Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-12-26
A QUESTION OF TAX
That Is Giving New Workers
the Same Trouble That
Others Have Had.
WHAT PERSONALLY PAYS
And What It Should Pay Are Topics
Now Under Discussion
By A LEGISLATIVE COMMITTEE.
Matthew Msrshall's Reasons Why Real Es-
tate Owners Must
WHAT PERSONALLY PAYS
BY A LEGISLATIVE COMMITTEE
Matthew MsrshalTs Reasons Why Real Es-
tate Owners Must
ALWAYS BEAR THE BURDENS BRUNT
ESPECIAL rrIreRAM TO THE DrsFAroH.I

NEW YORK, Dec 25.-"The taxing OF
Personal Estate" is the subject of Matthew
Marshall's article for tomorrow's Sun 1t Is
as follows:
The exports of gold and the perilous
condition of our currency, the Panama
scandal, home politics, and preparSions fol
the Christmas festival have so taken posses
sion of the public mind, these last few days,
that the proceedings of the special legisla-
tive commission on taxation, which began
its sessions here in this city on Tuesday,
have passed almost unnoticed
No leading broker, merchant or capitalist
of auv kind has appeared before the COM
mittee and the witnesses it has examined
have been mostly officials who look at the
subject from the point of view of tax col
lectors, and not from that of taxpayers.
Nor has the committee as yet sought in
formation concerning the systems of taxa
tion in use in foreign countries being ap-
parently satisfied that native ingenuity is
competent to deal with the problem with
out help from abroad.
Rural Real Estate Owners Aggrieved.
From the reports published in the news
papers it would appear that the point to
which the investigations of the committee
have been so far confined has been the small
amount of taxes collected from personal es-
tates in this State compared with that of
taxes collected from real estate, and the
best method of increasing it. The assessed
value of personal estate for purposes Of tax
alton is, taking the estate as q whole, only
one-ninth of that of real estate, though
In this city it is one-ffth, owing to the
number of its wealthy citizens and the loca-
tion here of SO many large corporations and
financial institutions, the average being re-
duced BY agricultural counties where real
estates is assessed at II times as much as
personal estate. Hence, the owners of real
estate, particularly in the rural districts,
feel aggrieved, and the committee appa-
rently is disposed to devise means for their
relief.
This antagonism of interest in this State,
in respect of taxation, between the owners
of real estate and the owners of personal
estate, is of long standing and has fire.
quently led to legislative Investigations
like the present one, followed by the enact
ment of laws intended to enlarge the taxa
tion of personal estate, and thus reduce
that upon real estate. All these attempts,
as the present condition of the matter
shows, have failed OF complete success.
Real Estate Owners Pay the Price.
The great bulk of the taxes for CITY and
county purposes, at least, continues to be
psid bv the owners of real estate although
stare taxes, owing to new corporations snd
inheritance tax laws, fall lightly upon both
real and personal estate alike. The owners
of real estate insist that if justice we're done
the owners of personal estate should pay at
least as much as they do, and the owners of
personal estate naturally combat every at
Tempt to compel them to pay more than
they are now paying.
H. hn for inn of
taxation upon personal property do not
fully understand the case, and are not we'll
acquainted with the facts connected with
1t, is pretty evident from the arguments
which they employ to support their views.
Most of what, in conformity with the legal
fiction, they call personal property, is per-
sonal only in name. A bond secured by a
mortgage upon house and lot or upon
g farm is personal property in the eye of the
law because the owner of it can carry it
about with him wherever be goes. Bonds
and mortgages are, however, mere evil
dences of part ownership in the real estate
bv which they are secured, and frequently
the money given for them helps to pay for
its purchase. In like manner railroad
bonds and shares of stock in railroad COM
panies and in other corporations are techni-
cally personal property, but as matter of
fact they represent only beneficial interests
in real estate or In investments of capita |
which are taxed in their entirety.
Double and Unjust TaIatiOn.
To tax both real estate at its full value,
and then, besides, to tax the mortgages
upon it, is a double taxation, the injustice
of which is admitted, and the remedy which
has been proposed for it is TO ta1 real estate
only for the excess of its value above the
mortgages upon it, and throw the rest of
the tax upon the holders .of mortgages
This, however, would so evidently put an
end TO all lending upon that kind of Sc
curitv that it has never vet been adopted.
In like manner, the taxing both of the
property of corporations and of the shares
of their stock is recognized TO be unjust by
statute, and where corporations are taxed
their stock in the hands of its holders is
exempt.
With these facts before his eyes it is sur
prising to find man like Comptroller
Campbell of this State, declaring that, as
jay Gould owned $40, 900, 600 of personal
property in his lifetime and paid taxes on
only $500, 900, he detrauded the people out
of this State of taxes upon $69 500, 900.
Equally surprising is the assertion made by
ex-Assessor John d. Ellis, before the legis-
lative committee on Thursday, that there is
"a 000. 000 900 of personal property that
ought to be assessed In this State, which
is not now on the books, and from 80 to
55 per cent of which is in New York city.
An Assumption Evidently Unauthorized.
Mr. Campbell evidently assumed that Mr..
Gould's SO, 900, 600 were in his pocket OF
in his safe and. therefore, within the juris.
diction of the State and city authorities
whereas, in fact, except his household furni.
ture and cash in hand, they were scattered
all over the Western and Southwestern
States, and were represented bv railroads,
bridges, mines, town and city lots, and
various other objects over which the State
has no more control than it has over the
possessions of Queen Victoria. So when
Mr. Ellis spoke of the s., 900. 900, 900 Of
property in this State which ought to bC
taxed he had in mind undoubtedly property
similar to that owned by Mr.. Gould. He
added together the reputed fortunes of mer
like the Astors, the Vanderbilts, the
Rockefellers and other millionaires, anC
assumed that their possessions were al
actually situated within the boundaries o.
this State and enjoying the benefits of it,
government
The truth is that the only personal prop
ertv which can be reached by assessment
either Justly or uDjustlY in this State, il
frat which can be seen and laid hold of by
tbe hand. That which is personal only BY
fiction of law, and which, whenever it,
owner goes out of the State, goes with him
riJI necessarily slip through any tax Law
that can be framed.
ONLY Sentiment of Communism.
Reside this error of fact, the advocates o
&arofinu nf nersoual property