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About The Oregon daily journal. (Portland, Or.) 1902-1972 | View Entire Issue (March 28, 1920)
THE. OREGON SUNDAY JOURNAL PORTL AND, SUNDAY MORNING,' MARCH 28, 1920. William Gibbs McAdoo Former secretary of the treasury urges immediate reduction of tax burden. Declares for partnership between worker and employer in interest of industrial peace. ' By Brwoe Bliven. - (Cofrrricht. 1920. by Brae BUven) ! IMMEDIATE reduction ot the tax burden carried by tba American peo A pie lm one of the biggest necessities now confronting the country, in the opinion of the Hon. . William Q. McAdoo, former secretary of the treasury, and one of the men most frequently mentioned as a possible Democratic nominee for the presidency. "While practicing, of course, the most rigid economy in government expenditures, it seems to me that the time has come for a substantial reduction in the burden of taxation," Mr. McAdoo told me when I called on bim the other day. 1 think the present generation could with perfect propriety hand on to pos terity the- ultimate nettiement of a larger part of our war debt than bas aireaay Deen iunaea. Mr. McAdoo believes this should be done, even If ft were necessary to raise IL600,0M.0O in the next two years by Issuing; Ions;-term bonds for 1750.000.000 per1 annum, substituting this revenue for a similar sum whlfsh it Is now pro posed to secure through taxation. TfOT AFRAID OF RADICALISM It Is interesting to note that here is one man in close touch with the ad ministration who is not alarmed over the growth of radical doctrines in Amer ica. "America is in no such danger from radicalism as the alarmists would have us bellevs," Mr. McAdoo told me. "I do not think a Bolshevlnt revolution in the United States is either probable or pos sible. I have tQ much faith In the stirring; patriotism of the American peo ple and too much confidence In their love of law and orderly processes to be frightened by the reckless talk of an insignificant element of our people. "I believe, of course. In the firm maintenance of law and order, and for that reason lawless methods when used by a majority on behalf of principles I Indorse are just as repugnant to me as when used by a minority on behalf of principles I abhor." Set down In chilly type these words are probably far less Impressive than when spoken by Mr. McAdoo. He is that rarest combination, a fluent, rapid conversationalist who thinks quickly and Is never at a loss for a word, who yet manages without effort to be thor oughly convincing. Public speaking is always a serious business to Mr. Mc Adoo. and this was. of course, especially true during the war, but In private life he Is the moat cordial of men. IX EXCELLE5T HEALTH Since he has recovered from the strain of his manifold duties at Washington during the war he looks, I should say, at least 10 years younger and much less than his age, which is 66. His face is vroddy, his black hair ia brushed ruth lessly back, and I might add in fair ness that bis aggressive nose and pro jecting chin do not show the nut-cracker effect that the cartoonists are so fond of. In dress, manner, and appearance he Is all the big, successful New York lawyer, with no hlnte of politician. H never held but one political office, he remarked ; and that one the secretary ship of the treasury is the one with perhaps the most business and the least politics of any Washington Job. It is Interesting to see that in spite of his many years as successful lawyer and as president of the Hudson Tun lawyer, with no hint of politician. He views on social and industrial questions are remarkably liberal and progressive He believes that the only aim which Justifies any government ig the securing of the greatest amount of happiness and prosperity to the great masses of the people. FOTEKTT WORLD'S DISGRACE "The strongest Indictment of the pres ent organization of society is the pov erty of the common people, which is found In every country today," he said. "Militarism has been one of the prin cipal causes of poverty. I hope the war has really destroyed militarism.. The victory is an empty one if it has not "Prevailing discontent rests upon the firm conviction of those who toil that they are not getting a fair share of the fruits of their labor. This to true of the farmer' as well as of the laboring man, and of that great class of salaried men and women who are having a hard struggle to make both ends meet A LIVING WAGE "Every worker should have a large enough wage or salary- to provide a de cent standard of living for himself and hla family and be able by the exercise of reasonable thrift and industry to lay aside something for his old age. That la not possible today for large numbers even in America. We hear a great deal about high wages, and we