XXX REPORT OF THE

the faith of his property. The Legislature may well con-
sider this point, when presented in a petition to this effect,
from the farmers and householders of the State, but as long
as the argument is used only by capitalists who lend upon
mortgage, it should have bat little weight. The farmer and
householder is interested on the other side, because he knows,
that if the capitalist who lends upon mortgage is granted the
privilege of exemption from taxation, the amount of taxes
from which such capitalist is relieved, mush become chargeable
to the owners of other properties not thus favored, and he
further knows; that although others may evade or escape
taxation, the owner of real estate cannot do so. The fact
that so much interest bearing capital, escapes taxation, has
depressed, and will continue to depress the value of real
estate, and make that property an undesirable investment.

But if the lender upon mortgage must be exempt, for fear
he will oppress the mortgagor, why not exempt the lender
upon judgment who also has a lien on his debtor's realty?
Why not exempt the capitalist who invests in lands and
houses, in order to prevent him from oppressing his tenants
with heavy rents ? Or why not exempt real estate altogether,
and by that means ensure and accelerate the speedy occupa-
tion of all the lands, and multiply the population and re-
sources of the State?

As these alternatives are impracticable, justice to the
owners of other property requires, that mortgage debts
should be taxed at their value, as all other productive property.
If the Legislature will be governed by the interest and
wishes of the land-owner, they will at once subject the
millions of mortgage debts in the state, to taxation. This
policy, if carried into effect, will go far to relieve the Legis-
lature from the necessity of increasing the rate of direct

taxation.

TAXATION OF RAIL ROAD COMPANIES.

The validity of the law imposing a tax on the gross receipts
of Railroad Companies working their roads by steam power,
has been established by the Court of Appeals, in the cases of
the Stats vs. the Northern Central Railway. Company, and
the Philadelphia, Wilmington and Baltimore Railroad Com-