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About Vernonia eagle. (Vernonia, Or.) 1922-1974 | View Entire Issue (Jan. 13, 1927)
Thursday, January 13, 1927. I possible to secure the enactnn at of such a law, or recommend that a severance tax be imposed From page 1 ful mountains of Oregon are de-' and the entire proceeds used for We nuded of their timber, us they reforestation by the state. will be in another generation unless should r4’t allow our beautiful some action is taken, the same forests to be cut, manufactured disastrous consequence will follow into lumber, and sold in eastern here that have resulted in other states and foreign countries, and not realize enough revenue there parts of the world. Fully 80 per cent of the tim- from to start active reforestation ber in this state belongs to non- program. TAXATION resident indiviouals and corpora tions, and only a small part of the In my first message I stated that lumber manufactured in the slate the seduction and redistribution of the tax burden was the paramount is consumed at home. The State Board of Forestry question. We have made progress consists of the governor, the acting with the vexing problem, but it head of the forestry school of the is still a paramount issue, The Oregon Agricultural College, and enactment of the income tax law five electors of the state of Oie- 1923 was a signal triumph for the the taxpayers of gon, appointed by the governor overburdened from and upon the authoritative state government, including the recommendation of the Oregon millage taxes, should be collected State Grange, the Oregon Forest from sources other than a tax Fire Association, the West Coast on property. The income tax was Lumbermen’s Association, the Ore- in effect only ten months, but gon Wool Growers’ Association, under it operation the state collect and the United States For. st Ser- ed $2,928,320.65, and the money vice. The board therefore con.dstJ so collected has been largely re of seven members, five of whom sponsible for the reduction made are appointed by five different pri in the state tax levy, which for vate organizations. I recommend which in 1922 was $9.376,289.11, that the law creating this hoard and in 1926 was $7,200,830.79. be so amended that the governor There has been a material reduc may have the free and exclusive tion in the amount annually con- right to appoint . the members there- tributed by each county in the of, without the 1 necessity of a re- statu. I claim and have a right to commendation from any organiz- claim full credit for this reduc- tion, by reason of my championing ation. The two forestry bills that will the income tax, vetoeing bills anu be presented at this session prac curtailing the expenditure of state I have never faltered in tically vest in the state board funds. of forestry and power of taxation, my demand upon the legislature a greater power than should be to enact laws for collecting money exercised by any commission not lor state governmental functions directly responsible to the goxcr- without resort.’ng to a property tax. Ten years ago, for the second time nor or to the people. Assessing property for the pur I returned to the state senate, ad pose of taxation is one of the vocating the principle that visible most important function of govern property should not bear the bur ment. It is intolerable that such den of maintaining state govern powers should be exercised by a ment. Three tax investigating com board, the majority of the mem- mittees have reached the decision bers of which are appointed neith- *h:.t visible property must be re- er by the electorate nor by any iieved of part of the burden, The governmental agency whatsoever, special tax investigating committee, but soleiy by private organizations appointed by the last legislature, standing in no responsible relat'on went on record unanimously last to the state, and controlled, it may month as being in favor of this be, by persons who are not even principle. I consider the action of citizens of the state. Tlis manner this committee a complete vindic of appoint.r,g the members of this ation of what I have advocated so board is repugnant to the whole faithfully. spirit of representative government. There are several states in the The constitutionality of this law Union, California, Pennsylvania, should be tested at an early date. North Carolina and Virginia, that I recommend that reforestation levy no tax on visible property be done by the state for future for the maintenance of state gov generations. Nature has given us ernment. North Carolina collects al the soil, the rain and the sun, the most all state revenue from a necessary elements to grow the tobacco tax and an income tax. tree. When the tree has reached Pennsylvania, with a budget of maturity it is not right nor just -63,452,654.00, raises the money- that it should be the property of from the following sources: descendants of men who are for- Charter stock tax ...... $18,333,086 tunate enough to own the land Corporate loans tax 6,851,989 and are powerful enough in pol- Corporation bonus on charters...... itical circles to secure legislation 1,760,393 that will enable them to grow the Gross receipts tax ...... 4,104,414 tree to maturity practically free Insurance premiums tax 4,026,489 from taxes. Bank stock tax ........... 1,455,701 I do not believe that standing Mercantile license tax 3,650,222 timber should be taxed, but I do Anthracite coal tax ... 6,741,761 believe in a severance tax. In for Emergency profits tax 2,125,000 mer messages I have recommended Inheritance tax ........... 11,561,367 such a tox on timber, to be divided License fees tax 2,444,274 into four parts, one-fourth to go Miscellaneous 397,955 to the state, one-fourth to the ir reducible school fund, one fourth $63,452,651 to the county in which the timber: Ohio levies only $2,800,000 on is cut, and one-fourth for reforc- visible property, while Oregon, in station. Vested interests seem 1926, levied nearly three times as be so strongly entrenched in this much. Yet Ohio has a ’ budget of state that it appears utterly im more than $50,000,000 Ex-Governor’s Message ‘”1 Entertainment 1 I for Father You can add many hours of pleasure to Father’s life if you will install a Freed Eiseman Radio for his use. With it he can keep in touch with world events, hear good music, interesting talks—and the cost to you is very little. Mellinger Hdwe « VERNONIA EAGLE fifteen times more wealth than kept my part of the agreement. Oregon, The same situation pre- Because this bill was referred, vails in most of the states of the there is today a deficit instead of Union, Only three states exact a a surplus in the state treasury. larger per capita contribution than Much printer’s Unr lias been Oregon from the owners of vis wasted on the so-called deficit^ in ible property for the maintenance the state treasury, and how handi of state government. capped this legislature would be Columns and pages of misinfor in providing for the proper func mation have been published in the tioning of state institutions. Here press of the state during the past are the facts from the books of two years about the difficulties the state auditor: There has been surrounding the functioning of a deficit at the close of nearly state