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'& 6 THE REPUBLIC: SUNDAY. OCTOBER 21. 1900. ILrK IN. LtX THE ST. LOUIS REPUBLIC FtiBUSHERS: r.i:onr.n knapp co. Charles TV. Knatp. President andc.en. Met. George L. Allen. Vice President. W. B Carr. Secretary. .. Office. Corner Seventh and Olive faireeta, (liKrunuc nuii.pixR.) TKRMP OF SUBSCRIPTION: DAR.T AND SUNDAY-Pr.vKN IF?Li:3 A IVEHK. By Mail-In Advanc--Poj!.-ge Prepaid. ... .J1.M On Tear F'r Months .... 3.M .. . 1.M Three Month" Anr three das. except Sunday. one jew Fun.Ie.v. with Magallne .special Malt ndltlon. s'unday . 1KI . :m . l Tr. t.s S'indav Magazine. BY CAitnir.it. st. Louis axi iu'ih-'RHs Fer Week, dallr only- 6 cent. Per Week dally and Fundiv IS cents TWicE-A-wKnic issn:. Published Monday and Thursd-o one jear Jl.W Remit by bank draft, express money order or registered letter. Address. THn REPITBMC. Ft- Iul. Mo. TT It-teeied cemmuntcatior-s cannot be returned urder any circumstances. Entered at the Pat Office In St. Louis. Mo., as second-class matter. DOMHSTH" l'OSTAOn TOR COPT Fight, ten and twe!e rag's 1 cent sixteen, eighteen and twenty rae. 2 cents f.ir one or 2 cents far two papers. Twenty-two or twentj-rtght pices 2 cents Thirty pages 3cent. TELEPHONR NUMUKRS. Bell. Klnlech. Ccur.tlng-Room Main SOU AC Editorial Re-e3tlon-Room....rark IS AN SUNDAY. OCTOBER 21. 1IW). SEPTEMBER CIRCULATION. W. B. Carr, Business Manager of The 81. Louis Republic, behns duly sworn. Bays that the actual number of full ortd complete) copies of tho daily and Sunday Republlo printed during the month of September. 1JO0, ell In regular editions, -was as per schedule belowi Sat. Com. J 85,820 S 8unday.. 85,750 S 85,040 ....... ...83,50 5 83,260 8 85,690 7 ... 83,190 6. .... .85,810 8 Sunday.. 85,710 10 82,970 IX 83,060 12 83,620 18 83,590 11 83,920 16 85,810 Date. 10 Sunday C&ptea, 84,960 17 83,310 18 84.180 19 84,460 23 84,250 31 83,580 23 86,210 33 Sunday.. 84,700 24 e4,090 25 83,680 26 83,560 27 83,280 23 83,240 39 86,040 30 6onday.. 66,250 Total for the month 2,532,600 Leu all copies spoiled In print ing, left orer or filed 8.Z) Net number distributed.... 2,457,364 Average daily distribution 82,912 And said TV. B. Carr further says that the number of copies returned or reported unsold during the month of September was T.Z2 per cent. W. B. CARR. Ewent to and subscribed before me this fir, day of October. 1900. J. T. FARISH. Notary Public. City of St. Louts. Mo. Sty Urm exslres April 26. 190. EXACTLY SIMILAR. The misstatements the Globe-Democrat makes about the Missouri School Fund are mainly malicious nnd willful, but not -wholly bo. Occasionally, it is unconscious of Its own stupid blunder ing. So" the matter is one of pure stupidity when It denies that part of the Wisconsin School Fund Is invested in an exactly similar way. This denial it repeated yesterday In a most formal and emphatic manner, saying: The Globe-Democrat denied the existence of sny similar arrangement In any State, or - anwhera In the world, and repeats the de nial. Yet on Tuesday last It -was stated in a Globe-Democrat editorial that "half of Wisconsin's School Fund Is loaned to the State for war purposes." Fcrbaps our esteemed but befuddled contempo rary will say that the Wisconsin and Missouri arrangements nre not exactly similar becauso the Wisconsin School Fund holds State obligations In the form of ordinary negotiable bonds, which a dishonest official mny steal, while the Missouri fund Is Invested in bonds termed certificates which are not negotiable and so cannot be stolen. The arrangements are exactly similar other wise. i ROMBAUER THEN AND XOW. In viciously attacking .Tudse Rom baucr for having abandoned McKinley ism because it was incompatible willi Americanism, the Globe-Democrat says that the Judge's loyalty to the Republic an party ceased with his tenure of of fice, and that 'when his services may again be required by tho party all that will be necessary Is to again offer biin the reward of office. Even the Globe-Democrat Itself knows that this charge of self-seeking eo ven omously preferred against Judge Rom bauer is basely untrue. Four years ago, when the Judge was nominated for the Circuit bench on the Republican Judicial ticket, the Globe Democrat bore truthful witness to his high character. It commended Judge Rombauer on the especial ground that he had not sought the nomination. Itself claiming for him that this disinclination to seek office was one of his highest qualifications for office. All those who know Judge Rombauer know that the GIobe-Deinocrat spoke the truth concerning him iu 1S!H, and that it now bitterly maligns him. The incident indicates the lengths to which the McKinley organ is willing to go lu Its extreme partisanship. Its recent as sault on Judge Rombauer will Injure the cause of McKlnleylsm far more than it nill hurt the intended victim. REPUBLICANISM'S SIX. It cannot be truthfully charged by Mc Kinley Republicans that the defection of Judge Rombauer from the ranks of present-day Republicanism is the act of a renegade to the party of Abraham Lincoln or "of a self-seeker who per ceives a promise of personal profit in a change of parties. Judge Rombauer himself clearly shows that he is more faithful to the Republic an creed to which Lincoln subscribed than Is the McKinlcylte party of to-day, and that for this reason, indeed, he is compelled to align himself against that party. Under Mr. McKInley"s guidance the Republican policies are now dis tinctly hostile to the principles an nounced In the Declaration of Indepen dence, they stand instead for 'foreign conquest and the subjugation of weaker peoples, they have prevailed to sur render American commerce and indus tries to the monoiioly trusts, they have nullified as far as was possible the op eration -of the civil service law, they have compelled us to ignore the