forget that blgh prices absorb in many cases the entire increase and more than the in 1,500,000 SERVED A YEAR THERE'S A REASON Look for the Steaming Roast Beef 206 Hoast Veal 20 Stewed Beef 15 Hamburger Steak 15 Chicken Pie... 20 Veal Stew.... 20 ''(fi 1 Cls-an Food 7 hYMfet5t Delicpuslv Meal Tickets $5.50 for $5.00 Good at Any of the Store Plenty for Twenty Charge for Bread We Make and Bake Everything We Use MOST TALKED OF AND BEST THOUGHT OF EATING PLACE IN THE CITY W Serve tAe Bmt and Sell for Let The man who does not advertise may know his business, : but nobody else does, - - . crease, It is also true that there is a tendency to regard the few instances where there has been an exceptional in crease in wages as typical "But let us turn our minds to some conspicuous cases of underpayment. Look at tbe poor teachers and ministers of the; gospel all over the land, who per form ' inestimable services and are the worst paid. It is a grave abuse and a reflection upon our Intelligence and hu manity to treat these splendid serv ants as we do. "In general, the rewards which go to those who do the least to aid in the pro ductive' processes are abnormally large. It is vr task to seek for a more equita ble distribution. This should not merely Improve the condition of those who work with their hands. It should include all who contribute to Industry, whether with hand or brain. Perhaps it will never be possible to achieve social Jus tice, but we can always work toward that Ideal. INDUSTRIAL DKMOCRACT "When the founders of our govern ment evolved political democracy they thought they had found the solution of moat of our difficulties. They did not think of Industrial democracy as the solvent of our economic problems be cause these questions were of minor im portance at that time. Now our eco nomic problems overshadow our politi cal ones. By giving labor a real voice in determining wages and working con ditions and assuring to it a just share of the profits srising from faithful and efficient service, industrial democracy can be realised and with It will come that understanding: and cooperation be tween labor and capital which is the best guarantee of industrial peace. Cap rtal will find its greatest security and profit in such an enlightened policy." Mr. McAdoo has no magfc formula, no patent cure-all to offer for the high cost of living. "The world must bet gack on a basis of peace and security before we can hope to have production balance con sumption again and thereby restore normal conditions and prices." he de clared. "We must practice economy, also, in our private and business af fairs, thereby relieving the pressure on supply. This will help the situation immeasurably but it is difficult to get people to do it now that the War stim ulus is gone. LEAGUE WILL HELP "I believe that the delay in signing the peace treaty and bringing the League of Nations into active operation is one of the chief contributing causes to world chaos. The people will not and. indeed, cannot go to work until they are guaranteed not only peace but security. In Europe today these condi tions are only possible if the League of Nations can exercise not merely a strong material power but a great splr ttual influence. TREATY TERMS TOO HARSH! "There are those who say that the treaty Is too harsh in Its terms ; that It prevents the restoration of normal in dustrla! activity In the central empires. This may be true ; If It Is, the League1 of Nations can and ought to modify the treaty terms to whatever extent is nec essary. This is the first time in the history of the world that a great war has been followed by a treaty which Is flexible in Its terms, and provides the means for modification at any future time if that modification "seems Just. I regard this flexibility as a great step forward from the barbarisms of the past" In Mr. McAdoo's opinion, the hatred of Germany which flamed up so bitterly during the war ought to disappear for our own sake as well as hers. "Without In any way forgetting the atrocities com mitted by the German soldiers during the war." he said, "we must get back on a basis whereby German can event ually he restored to her place In the fel lowship of nations. For that reason, I think every effort should be made .to see that Germany Is given a fair chance to restore economic prosperity, which Is essential to the maintenance of the democratic government she Is attempt ing. To that end modification In the Cup Baked Beans 10 Fish 20 Pastries ...5, 10?, 15 Coffee, Tea 5 Salads, from. . .5, 1( 15 2 eggs, any style 15 reparation clauses of the treaty and In' other resDecta ought to b mads within i reasonable and Just limits. "What we must bow do is to restore goodwill in the world. I have been wondering what the very great Ameri can. Abraham Lincoln, would do In this