The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-01-27

w0res ~ WfsdoW from . Senssss7 1~A
To THE Eprron OF THE suS-Sir: In your
dispatches from Albany Of date OF Jan. 10
notice is given OF the Introduction In the Log
islature Of IAN act to provide for taxing the
Indebtedness OF corporations, joint stocA
companies, and associations
The part OF your synopsis OF tho bill OF which
I wish to speak is contained in the last para
graph. where the proposition Is made to tax
the bonded Indebtedness OF corporations OF
this State. Your report goes on to assume tnat
one-half Of the securities is held by residents
OF this State and therefore liable to taxation.
You estimate that one-half to be one billion
dollars. and you say TINT " a tax OF one quarter
mill on each one dollar OF the par value for each
ono per cent OF the interest paid would pro-
duce the sum OF ono million annually Such
tax. your correspondent thinks. would pro-
vide great relief" for the real estate owners
OF this State. Let us see:
The fact that residents OF this State hold
certificates showing that they have loaned to
corporations $1.OOO.O000O0. means that the
real estate of this State has been benefited to
that extent-that its values have been In
creased by the presence OF such form OF in
debtedness among us. The presumption or
the parties who drew the above named bill Is.
that when that tax is levied, the bonded
indebtedness" spoken OF will remain in this
State. That is q mistake 1t will BIO sent to
some State or locality where such bonded In
debtedness can escape taxation: md in such
| an event the real estate OF this State will he
relieved" OF certain portion OF its value.
| Tho men or tho lawmakers who think that
movable wealth in the form of money. EVIL
| donces Of debt &c. will stay here regardless
| Of how It It taxed make a great mistake. 1t
! has always been an axiom that capital Is the
| most sensitive thing in the world that Mt the
| least thing threatening its stability 1t disap-
pears.
Why do not the lawmakers OF this State. in
stead OF trying to devise methods to tax
everything that is worth dollar-why do they
not, say devise methods to imp owe the con-
dition OF business and labor in this State
This is the Empire city Of the Empire State oil
the Union. A little Judgment on the part oil
| those who make our laws would make this the
| imperial city Of the world. 1t is only neccs-
sary to abolish unnecessary taxation to make
the wheels OF industry turn twenty times
| where they now turn once.
| This association believes that 1t would slim
| ulate tremendously the industries OF this city
and State If the taxes on tho materials enter.
| ing into tho manufactures and the taxes on
| the products Of the farm were abolished. The
association feels that its position is an unusu.
ally strong one. from the fact that included
in it's membership aro some OF the largest rea
| estate owners and number Of the greatest
| merchants in this city. They believe that the
effect of the adjustment of our personal prop.
erty tax laws will be to largely stimulate in
| dustry and thus add to the value Of real es.
tate. Yours very truly.
New YORK TAX REFORM ASSOCIATION.
| JAN %. WIN. McCABE. Asst Sec'y.