100 per
cent. We are assured that all branches
of industry would be given a tremen
dous Impetus and that wages 1 would
soar snd stay up, regardless of the law
of supply and demand. All this sounds
very fine in theory, but it does -not
work out In practice. It would be great
If It would work out, as all -labor prof
itably employed would be the very best
asset that any community can have.
Wages at Labor Would Decline.
But Shearman, the apostle who has
blazed the trail for our local "single
taxers," Is more cautious In his predic
tions regarding the effect upon, labor
of the ground rent tax. Shearman cal
culated at general and permanent ad
vance In wages all right enough., but
solely upon the condition that ground
rente became the one source of taxa
tion In the Nation at large, or Its adop
tion In so many of the states of the
Union that a different policy in the re
maining states would not seriously Im
pair the theory involved. Shearman was
free to say that the adoption of ground
rents "In a single county, or even in an
entire state, would cause great Increase
in production there, but wages would
be kept down by the incoming laborers
from the outside.'1
In practice, the adoption of the "sin
gle tax" in Oregon would flood the
state with labor and force wages down.
A temporary stimulus to production
would not compensate the community
for the loss to many of its members of
regular employment and certain pay.
Labor has everything to lose and noth
ing to gain by the "single tax."
U'Ren-s bill makes the customary
single tax appeal to prejudice by tak
ing a shy at the public service corpor
ations and seeking to Impose upon
them more than their fair share of
the public taxation. Taxation of cor
porate property has mounted by leaps
and bounds In Oregon the past ten
years From 1902 to 1910 the total as
sessed value borne by the public serv
ice corporations of the state increased
from $7.S0.662 to $98,881,579, or 1167
per cent. In Multnomah County the
Increase in the same time was from
$1 195.785 to $25,306,684. or 2016 per
cent. In each Instance the assessed
value is exclusive of state corpora5
tion license fees and state and muni
cipal gross earnings license fees.
In the state at large, the propor
tion of total taxation borne by the
public service corporations increased
from 4.99 per cent In 1902 to 11.71 per
cent In 1910. Id Multnomah County the
increase In the same period was from
2.45 per cent to 8.39 per cent. .
. It has become a habit of Oregon peo
ple to attribute all their recent pros
perity to the Lewis and Clark Centen
nial Exposition, and In the general
rejoicing the real benefactors of the
state and city have been lost sight
of. About the only substantial relation
of the exposition to the present pros
perity of the Oregon county consists
in the fact that It filled Portland with
nenewed confidence after the long
slumber following the panic of -1893,
and that K gave hie .vwi mwc..
country a thorough advertising abroad.
- . Rallroada Help State.
' But for the railroad development of
the past six years the exposition would
have had no more noticeable effect
upon Oregon and Portland than the
Philadelphia, Chicago. Omaha and St.
Louis expositions had upon the cities
In which they were held. The rail
roads are making a new Oregon and
a greater Portland.
- While it is only Just and equitable
that the public service corporatloss
should sustain a fair proportion of
taxation. It Is an open question whether
or not the burdens imposed upon this
class of property are approaching the
point where they have a tendency to
hinder the free operation of large cap
ital in Oregon if not actually dis
courage Its introduction. Some of the
legislation directed at-the public serv
ice corporations in the past few years
Is nothing more or - less than special
taxation. Any thinking person cannot
w... K.irri.n. laid uiion a class
Iflll OCO " " ----- "
of property owners which happens to
have large noiaings. hou cw-""
stated times to the caprice of the gen
eral -voting power. Is really confisca
tion, and must- ultimately Impoverish
rather than enrich the state.
Business men, and more particularly
those of them who come within the
classification of small retail merch
ants, will be solicited to support the
COUNTY TAXATION BILL IN
land, value tx," cm the ground that it
will exclude from primary taxation all
merchandise and stock in trade. In
truth, nothing of the sort will happen,
as the Immediate effect of the "single
tax" will be double taxation rather
than a lowering of taxes. As has al
ready been shown, the land value tax
will not pay all the expenses of gov
ernment and some other form of prop
erty will-wave-to be taken to make
good the full amount required.
SlBfcle Tax No Ebousb.
The first to attract the attention of
the "single taxers" will be the retail
merchants, whose tasty show windows
and general air of bustle will offer a
shining mark for the raising of revenue.
