The 



DlmcMs A^ctiltural Assodafioii 



RECORD 



Published monthly by the IlUnoia Agricultural Association at 163 So. Main Street, Spencer, Ind. Editorial Offices, 008 So. Dearborn St., Chicago, 111. 

 Entered as second class matter at post otflce, Spencer, Ind. Acceptance for mailing 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 Offices, Illinois Agricultural Association Record, 808 So. 

 Dearborn St., Chicago. 



Number 5 



MAY, 1933 



Volume 11 



I. A. A. Sponsors 



Bills To Reduce 

 11 Property Tax 



Outline Program To Members of General Assembly Fol- 

 lowing Approval By 1000 Leaders 



SPRINGFIELD, ILL., April 19, 

 1933:— 

 A legislative program designed 

 to reduce property taxes throughout 

 Illinois at least |60,000,000 annually 

 was launched here today by Illinois 

 Agricultural Association following a 

 dinner given last night to approxi- 

 mately 100 members of both houses 

 of the General Assembly. Lieut.-Gov. 

 Thomas F. Donovan and Speaker Ar- 

 thur Roe sat at the speakers' table. 

 Edwin Bay represented the Sangamon 

 County Farm Bureau. Rep. Jackson 

 of Toulon led a round of first class 

 community singing. 



The measures introduced include 

 one providing for a redistribution of 

 the three cent gas tax back to coun- 

 ties, townships, and municipalities, 

 companion bills to sharply reduce 

 county and township road and bridge 

 levies, a bill to assess income from 

 property not oth6rwise assessed such 

 as stocks, bonds, mortgages, etc., an 

 occupational tax of 1% per cent, with 

 $100 per month exemptions, on those 

 earning salaries, wages, fees, and 

 commissions, and a number of meas- 

 ures restoring to county boards the 

 power to fix certain costs and fees 

 within the maximum limits now es- 

 tablished by law. : >: i; ■ 



The I. A. A. also is supporting an 

 amendment to the revenue article of 

 the Illinois constitution giving the 

 General Assembly broad powers to en- 



act laws to provide revenue, without 

 present constitutional limitations. 



"We are facing a breakdown in gov- 

 ernment in Illinois," said President 

 Earl C. Smith in addressing the legis- 

 lators, "because of the inability of the 

 property owners of the state to pay 

 the enormous taxes levied against 

 them. Even with substantial economies 

 which the farmers of the state and 

 our organization greatly desire, the 

 cost of government is still too large 

 for the property taxpayers to bear. 

 This means that there must be new 

 sources of revenue if our govern- 

 ments are to meet their obligations. 

 And that revenue must come from 

 those who have ability to pay but are 

 contributing little or nothing to the 

 support of government." 



Explaining the two revenue meas- 

 ures proposed by the I. A. A., Donald 

 Kirkpatrick, general counsel, said that 

 the bills had been framed as a re- 

 sult of the recent State Supreme 

 Court decision on the income tax 

 which held that income is property, 

 hence must be assessed with uniform- 

 ity. 



"This legislation," he said, "does not 

 vote more taxes upon the people, but 

 merely spreads the burden a little 

 more evenly until such time as the 

 constitution can be amended. The two 

 measures proposed will be effective 

 only for two years through the pres- 

 ent emergency. Every dollar of reve- 



nue raised by these bills when enacted 

 will be used to reduce and replace a 

 like amount of taxes now levied 

 against property." 



Speaking in favor of House Bill 579 

 which allows courts to stay the execu- 

 tion of mortgage foreclosures and 

 judgments in the case of worthy mort- 

 gagors until 1935, Mr. Kirkpatrick 

 pointed out that the House had voted 

 to abrogate the life insurance con- 

 tracts of policyholders involving mil- 

 lions of dollars by preventing them 

 from securing their cash values. Yet 

 there are some who oppose the mort- 

 gage moratorium legislation although 

 there is nothing mandatory about it. 

 It merely allows the court to isstte 

 orders to delay foreclosures under 

 certain conditions so as to protect the 

 interests of both creditor and debtor. 



"You have voted to protect the life 

 insurance companies," he said. "Now . 

 let's protect the worthy farm mort- ^ 

 gagors and home owners and give 

 them a fighting chance to retain their 

 property." 



John C. Watson, director of tax- 

 ation, explained that the time is close 

 at hand when revenue from motor 

 license fees will pay for maintenance 

 of the nearly completed 10,000 mile 

 state paved road system, for policing 

 the same, and for interest and 

 amortized principal payments on the 

 $160,000,000 of state road bond^. 

 "This will leave the income from the 

 three cent gas tax or approximately 

 $27,000,000 annually, for the improve- 

 ment of county and township second- 

 ary roads, city and village streets, • 

 and for payment of interest and prin- , 

 cipal on county and township road ' 

 bonds," said Mr. Watson. 



"We propose to distribute the gas 

 tax three ways as follows: One cent ; 

 to the county as at present, one cent 

 to the township for paying off bonds 

 or building new all-weather roads un- 

 der the supervision of the county 

 highway engineer, and one cent to 

 cities and villages for paying off 

 bonds or building new streets. By so ■ 

 doing road, bridge, and street taxes 

 now levied against property can be 

 substantially reduced and further re- 