juncture. I believe be would be think ing of what would advantage humanity, and not of what would mid the political party of which he was a member. Lin coln was human, not partisan. He knew the truth which Christ taught 1900 years ago, that goodwill ia the only possible foundation tor peace and a real rela tionship between men or between na tions." WOULD DEAL WITH RUSSIA . Mr. McAdoo would have commercial intercourse established with Russia even under her present rulers. "The restora tion of civilization in Russia depends on resumption of Intercourse established with Russia even under her present rulers. "The restoration of civilisation in Russia depends on resumption of inter course with the world. We Can embargo commodities but we cannot embargo ideas. Russia has the absolute right to live under any form of government sh chooses- even if we do not think well of it. She must be allowed to work out her own destiny, and if we will keep our hands off and let her alone she will do so." There should be no more loans from the United States 'government to Euro pean governments, in the opinion of the former secretary of the treasury. lie believes that except in time of war no nation has the right to tax its people in order to lend to other governments. With the restoration of peace and se curity he believes that private capital can be found in large amounts within the United States, which will be loaned to private individuals In Ruropean coun tries for use in rehabilitating genuinely productive enterprises. COLLECTIVE BARGAIXIAG With the restoration ot normal con ditions, Mr. McAdoo believes that much of the Industrial unrest in our own coun try will disappear. There are some problems, however, which will remain. and must be solved by the best effort of our combined intelligence. For ex ample, he believes that "the right of workers to organize for collective bar gaining and to Quit work to enforce their demands must be unquestioned ; that en lightened effort should be made to es tablish legal agencies through which dif ferences between labor and capital may be heard, and, if possible, composed," but he points out that no law can be passed which will make a man an ef fective worker if he does not choose to be one. "Efficiency rests on cooperation and contentment; it cannot be produced by compulsion," he said. "There Is no power Which can make a man work If he doesn't want to. We might as well face that fact first as last. In the future It must be the test of statesmanship that it shall bring about social justice ' and make unneces sary violent paroxysms with the in dustrial fabric. It is the bitter truth that In the past labor has rarely, if ever, secured any improvement wrthout the strike. The fact that labor has this power makes its just exercise a matter of supreme importance. It should never be exercised in such a tyrannical way as to imperil the life and health of the community and resort to It should al ways be deferred where It affects those vital industries on which the life and health of the community depend, until every effort has been exhausted through instrumentalities created voluntarily or by law to satisfy the situation. BOB.N IN GEORGIA i Though William Gibbs McAdoo speaks with such a pronounced southern accent, he has spent 28 years of his 56 in New York city- Born in Marietta, Ga.. in 1863. he was educated at the University of Tennessee and admitted to tbe bar at the age of 21. He practised at Chat tanooga until he was 28, when he came to New York and continued his profes sion for many years. The idea of putting a tunnel under the Hudson river and carrying passengers in it must be cred ited almost entirely to him. He was president and director of the. Hudson & Manhattan Railroad company, which In the year 1904. after he had overcome all sorts of extraordinary difficulties, both in engineering and financing, com pleted the first tunnel. This was fol lowed by three more, and the present system was completed in 1909. He was a delegate to the Democratic national con vention, at Baltimore which selected Wood row Wilson, and was subsequently vice chairman of the Democratic na tional committee, and acting chairman during much of the campaign. President Wilson made him secretary of the treas ury in his first cabinet the following year. Mr. McAdoo has been married twice. His first wife, whose name was Sarah H. Fleming, died in 1912, after a married life of 27 years. In May, 1914, as every one knows, he married the president's daughter, Eleanor Wilson. BEFE3TD8 RAILROAD CONTROL Of Mr. McAdoo's activities since 1913 and especially those during the war, there ia no need for me to speak in detail here. He was put in charge of the railroads, after they were taken over In December, 1917, and operated them throughout the war period. Mr. McAdoo told me