The demand will most logically be in
the form of a building occupancy tax,
such as proposed In New'York 40 years
ago, but not adopted. The New York
plan was that this tax be levied on a
sum equal lo three times the annual
rent or rental value of all buildings
on land. Thds, If such a tax were In
effect in Portland In 1910,, a merchant
paying an annual rent of $6000 would
have been assessed at $18,000 and would
have paid -thereon a tax of 22 mills,
or $398. The New York commission
which reported the building. occupancy
tax had the following to say in its
favor:
The aevantaa-.s of a tax on house" rent
als can be easily stated. It Is clear, al
most impossible of evasion, easy of admin
istration, well fitted to yield a revenue for
local uses, and certain to yield such a reve
nue. It ts clear, because the retal value
of a hocse la easy to ascertain. The tax
Is baed on a part of a man's affairs which
he publishes to all the world. It requires
no Inquisition and "no inquiry into prlvata
mtt-rji: it simply uses the evidence of a
man's rreans which he already offers.
It has been asserted In behalf of this
tax that It haa much to commend it
as the successor to all local taxes on
professions, trades, employments, with
the exception -of saloon and like li
censes; that if given It would take the
place of all existing assessments on
personal property. Including mortgages
and money, and In fact all forms of
credits; that the tenants, being re
lieved from primary taxation on the
personal holdings would pay more
rents. As an adjunct to the "single
tax" the building occupancy tax would
be special taxation, but as the suc
cessor of taxes, on personal property,
etc., it - Is worth considering. In the
application of such a tax, however,
there would have to be exceptions, so
that It would not draw from the small
home owner a larger contribution for
building occupancy than he now pays
on his personal belongings.
Lead Speculation Would Go On.
Another stand-by of the "single
taxers" Is the assertion that when all
taxes are concentrated , upon ground
values and when "every piece of land
Is estimated for assessment at the
amount for which it could be rented
for present use, the tax constantly in
creasing in exact proportion to any In
crease in the rental value of the land,"
it would generally be impossible to
hold any land out of use for the pur
pose of ' speculation.
The pressure put upon the land
owner to make Immediate and bene
ficial use of the land would in most
cases be irresistible. Bay the "single
taxers," and the only exception would
be cases in which it was so clearly
desirable that the land should be pre
served for future use that its possessor
could better afford to pay the tax out
of his capital than to allow the land
to be put to any present use which
would spoil it for a mere desirable
future use. .The land value theory was
specially invented to force the benefi
cial improvement of all land and thus
create a wonderful stimulus to Indus
try and an extraordinary demand for
labor.
If there are exceptions to this rule,
as there must be to all human rules. It
follows as a matter of course that the
"single tax" will not begin to reach
one of its davoted objects, to-wlt, the
holder of speculative land, and will
not have the virtue 'that la claimed
for' it.
As a matter of fact, under a "single
tax" system, as under the present gen
eral property tax, land will be held for
speculation whenever and Just as often
as the possessor of the land Is willing
and able to pay the tax in whole or
in part out of his capital. Under the
"single tax." as now, speculators will
anticipate the' future advantages of a
particular location and lose money for
the present In order that they may
reap the greater harvest later on.
"Single tax" of any type will never of
ltseif make any landowner improve
his land in any manner that will not
Henry E. Ieed Declares -That System Is Really Double Tax,, and
Tells xiow JjaDor wouia .uuse m wages.
iicl 1 1 1 in iito uuti avii.i w i ........ j , - -
on his Investment, It may bring about
the confiscation of his land If he is
unable to pay the tax, but cannot
compel hira to invest his capital where
he will risk its partial or total loss.
ImprovemeatB -Would Not Come.