appeals of other peoples striving for liberty, they have degraded the American flag Into an emblem of forcible government It Is for these reasons that Judge Rom bauer 'refuses to indorse them. And in thus abandoning the party or ganization with which he has been iden tified for forty years. Judge Rombauer personally has much to lose. As he points out. the majority of liis friends are Republicans his clientage In the practice of ills profession Is largely Re publican, it is by the Republican party that he has boon honored with high office, lie cannot well replace hi- old friend-!, he must abide by whatever liw to his practice may develop, he doe's not look to the Democratic party for ap pointment to office. What he lias done he has done for principle's sake. There must, in truth, be something radically wrong with a party which forces such men as Judge Rombauer to sever the relations of a. lifetime. Judge Rombauer himself tells us what this wrong thing i. The Republican party imder McKinley has ceased to be an American party. ABOl'T LOOTING. Will the Globe-Democrat stick to the issue of Its own making? It started out with the direct charge that the School Fund had been looted. It was specific in tlie statement that the money de rived from the School Fund had been misappropriated and not used for tho schools. From that charge the Globe-Democrat hn.s been driven In shame and confusion. Even yesterday it repeated its with drawal of the charge, saying: "If tho State bonds had been retained the pres ent discussion would not have oc curred." What. then. Is the Globe-Democrat complaining about? It is chattering now about Slate bonds "said to have been canceled." Does it seriously mean to insinuate that the State bonds were not really canceled? If It means any thing so grave as that, why not como out in plain language and make a specific charge that may be understood and comprehended? Is it possible that the Globe-Democrat agrees with one "M. W. Gustin." to whom It surrendered yesterday a column of space on its editorial page? This Gustin charges the Democratic of ficials with stealing forty millions of dollars. No paltry ?lf)00.000 will meas ure the volume of the loot, according to tills discoverer. He declares tho Demo crats are trying to "hide the theft of ten times that amount." If the Globe-Democrat does not agree with Gustin, why did it print his monstrous lie In its columns without contradiction or comment? SERFS TO THE TRUSTS. Id an editorial in its issue of Satur day, February A, ISfO, the Globe-Democrat strenuously demanded vigorous and decisive action against the Sugar Trust, which it stigmatized as a. "nefarious concern," rightly claiming that the Sugar Trust constituted a "conspiracy against the laws of trade and tho in terests of the people." It is exactly along these lines that The Republic and the Democratic party are now conducting a campaign against the trusts in the Interests of trade and of the people. These monopoly corpora tions are destroying legitimate -otnpetl-tlvo trade and robbing the people. As the Globe-Democrat truthfully said, the practices of the trusts are practices "contrary to the rules of right and Jus tice, and tend to put exorbitant profits Into the pockets of the few at the ex pense or the many." Most regrettable among the many evils of trustlsm as they were pointed out seven years ago by the GIobc-Demoqrat, the organ of trustlsm to-day, are the destruction of individual Independence In the business world and the closing of careers of comfortable Independence to the young men of this country. Private business partnerships are now hopeless to contend against trust monopoly. They are crushed as a giant crushes a fly that disturbs him. The young man beginning his life work In a clerkship these days may look forward to being a clerk for the rest of his life. He cannot establish a business of his own witli any chance of success. All fields are monopolized by the trusts. He is at liberty to clerk for the trusts, but higher than this the average American may not hope to climb. This Is a most serious problem for the American people to face. The Republic would be delighted to welcome the Globe-Democrat back into the anti-trust rauks. That paper was brave enough to tell the truth ubout the trusts in 1SU.T. The necessity for the truth, and for ac tion on the truth, is tenfold greater now than It was seven years ago. Will not the Globe-Democrat come back Into lino and strive honestly for the people against the trusts? RIGHT OR TOWER? It apparently seems so absurd to the McKlnleyltes for any American to urge that this Government should do right for right's sake that an amused laugh or a contemptuous taunt Is about the only reply likely to be made to the plea to this effect coming from Mr. SaiuuM Alschuler, the Democratic candidate for Governor of Illinois. It is this masterful spirit of disregard of the right which now leads the Re publican Imperialists ti scoff iu private at the lofty principles enunciated in the American Declaration of Independ ence. Such a declaration, they argue, was expedient in the situation in which the Patriot Fathers found themselves. It sounded finely. As bearing upon the right of the American e-oloule.s to rebel against British oppression It was good politics. But shall we allow it now to excuse our dependent colouics that reliel against us, or to prevent us from ruling weaker and alien peoples as bubject peo ples? Not on your life the shoe Is on a different foot now! Nevertheless, there are many thou sand Americans who believe that right is right and wrong is wrong in all times and under all conditions, and that what was wrong for England iu 1770 is wrong for the United States In WOO. They hold that the truths of liberty announced in the Declaration of Independence are im mortal truths. They claim that we are bound to