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About The Oregon daily journal. (Portland, Or.) 1902-1972 | View Entire Issue (Dec. 2, 1904)
THE OREGON DAILY JOURNAL, PORTLAND. FRIDAY EVEWIWO. DECEMBER t, 1101 OREGON'S TAX LOSS S38S.O0O A YEAR (Continued from Fu On.) Umatilla oounty pomtiM only on twenty-third of th lUti'i population, and perhaps about that proportion of It monfy supply. Assuming, therefor, tliat other counties have sustained a loss equal to ours, the combined loaa In Oregon la 11 times $$,000, or 1114,000 each year. The only defect which I have discov ered In the Massachusetts law consists in Its restricted application. U sisws to apply only to saving banks. But th legal definition of a savings hank may remedy that seeming Imperfection. Legislation should be enacted concur rently by Oregon, Washington and Ida ho, so aa to protect competing banks situated near together on opposite sides of a state line. The savings bank tax In Maseachu setta was tl.Sll.2lt In 1$$. out of a total tax for th state of $.076.2$4. Taxlag Credits. Many atatea suffer great loss by es cape of notes and accounts, which Is inevitable where exemptions are allowed for Indebtedness. 81nc we allow no exemptions, assessors have only to dis cover all property that aervea as secur ity directly or Indirectly In order to pre vent escape of taxable property In this respect. The borrower and the lender consti tute a class. "A" borrows $1,000 of "B" with which he builds a house worth that sum. The two together have only $1,000 Involved In this property. If both be taxed they pay double what "C" pays on another houae of equal value free from debt We bunnusM. Life Insurance has come to be a field of great Investment. The cash surren der vslue of policies held In America represents a vast accumulation of wealth, and Old line Insurance belongs largely to the wealthy and hlgh-aal- ii rled classes, who are batter able to contribute toward support of govern ment than ordinary taxpayer. And yet Hi in great quantity of property escapes illrect taxation. The only tax paid In the state Is paid by the Insurance com panies themselves. They pay per cent of net premiums for th privilege" of doing business here. Th new premiums in Oregon were $767,247.65 In 1001. $600,000 of which probably represents accumulated wealth. 1 have no means of knowing how much of this property is now owned In the state, but It certainly reaches or ex cerds tl.MO.000, all of which escapes luxation. It may be contended that the I jr nt taxea on net premiums covers .this. But the S per oent is not Intended to cover the investment value of policies at all. It la simply a payment required by the stale for the privilege of doing business within It. The same rate applies mice companiea. and th' Insurance la solely for pi loss. No Investment or wraith Is Intended. But life insurance possesses a doubls purpose. It pro vides protection against loaa by death Just as fir Insurance doea against, loss by fire. It also goes further and pro vide a verv attractive means of Invest ment. Thla Invested wealth, entirely ! escapes taxation. This can be reached by requiring com Pnles doing business here to report the names and addresses of Oregon policy Uuldera together with cash surrender value of each policy. But a better method is to tax It up te the companies direct, leaving them to square them selves by adjustment of rates. They tastily tm iwiiiliail to pay upwards of t per bent Of net premiums to the state as compensation for the escape of wealth now Invested in life Insurance within the state. Her la .the proof: iv-dlmated value, of life Insurance In vestments. $$,000,000; estimated average raw of tax. assuming full value assess ments. 7 mills; .O07xtt.000.000 equals $1.00. Annual net premiums. 1717. 247. 45. Kour per cent Of this la .04x1767.247 66. or ftO.flO. JO fire Insur- t of fire on against ulatlon of tween Fee land sad th upper Columbia I Mam. gan one natural wan passage between Portland and Ian Francisco. Consequently thejtmslness of the O. B. 4k N. and O. 4k X la bound to expand with th growth of th regions which they connect. They own a monopoly worth many millions now, and ' which shall soeedlly grow Into many millions more Yet la the presenoe of all these eon alderatlons, ths as se seed value of theaa roads have remained practically at tlonary outside of this county. I have no railroad statistics back of 1$9$. The net earnings of the O. R N. are now more than four tlmee what they were then. Their aaseasment then waa $4,000 per mil on road bed. It re malned at that figure until 1$0$, when I raised It to $11,000 per mile In this county and other assessors raised to $$,$00 par mile. At the same time that I raised the roadbed from $4,000 to $11,000 par mile I raised land $1 per cant and town lots 100 per cent, thue making th actual rise on railroad prop erty leas than It appears on its race. I have examined the reports of varl oua atate railroad commissions, state tax commissions, the United States, Interstate commerce commission, and th United States