Another article of the "single tax"
faith Is that the loading of all taxes on
land values would have the effect of
causing Immense Improvements to
lands, resulting la a general beneficial
development of the community through
the investmeat of capital and the em-
- ... inv.nv Tl.l. M.Iorfltlnn is
1- I . I . . i j ..l..ir nenflta
Ilit-llL . 11... .
boldly made In the face of the eco- j
nomic law that any aaauionai tax on
land operates to prevent the Invest
ment of capital on Its .Improvement
since capital will not be Invested where
returns will fall below the average
Every investor must do satisii
the prospective net yield before he w
part with his money. If he desires
1A nAt t not V- a 1 1 " tl ft VP it.
vith
vlll
6
or
he will keep his money or take It som
khere else. 1 ne man wiin nmnrj i
invest will always engage in the most
agreeable occupations and seek the
most profitable Investments. And no
power, unless we return to the sump
tuary laws of feudalism and arbitrary
government invasion of private rights
can compel mm to ao wuiti wn-c.
iii i.a anv cnmmoriitv
No
IlaVII "ill 1" J
I. anv Hii.ln.as In which he
or
is
ir 1 1 i r. in " " - --
sure to lose money, or in which he mas'
fa'l to obtain the ordinary raw ui
profit on his capital. The "single tax"
promises of great things to follow
upon the adoption of the theory are,
therefore, mere buncombe.
Transfer Is Possible.
Authorities differ on the point - of
whether or not, a land value tax can
be transferred to tenants. Ricardo,
Adam Smith, John Stuart Mill and Hen
ry George, sr.. maintained that such a
tax cannot be shifted. Shearman accepts-
their doctrine and agrees with
them that a land value tax would fall
solely upon the landlord. The writers
above mentioned base their faith upon
the doctrine that the owner of land
cannot create any more land, nor di
minish the area of land; that every in
crease of taxation upon ground rent
makes It more difficult to keep ground
out of use, and, therefore, increases
competition between landlords for ten
ants. Shearman holds that the land
owner can obtain the market value of
his land If the rent is not taxed and
cannot obtain any more if the rent is
taxed. - ,
David A. Wells, whose practical ex
perience -with, taxation was superior to
Shearman's, and whose economic writ
ings have higher standing than Shear
man's, holds that where land is em
ployed as an- instrumentality for ac
quiring gain, the taxation of the land
must lncude the taxation of Its uses
its contents, all that rests upon it. all
that Is produced, sold, expended, man
ufactured or transported upon it and
all such taxes must diffuse themselves.
On the other hand, if the taxation of
land under such circumstances and con
ditions does not diffuse Itself, then the
taking is simply a process of confisca
tion which. If continued, will ultimately
rob the owner of the property and is
not governed by any principle.' An
swering the position of those who
maintain the non-diffusion theory that
taxes on land are paid by owners be
cause the supply of land can neith"
be Increased nor decreased, A ells
shows indisputably that owners of
land, whenever taxes have been in
creased, attempt to obtain increased
rental for it if circumstances will per
mit: and the very attempt tends to In
crease rent. " x -1
Rentals Will Increaae.
Nothing but adverse circumstances
such as diminishing population or com
mercial and industrial.distress can pre
vent a rise In the rental of land on
which taxes are Increased; nothing but
lack of general prosperity and dimin
ishing population can throw the burden
of taxation on real estate or Its owners
If owners of land are not reimbursed
for Its taxation, by. its occupants, new
houses would not be erected, old ones
would wear out. and after a. time the
supply would be so small that the de
mand would raise rents and house
building begin again, the tax having
been transferred to the occupier. Any
one familiar with conditions In Port
land will note a close relation between
Increased taxation and Increased rents
in the past six years.
There are other claims of the single
taxers" which fall to the ground when
analyzed. For example, it Is asserted
that if the "single tax" theory be
adopted in Multnomah County there
would be a great inflow of industrial
capital and large manufacturing de
velopment would follow. If all fac
tories in this state were favored with
absolute- freedom from all local taxa
tion. prices of their products would not
lessen at home, for the factories would
simply take advantage of Oregon s gen
erosity to sell their output cheaply in
other states at the expense of the peo
ple of Oregon.
Another claim of the "single taxer
Is that their theory will benefit the
farmer bv excluding his personal prop
erty and' Improvements from taxation
and lowering the tax on his land. The
claim does not stand the practical test.
For illustration, we will take the
Theodore Brugeer farm of 167 acres In
the Gresham district. For the year
19Q9 used as the basis of calculations
by ITRen in his single tax campaign
last year, the Brukrger property paid
on a valuation of $12,000 for land and
$1000 for Improvements, the tax being
$219.70, or 16.9 mills. ' '
Theory' Is Queationed.