maintain and uphold those truths as the very foundations of our. government. They contend that It would be an act of peculiar Infamy for the United States Government, based upon the Declaration of Independence, itself to repudiate and nullify the teach ings contained in that declaration. It should be shown by the result of the November vote whether the majori ty of American voters regard the Decla ration of Independence as merely a skill fully expedient political utterance, to be forgotten as soon as It has served our turn, or as a solemn anil binding pledge placed In liberty's name on the Ameri can people. The outlook will be omin ous Indeed if the American vote tills year shall be iu favor of the party which stands for the repudiation of a declara tion so long held sacred and Inviolate. OMINOUS COERCION. In the news accounts of the closing down of many of the rolling nulls I e hiiiging to Hi,, steel Trust, for the alleged reason that customers will not place order, until they know the result of the elections, there Is found a re vival of the trust tactics of ISlxi by which workmen were notified that they must vote for McKinley or lose their jobs. The Steel Trust mills, the news re ports themselves tell us. are already loaded with orders from the various railroads, calling for 7.Vi,0ii tons of steel rails contracted Tor at trust prices. Nevertheless it closes down the mills and Intimates that future steady work for its employes depends upon the re election of .Mr. McKinley. Insolent and ominous as Is this course, it will not surprise tho American peo ple. Every Infiucnee possible to the trusts is being brought to bear in .Mr. McKInley's behalf. Their money is in Mark Hanna's hands In the shape of a ?ao,000,noo slush fund for campaign use. All the pressure possible In the business and industrial world Is being exerted by them. In so far as their power to control the votes of their em ployes Is concerned they will use that power mercilessly. The new Steel Trust development amply supports the truth of this assertion. The American people have a hard fight ahead of them, but they can win if they aro sternly resolved to overcome this tremendous evil of trust domina tion. Their votes can crush the trusts, and their votes are the only power ca pablo of tills achievement. It is for the people to exercise their rightful power at the polls on November i to make cer tain the overthrow of the trusts and the party of the trusts. One M. W. Gustin, until now un known to fame, but unearthed by the Globe-Democrat Tor the purpose of fathering a number of reckless state ments, has discovered that the Demo cratic party controlled and was re sponsible for the administration of the Missouri State government between lSCl nnd JS(m. What next? You may stake your soul with safety on the conviction that the patriot em battled farmers of Lexington and Cou cord did not fire "the shot heard round the world" in order that Uielr sons might conquer and subjugate weaker peoples. Every lnstnnco of Ziegenheln malad ministration and corruption Is an elo quent argument for the election of a Democratic Circuit Attorney and As sistant Circuit Attorney to get the facts before grand Juries and courts. In making a note of your determina tion to vote "Yes" on the World's Fair amendments November ;, make an addi tional note to the effect that those amendments will be found numbered -i and 5 on the ballot. In fixing clear In your mind the dnty of voting "Yes" on the World's Fair amendments remember with equal clear ness that those amendments will be found numbered 4 and 5 on tho ballot which you vote. Could the American trusts hare their way the highest achievement possible to American business men would be that of holding their jobs as clerks In trust corporations. One Benjamin Harrison of Indiana probably still holds to his opinion that all we may justly claim in the Philip pines Is a harbor and coaling station for our ships. Prosperous Missouri Is naturally not kindly disposed toward a parly which sought to make her despised as the "Robber Slate" and "Poor old Mis souri." If trustlm prevails the American no bility will consist of Trust Itarons and the American people will pay a feudal tributQ of tithes and service to tho nobles. A noonday advance of 10 cents per gallon In the price of linseed oil will not tend to convince the helpless consumers tiiat the trusts are beneficent Institu tions. While the McKinley trustites concede that Mr. Bryan is an honest man, that fact only seems to increase their con tempt for so "Impractical" a character. Republicanism's outlook In Indiana would be brighter if ex-President Har rison would cease being so good a Re publican and so poor a McKIuIeyite. It's all right for Missourian"? to say "Gocrnor' Dcckery now. The title will come just that much easier to the tongue after November (I next. Despite the trust contention to the contrary. It is to the lienor of Democ racy that It stands before the world as the poor man's party. Joe Flory's fate will teach Missouri Republicans the folly of endinx a small boy to mill especially on a railroad quadricycle. Tlie Conitnerori.. There's nothlnc like a breexy laugh to frlnht.T off dull care. Tlwrv'a nothing like a sunny sonjr to cheer j-ou. There' nothing like a happy day out In the open uir To tho'V the beauty ot the world that's near JOIl Fit Erlcilnc Is a tyrant thins that holds ita vic tims close. And bends them subject to Us ruling only. And care's e. sullen master, all silent and mores. Whose prisoners must languish dumb and lonely. But arrogant and trim of soul as both of them may l. It talcs but these tD work thlr overthrowlnr A song that's light and fearless and a laush that's clear and free . And the open world where God's sweet winds are Ltowinc Then k sontr lnetead of grieving, and a laugh In care'a cisdain. And a wholesome day cut