an Interesting bit of secret history in connection with this matter. He stated that the roads were taken over largely because the allies were on the edge of starvation through lack of American food, which could not be moved to tidewater in this country. They actually curtailed munitions to get the food through. Mr. McAdoo flatly denies that government operation was either inefficient or wastefully expensive. He states that a steady and bitter prop aganda to discredit government opera tion has been conducted, and that it has been successful in misinforming the pub lic mind to an astonishing degree. WAR COST DISCUSSED I might add that be makes the same charge in regard to most of these so- called war scandals. "No war In history was conducted with so little waste and graft as this one," he declared. "It is true that money was spent prodigally because we had to organise prodigiously. but such expedltures were a true econ omy In the end. The best Informed statesmen and military experts expected j the war to last at least until the sum-; mer of 1919. When the armistice was signed the war was costing us $60,000,000 a day. America's big scale efforts un doubtedly ended the conflict six to nine months earlier than would otherwise have been the case. By spending as we did we saved to the country the cost of six months' war. or $10,800,000,000. This is to say nothing of the far more vital aspect of the matter the many thou sands of additional American lives which were saved by the early termination of the conflict. Who is sordid, enough to measure those lives against the dollars which were spent, it is true, prodigally, but with the maximum effect, at a time when such expenditure was needed V Whether Mr. McAdoo is right or wrong In his conclusion it is not my business here to decide. I have simply presented his point of view a. the present Junc ture. That he Is one of tbe strongest men In the Democratic party goes with out saying. Whether he is strong enough , to be made the nominee, and whether he can then. . win the election against the powerful opposition the Republicans will put forth this year are two ' questions which iWill only, be answered-: by -the j event . PRESIDENTIAL if , ; , '- - v i WW-'-:-' ' .yrT' :"v t 1 William G. McAdoo, who Is regarded as a formidable candidate for the Democratic presidential nomination. Waterfront Fight Old Present proposal to clean all buildings off river front, and convert area into public levee recalls to memory attempts of Portland pioneers to accomplish this object 70 years ago. pJTY ENGINEER LAURGAARD'S proposal to clean all buildings off the waterfront from Jefferson to Glisan streets between the east side of Front street and the harbor line, and convert the area into a public levee, reminds old-timers of the aspirations of Portland, ia this same direction 70 years ago. Whether or not Pettygrove and Ixvejoy, the original proprietors of the townsite, had -a levee. In mind Is a matter of Judicial doubt. One court decision held that the proprietors so intended and decided for the people. Another decision field that the proprietors did not create a levee, and even If they did, it was Immaterial, as they did not have the right under their titles to the land to do anything of the kind. At that, the story of how Portland lost in the courts the levee which it is now seeking to establish, is interesting.' Away back in 1850, the year before Portland was incorporated, Joslah L. Parrish sued the town proprietors to enjoin them and their vendees from erecting buildings on tbe river bank in front of his property, justice Pratt of the territorial district court Issued an injunction, after which the proprietors, and especially Coffin, set on foot a compromise with the citizens whereby a portion of the levee was to be private property and the remainder a public way. Pending negotiations Coffin and others claiming under the proprietors erected buildings on the disputed ground. The compromise falling, the parties to the suit reverted to their original rights and brought the entire levee under ad judication. Justice Olney decided the Issue in an opinion handed down in the supreme court of Oregon In January. 