TJ'Ren's plan for taxing such prop
erty, as explained In the book he circu
lated last Fall the one bearing ion its
front cover the American flag in col
ors and the picture of Abraham Lin
coln was to wipe out all present gen
eral taxes and substitute In lieu there
of a tax of approximately 28.5 mills.
Under this method the Brugger farm
would have paid for 1909 on $12,000. for
. i i i-omiint ' Keln? ex-
lana, me imw.v- -
eluded, and the tax would have been
$342 as compared witn unuer
the general property tax. a difference
of $122.30. or nearly 56 per cent. The
theory will work out In precisely the
same way in every case, except where
. . - nietlv Imnrovements
Tne lariuwi 1'"- - - - - .- - i
on a small area of ground or on a large
area of small value, in , which, luamn-o
he will have enough to keep him
awake nights under any form of taxa
tion. ...
There is undoubtedly mucn aissaiiB-
. .i iioA-Lkint Orpi-nn because of
the burden of taxation Borne by all
classes ol property, anu me tui.oi.au..
addition of inquisitorial and annoying
tax legislation. The present burden is
due In large measure to tne Heavy
and unwarranted .increase in assessed
i 1n .... a -. i- nil n I V nf the State.
vatun in - - --
and the consequent extravagance in
public expenaiiures wiul-u -'-
panled tne raising oi vmues. in
crease in the assessments of real
estate In Oregon between 1902 and 1910
was 506 per cent.
Counted as real estate are land and
Its Improvements, and so much of the
property of public service corporations
as comes within the state law defining
real estate. These valuations were
$119,352,625 for 1902: for 1910 they were
$723 30,742, an increase of over $604,
000.000. or 506 per cent, as above
shown. In the same period, assuming
the number of inhabitants to have
been .475.000 in 1902. a very liberal esti
mate, the population of the state in
creased a bare 42 per cent.
Assessments, therefore, increased 12
times as rapidly as population. In the.
same 1902-1910" period, real estate as
sessments increased In Multnomah
County from $40,363,085 to $253,244,484,
an absolute gain of nearly $213,000,000,
and a relative gain of 527 per cent. In
the same time, assuming the number of
Inhabitants to have been 120.000 in
1902. the population of Multnomah
County increased 88 per cent.
Abnormal Increaae. Shown. -
It is beyond comprehension that there
was any such extraordinary Increase
In values for purposes of taxation be
tween 1902 and 1910. It Is inconceiv
able tjhat town lots alone should have
been assessed in Oregon In 1910 for
$43,000,000 more than the grand total
assessed value of all property in the
state in 1902, It is equally past under-
anj4infl. , K .. i Xliiltnnmnli Cnlintv
town lots should have been assessed
in 1910 ror nearly i34,uuu.uuu, wuereus
all propertv In the county was as
sessed in 1U02 for a trifle over $49,000,
000. Still another striking comparison:
Improvements on town lots and acres
were assessed in Multnomah County in
1910 at nearly $51,000,000. as compared
with a little more than $49,000,000 for
all property in. 1902.
What has been the consequence of
these abnormal Increases In assess
ments? Extravagance in expenditures
and waste of the people's money. For
the year 1903 Portland and its school
district required 16 mills on an as
sessment of $46,084,534. or $737,353.
which was $6.41 per capita, estimating
the population in 1903 to have been
115.000. For 1910, Portland and Its
school district required 12.3 mills on
$274,531,310, or $3,376,735, which was
$1.29 per capita. Between 1903 and
1910, the requirements of Portland end
its school district Increased 358 per
cent, while population increased 80 per
cent.
For all purposes state, county, mu
nicipal and school Portland was callel
upon to pay $16 per capita for 1903
and $29 per capita for 1910. In the
state at large the extravagance is also
striking. For 1902, the state govern
ment and state schools required 10
mills on $156,375,768'. and in 1910 they
required 3.3 mills on $844,887,708. Be
tween 1902 and 1910. the demands of
the state and state schools, as derived
from fteneral taxation, increased 78 per
cent, and from $3.28 per capita to $4.15
per capita; in the same time population
increased 42 per cent.