In the sunny weath er. And the prisen-cales arc wide and broJ.cn Is the chain. And the gladsome things of life go free to gether! rurr d. saunders. TAXATION OF TTe article b-Iow, timely. beau'a of the proposed constitutional amendment, taxing mrvrtga-es. Is a chapt-r from "s. Treatise on the Iw and PraeUce of Taxation in Missouri." by Frederick N. jLd'nn of the St. Ixmis tar. Published t.y 13. TV. 3 tephens. By kind permls'lon of author and pub lisher, froru adiance sheets- The work Is now In press. UNlJCIl the law of Missouri. mortaaRei of ronl rotate, and note secured by deed) of trust upon real estate, are personal property nml an- roqulrrd to b Hsteil 1" the holder for ta-catlon at his domicile. like oilier personal property. The stat ute proidrs th.it the term "credits" shall In held to Includo "all mon.y loaned or In vesteil and all Indebtedness yecurrd by deed, contract, mortcaRe or pltdfio of property of wli.itsoover hind" It I tli(r-fore ln1111atcrl.il where tin' property upon which the lnnrtrjax'- or ilcd of trut is a Hen. j.h,,thT In this- Stato or -Iehere. A already rhoun, lb... M.uuto also makes t.ix-iLle . it the domicile of the owner In llii Sit.ite alt notes, liomU r other evldtncos of klit. which nre held In any other Slate or Territory. The State has; thtreforo xercHed Its utmost power In the taxation of this diss of prop erty. It t.ixej, all the land in the Slate to Its full value without deduction for mortiraire, and al.Ti taxes all the mnrtfiajK'' on the property In other Jurisdictions belonging to the citizen-, of this State, whether the bond and note-, or other evidences nf debt are In this State or not. The effect of this system, as already shown. Is to Ui !wth the prop city and the credit whose value rests upon the property. Failure of the Tax on Mortgages. Tho pyMcn fail, not from any lack of exercise of the lawful power of the State, but bct.iuse it liai proven practically Impossible to compd the Ilstlrs of th mortgage notes for taxation, and with the exception of the enmparatitely Kinill amount secured from administrators and trustfes. and Indirectly through the taxation of banks' and trust companies. niortcaKos have practically Rone untaxed. The n-nse of iniustlce. therefore, that the owner of She property feels In belnjr required to pay a tax or the full aresed value, when Its value to htm Is reduced by th, amount of the mortgage, l Increased by the recosnlzetl fact that the mortRaKe ns a rule escapes taxation. Two remedies' have been applied to this admitted failure of the law. First, the ex emption of mnrti-aites and reaching that class of property through other forms of taxa tion. This Is tho system adopted In lln-sachusetts and other Massachusetts States, where mortRages nre ilrtually exempt from taxation, with a resultlns tendency to lower rates of Interest on mortgage loans system. ,). tne attraction of forclrjn capital. Second, the other remedy suRgested Is what Is known as the California system of taxlnc separatelv the mortgaKed Interest and the equity In the mortgaged property, both Inter ests being treated as Interests In the real estate for the purposes of taxation. This sys tem was adopted In California In 1S79 and is. 5tl!l the law of that California sta'"" q This method of taxing mortgage Interests In lands was adopted System. , Oregon by statute, nnd It was held by the Supremo Court of the, United States, as applied to mortgages owned by citizens of other States and In their possession outsldn of the State, not to contravene tho Consti tution of the United States, the court saying: "The State may tax real estate mortcages. as It may oil other property within Its Jurisdiction, at Its full value. It may do this, either taxing tho whole to the mortgagor, or taxing to the mort gagee tho Interest therein represented by the mortgage, and to the mortgagor the remaining Interest In the land. And It may, for the purposes of taxation, either treat the mortgage debt as per California System Not Violative of U. S. Constitution. sonal property, to be taxtd like other chores In action to the cred itor at his domicile, or treat the mortgagee's Interest In the land fl real estate, to ba taxed to him like other real property at Its situs." The Constitutional Amendment Submitted in 1900. The General Assembly of Missouri In HDD submitted the California system as a con stitutional amendment, to be voted upon by the people of Missouri at the general elec tion In November, 1KX). That the substantial Identity of our proposed constitutional amendment with the constitutional provision of California may be clearly seen, they ar herewith submitted In pnrallel columns: PI'.OrOSKD AMEXnjlRNT TO MISSOURI COX- STiTimox Art. X. Fwi 22. A mortgage, deM of trust, con tract or other obligation by which a debt la se cured shall, for the purposes of assessment ml taxitlcn. he deemed and treated as an interest In the pp.perty affected thereby: except as t. rail road and other quart public corporations, for which provision has alreidy been made by law: In rase of deht. so secured, the value of the property affected by such mortgage, rtced of trust, contract er obligation, less the value of such security, shall be apprised and taxed to the own er of the projerty. in the manner hereinafter to be protld'd by law, and tho value of such secur ity shall be assessed ar.d tax&l to tho owner thereof. In the county, city or other local subdi vision In which the property affected thereby is situate. The tax so levied shall be a lien upon the property nnd security, and may be paid by either party to such security. If paid by the owner of the security the tax so levied ujn the rropcrty affected therety shall thecoma a part of the debt so se.cure.1; if the owner of the property shall ray the tax en levied on euch security, it shall con stitute a pajment thereon, nnd to tho