Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1884-05-23


cgn vessels, stock Of incorporated COM
panics liable for taxation on their capital,
products Of other States sold in New York,
II the proceeds are returned to other States
bonds, mortgages and promissory notes
bonds, mortgages and notes of non-resdents
sent to the State for collection; capital in
vested in loans in other States upon securi
ties held Ivy nonresident agents; United
States bonds, United States treasury notes
and national bank shares; property of
priests aud ministers to The value OF $500 /;
savings deposits due deposi ors, and accumu-
lations for the benefit of insured persons 10
| life insurance companies. These are the
chief classes, but there are many others.
With all these exemptions and
with the assessors very imperfect
means OF getting at personal prop
erty, the comparatively small amount
that is listed is again very largely reduced
| by the Offset system. AS in this State, there
is provision in the law that one can offset
his ownership in personal property by his
debts, and in New York city and In the
State generally the taxation of personal prop
eTty Is little more than farce. One mode
of evadlng the law is stated by the Tran
script writer as follows:
Suppose A lcceivcs notice that he is as
sesscd for $4,000 personal property. He
goes into Wall street. tells broker to buy
$40, 000 worth of Government bonds for him
and to keep them as security for few daYs.
before the Tax Commissioner and swcars
that his debt (for the payment of the bonds
equals the value Of his personal property,
goes back TO Wall street and orders the bonds
sold. He is bothered for few days, and
that is the end of the matter; for if he
swears that his debts equal the amount as
sessed against him on his personal property
the commissioners have no alternative but tc
strike his lame off the rolls. So, too, be
can offset his sossable personal property by
debt in the shape of q mortgage that il
held against him on his real estate. Or Ii,
can turn his property into United States
bonds or treasury notes, if it is easily con
vertible, and thus avoid paying a personal
tax. The favorite method, however, is tC
4 incur temporary d-bt, and TO confront The
commissioners with the fact"
Some striking illustrations are given. Van
derbt, Sage, Gould, Field and scores o.
men Of wealth, ply only minal tax Oh
their personal property, nad more often pay
nothing at all. They swear Off with thu
utmost unconcern. few years ago Van
derblt appeared before the commissioner
who, after examining him at leugth wer,
forced to admit that he was not liable for any
personal taxes. He said, however, tina
rather than be called 'pauper millionaire
he would voluntarily pay personal taxes OF
$1,000. 600 and he did. The L)ril'ards pay
no personal taxes, nor do the thousands o
bankers and brokers, who are the very one
which this sort Of taxation is meant 20 reach
The main burden is borne by those who ar
taxed for small amounts, who do not care t.
be to the trouble Of ovaiing the law. Tn
Metropolis has more than two hundred
thousand voters; hut in January last yea
the assessment rolls bore the names Of only
20,770 persons who, as far rs the assessor
could make out, were liable to tax
atiln. There were 1906 application
for reductions, and the ramcs o
SSSS were erased us mot liable :
81 that there were reta ned on the receiver
books only 1891 namcs--about ten pei
cent. Of the actual uumbcr Of persons VIII
possess over $50 worth Of personal prorcrt,
in the city. The total assessed value of per
sonal property In New Yori; city last year
on the opening OF the books before the pro
cess of swearing of began, was So, los, s22
924, aud this SUN dwiniled to, in rounC
numbers, $197 100000. The greater part Of
the original assessed valuation was place.
upon fire and life insurance, trust and rail
way companies and miscellaneous corpora
tons. jay Gould paid on 500, 600 only
the James Lonnox estate on 81 900, coo, the
Astors on $4,000, 600, Mrs. L, d. Morgan or
! $500, 900, and Miss Catherine Wolfe OF
| $500, 900. There is decrease each year il
the number Of those who pay taxes on per-
sonal property, and President Asten, OF the
.. Tax Commissioners, does not hesitate to say
that the personal tax should be abolished ex.
cept on corporations, franchises and on such
!. property as a tax can be collected upon with.
out difficulty