The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1881-03-18
"HOW 1T AFFECTS 70

Under the above caption, a,ewspa-
per IN one Of the interior couties of
the state publishes COMMUNICATION
purporting to be written by aarmer.
the purpose of which is to alw that
the farmers, as we'll as mechslcs and
| laborers, are suffering in Confluence
of the large amount which n. Van
derbilt has invested in UnitGStates
bonds. 1t is true that he cenares che
methods by which Mr.. Vand6ilt OBJ
tanned so much wealth. Farms and
mechanics, he says, have to wrk and
earn their money, while Mr.. ander-
bilt has made his by speculatin stock
jobbing, watering stock, cuttie down
the wages of his employees andncreas-
ing rates for freight and passegers on
his railroads, all under the sartion of
corrupt legislation. But thisis not
the special grievance of With the
writer complains. The point (Which
he dwells as the one affecting fmers
and laboring men most injuriQsly is
that Mr.. Vanderbilt has durig the
last six months invested $5.O0.0O0
in government bonds, and that is re-
ported he will dispose of all is rail-
road and other interests and inest his
whole fortune in such securitis The
writer of the colnmunicatiorunder-
stands that Vanderbilt is wtth one
hundred and thirty millions. he in
vests in United States. 4 per tnts it
will give him an income of OR five
millions year, and, as UnitedStates
bonds are not taxable, he will scape
taxation. If the property wereaxed
at the rate of two per cent, WITCH is
lower than the New York raj his,
taxes would amount to $2,600,00, but
he escapes paying this, accordingo the
rural writer, by investing his honey
in government bonds, and the frmers
and working men of small mean have
to pay instead.
The writer of the communication
forgets one of two essential oints.
The government could not sci 4 per
cent bonds subject to taxation. they
were taxable, higher rate IF tterest
would have to be paid. The pvern-
ment, in effect, has the equivalet of
tax in the low rate of interest pays.
The Dodge county farmer wb has
money to loan wants more than4 per
cent, and the Dodge Co. farme who
wants to borrow will have to paw or S
per cent. If two per cent tax were
levied on government bonds the gyern-
ment would have to pay per cnt in
terest instead of T. So that If Mr..
Vanderbilt puts all his property into
governments he will not after all es-
cape taxation. Again, 70 new bonds
are to be created for Mr.. Vanderbilt.
If he puts his money in such bonds it
will be in those already issled on which
the government is now paying some
body the same rate of interest which it
will pay Vanderbilt, or in the new
bonds, it is proposed to isslh, which
will not give him more than3 % per
cent interest. Hence it is imlosibIe
to see that any burden will be aoied to
the taxpayers of Wisconsin b. Van
derbilt'S investing in government
bonds. Farmers, mechanics, ditors
and other men who have to woE hard
and are poor, may feel that it ism I'M
pleasant spectacle to see one ma roll.
ing in SO much wealth while the have
to struggle and pinch to max both
ends meet, but they may at leat con-
sole themselves with the though that
their lot will not be in any aspect
rendered more unpleasant becaueVan-
derbilt invests in governments. More
over if it is wicked for him t make
money by specializing, wateringstock,
and managing railroads, why shQId we
object to his withdl having from those
pursuits and becoming mere located
Besides he willhot be
able to get any 4 per cents Without
paying such round premium oil them
that it will reduce his actual ncome
to about 81 per cent interest on his
capital.-Republicaaa, MiloOauke.