The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1873-09-30
Keeping CAPITAL AT HOME.

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KEEPING CAPITAL. AT HOME.
Several years ago, in order to prevent
the withdrawal OF capital from the tax
duplicate in New York for purposes OF
investment elsewhere, the Legislature OF
OF that State passed an act requiring
citizens to make to the Assessors full
return OF all property held by them
wherever it might be. 10 this way the
citizen OF New York holding property
in New Jersey or Connecticut or else
where, vas compelled to psy taxes
thereon 10 his own State treasury at
the same rate as if the property had
been located in the State. In some ca.
SEES payment was resisted, suits at law
were had to determine the com
stitutionality Of the act, and
the Supreme Court ultimately decided
the law valid aud binding, and, II our
information be correct, it is now in force.
A feature OF this kind was iucorporat-
ed in a bill that was before the legisls-
ture of this State last winter and was
the subject of discussion. 1t is our re-
collection however that it was stricken
out and that the bill of which it origi-
ally formed part was still pending at
the time OF adjournment for the present
recess, and will probably come up fo-
final action when the Legislature re-
assemblies. We call public atten-
ton to the matter at this
time in the hope that some
consideration may be given to it, and
that members OF the Legislature may
learn the wishes of their constituents
in this regard.
The object sought to be accomplished
by the New York law is a good one,
and one that commends itself with es.
pecial force to West Virginians who
feel the need of not only attracting to
the State the capital needed for the de-
velopment of our natural resources, but
also OF retaining within our borders
the benefcent influence of whatever
wealth our citizens may have already
accumulated. The interests Of the
State require the investment
within our own limits Of every
available dollar; and there may be
many good reasons adduced in favor OF
discouraging investment abroad by re-
curing our citizens to pay taxes here
upon all the property they hold, no
matter whether it be located abroad or
at home. As may be readily ascer-
taiued by any one who takes the trou-
ble 10 investigate the matter, the rates
OF taxation in West Virginia are con-
siderably less than in our neighboring
States OF Ohio or Pennsylvania, and
therefore no great disadvantage can &C.
cur to property-holders from the as
sessment OF their possessions at the
West Virginia rate.
Upon the other hand the result OF
the adoption Of the New York law
here might be that, in order to escape
double taxation, citizens would transfer
their residence to the State in which
their property lie located, and thus, in
stead OF accomplishing the intended
good, positive detriment would ensue.
There is more danger Of such result
here than there WAS in New York. A
great many manufacturers who reside
and do business in New York city have
their factories located in Connecticut or
New Jersey. 1t has been the policy
OF these latter States to encour-
age the building OF factories
there, and a very low rate OF
taxation is assessed upon them. Tie
New York man can thus afford to pay
two rates, that of his own State and
that OF Connecticut for instance, for the
sake OF erecting and operating his
factory in Connecticut. Here, however,
the same conditions do not exist. A
factory in Ohio is compelled to pay a
higher rate OF taxation than If erected
upon this side Of the river, but when a
West Virgipian has invested his money
in Ohio and fluids that be cannot escape
the high taxes required there, he will
be apt to 90 there to live rather than
pay to this State an additional tax upon
his Ohio property.
The law might, perhaps, restrain fu-
ture investments Of West Virginia cap
ital 10 enterprises whose benefit will be
mainly reaped by the people OF
other States, but il would be apt to
have q disastrous effect in the case OF
Investments already made.