The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1874-01-02
Local Taxation.

Under this caption Mr.. David A. Wells
who, whatever he may be aS q theorist
Is laborious and pains.taking statician
contributes q very valuable and interest
Ing article to the Atlantic Monthly iol
January. The subject Is one with which
Wells Is familiar, and one upon which
he has written several contributions Il
the press. The present article Is intended
to adduce further evidence with regard
TO the changes gradually going on in oul
systems Of taxation. Stating that the
present theory Of taxation Is simply to
tax all tangible or intangible, real or I'm
real property alike, whether houses
lands, horses, books, bonds, bills or notes,
and to tax 1t in the case oI personal prop.
erty OF the owners place Of residence.
Mr.. Wells says that the courts in the last
FIVE years have been rendering decisions
almost invariably adverse to this system,
and he thinks that the impossibllity Of
taxing every species ofproperty has been
clearly demonstrated. Mr.. Wells basis
his article on the system Of local taxation
adopted in England, which he hopes to
see introduced into the United States, and
he thinks we are steadily drifting that
way. To verify this opinion he cites a
number Of important court decisions
given solely with reference to the cases on
trial, but which at the same time estab-
lish important preceden.s. Among these
are:
l. The denial to the States Of the power
to subject 10 any form Of local TAXATION
direct assessment, license or stamps-lm.
ported goods in their original packages,
and unsold In the hands Of the
OF the general ground that the
right to import carries with 1t an unre-
stricted right 10 sell.
2. The denial to the States Of the power
TO tax United States bonds, or other Fed
eral instrumentalities, on the ground that
the power to tax involves the right 10 de.
stroy; and again, " that tax on Govern
ment stock Is tax on the power to Dor
row money on the credit Of the United
States" rM
8. The affirmation ot the principle that
the situS Of a vessel for purposes Of tax
alton is only at the home port where she
is owned and registered, and not where
the vessel may happen to be. .N
4. The denial to any State Of the power
to tax. "bills Of lading'' given for goods
from one State to another, by
stamps or otherwise, on the ground that
such tax Is an interference with foreign
or with commerce between
The States.
On these decisions Mr.. Wells shows
that their application has practically an
nulled laws designed TO tax ordinary per-
sonal property in many cases. Thus in
Pennsylvania the officers Of companies In.
in the State are required to re.
tain tax Of five per cent on every dollar
Of interest paid by such company to It's
bondholders and to turn over such
amount to the State Treasurer. Against
this law the Cleveland, Painesville &
Ashtabula Railroad appealed, and, after
being beaten in the several State Courts,
gained their case in the Supreme Court OF
the United States. The decision was a
most important one, as it laid down prin-
ciples never before clearly enunciated.
The points affirmed were:
Let. "That the power Of taxation of a
State is limited to persons, property and
business within her jurisdiction.1 ID.
That the tax laws OF State can have no
extra territorial operations, and Sd, that
bondt issued by q railroad company are
in the hands Of the holders, and,
when held by non.resldents Of the State in
which the company was incorporated, are
beyond the Jurisdiction Of the
State"
Another case in which the double taxa.
ion Of mortgages was declared illegal has |
ust been declared by the Supreme Court |
u California. These decisions will, Of
course, apply to State and municipal as |
we'll as railroad bonds. In summing up, |
Mr. Wells, whose elaborate article we |
have very briefly summarized, concludes
hat the tendency Of the courts is clearly |
md steadily toward the fundamental |
principle that the situs Of personal prop
'rty for taxation Is the place in which It |
8 lourd, and to make all taxation come
lpon the tangible, visible and real. With
his point definitely fixed, double and I'M.
air taxation could be easily avoided and
Dur system greatly improved. Mr., Wells
lrticle will well repay perusal.