New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-06

interest. while the property itself l. assessed
besides. q double tax is laid, and most ini-
ouitons discrimination is exercised against
those who hold property in JOINT oWh'r@"'p'
and in favor of those who are uch enough 70
own an estate alone
The latest Sacramento paTers contain re-
uolts of debate in The Assembly over q olli
by which the LEGISLATURE proposes to carry
out the scheme of the Constitution. lhc
operation of the doUbie-tax, which this BIN
enfo4ces in its most Objectionable form, was
fully explained in the discussion but pro-
hmnary vote shows an overwhelming major
ity in favor Of The measure, and the speeches
Of those who supported it indicate that it is
popular because it is supposed to be hostile to
capitalists aud corporations. The bill under
takes to tax the capital OF all Incorporated
companies and also tie shares. The working
Of the plan may be shown by an Illustration.
A mining company is organized III san Fran
cisco with a capital of $l.000,000, in a thou
sand share. Of 81 900 each. The money is
used to purchase a mine at Virginia City,
erect the necessary buildings and furnish the
machinery. The property is thereupon as
sessed at Virginia CRY. and charged with the
tax upon S1.000.OO0 Next the COM
pany at San Francisco Is taxed upon
its capital of 100000; this is only
d" fiat property IA mere Understandable
real property for which it stands being the
mine which has already been assessed.
Finally the individual stockholders are taxed
upon their shares, which ore only certificates
of interest IN the mine. Thus the same mil
lion of dollars is taxed three times over, and
is made TO figure ON The Assessors roll as three
millions. 1t is clear that all taxes on the
mine and the capital must be paid by the
shareholders, either in the shape of direct
personal payment to the Collector, or by de-
duction from their dividends. If the rate OF
taxation is So on 500, the holder Of thou
sand-dollar share viii pay the following sums:
500 on the share; $40 as his proportion OF
the tax Of $4,000 on the capitals $40 as
his proportion of the tax OF 100000 on the
mine total, 500 Yet the only property in bis
possession i one share, worth $1,000 SO that
although the law fixes the rate AT , per cent
ne IS actually compelled to pay g per cent.
But now let us suppose that n BONANZA capital
ist sees fit to buy 10 tho stock. TAX
iug al tho shares at par, lac be-
comes the purchaser of the whole mine
81 ~
he annlhiates the corporation Tie puts the
certificates of stock in the fire. There is no
more capital TO be taxed; there are TO more
shares; nothing but the mine, Of which he IS
Che sole owners the three millions have shruuk
to one million, the tax Of 100000 has become
$2O,OOOj and the rich man pays per cent
ON the same property for which tle small
shareholders were taxed 6 per cent.
i Is no wonder that with such q system ga
view capitalists seem anxious TO get away
from California and take their money 10 more
enlightened States. it was stated i'm the de-
bate to which wo have referred that during
the past year there had been % shunuco Of
$32, coo, 900 IN bank capital, loans and de-
posts, while ole-fourth Of the savings banks
had been swept ont OF existence. THIS, how
ever did not seem 10 alarm tie friends of the
bill. One gentleman dii not like savings
banks, because they used Their doposi.s for
purposes Of spcculatoni and another argued /
that putting away spare funds in such ,usuu-
tons was % pern.cious habl,, and D." ID would
be better # wc had 10 savings ha-kj = the
history OF the past shows" References 10 Ger
tain decisions of the Courts were treated with
profound and emphatic contempt; and object
ors were reminded that d" tine mandate az the
" people + higher and stronger chan the man
" date of any Court"
While this spirit prevails Il Is evident tha,
the dcliverance Of California from the rule of
ignorant and violent men is not yet ut hand.
Tue unfortunate State probably has many more
sulR rings to undergo, before the inevitable
reaction sets in. Families VII b. ruined
homes will be broken up; bic progress of
the community will be set back pcrhap, Tor %
generation. We trus, that the severe lesson
will not be lost upon politicians no Che East
who have been encouraging The same danger
Gus element which has now obtained the upper
hand on the Pacific Coast. The Democratic
party, in all the States from Maine to the
Golden Gate, has been the chief support Of
these crazy dcmagosues; and it may discover
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