1854. He reviewed the evidence taken at the trial and held that Pettygrove and Lovejoy, who bought the townsite from Overton in 1845. did in fact dedicate the levee to the public. Keputable witnesses testi fied to this effect and said that the levee was never questioned until about 1850. Pettygrove testified that he had never Intended to make the levee pub lic property and had not told any one of such intention unless he was in a pet or under the influence of Uquoc Jhe court decreed that Water street, as Front street was then called was bounded on the east by the Willamette river from the south line of Jefferson street to the south line of Ankeny street. Justice Olney did not deem It tit to or der the removal of the buildings on the levee, but authorized the city of Port land to petition the court for the bene fit of the decree whenever such removal became necessary In the public Interest, PEOPEBTY OWITEKS LOSE At the June term of the supreme court in 1854. certain of the defendants asked for a rehearing on the perpetual injunction granted by Justice Olney. They urged, as one of tbeir principal contentions, that even if the original proprietors did dedicate the levee to the public the dedication did not bind those who succeeded to tbe rights of proprietorship. This time the decision was rendered by Chief Justice George H. Williams, who was, later United States senator from Oregon, attorney general of the United States and. In the late years of his life, mayor of Portland, fie held against the defend ants and ruled that if the original pro prietors bad legally transferred any por tion Tf their title to individuals or to the public, the transfers held good against their successors in Interest ; and that the, new proprietors, having adopt ed and made sales by the plat of Port land as laid off by thehr predecessors. were estopped from saying that the streets and public grounds were pot such as the plat showed them to be DEAD! T0ID6 DECISION Justice Deady dissented to the Wil liams decision and seven years later de clared it void. Notwithstanding the court decisions. the townsite proprietors of the time. Daniel H. Lownsdale, Stephen Coffin and "W. W. Chapman, asserted their claims to the levee. No serious trouble seems to have arisen until the early part of 1858. when the appearance of wood yards on the levee caused one of ' tbe newspapers to 'Suggest to the oi tixens "the propriety of having an afternoon's POSSIBILITY V. .w ... 4 f. sT" frolic to clean off the public levee for the public good." By ordinance ap proved May s, 1858, the city council ordered all obstructions removed from the levee within three days. Appar ently matters drifted until 1860 when the final fight over the levee began. In March George W. Vaughn, a former mayor of the city, built on the levee at the northeast corner of Front and Mor rison streets and on July 1. J. P. O. Lownsdale. a son of Daniel H. Lowns dale. started building at the southeast corner of Front -and Taylor streets. Vaughn built a wharf on the Morrison street property In the winter of 1859 and on March 20, 1860, started the con struction of a commercial building. That day the council instructed the marshal to remove all obstructions after giving 24 hours' notice. The following day Vaughn put a force of men at work and by nightfall had fully completed a building 60x20 feet. On the morning of March 22 a ferge number of citizens headed by Mayor Robbins tore down the building which Vaughn had erect The workingman with small earnings is hit hardest, and even the'frich complain. Thia is how it is done I . They advertise all the finery of an establishment, all the way from the veranda to the private driveway. The impression is given that the subject of money and prites is not; even, touched on. Right there you are deceived. You select a casket and materials regardless of price. Should you not be heard from after the funeral within ninety days, the collector would be at your Moor with an exorbitant bill and extras which you had never thought of. ' " This is not Miller & TraceyV policy. We want you to inquire of us, even before you call an undertaker, what a respectable funeral will cost. , , This is the reason why we advertise our prices and service. The subject of price and money is brought up so you have a thprough understanding of what you are getting and for what .you are paying. K j We extend credit to all who wish it. Liberal discount allowed all who meet their responsibilities within hirty days. Main 2691578-85 ed. Two year later Vaughn sued the city for 117.27S damages and on Feb ruary n, 1863, was given a. judgment for $1000 in state circuit court Following tbe Vaughn Incident. Mayor Bobbins, on April 12, sent a message to the council in which he said: "The city is' already engaged at law with in dividuals tor lands claimed " to have been dedicated' to public use. I need not say that the public expects you to defend inviolate every equitable claim to the soil that It posses sea" LEVEE DECIDED AGAINST J. P. O. Lownsdale proceeded with his building until November 9, when the city arrested his workmen and threat ened to clean him off the levee as it had done with Vaughn. Then, upon the claim that he was a dIUsen of In diana, he filed a bill for an injunction before Judge Deady In the United States district court. The city in Its answer pleaded the decree of the Ore gon supreme court In 1854 In the Par rish case. The Lownsdale case was heard June S, 1861, on the exceptions to the amended, answer to the amended bill. Judge Deady ruled against the city, holding that Pettygrove and Love joy, the town proprietors who succeed ed Overton, had no interest in tbe soil. never acquired any and had nothing to dedicate, such as a levee; that' they simply held the naked possession of the land under the laws of the pro visional government organized at Cham poeg in 1813, according to the custom of the country, and when they gave up this possession to Daniel H. Lowns dale he todk it as though the foot of man had never been upon it. Judge Deady heard the case Decern ber 5. 