extent of ruch payment a full discharge thereof. Provided, Uiat In all such cases the interest of the owner of the security, as well as that of the owners of the property affected by such mortgage, deed of trust, contract or oUlgatlon. shall be assessed on terms equaly fair and Juat. If th ncte or other f.bllcation securest is enUtled to a credit by pay ment read on the principal thereof, the assessa ble value of the owners of the security, upon the fact being made Vnosn to the Assessor prior to the assessment, shall be diminished by the amount ef euch payment, and the assessable value of the owner of the land or other property correspond ingly Increased, the Intent hereof being to place those lnlerrtd In any way in such land or other property on the same plan of absolute equality ua to taxation. See. 3. Evry contract hereafter made, by which a debtor is obligated to pay any tax or assessment on money loaned, or on any mortgage, deed of trust, or other lien, shall, aa to any In terest specified therein and a to such tax or as- sesrmsnt. be null and void. It will be seen that the Missouri amendment. In the proviso to section 2. Incorpor ates ns nn addition to tho California section the- provision that the interest of the owner of the security, as well a3 that of the ownr of the property, "shall bo asscd on terms equally fair nnd just," and In tha following words nt the close thereof, "the In tent hereof being to place thoe Interested In any way In such land or property upon tLe same plane of absolute equality ns to taxation." The language of this provision was doubtless adopted In recognition of the well known practice of assessing property at a fraction of Its true value. Assuming, then. that property worth $10,000 Is mortgaged for J-VW, nnd the same property under the present system Is assessed on the basis of IS per cent, tho average valuation of farm lands according to flov ernor Stephens, the mortgage under the proposed system would be assessed nt JI.CC0 to the mortgagee and the equity at tl.STrt to the mortgagor. This provision for equality of taxation Is based upon a principle of fairness, and does away with the anomaly of douhle Equality of Tax ation Between Mortgagor and Mortgagee. taxation unfler the present system, whereunder the Ignorant and helpless are compelled to pay a tax from which others are practically exempt. Shifting of the Tax on the Mortgage to the Mortgagor. The proposed Missouri amendment adopts word for word the language of the Cali fornia law In providing against the shifting of the tax on the mortgage Interest In the land from the mortgagee to the mortgagor hy contract between them. It Is obvious that If the tax can be so rhlfted the only effect of the proposed amendment would be to prevent the double taxation of tha present system that Is. the taxation of the land without deduction to the mortgagor, and tho mortgage nt the same time as personal property to the mortgagee. The mortgagor under this shifting of the tax would con tinue to pay the tax on the full assessed value of tho land a.s before, as he would pay the tax both on his own equity In the land, on tho Interest of the mortgagee. The ef fect of the shifting of the tax. therefore, would be to exempt tho mortgagee: or, more accurately, to legallz the existing practical exemption. Failure of the System in California. As we are now asked to adopt n system which has been In force In California for over twenty years. It is Important to study the experience of California with reference to this very matter. This subject has been carefully Investigated by I'rofessir Carl C". Plehm. professor of history nnd political science In the University of California. In a recent nrtlcle. As a result of an exhaustive Investigation he finds that the provision acilnst the Shifting of the tax li.uk to tho mortgagor has proved wholly Ineffective. So successful h.ive been the devices to shift the burden of the tax upon the mortgagor that they have come Into practically rnlversal use, and printed blanks are used cinbodIng agreements, which have been sustained by the Supreme Court of the St etc. Professor I'lehm says: "Possibly the oldest nnd certainly the most widely used of the successful devices Invented for this purpose 1 that of a con Professor Plehm on California Experience tract sep.irate nnd distinct from the mortgage. In which the credit or agree" to reduce the Interest in catci the debtor rays the t.Tves. The method Is si common In the South that all stationers carry regular blai.l: forms ot these contract"." And adds: "Tho feeling that the provision of the Cocs'ltutlon wh'ch requires the mortgagee to pav thi taxes a'-cumplishes no good ard really increases the burden of deht, a'.d that Its easfcn affords the debtor a. genuine relief, while working un injustice to the cre.lltnr. i.ml.iblv accwunt fr this rar-rachlng ejlllcn rendere.l In tlie leeent ease of the London and San Francisco ?ark vs. Ilaidrran. 1J0 i'al. 221 (decided March SI. 1M). In iris case. It was I cM that a valid agree ment, n-jt simultaneous with or directly a part of the mortgnge. providing for the payment of taxes l.y the mortgagor Joes ik violate the cnrstllut'or.al pro!ion. This sweeping decision rrakes the constitutional provision entirely devoid of meaning and brings the California system of taxing mortgages Into practical conformity with tbat of Massachusetts. That Is. the two parties to the mortgage can make any agreement they pleisc as to the payment of the tax. "Thus It Is that this famous 'cxpsriment in taxation' has com? to ra end." As we nre now asked to adopt a constitutional provision of another State, which has been construed by the Supreme Court of that State, will we not adopt this construction with the amendment? it Is also clearly demonstrated by Professor richm, and his testimony In this regard seems to le