The per capita Increase would be -t
favorable showing were it not for the
fact that since 1903 the state has vastly
extended its collections from-corporation
fees and licenses, taxes on insur
ance premiums. Insurance licenses, in
heritance taxes and gross earnings 11- .
cense fees. Collections from these
sources, or such of them as were
available, did not quite average $30,000
per year 10 or 11 years ago. Now they
are approximating $100,000 per year..
Small Belief Results. '
When the inheritance tax was au
thorized by the Legislature of 1903.
the people we're assured that a burden
would be lifted from general property
to the .extent at least of the income
from inheritance. But the test of the
promised relief has been the same in
Oregon as In all other states where the
inheritance tax is one of several taxes. '
At first it reduced the burden of other
taxation, but It soon tempted govern
ment to increase expenditures to a
point which required more of the other (
taxation than the people were accus- ,
tomed to before. Thus, legislative ap
propriations, which were $2,623,717 for
1903-4, at the beginning of the inherit- .
ance tax, fell to $2,726,348 for 1905-6. .
and rose to $3,083,805 for 1907-8 and to
$3 915,352 for 1909-10. They are now
higher than ever before, notwithstand
ing the increase of 87 cents per cap- '.
ita from general taxation. One thing
that Is sorely needed ail Over Oregon
is a halting of the general tendency
toward excessive assessment of prop
erty for the purposes of taxation. For
some years the state and every com
munity in it has been trying to tax it
self rich.
Uniform Law Needed.
While the tax laws of Oregon really
need amendment, the remedy does not
lie in the adoption of the so-called
"single tax." The trouRe nere Is that
the legislative power Is bound hand
and foot by the rigid command of the
constitution that all property, real and
personal, tangible and intangible, shall
be taxed at a uniform rate. This is
the general property tax. What Is
needed Is authority for the legislative .
power to classify the various forms of
personal property, tangible and intan
gible for purposes of taxation, sub-
Ject to the requirement that aU prop
erty of the same class shall pay the
same rate. This much done intelli
gently, personal property would pro
duce more revenue than now, 'and city :
and country real estate would be re
lieved of some of the burden it IB
now carrying. Household furniture
and the hand tools of the workingman
Bhould, by all means, be tax free, for
they are necessaries of life-and are not
proper subjects of taxation.. Mort
gages should be either excluded from
taxation, or the tax on them put so
low under a rule of proportionality
that it would be freely paid. Mort
gages have been taxed in Oregon at
different times, but the result never
has been satisfactory from a revenue
point of view and the tax has always
been shifted to the borrower. Under
the mortgage tax law of 1882, which
was repealed in 1893, mortgages paid
as high as 19 or 20 per fTlit of the
taxes of Oregon In a single year, and
as much In Multnomah County., Mort
gages are again taxable in Oregon
under the law of 1907. and in the state
for 1910 they paid 2.43 per cent of the
total taxes and In Multnomah County
2.98 per cent- For five years or more
New York has been taxing mortgages
made in the state on the brfsis of a
registration fee of Mi of 1 per cent of
the face of the mortgage. The saf
est thing for the people of Oregon to
do Is to vote down the single tax- in
whatever form proposed and adopt a
safe and sane system of taxation
which shall have all the essentials
of uniformity.
Xews 'and Elyslan Fields.
Holbrook White, In the Atlantic
There must be indignant dwellers in,
the Elysian Fields when they gather
around newcomers who bring the latest
news from this planet. Old prophets
and old poets must be bewildered at
the strange meanings twisted out of
their texts. Old masters be they
painters, warriors, or saints must be
aghast at the activity, little short of
fiendish, ascribed to their earthly ca
reer The younger dead surely are con
founded at the Books of Revelation
which hava been opened, in the name
of memoirs, to extend their fame. X
fancy Jane Carlyle may have spoken
somewhat emphatically on this subject
as she gathers the celestial asphodels
in wide meadows. How the voice of
her husband may have thundered along
those flowery plains, shaking the blos
soms to their very rootlets, one dares
not think. Have the Brownings mur
mured a wish that the smoke of their
burning letters might have risen be
times as Incense on their altars? Does
Shelley regret that from those who
would "see him plain" he had not been
removed further into his own "unap
parenf" I am not sure but there are
martyrs who would cheerfully walk-
i Ua fl if ncsitreri that the
fagots had been kindled with the books
which blazon tneir nainea.