1881. on the pleading and proof and the following day rendered a de cision adverse to the city. Among the points decided by him were the fol lowing : ,1. That Pettygrove and Lovejoy took up the Portland claim in 1845 and held it under the land law of the provisional government until September 22. 1848, when they sold to Daniel H. Lowns dale, who in 1849 sold interests to Chapman and Coffin, as joint occu pants. 3. That . Daniel II. Lownsdale per fected his title to the land under the donation land law of. 18(0. 3. That on April 29, 1852, the com mon council Ot Portland, by . resolution adopted the plat of the town drawn by John Brady as the city plat; that on August 2, I860, the council by ordi nance asserted the strip of land east of Front street to be a public levee, which ordinance was repealed June 14, 1861 ; that on August 6, 1861. the council by ordinance declared the so-called levee to be private property and permitted the holders to erect wharves thereon. LOWNSDALE PERFECTS T1TLI 4. That In 1854 and 1858 the city assessed the property and collected taxes thereon from Lownsdale. 6. That on April 20, 1851, and for six successive weeks Daniel H. Lownsdale published a public notice claiming the land east of Front street and warning all trespassers to keep off. 6. That the city's allegation of a ded ication of the levee by Pettygrove and Lovejoy was not supported by evidence, but on the contrary the evidence tended to show that they occupied the levee as private property and had built a private wharf and slaughter house on it. But if the fact were otherwise and it appeared beyond doubt that Petty grove and Lovejoy did make such dedi cation, it would be immaterial, as they had nothing in the land to dedicate. They were mere becupants of the public land, had only the naked possession, which terminated with such occupancy, and could not by any act charge the bind in the bands' of, any subsequent occupant with any ease or ' Incumbrance. 7. That the allegation that Daniel H. Lownsdale confirmed the Pettygrove and Lovejoy dedication after be suc ceeded to the title was. untrue as well as unproved. 8. That the adoption by the common council of Portland of a (Brady) map upon which Front street was repre sented as being bounded by two parallel lines so as not to include a strip of land lyUtg between it and the river was a solemn admission by the city that the levee was not a part of Front street. 9. That the city of Portland be per petually enjoined from asserting any claim to the property. The city council, in a resolution in troduced by William M. King, and adopted March 30, 1862, referred to the Deady decision, and provided : "That the city will and hereby does abandon any claim of property to or In the lands or tenements situated between Front street and the Willamette river within the corporate limits, and the city attorney Is hereby Instructed to withdraw and discontinue all notices and proceedings on behalf of the city as to the decree in said district court, but this is in no way to affect the right of the city to the streets leading to the "Willamette river." Now, after a lapse of 58 years, the city is seeking to obtain the levee which it once thought it owned. Pay Back Taxes to Vote Atlanta. Ga., March 27. (I. N. S.) J. T. Bryant, 64, being desirous of cast ing his vote in this year's presidential elections, has- just paid his back taxes for 20 years. The Funeral Question Answered (Questions which are asked by the public) WHY do certain Undertakers charge so much for their casket and service? WHY are they so heartless as to take advantage of the bereaved at this opportune time? WHY sometimes absorb all of the small sayings 6r the entire insurance instead of drawing a money line? We all know why. - INDEPENDENT FUNERAL DIRECTORS Taxation Problems Assessor Henry E. Reed recommends consolidation of city and county governments and the merger of the many tax levy ing bodies that now operate independently. In s nmW articlt In The Sundur Journal Aumor Rd dUcu d . ttkB prohlRW ra frontta th city ot Portland and Multnomah county with ipvctal rafrnea to th operation o tb 6 per cent UmtUtioo, In' the sceom panying article