confirmed by all authorities, that In so far as this shifting of the tas was not effective, the rate of Interest uion mortsagc loans was Increased, and foreign capi tal diverted from the State. Indeed, this fact seems to be so universally conceded In California that It is recognized -toy the Supreme Court of California In Its opinions above cited. Michigan has had a somewhat similar experience In attempting to tax mortgages. It was enacted that the mortgagor might pay the tax upon the full value of the land, but that tho mortgagee should receive tn lieu of Interest tax receipts Exoerlence oc representing that portion of the total tax that the mortgage repre- nxperiecct; o. s-ented of the total value. "This law had the effect, first. In caus- Miccigan. inK the banks to raise tho rate of Interest 1 per cent on this species of loans, and. second, a new form of mortgage was prepared wherein the borrower contracted not to pay Interest tax certificates. Similar Conditions in California and Missouri. The conclusions ot Professor Plchm as to tho relation or the mortgage tax to tho general property tas are equally applicable to our condition In Missouri, a.s our systems of taxation arc substantially tt same. It seems reasonable that a man whose Interest iu his property Is diminished by a mortgage should be taxed only upon tho value of his MORTGAGES. CATJFORNTA COXSTlTtTlOX Art. XII. Sec. 4. A mortgage, deed ef trust, con tract cr other obligation by which a. dbt ts si cured shall, for purposes of assessment and tax ation, fce deemed and treated as an Interest In the. property affected thcreb: except as to railroad and other quasi publto corporations; tn the case, of debt so secured, the value of the property af fected by such mortgage, deed of trust, contract cr ol.llcntlon. less the value of such security, thall be assessed and taxed to the owner of th property, and the value of suth security shall ba assessed and taxed to the owner thereof. In the county, city or district tn which the property af fected thereby ts sltunte. The taxes) so levied shall be a Hen upon the property and eecurlty, and may be paid by either rarty to such security: If rail by the own-r of such security the tax so levied upen the property affected thereby shall become a part of the debt so secured: If trie own er of the property shall pay the tax so levied on uch security, it shall constitute a payment tliera on. and to th extent cf auoh payment, a fali discharge thereof. Provided, that If any such ss cvrltj or Indebtedness shall be paid by any such debtor or debtors, after assessment and bfora the tag levy, the amount of mich levr may Ilka wise be retained by such debtor or debtors, and shall be computed accordluc V tb tax levy for the precadlng j ear. Sec. R. Kiery contrwt herelnafW made, by which a debtor Is obllg-d to pay tuiy tax or as sessment cf money loaned, or any mertgsjje. deed of trust, or other lien, shall, as to any Interert specified therein, and as to such, tax or assets ment, be null anl void. Interest In the property. Hut Is not that consideration equally appHcsMotoHiane ............. , .. . . ..... au rt. nnnn vpn&t KB M fjvriauuai property, wno tinner our present system rays ua - "f-- wja less his debts, but upon his holding Irrespective of his debts? Some States. a J' York, allow debts owed by the person to be deducted from the personal property re turned hy him. Hut our taxing system Is based on a radically different system. In"T language nf Professor Tlehra. It taxes "things and not persons." Our Supreme- J" says: "It Is not what an Individual or corporation Is worth over and above what Inez may be Indebted which Is taxed, but Is the property owned by either on which tno tax (a Iai.I.uI Is levied." Effect on Credit of State. It is clear thnt even if the law can be successfully evaded in this respect and th bunion of the tax shifted from the lender to tho borrower, the very fact of la compelled to resort to ruch evasions- will prove In so far a burden to the people of th State lu prcirntlng the securing the lowest rate of Interest for the uso of capital la the development of the State. Proposed Mortgage Tax in New York. Tills subject of the taxation of mortgages has recently been thoroughly discussed In New York with reference to the proposed levy of a small tax upon mortgages, a much lower rate being proposed than that levied upon real estate, there being In New York no eonstitutional dilllctilty In the way of this difference in the tax rate on ellfferent classes of property. It was strenuously urged, however, that the tax would operate to the prejudice of the borrowing class, a.s well as of the savings banks, which In Nesr York Invest very heavily In this clays of s-ecurltles. nnd the proposed tax was defeated. It would therefore follow that the adoption of the proposed amendment would b Ineffective In so far as any relief to the holders of mortgaged prop Ineffective. tty Is concerne-il. and would be Injurious to our people and Indus tries In eli.scoumging the In' estment of foreign capital In the State. On the other hand. It may be said that the amendment Is an Improvement on our present system. In that it would abolish the nnomaly of an attempted double taxation, effective nnly against the scrupulou-ly honest and helpless. But even In this respect It would be llloslcal and Inconsistent with our taxing system. In that it would tax holders of real estate upon the net value of their lands, less the amounts borrowed thereon, while taxing or attempting to tax the holders of personal property for their full valu. Irrespective of what they owed thereon. The submission of this amendment, however, indicates thnt public attention is be ing awakened to the anomalies nnd absurdities of our present taxing system, and gives ground for hope that whatever the result of the pending vote upon this