Industrial commission These confirm my valuation beyond all doubt. Measure the value of Oregon railroads by any rule whatever having the sanction of the United Htates au preme court, and you cannot fall to raise the assessed valuation to the ex tent of many millions of dollars within th state. But your county assessors and boards of equalisation aeem powerless to tax them according to their value. Thla is due to several causes. The annual pass has its Influence, and then there is the lack of knowledge and dread of litiga tion. A great corporation la often stronger than a single county. It Is therefore es sential that the whole state exerclee its aumoniy lor me protection oi weakest member. Thla can be done by two acta, (1) by th creation of a temporary tax com mission, clothed with power to examine books, summon witnesses, and compel their attendance and otherwise consider valuations and employ all the rules for the determination of valuea that a busi ness man would use. The report of this commission should be published and dls trlbuted among the proper county of flclala for their guidance, (t) by pass ing an act providing for the payment of all taxea In advance of litigation when based upon equitable grounda, and pro vldlng for the Immediate correction of technical errors when litigation is brought upon technicalities. Franchises present a source of great wealth, which county assessors have proven their inability to reach In every state where Ita assessment has been committed to them. This is a matter which grows in Importance with the da- alopment of th atate. The right to operate street cars In Portland was of small value during the early daya when the population waa small. The right to operate the O. H. & N. railroad through the Columbia gap waa not a great privilege a few years ago. The possession by the Oregon 4k California railroad of the pass through the mountains between Roseburg and Grants Paaa was of little value then. Rut population and traffic multiply amaalngly and traffic arrangements of ten Improve. Twenty years ago the Ore gon Short Line waa not built. Fourteen yoar.go the population of eastern Ore gon was about $6,000. It la now 120, 000. The population of Idaho was 11, $41 In 1110. 161,772 In 1100 and prob ably 226,000 now. Th population of Washington waa 75.116 In lilt, 117,212 In 1110. 111,111 in 1100, and probably $60,000 now. Thla Increased population has en larged production. Th completion of the Oregon Short Line has given the O. R. A N. eastern connections. The exten sion of the Southern Pacific and Ita pur chase of the O. 4k C. has advanced the O. sV C. to the position of a first-class re id. Population and opportunity have, therefore, expanded the business of Ore-, gon railroads Immensely, yet there Is but one Columbia gap. but one paas be tween the Umpqua and the Rogua Who, then, 1" ao simple as to contend that the franchises belonging to the O. R. 4k' N. nnd the O. 4k C have remained un changed in value? There Is but one natural passage be- Bxprsss Companies The stat. sustains considerable loss by failure' to lax express' companies. If they pay any tax at all It is paid In Multnomah county. Express business extends out into the several counties of the state and whatever tax arlaes from it ahould be either proportioned to the counties on a mileage basis or els paid to the state. Connecticut levies a tax of t par cent on gross receipts earned In, the stats. Thla la In lieu of alt other taxea. 1 New York levies one half of 1 per cent on gross receipts, besides a fran chise and property tax. New Jersey levies 2 per cent on gross receipts earned In the state, besides license fee and property tax. Pennsylvania levies s mina on gross recelpta within the state and $ mills on 1 r null value of capital stock. Besides this real estate Is subject to local taxa tion. Ohlo now values express company property for assessment purposes by a atate board and appor: :ona It among the counttea where It becomes subject to local levlea. Formerly In that atate the franchise was not Included aa an element or vwjwa fill g issaniu purpose. But under a new rule it Is. The effect of these two rules presents this contrast: Former rule Adama Express com pany, aaaeased value. $42,065. marine n Express company, asseesed value, $11. 430; United States Express company, as sessed value. $11,411. Present rule Adams Express com pany, aasssssd value, StM.011; Ameri can Express company, aasoassd value, $411,274; United States Express com pany, assessed value, $4$$,114. In addition to paying local rates on these valuations, the state levlea 1 per cent on gross receipts. Xndlaaa'e Method. Indiana applies what la known as the unit rule in the valuation of ail prop erty. Thla method waa first adopted In 1891. Its effect can beat be understood by Its results. Here are the aaaeased valuations in 1110. the last year under the old rule: Land and lmprovementa. $$77,271,111 lota and lmprovementa. $176,661,412; personality. $236,871,076; express, tele graph, etc., $698,672; railroads, $66 206.295. Assessed valuation In 