Mr. Kaed eontinu - th di cumion. concluding witlj a nHommmdation foi to consolidation of cifjr and county ana in merger of tli many tax lerylnf bodia now inncttontng utdapaodtntly. By Hesry E. Keed County aaMgaor ILLUSTRATIVE : of the grip in which legislative enactment, backed by a certain amount of public senti ment, may hold a tax levying body. is found in the act, of 1917, authorising a levy of 16-100fhs of a mill for rose festivals. While the law Is only directory, when the county budget committee was sitting in the fall of 1918. it was requested lo include an item for the festival, but declined. Later the county commissioners provided in the budget for the festival, but eliml arated the appropriation when strong objection was voiced by a group of tax payers. Had the full l&MOOths of a mill been levied for the festival upon the 1918 valuation It would have called for about $49,000. or much more than one-half of the 6 per cent increase to which the county commissioners wers entitled upon that year's valuation. This circumstance Illustrates how quickly the people, or Interested groups of them, will ask for a tax if there is authority for it Just provide the authority and the de mand for its exercise will be forth coming, APPORTIONMENT IS FIXED One more word In regard to legislative grants of new or additional taxes. At the session of 1910 the county school fund was increased to a minimum of $10 per head of school population and the library tax from a maximum of one half mill on the assessed valuation to a mlxlmum of 1 mill. The school fund asked and received from the Multnomah county commissioners the full 110 per capita, and the library was given all It asked or the proceeds of 74-100ths of a mill. In the extension of the taxes the library was credited with nearly 43 per cent In excess of the 6 per cent limit and the county school fund with about 5.5 per cent above the 6 per cent limit. As to these two funds It should be said that the county commissioners, as a board, have no jurisdiction over their expenditure. Both come within the pur view of Section 3 of Article 9 of the constitution, which says that "No tax" shall be levied except In pursuance of law, and every law Imposing a tax. shall state distinctly the object of the Same to which only It shall be applied." The county school superintendent reports to the board the school census and the per capita and the levy Is made on that basts. The library reports Its needs and the levy is made. When the taxes are collected they are placed In the respec tive funds, and thereafter the county commissioners may not in any way divert them, may not even transfer an excess if any, to' the general fund to be used for general county government. LEGISLATURE ESCAPES CESSVRK The tax supervising and conservation commission, in its recent report to Gov ernor Olcott. called attention to the excess levies for . the school and the library, and evidently accepting the library levy as part of the general county levy, charged that the county levy added to the library levy exceeded the constitutional limit by about $7.C00. H is true that the two levies, considered jointly did exceed the limit by the amount named, but nearly all the sicoss is chargeable to the library, as the county commissioners kept very close to the limit In their own levy. Whether the commissioners are to be held respon sible for voting an excess beyond the legal limit depends whether or not gen eral county government, the county school fund and the library are to be considered as a whole, as some assert, and their aggregate levy subjected to the limitation. If they are to be consid ered as a whole, then the library or the county school fuid, relying upon legis lative authority, smay In any year so increase Its demands ks to seriously im pair all other functions of county gov ernment. If each stands upon Its own merits, as seems the Just and reasonable way to Interpret; the enactment, then each must answer for itself if It exceeds the limit. However, this is an unadja dlcated question , and it may yet he called up to embarrass county govern ment throughout- the stats. The tax supervising commission freely criticised the county commissioners for doing what they apparently could not escape, but showed tender solicitude for the legisla ture In not even' mentioning the chief source of the trouble, 18 PERNICIOUS LEGISLATION What is to be " the result of all thjs voting of new expenses by the legis lature? We have the answer to the legislature itself . 