amendment, a Just nnd comprehensive system of taxation may yet. through continued agitation, b realized. Tha only effective and logical method, consistent with the theory of our taxing sys tem Is to tax tho value of nil the real estate In tho State once, and once only, leavimf mortgagor and mortgagee to make their own agreements as to tax rw,t Vt( f atlon. With the vast possibilities of material development In Mls- Unly tiltctive Fnur, our p(.0pic aml our industries need tho very best facilities Method. for commanding capital, and wo can 111 afford to adopt a measure which has proven so distinctive a failure In the State from which It Is copied. Mortgages on Property Out of the State. In this connection It is proper to consider tho taxation of mortgages held in the State) secured by property In other States or counties. Such mortgages are not included in this pending amendment, but they are sought to he made taxable under our law. Se supra, p. . The attempt to subject them to State taxation Is not only in tho natura of things Impracticable, but it Is Inconsistent with the principles of comity which should control In Interstate relations In taxation. It Is double taxation. In fact. If the property represented by the security Is taxed again In any Jurisdiction. Tt Is assumed that the proj.erty In another Jurisdiction represented by securities In the hands of a resident Is taxed by that Jurisdiction from which It receives protection, just as we tax all the property In this State regardless of the residence of Its owner, and also regard less of where the securities representing tho property or Fecured by It are held. It Is only by the recognition of this principle In every form of taxation of any property that Justice can be secured and double taxation avoided tn our system ot dual sovereignties and Intimate interstate property and business relations. 'AriDENDTJM A former citizen of Missouri, now a citizen of California, who has been, and Is, a large borrower In extensive development undertakings in that State and in Oregon, writes concerning- the conclusions of Professor Plebm. as nbove, and says: "Without benefiting the State, I bellevo the mortgage tax law Is a disadvantage ta the borrower, and compels him to pay more Interest than with tho law not upon th statute books. This is occasioned by the uncertainty that always surrounds tha tax levy, which of necessity compels tho lender to guess upon the amount likely to b levied, and he naturally guesses from one-half to 1 per cent more than the amount levied. Many borrowers, myself among the number, arrive at a secret under standing with the lender, by which the land Is assessed with incumbrances, the borrow er thus being enabled to pay tha full tax upon the property and then receiving: tha actual reduction from his tax rate from hla Interest. "Another objection to the mortgage tax law is that it discourages the investment of money from other States and from foreign countries, upon the theory that it puts a re vtrlctlon upon money. It Is difficult to explain to nonresidents that this Is a tax that does not tax." INTERESTING POLITICAL TALK BY MISSOURI REPUBLICANS. HT E. M. WATSON. KEPt-ntJC SPECIAK. Jefferson City. Mo.. Oct. 20. A number of prominent Republican lawyers have been attending tho October call cf this term ot tho Supreme Court. I was thrown in con tact with a. gToup of three the early part of this week, with a prominent Democratic lawyer to loaven tha loaf. Two of the three Republicans were from St. Louis and one from Kansas City. The conversation turned upon tho present Stato campaign, and the Democrat heartlessly asked the three Re publican members of the bar what they thought of their candidate for Governor. They exchanged glances, each of tho three evidently waiting for some one elso besides himself to answer tlie query. Finally, tho Kansas City lawyer broke forth into lamentations over the folly of nominating Flory, and delivered n diatribe on tho character of campaign which the Republican candldato for chief executive has been carrying on. The lawyer from the metropolis of the Kaw, however, said ho would take his medicine and swallow tho Flory dose with the rest of the ticket. One ot tho St. Louis barristers said he h-id always voted the Republican ticket straight, but he'd be halved and ejuartered If he'd vote for Flory. He would put his ticket in for McKinley and Docker-. Ho added: "If tho Republicans want my sup port In State affairs they will have to nom inate some one at the head of tho ticket who is gubernatorial material." The third gentleman acquiesced with tho St. Lou la Inwvcr. Ho said that he was a pretty good Republican, but not such a blind partisan as to vote for the joke which tho kid Republicans had foisted on the party at Kansas city last spring. Instances of this kind have occurred more than onco at tho capital in the last two months, many of the preimlnent Republic ans who visit here absolutely refusing to vote for the nominee of their party and all eleprcs-atlng his choice ns the head of tho ticket. Jefferson City and Cole County have many substantial tleraian citizens, and the ma jority of them :t,re Republicans. Nothing has so much Impressed the voters anion'; this class as the letter of Judge Rombauer in Th- Republic. In which he announce his reuunclutloti eif the Imperialist!!; ard trust ftwtenng llcy of the Republican party of to-day ami elecUres his determination to vole- for Mr. Uryan. IJko the rest of the Germans of Missouri, those of this vicinity e-slorm higher than any public mo-j Carl Schurz ami Judge Rombauer. There aro not many in Jeffer son City who rave not read Judge Rom liauer's excoriation cf President McKinley and his arraignment of the Republican par ty for Its eclonial policy. Its llberti-tub-vcrtlng principles and Its trust record. ills reasons bavn made a