The Ward-Lowrey Bill Vetoed By Gov. Bliss

In 1893 the republican legislature repealed this act, but in 1901, so great was the demand for the restoration of this law that the legislature re-enacted it in a measure known as the Ward-Lowrey mortgage tax bill. Gov. Bliss vetoed it, and it was openly charged by the newspapers at the time that he did so at the demand of the railroad corporations, who were the principal beneficiaries of the veto. The railroads are now compelled to pay taxes on practically the same basis as individuals, and therefore the more property they can get placed upon the assessment roll the less will be their percentage of taxes. Gov. Bliss placed this veto solely on that ground.

The injustice of the present system can be shown by an illustration: A man owns a farm paid for worth $5,000 and he pays taxes on that amount. Now, suppose he sells to a man who can pay only $2,00 down and takes a mortgage back for $3,000, the purchaser has only a $2,000 interest, but he must pay taxes on the full $5,000. Then the mortgagee must pay taxes on the $3,000 mortgage. This is double taxation-$8,000 in taxed levied upon a $5,000 farm. But this is not all. The mortgage will compel the mortgager to pay the tax direct, or else will compel him to pay it indirectly by increasing the rate of interest. So that the man with only a $2,000 interest in property will really be obliged to pay taxes on $8,000.

Every fair-minded man can see the injustice of the double taxation of property of individuals under the present system, and every such man will vote against the governor, who, in the interests of the railroads, vetoed the bill which corrected this injustice.--

Campaign Book.