The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-30
LOCAL AND STATE TAXATION.

Address by Mr.. David A. Wells Before
the Union League Club.
There was large and distinguished gathering
at the Union League Club last evening to listen to
Hon. David A. " ellis, who spoke at length on local
and State taxation. The speaker opened by allud-
ing to the present disgraceful system OF taxation
in this State. The theory in vogue in New York
and other States Of the Union upon which was
laid the basis OF the present system Of taxation
was that 1t was necessary to assess every item and
description Of property, real and personal In the
early history Of the country, when there
was little competition, and when bonds
and other like instruments were I'M
taxed, and when property consisted OF
tangible things, such as ships slaves, lands and
houses, the application OF this system involved
little dificulty. Fully One-ffth of the personal
property OF the United States was held in bonds
and legal tenders, notes and money, which were
exempt from State taxation by decision Of the
Supreme Court OF the United States. All original
packages and property In transitu were also
exempt when owned by persons firms and cOrpO-
rations established and doing business in other
States, but only selling their own goods in New
York through permanently located agents. This
property alone in New York State would aggregate
hundreds Of millions, every dollar of which was
exempt from taxation. The laws Of this State
also exempted the deposits and surplus Of savings
banks, amounting to $500 900, and justly also
the property of its citizens subject to some exte-
rior sovereignty. Another large proportion Of the
property Of the State was Of the most intangible
character. He meant bills OF exchange, State,
municipal and corporate bonds, Acknowledgements
Of Indebtedness This property constantly fuctu-
ated in value, and was constantly transferred from
locality to another; hence all attempts to as
hiS M We III aati afoc tOrv
and nearly every civilized community had aban-
doned the taxation OF this kind Of property except
the States OF the federal Union. He referred to
the unjust rule OF residence, by which railroad
cars SHIPS, steamboats, ana immense STOCKS OF
raw material owned and held in our great
cities were exempt from taxation. Could
New YORK afford to put her citizens at
disadvantage In this respectY Did we not see Penn
sylvania, with her system OF taxation, advancing
IN giant strides in population and wealth. while
developed slowly was there not a tendency on the
part Of capitalists to leave State where there
discriminating tax levied on its resident citi-
zens? TwO-thil DIS Of the personal property of the
State was exempted from taxation by law, with a
large part OF the other one-third exempted by COM
petng nations or neighborng States. What, then,
became Of the theory so generally accepted in the
United States that in order to tax equtablv
New York the aggregate Of prop
erty fully equalled that of the real property,
while the proportion OF the former returned for
taxation was not in excess of One-fth Of the total
assessed valuation. While the State had been in
creasing in wealth and population the ratio Of
personal to real property assessed in 1872 less
than in 1869; that the whole amount OF personal
property assessed IN The state was not equal to
the capa and surplus and deposits Of the banks M
York city, with population OF 1000 900, not two
per cent OF the citizens stood assessed for personal
property. He therefore believed the whole system
imperfect, farce, and an obstruction to ma
terial progress. In Massachusetts where the most
vogue, it was also unsatisfactory, and The cfcials
regarded 1t as failure. He urged. therefore, that
If taxes were levied on broad basis, like real
estate, with certainty OF proportionallty and uni
formity on few items Of property like the fran
chises of all moneyed corporations, enjoying the
same privileges within the State, and on fixed
signs OF profits as rental values of buildings-they
would dituse themselves with unerring equality,
should be taxed on full and fair market valua-
ton.
Second-That moneyed corporations and unincor.
porated deposit bankers should be taxed
Thfrd-While under these two rules all property
now returned for assessment was included, 1t was
proposed further to correct defective taxation by
additional provisions In, which the landlord Is made
responsible for the tax; but the occupant can be
to the terms OF the lease. All other property would
be exempt from taxation.
FOurth-To provide for the appointment OF a
State officer whose duty it should be to enforce the
Mr. Wells assumed that three times the rental OF
property is equal to the personal property OF the
occupant; that is man paying 81 1000 annual rent
must have an income OF at least $4,000, which pre-
Sapa in wSus be ns
such person should pay one or two per cent taxes
on three times his rental-$3, 000 as the represen-
tatlve Of his personal property He also showed
by figures how this system would equalize taxa
ton as between city and country real estate
He spoke against the theory OF inffnitesi
NAL taxation and proclaimed that any
imposition OF taxes which cannot be finally diff
fused by the natural laws OF trade and dealings in
proportion to expense and consumption, partook
OF the odious character of tax spOliatiOn or con-
fscation The effects Of this new system would be
natural uniform law, executed on all property in
every form used and consumed in the State. Per-
sons must occupy buildings, and business must be
done In buildings, and through the Sc visible instru-
mentalities capital can be reached by a rule OF
practical uniformity and by simple, plain and
economical method OF assessment and collection
He cOntended that 1t would greatly reduce taxa
ton, promote prosperity greater than could be
Obta ned through any other agency, and render
New York State the financial centre and COM
mercial entrepOt Of the Continent.