1111, first year under unit rule, in the order given above, $629,637,587. $269,062,736, $293,745,534. $1,171,012. $161,039,169. Percentage of Increase under unit rule on each Item, In the order given above: 41 per cent. II per cent. 14 per cent, 167 per cent. 141 per cent. Thla rule of valuation catches the value of good-will and patent rights. especially of corporations. These ad vance the earnings of the corporations to which their stock values readily re spond. I hsve shown how the state Is losing something like $110,000 per annum by failure to discover and tax cash. $16,000, mors or less, by the escape of Itfe Insur ance Investments, and a very large amount, probably 1200,00 per annum, by a failure to reach the franchise value of railroads and express companies. I have stated briefly the methods adopted by other states for the prevention of these losses. I shall take pleaaure i In discussing them more in detail before the committee on taxation of the coming session of the Oregon legislature. If de sired. Respectfully, Cmf. STRAIN, Assessor Umatilla County. I. AR0NS0N, THE JEWELER 133 FIFTH STREET. CORNER ALDER The, Beat and Moat Reliable Jewelry for the Least Money. JuMtth Thing for Xmas. 14. k. Gold.FilUd Carmon Bracmlmt PLAIN CARMEN BRACELET SJ5.00 SEAL CARMEN BRACELET $6.00 LOCKET CARMEN BRACELET 7.00 A RON SON, The Jeweler LEADER OF LOW PRICES. ISS FIFTH STt COR, ALDER Mm II Ordmn Prompt? Flllod THE MUSIC- HUNGRY WEST How Every Demand Is Adequately Met by the Big Portland Concern. A Peso of agar ta Other th That by and Pally 10. No adequate conception of the mus ical development of the great West and the musical requirements incident there to can be had without looking "behind the scenes," as It were, of Killers Piano House. A force of no less than U employes la necessary at the present time to look sfter the Portland business, $1 Of which are employed at the Park and Washington-street establishment, and seven men at the wholesale headquarters and shopa on Thirteenth and Northrup streets. In addition to these, a email army of traveling men and representatives cov ers thoroughly every section of the Kent State of Oregon. The southern aao interests are looked after by a permanent branch at Boise, Idaho, un der the management of Mr. B. C. Erbea, with a force of five employes. This is the recognised leading musical head quarters for Idaho. The Spokane houae. under the man agement of Mr. O. A. Heldlnger. has no less than 22 regular employes and does a bualness five times greater than all the other Spokane dealers combined. Thia large fore la augmented by a corps of traveling representatives, as at Portland. t Lewlston. Idaho, Hilars Piano House establishment. which In In charge of Archie Campbell, controls ths Klano and organ field, with a corps of ve competent assistants. In Seattle the destinies of Ellers Piano Houae are in the hands of Mr. E. E. Larlmore, who, aa well as Mr. Heldlnger, of Spokane, are former Ore gonlans, well known In thla city. In Portland alone, alnce the election, 24 carloads of new pianos have been re ceived and unloaded. This does not In clude any shipments made direct from lactones into opokane, Seattle, uwn ton or Boise, the latter atore alone hav ing received four carloads of nlanos during th present month direct from me east. Every musical want In the way of key instruments is supplied by the Ellers house uprlrht and arrand nlanos reed and pipe organs. Pianolas, Metrostyle Pianolas. Orchestral les, Pianola-Pianos, Aeolian Pipe Organs. Electric Pianos' and Piano Players, Piano Stools, etc., to. The theory of "Quick aalea at small fronts" was first successfully applied O piano and organ merchandising by Ellers Piano House, and It Is now gen erally conceded that piano prices are lower In Portland than throughout the eastern cities. In spite of the heavier freight rates and other disadvantages encountered by the western trade. Pianos that small dealers, in their nM.llma .In-, ,- - ..nn, ..1 1 , aak $260 for are $172 and $181 at the suere nouses, ana those less in price go for $147 and $111. . T The cut-price policy extends to every Instrument In Stock. UP to the hlaheat- priced Kimball. Weber and Chlckertnga. unlimited nnanclal reeourcea enables the Ellers Piano House to offer Instru ments on very easy terms of payment, so that. In the lanauaae of one of ih hsada of the concern, ''ho western home need be without the refining Influence of eawta A new time-navment nlan nlnrp. good plsno In the home at a decldedlv cut price and on payments of $$ down ana s a monin. Ellers Plsno House ta owned hv t), sseeers. altera i ana J. Mccormick, all residents of Portland, and all immi men i,i many vrarn exoerienca in Ih s particular line. The establishment in the quarter block, corner Park and Washington. Is the most complete of its kind In the west, and here, togsther with the wholesale 'establishment at Thirteenth and Northrup streets, a atock valued at fine 1MB, sun l constantly carried. Visitors and proapectlve buyers are cor dially Invited to Inspect our entire stock Ellers Piano