government, by reason of every year for ten years last past. the fact that property taxes can On December 31, 1922, at the time not be increased more than 6 per 1 was ma uguraled gu/e.aor, t..v*- cent a year. I have been accused was a deficit in the state treasury of being largely responsible for of $582,872.85. The same books this condition. I am proud to ac now show a bookkeeping deficit of knowledge the responsibility. I was $969,823.71, which will be reduced president of the State Taxpayers’ by the return of the unused bal League that was largely responsi ances from the various appropri ble for enacting the 6 per cent ations. These unused balances will constitutional limitation amend aggregate $300,000. In other words ment. I alsb have been a member the total actual deficit now is not for four years of the State Tax to exceed $100,000 greater t...... Commission when tax levies have when 1 was inaugurated governor been made. I have made it im your years ago, and this amount possible for the state levy to be was appropriated by the people in increased materially on the 1 small November for the Eastern Oregon homes and farms of this state, Tuberculosis Hospital, and is in Most of the functions of state cluded in the estimates. What a mess of falshoods have been spread government are for the benefit I of the corporations and business circulated and hammered into the interests of the state, and even people of this state as propaganda. the most profligate of legislatures We heard nothing about the would have more money than it ficit four years ago, six years could spend if these same corpora- or eight years ago, but now tions and business interests paid hear much about the present taxes in proportion to the amount licit because powerful influences in paid by the farmers and the small the state desire to put over this misinformation. property owners. Many, many times the statement The situation demands that you has been made that all Pacific enact legislation that will force Coast states should have the same an equalization of the burden. Re kind of tax laws. Friends of triv cords on file here in the state income tax have been sever»-’ house show that in 1923 there criticised for pioneering in were 2,260 business concerns on method of raising revenue, our tax rolls that had a book value critics can show their sincerity by of $254,000,000; they were asses assisting in the passage of a law sed for $63,000,000, or 25 per in Oregon similar to the California cent of the book value. These same law taxing corporate excess. Un- 2,260 business concerns had a net uer tbat taw California is collect income of $29,283,00 or 11 Vs per ing over $6,000,060 annually. Such cent of book value. Just think of a law would yield over $1,000,000 it! These 2,260 business concerns annually in this state. It would made a net profit in one year of hurt no one, reaching only those 47 per cent of their assessment. enjoying excess profits. It would I am not dreaming, guessing or reach firms in Oregon that have estimating.. These figures have been a small amount of tangible pro- taken from the sworn statements perty and large net profits, often of these business firms. It is also exceeding the assessments. worth noting that these figures When I was inaugurated gover are not from a few firms, but nor the insurance department of from many, scattered all over the the state was collecting for the state. In one county, not Multno mah, nine manufacturing concerns state treasury $316,793 in revenue. The amount collected in 1926 was had a book value of over $10.000,- $695,597. The fees collected from 000, a net income of $2,755,000. insurance companies very justly assessed for $2,246,690, or 81 per can be increased. California col cent of their net profits for one lects a larger percentage than year. In another county five cor porations had a book value of do in i Oregon. At least 1 per cent should $17,560,000, a net profit of $2,- 629,000, and were assessed for levied on the premiums of all mestic insurance compan.es in $2,754,000. The federal census for 1925 state. The law provides that they must be examined at frequent in 3hows 700,000 acres less cultivated tervals, and this entails consider land in Oregon Muring that year able expense. There is no reason than for the year 1920. The num why the domestic companies should ber of abandoned acres will in be entirely free from bearing their crease with the years unless he part of the burdens of govern who cultivates the land is able to ment, which have been increased realize a larger portion of the by reason of the operation of real value of the products he raises, these same domestic insurance com and also be given relief from the panies. excessive amount of taxes he is The life insurance companies now obligated to pay. A short time ago my attention was called have derived great benefit in to a corner lot in one of the pros various states by reason of perous cities of the state. Upon prolongation of life. It is my this lot there had been recently lief that a special tax should erected a beautiful building, cost levied on these companies sufficient ing many thousands of dollars. The to pay the expense of maintaining lot was appraised by three shrewd the state board of health. Corporation fees can and should business men. The highest appraisal was $125,090; the lowest, $90,000. be increased. Especially should a That lot is assessed for $16,000. much heavier tax be levied on non This instance could be multiplied resident corporations. thousands of times. I warn the As a result of my vetoing owners of great wealth, those who appropriation for the Public control the business interests of vice Commission two years this state, and also largely con the legislature provided for a trol its politics, that the continu cial tax on public utilities, to raise ation of this policy is exceedingly funds to maintain the Public Ser- dangerous, for loyalty can not be vice Commission. The fund provid expected among the citizens of this ed has not been found »ufficient. Republic and of this state when The commission should not be a a man is obliged to give up hi» burden on the general taxpayer, farm for taxes and then behold The percentage collected ahould be hundreds of instances just like the increased. one I have cited. Such a condit- Continued next week. ion breeds not patriotism, but shevism. Notwithstanding the repeal the income tax law in 1925, the failure of the people to enact the Grange Income Tax Bill in 1926 I still contend that it is the fairest and most equitable method of distributing part of the burdens of state government. I believe it is your duty, at an early hour in this session, to enact into law the principles embodied in the Grange Graduated Income Tax Bill. A tobacco tax is in force in twenty-two states in the Union, Many more states will enact such a law this year. From this source a million dollars could be raised annually. Two years ago, in the WORK IS A BY-WORD office of the president of the sen ate, an agreement was entered in to between myself, as governor, and representatives of the tobacco interests, to the effect that if I would sign the tobacco bill, which omitted cigars, there would be no referendum called on the bill. 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