1n the constitutional amendment referried to the people by the recent special session and to be voted upon In May. It proposes to amend Section 10 of Article 11. which limits current debts and liabilities of oounfles to 860O0. and says, in part, after quoting the old matter In the section: : Provided, however, that either Crook A v -" ' y uuuniy, or win. may issue -i vi' a rr-m -i i4 . . . ... i . & . . i : I denee debts ami liabilities imposed on It f by law and which the county Is power- j leas to prevent and may issue bonds in an amount not to exceed 2 per cent"olrI the assessed valuation of all the property In the county to fund its wasranta so ( issued, etc. . - I Reduced to Us simplest language, the ; voters of the stats are to be called upon j to authorise Crook and Curry countlea I to issue warrants to cover current ex pense, and later, their elector japprovlng, issue funding bonds to take up these warrants, and the debt passed on to a future generstton. It is n n'mlclous niece of leirlsmtton and should be re jected at the state election in May. even though it be local In character. It l Llie enterinji wedge for the wildest sort ,1 cf nubile financing. If It shall he ti adopted, every county In the slate will In timr find itsfir loaded down with debts and. liabilities imposed upon it by public law and which it is powerless to j prevent, and will be asking lhe voters f first to lot it tsKU evidencing warrants which are later to he converted Into 5 funding bonds. Portland had an et jj pprience years ago in this kind of flnanc Ing. In the '9's the old city councils ; piled up -a floating debt of $430,000. which was represented by outstanding warrants. The councils did not have the nerve to make s tax levy to pay the warrants, so the ISRlslature of 18 was asked for authority to issue J4SO.OO0 of HO year bonds bearing 6 per cent. In terest. These bonds will mature Decem ber 1. 1928. and by the time they are retired will have cost the people of Portland. In principal and interest, the sum of $t.075.0OO. pnuTi ivn hit nmn Tax limitation has different effect lA'i different units of government. The eltjr of Portland was undoubtedly bard hit by the constitutional amendment. When limitation was adopted, the city teas facing a sure loss of revenues irom sources other than taxes, such as saloon licenses, engineering costs, premium on bends, etc. These revenues dropped front nearly $1,100,000 In 1911 to $78,O0O In 1914. to about $159.00(1 in Us. ana are now about one-seventh of their greatest I volume. Added to this is the fact that the lalt city budget prior to the coming of limitation was skimped. Had tna city been able to retain Its revenues from sources other than taxes, or had something else- been" provided to taks their nla.ee. it would have been able to get by without asking the people for the full 3 mill lrfcrea.se last November, Multnomah county, excluding the library and the county school fund, has fared much better. The legislature of 1919. by its apportionments of the motor I vehicle and state market road funds, and lit irrant nf authority tO OOUhtleS tO I levy a tax for market roads outside of the limitation placed at the disposal of th county this year about $250,000, ex clusive of the 6 per cent interest But for this legislative action, the county's program for 1920 and the money- to meet it would not have made a snug fit. LIMIT IS BENEFICIAL Such has been the working of the- nr cent limitation amendment. We see that the evident wording of the en actment and the common Interpretation.! of It la that any increase voted above I the 6 per cent W good for only one yea. Whether this construction shall be sup ported by the opinion of the supreme I court Is yet to be determined. Mow- ever. If the Interpretation above out lined be correct, the legislature has found a way to get around the enact ment by submitting continuing levies for specific purposes to the people and having their approval. So. also, the I City of Portland has done In the case of I the extra three mills voted at trie sp' elal election in November, 1919. The legislature bas gone a. step farther and Is submitting to the people a constitu tional amendment authorising Crook and Curry counties to Issue warrants to be followed by bonds, covering expendi tures Imposed uion them by law snd which they are powerless to prevent. It will be seen that the legislature, through the market road and motor vehicle acts. has placed additional revenues at the disposal of counties, while at the same time leaving their exercise of the per cent limit unimpairea. uesinia moi operations of the constitutional provis ion which have bern noted, the 6 perl cent limit has produced satisfactory rs-j suits. In that taxes have increased tessl In Oregon than In Washington and Ida ho, where there Is no restraint upon thel taxing power. All things considered. the 8 per rent limit Is entitled to rs-j examination on Its merits, st least tol determine what It really means In re- spect to continuing levies. Four acts levying additional stats (Concluded na Paa St 1 11 ' I ' " 'I 1 wa, V J WASHINGTON AT ELLA ST. M