New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-04-07
THE SUGAR TRUST INQUIRY.
CAPITAL DRIVEN AWAY FROM NETWORK.
TAX COMMISSIONER COLEMAN MAKES SOME
INTERESTING STATEMENTS

INTERESTING STATEMENTS
The Senate Committee on General Laws, which has
had a long fight with the officers Of the recent Sugar
Trust practically ended their investigation IN TINS
city yesterday morning. Enhu Root, one Oh "io
counsel for the American Sugar Refining Company
expected 10 present his argument at yesterdays ses
sion against the necessity Of producing the books Oh
the constituent companies before the committee ne
was detained by other duties at court however ana
was unable TO be present until 1o O'Clock
At that hour the Senator'S owing to pressing business
in Albany we're obliged to adjourn. The next session
OF the committee will be held in Albany tomorrow
afternoon at O'Clock. An opportunity will then be
given 10 Mr. Root to argue his Sidney L. Harris,
counsel for the committee, will reply. Senator Erwin
chairman of the committee, will then decide whether
Il is necessary 10 20 to the Senate for an order
curing the members of the company to hay their books
before the investigating committee. Senator Erwin
Is confident OF his right examine the books and says
that they alone and not statements by members OF the
trust will show the way the sugar business was con-
Quoted since the organization of the trust in 1887
The necessity for such an examination was made
all the more apparent in the opinion OF the members
Of the committee, by the surprising statements OF Ed
ward Adams. the accountant. VINO was examined on
Saturday. SIR Adams was employed by Kidder,
Peabody & Co. TO preparc a report the condition Of
the constituent companies Of the trust upon their re-
organization as the American Sugar Refining Company
Although It had been stated frequently during the
course of the investigation that Mr. ADAMS had mad
free access to the books Of the company nc declared
that he had prepared his report in ten days from trai
balances furnished by the boOkkeepers OIL the trust
Mr. Root despite all this, however, Is O. the opinion
that he prove that the senators ha'e ho ies"i
right to the production Of the books
The only witness at Yesterdays session was Tax
Commissioner Michael Coleman, who said That he had
had twenty years experience In matters relating 10
taxatlon In answer to the chairman's question as to
the number o. corporations doing business Ill TINS oiy
without paying taxes, Mr. Coleman sald thau " was
impossIble TO say exactly, because they were SO
numerous Between January l, 1890, ana January
l. 1901 1870 100000 of capital had been corpolaVeu
In the counties of Essex and Morris in New-Jersey
At least Is TO 90 per cent Of that amount Represented
the capital OF companies which had been uoils ousr
ness in this city. They had found 1t more pron'''ic
however to wind up their affairs IN Ne"-iorh anu
reorganize in New-Jcrsey Excessive taxation had
driven them across the river. Although orgahizeu IN
Ncw.Jersey many of these firms did business Only Ill
New-York City. ,...,-.
This information was the result OF special lnvestga
tion ON the part of Mr.. Coleman. Among those hrms
the witness named the Thurber-Whyhhu COMPANY,
porl, G. TiIford the Cellurlod Company, the United
states Book Concern, DevOe &c Co ana the hoIlindh
Cafe. The Hoffman Cafe was capitalized az oi-oo'
ooo in New,Jersey This fact greatly surprised inc
lection from the fire and police departments as tlOse
incorpoated in this state They contributed In return
practically nothing to the government 81 NcwIorR'
They depend upon New-Jersey Tor nothhg except
exemption from taxation. 1t was true that tley
were Obliged 10 pay some money to the state OF New
Jersey The amounts however, were comparatively
small New-Jersey did not compel her corpor"uoh'
10 make returns of their property.
Mr. Coleman in answer TO Senator Erwin SAID that
on the books of the Tax Department OF this city, was
record Of personal property assessed at
Taxes however, were collected only on about SZoo'
600 600 The Department had been Obliged 10 stflKe
o ~ 400 900 900 of personal property on the ground
that II was not liable TO taxation. The reason was
that It had been incorporated outside Of the state
Many outside corporations were prosperous PAID
large dividends out Of the money earned In this city,
and held great interests within the city limits
"Butn asked the chairman, show would you
change this condition Of afrairsP
"Thls staten replied the witness, "can AFFORD 10
make corporate taxation light better than almost any
of her sisters No State offer In many ways 50
great advantages to capitalists. think the tax should
be placed on the gross carvings or the capital Stock
H. sboud be so light however, that great corporations
would be attracted here and not driven away from ths
city. The corporation tax IN NeWSSfSey e o,1 Ut
two per cent our present system has driven miinons
Of dollars away from This city and has deferred millions
Of capital from coming 10 the Guy. 80, -.
From 1866 to 1872 numerous millonaires from
the Western part OF the country locaoe1 HciV
They used their money in building big houses al9ie o
various avenues Of the city. They deposited t1ef
money in banks or invested It in this city But when
we began TO press them in 1872 they began 10 disap
near since 1872 G. II. HuntingtOs is the only
wealthy Western man who has settled IN ms Guy
ing the appearance of deserted village Our taX.
able property since 1872 has decreased annually Dy
the deportation OF capital. or by the organization OF
capital in other cities. II Will soon be That men IN
is rapidly becoming one Of hotels and clubs Wealthy
men invest their money outside OF tle city, IVe there
and have clubrooms In this city. a few years ago
the value OF club property in this city was only
The Eleventh Thirteenth and Eighteenth wards have
lost hundreds Of manufacturers Parts OF NeW-Jersey
have been built up al the expense OF this Guy.
In reply to another question MI Coleman sllu
that If the laws of this Stae were properly changed
he was certain that in ten years the assessed value OF
Individual and personal property property IN TINS
city would be twice the assessed value OF Its real
estate. g.. .
Vedder, " 10 exempt bonds and mortgages from city
and county taxation, but not from State taXatiOn7
Il do not see" replied the witness, why that dis
elimination should be made. The bonds and
taxation as they are held by insurance societies and
trust societies. We cannot get at them. We do not
know to whom they belong"
Mr. Coleman praised the tax system Of Philadelphia,
hind Philadelphia in respe% to its system of taxation:
The corporations in this city which did pay taxes paid
much more than they shonld pay. About rs to 80
per cent OF the real estate in this city was taxed
Mr. Coleman had recommended the Philadelphia system
for this city fifteen wears ago.
IL is possible that Mr.. Coleman will be called TO
Albany to testify again before the committee.
Henry Winthrop Gray, who was called to the chair
after Mr.. Coleman was not present. subpoena for
his appearance at Albany tomorrow issued before
the departure Of the Senators for the Capital.