House, $$1 Washington mnnn, corner rum. VENERABLE EMPEROR CELEBRATES ACCESSION i Journal Special Servies.) Vienna, Dee. 1. Throughout the dual monarchy today there were celebrations to mark the fifty-sixth anniversary of tne accession of Emperor Francis Jo seph to the throne. Business was bus ponded generally in the capital, and In all the churches thanksgiving services were neid. The venerable emperor Is now In his bin year. Of late It haa become notice able that he la losing some of that phy sical vigor and robustness for which he i been noted throughout his Ion life He continues, however, to take keen de light in his favorite snort of chamois nunting, and when In the capital he ad here strictly to bis life long habits and customs. Twice a week he gives au dlenc to any of hla subjects who may wisn io consult witrj mm. Their letters asKing ror an audience are aent in to tne emperors private secretarv. In quiries are made aa to the truth of their contenta. and, if satisfactory, the writer. or wnatever rank he may happen to be, a granted an interview with hla aovar- elgn alone. Nothing haa done more to endear the emperor to hla subjects than tnese informal audiences, through which countless wrongs have been quickly re dressed, troubles smoothed away, assist ance rendered, as well aa frank, soldier y aavice, ana mors distress relieved than the world will ever hear of. (Special I Ita patch te Tke Journal I Baker City, Or.. Dec. 1. One of the largest foreclosure suits filed In the Baker county circuit court was that filed yesterday by Prank E. Oelaer. throuafh his attorney. C. A. Johns. against the Baker City Opera - House company. The suit Is brought an a note for 115.- 000, dated May 11. IML running for five year, with Interest at $ per cent psyaoie semi-annually, covered by a mortgage on the rest property to ae cure the payment of principal and In tereat or tne loan. LAUgOHWO (Journal Special Bervtet.) Nashville. Tenn., Dec. 2. -Governor Prasler and a large party. Including representatives or tne chamber of com merce of this city, have gone to Phila delphia to be preaent at the launching of tne armorea cruiser Tennessee. The launching is to take place at frame's shipyard tomorrow. umwtmumxAM, badly bajkaobs. fJearaal special lei i lee. ) Oakland. Cat., Dec. 2. Th three- masted sblp Centennial, owned by the Alaska rsrkers sssoclstlon. waa today damaged by fir to the extent of 17,100 while lying In the Oakland alough. (Jeeraal Sea rial ertVe.l San Francisco. Dec. ;. A call haa been mad for convention of all mem bars of th atat bullatng trades council to meat at Doe Angeles. January I. There will be 171 delegates and th convention will last four or Ave day. SMART CLOTHING For Boys, Youths and Children's Holiday Service This store providea clothes that appeal to the parent or boy's sense of fitness. Stock alwaya kept up with new styles that is the kind we preaent Our carefully draped shoulder, with every line perfect and every seam carefully stitched, continually make us new friends. What Would be a Setter Xmas Gift Than a New Suit or Overcoat to Yovr Boy? Boys' Long Overcoats, in all sizes, 10 to tl years, with plain or belted backs, plain Oxfords and blacks and the handsome mixture I I I -11 aaaaasgeav gaVsgs V 'l aw HSaaWasga. jggagia . a $ ajaf wwS effects . . . , fS to 920 Boys' Suits, the famous Buster Brown and the Sailor Suite for children, and the Norfolk and Double Breasted models, for boys up to IS years. Then cornea die awell college suits for youths of 14 to SI years. Prices the moat reasonable on the coast. Boys' Furnishings, Hats and Caps Everything bright and fresh suitable for holiday gifts. The greatest boys' department in the northwest Especially new ideas in Neckwear, Gloves, Hosiery, Collars, Shirts, Sweaters, Tama and Hats, j J. Mail Orders Filled Dresses and Coats for Girls SATURDAY NIOHT SPECIAL The Store That Saves You Money Sofa Pillows, 22x22 Covered with White Muslin; filled with Silk Floss ft " 1 iwiaii GULAR SJLIP ajiariri "M 1 1 V 6O 5ATURDAYNI6MT OtNLY 30 Worth and sold for 60c each one to a customer Saturday Night Only 5 to IO sr fTSar night. October that we seals sot snyply -noa a asaay aa wlu. To aaUrsrt . Take -em with roa st, we sold alas dose of thee pillow, ead BMsa who earn 1st. Bat we have these $50 for an dea Thia atore haa ao well es tablished and sustained ha reputation as the one that "SAVES YOU MONEY" that we have decided to in corporate this reputation in a trade-mark design that will at all times be a representa tive of the house itself. In doing this, we want the help of our friends and die puhlk as well, and we win give the following cash prizes for the three best designs embody ing the sentence "The Store that Saves You Honey" 50, divided as follows: 35 to first ; S310 to second ; $5 to third. Contest open until December IS, 1904. Send in your suggestions, either drawn with pen or pencil or described in writ ing, the former preferred. "THE STORE THAT SAVES YOU MONEY" Powers Furniture Co. Corner First and Taylor. a , a, Time Extended to a 4gU 1 ijjij 1