The 



DliiHns A^cultural Assodatioo 



RECOI^D 



Published montlily by the IUIdoIs Agricultural Association at 165 So. Main Street, Spencer, Ind. Editorial Offlies, 608 So. Dearborn St., Cbleago, III. 

 Entered as second class matter at post office, Spencer, Ind. Acceptance for mallinK at special rates of postage provided In Section 412, Act of Feb. 28, 

 1925, authorized Oct. 27, 1925. Address all communications for publication to Editorial OfficeH, Illinois Agricultural Association Record, 608 So. 

 Dearborn St., Chicago. 



Number 3 



MARCH, 1933 



Volume 11 



Sales lax, Mortgage Legislation 

 il Before General Assembly 



I. A. A. Legislative Committee at Springfield to Protect Illinois Farm Interests 



IMPORTANT progresswhich 

 promises to mean much to the 

 taxpaying farm and home owner 

 in Illinois was made recently when 

 through the efforts of the Illinois 

 Agricultural Association, and its 

 friends in the state senate, the 

 three per cent sales tax bill was 

 amended, first to provide for the 

 distribution of revenue therefrom 

 between Coolc county and down- 

 state on the basis of population; 

 and secondly, paving the way to 

 make it a replacement tax rather 

 than an additional tax. 



The latter feature which is of 

 tremendous importance to property 

 owners will reduce taxes now levied 

 on property for elementary edu- 

 cational purposes when further 

 amendments to protect the replace- 

 ment feature are finally adopted. 

 With the inclusion of these new 

 amendments the I. A. A. is favor- 

 ably disposed toward the passage of 

 this measure because of the oppor- 

 tunity afforded for taking part of 

 the burden of government from 

 property and bringing many who 

 now escape into the taxpaying fold. 



Before The House 



As we go to press, the sales tax 

 measure which passed the senate 

 has been reported out of the Judi- 

 ciary Committee in the House. The 

 I. A. A. public relations committee 

 presented a plan in the form of 

 amendments mentioned above to 

 make sure that property will be re- 

 lieved of taxes as funds are de- 

 rived from the sales tax. 



"We estimate that taxes now 

 levied on property for the educa- 

 tional fund of the elementary 

 schools will be reduced at least 60 

 per cent if and when the three per 

 cent sales tax carrying our amend- 

 ments becomes operative," said 

 President Earl C. Smith. "This esti- 

 mate is based on expected returns 

 from the three per cent revenue 



measure which passed the senate, 

 when placed in operation. 



"While we shall support the sales 

 tax measure when properly 

 amended in the Hous because it 

 promises to be a step toward re- 

 moving part of the cost of govern- 

 ment from farm property, we are 

 also actively working for every rea- 

 sonable economy in government. 

 Now that we have succeeded in 

 providing for a fair distribution of 

 revenue from the sales tax between 

 counties, our next purpose is to 

 work out the replacement feature 

 of the bill and secure a fair dis- 

 tribution of the returns between 

 districts within counties." 



Redistribute Gas Tax 



To this end amendments have 

 been presented to sharply reduce 

 the maximum levy for elementary 

 educational purposes unless the 

 voters of a given district by refer- 

 endum permit a higher levy. The 

 purpose of this is to prevent dis- 

 tricts from securing more funds 

 than they had before which in- 

 variably leads to waste and ex- 

 travagance to the detriment of the 

 taxpayer. 



Another question of outstanding 

 importance to farm taxpayers to 

 which the I. A. A. is giving active 

 attention is a redistribution of the 

 three cent state gas tax. Based on 

 careful estimates, it seems likely 

 that receipts from automobile and 

 truck license fees will provide suf- 

 ficient revenue to pay off interest 

 and amortized principal payments 

 on both the $60,000,000 and $100,- 

 000,000 state hard road bond issues 

 and also maintain and police the 

 state paved roads. 



The state gas tax provides 25 

 million dollars or more annually. 

 Annual levies against property for 

 roads and streets throughout the 

 state approach this figure. Thus the 

 opportunity presents itself for 



equitably apportioning gas tax 

 money among the county and town- 

 ship road districts of the state so 

 as to replace road levies , against 

 property. 



Farm Mortgage Bill 



The I. A. A. legislative committee 

 is giving careful study to various 

 proposals with the idea of support- 

 ing legislation fair to rural districts, 

 and providing for careful adminis- 

 tration of gas tax funds so that 

 property taxpayers will secure fur- 

 ther tax relief and the people gain 

 maximum mileage of needed roads 

 from such expenditures. 



Another problem on which the 

 I. A. A. has been working for many 

 weeks, both at Washington and 

 Springfield, is to secure relief for 

 the worthy farm debtor without 

 doing anything to hamstring future 

 credit for agriculture. 



At this writing a bill has been 

 prepared addressing itself to the 

 farm mortgage question. It provides 

 that in worthy cases now pending 

 in the courts, or hereafter com- 

 menced, the court upon application 

 of the mortgagor who is defendant 

 in such proceeding and who is not 

 in default in pleading, shall after 

 a hearing in which good cause 

 therefor is shown, and unless good 

 cause is shown to the contrary, by 

 order continue such proceeding un- 

 til July 1, 1935. The court, however, 

 has the right for Just cause to set 

 aside such order. 



In all proceedings now pending 

 in which the debtor is in default 

 in pleading but in which no judg- 

 ment or decree has been entered, 

 the court shall take no further ac- 

 tion therein for 15 days after the 

 Act becomes effective so as to allow 

 mortgagors to apply for the ex- 

 tension. After a hearing and un- 

 less good cause Is shown to the 

 contrary, the court shall by order 

 (Continued on page 4, Col. 3) 