profound Im pression upon them, and many will follow i his load If th rredlctlons of a prominent i German RepublK.ii:. wl.o will himself vote for Rryan. ara correct. Speaking of the German vote which Mr. Bryan will receive In this vicinity. I notice! rather a strange combination at Nelghorn s branch, w hero Joseph Klory addresae.d scinu Republican farmers of Colo County th s week. Many of them had a Flory button on one lapel or the coat and a likeness of Mr. Bryan on the other. Questioned ns to the Incongruity, the answer of all was that they would vote with tho Democrats this year, us Republicanism meant Imperialism and military service, the same as monarchy in the Fatherland. r.ETUBLJC srcciAU Jefferson City. Mo., Oct. 20. Senator F. M. Cockreil visited the capital this week. He is right in the midst of an absorbing cam paign for the Democratic party, and, as has been his custom for years, had placed him self entirely nt the disposal of the State Committee, Since his return from Wash ington he has been as actively in the cam paign as any Democrat In Missouri and has carried Democratic doctrine to many parts of tho State. He has still enough appoint ments to keep elm busy until the eve of the campaign, nnd bis Intention is to fill every one of them. The Senator spoke here In the hall of the House of Representatives this week, and those who have heard him speak many times, even before his remarkable race for the gubernatorial nomination, when he was da feated by one-sixth of a vote, say that It was the best effort of his life. Ills popu hOMtre worth larity at tha capital oouM not have evidenced better than by the reception glratt him when he arose to speak. It was an ova Hon and lasted the better part of five mlns utes. Some of the members of Senator' Cockrell's brigade live In Jefferson City and others came across the big bridge from th "Kingdom of Callaway." Some of these comrades in arms rode miles out of tha Callaway hills to hear their old commands expound the Issues. In a conversation with a Republlo cop respondent Senator Cockreil eald thaf"Sn, Bryan has many elements of strength which he lacked in 1S9S. He thinks ths cur rent of publio sentiment and political pref erence are tending toward him as the cam paign advances. In consequence of this; he has strons hopes of his election. As to tha State campaign, he says the conditions were never better, and he anticipates an increased Democratic majority. Regarding; Stato issues and the spasms of the Repub licans over the alleged dissipation of the) school fund. Senator Cockreil took occasion to say this: "Many years ago Unvestlgated the Ques tion of tho administration of our State gov ernment under Republican rule, and subse quently under Democratic administration, nnd the official records show beyond the shadow of a doubt that not one dollar of tha school fund of the Btate of Missouri baa ere tecn stolen, lost, squandered or misappro priated by any Democratic administration) or Democratic official. On the contrary, it has been Invested as a permanent endow ment fund. In an obligation bond or cer tificate of Indebtedness of the State. $2,909. 0.10, which bears 6 per cent Interest, and is a more profitable investment for the pnbllo school fund of the Stato than any obligation that could be secured to-day of tha United States or of this State, because United States bonds are being refunded into 2 per cent bonds, and Missouri State bonds have nil been refunded Into 3H per cent bonds. Tho Democratic administrations have been honc3t. economical nnd In strict accord with our Constitution and written laws."" Joseph Flory spoke In Colo County on Monday of this week, and made a few more votes for Dockery. The Republican candi date for Governor held forth at Nelghorn's Branch, situate five miles from the capital. There were possibly 00 men. women and. children pr?sent. In view of this fact the report In the Globe-Democrat that "thou sands of farmers heard the next Governor" was read v.lth some amusement by those who saw tho sparse crowd that had ths hardihood to rlt through his speech of an hour. It is alo u fact which many have nttftocel th:it Mr Mirv'q unww.H- In ts State Republican organ and the ones he really delivers wouldn't doveta'l In parallel column". The one he delivered Monday was ot the "I accuse" variety of stump ef forts In which tb characteristics of tho mountebank and tho ilcmagoguo were up permost. He inado the statement, and pre tended to quote from the Auditor's reports of past years, that Democratic Governors nnd their wives had. since 1SS2. paid the gro cery, drug and other bills of the mansion out of the public revenues or the State. The two Democratic factions at Kansas City known a.s the police and the antl-po-l'ce factions have broken Into the Supreme Court again, this time by mandamus. Mon day the writ of pruhlbltlon which the po lice faction asked against the anti-police faction was dismissed by the relator. County Clerk Crittenden decided Wednes day that the special primary called by 8tate Chairman Seibert, who has been trying- to pour oil on the troubled Democratlo waters in Kansas City, was without war rant or effect, and that tho anti-police, or Shannon ticket, was the regularly nominat ed Democratic ticket, Thursday morning. when the Supreme Court met. an attorney of the police, or Reed, faction, was In waiting to ask the court to Issue a writ of mandamus compelling County Clerk Crit tenden to place the Reed nominees on the official ballot. The court will hear the re spective plaints of the divided Democracy of Jackson County on Monday afternoon. All place the contention on exceedingly high grounds, and claim It la a matter of principle, not merely a dealr. for tha per Qalsttes and patronage that would be m pldeat to ucceaa. I- b "V J. n '.f m. -s...:;.fc .-.-.' . - . I, .vr5.. -J5 i LI U ) " J"''