New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-03-12
rBY TELEGRAPH TO THE TRIBUSEI


MIGHT HAVE BEEN APPLIED.
rDY TELEGRAPH TO THE TRIBUSEy
Albany. March 1.-THE State tax rate will be
much higher the present year than it was last
year What is the cause of this sudden increase
in the imposition Of State taxes? The answer 10
that question will be found partly in certain pro-
ceedngs OF the previous Democratic Administra-
ton; and partly in the failure Of the present
Democratic Administration to pass through the
Legislature much.needed taxation measures.
Voters first should turn their attention TO the
acts of the last Administration, related TO the
coming increase of the State tax rate.
David b. Hill, year ago, thought it would
improve his prospects of nomination for Presi-
dent by the Democratic party if he should pose
State Executive Of exceptionally eco
nomical nature. Accordingly. be persuaded Com
troller Wempc 10 make representations to tho
Legislature OF such nature that IL adopted
remarkably low State tax rate. Then Hills agents
sent ont circulars all over the United States pro-
claiming that under Mr. Hills leadership the
State Of New.Yorl had reduced it's expenses
that il had lcssened It's State tax rate 20 the ow-
est point IL had reached in thirty-slx years.
Naturally, these circulars made mention
of the fact that every particle of the reduction OF
the State tax rate that was legitimate was due
to the economy OF the Republican Senate, and u
tie effect of the passage 10y Republican Iegisa-
lures, years before, OF laws taxing corporations
and inherited property. But, was revealed by
Controller Campbell's remarkable letter to the
Legislature on Wednesday night. il now seems
that Mr. Hills low State tax rate. about which
his friends Dragged, was largely Legitimate.
Mr. Campbell in that letter. informed the
legislature that Controller Wemple, year ago,
made an erroneous estimate as to what the
States receipts woud he from the Direct Sue
cession tax. Mr.. Wempe had said they would be
81, 600 600; whereas, up 10 the present day. only
the sum of $4,000 has been received from that
source, and all that can be hoped for in addition
in the present fiscal year is $4,000, or total
Of $4,000 Subtracting the S13 900 from the
50, 900, 900, it is found that Mr.. Wemplc
was only $I,927,O0O out OF the way
in lis estimate. What is worse for the
State in this "error" of Mr.. Wemple is that he
counted this S2,000.000 among the States
sets for meeting IT'S liabilities in the present year
II he had not made the statement he did make
to the Legislature of 1891, the State taxrate last
year would have been correspondingly higher.
But then, Mr.. Hill, great financier as he is
could not have sent out circulars TO other States,
Dragging that he had reduced State taxation 10
the lowest point in thrty-sX years" Moreover.
Governor Flower and the present Democratic Lcgis-
lature must pay the bill which Mr. Hill evaded
paying last year and in order to do it, Controller
Campbell said in his letter to the Legislature this
week. that the present Democratic administrs-
ton must Ia ke possession OF the g, 600 handed
by the United States last year TO the State Of
New-York in payment Of its claims under the
direct tax paid by the State in 1851.
Thus a great fund will disappear, which it
was fondly hoped by many would he used for
some State enterprise Of value and magnitude.
The advocates of canal enlargement have
thought il might he employed for that purpose.
The Forest Commissioners have been of the opinion
that il might we'll be used 10 create magnificent
State forest preserve in the Adirondack Wilder
ress Superintendent Draper, of the Departments
of Public Instruction, has suggested that il be used
to increase the State school fund. But no; it is
to he thrown into well7 to pay David b. Hills
debts as administrator of the States affairs.
Property. il should he considered as special fund
of 81 900. 900 generously contributed by the United
States Government TO swell Mr.. Hills Presidential
boom
II is Interesting to recall what prominent DEM
ocrats said year ago about this Disappointing
Succession tax. Lieutcnantt;overnor Shechan in
his farewell speech 10 the Assembly on April 80,
1891 az Speaker. said The new Succession Tax
law which adds to the State revenues about
g., O00. 600 year received prompt attention and
approval here" The day before Controller Wem-
pie in humbuggng letter addressed to the Leg
isIaturc had said Il am glad To inform you that
by prudence and economy of administration and
vigilance in the enforcement of the laws imposing
corporation and other special taxes we are now in
the happy condition OF having sufficient funds on
hand to pay all obligations created by the pres
ent LEGISLATURE against the general fund, so there
will he no necessity of levying any tax this year
for that fund The entire freedom from TAXATION
in the State for ordinary purposes this year is not
secured by the payment into the treasury Of the
direct tax refunded by the Federal Government
of S2.2I3,330 50 collected in 1862" Mr.
McCleand, the Democratic leader in The Al.
scmbly, in speech prasing this letter,
of Controller Wcmplc said: But not only is
the tax-rate this year lower than it has been in
thirty six years, but there remains untouched in
the Treasury, and not Included in fixing the tax
levy, the amount Of the United States direct tan
refund of over $? 900 900. That money is not
used, utilized or in any way estimated on 10
effect this great reduction but remains in the
Treasury, subject to appropriation by the Legis-
lature.'
But actually that $2?O0,oo0 OF the direct
tax refund was taken by Mr.. Hills Administers
ton. 1t must be used TO pay the appropriation
bills of which he approved. That fact Is re-
vealed by Controller Campbcll's letter. in which
he declares, speaking of the direct tax fund:
The money is needed in the Treasury during the
current year a safeguard against the succession
tax deficiency and AT the end of the fiscal year.
whatever remains should be placed to the relief
of the taxpayers. To quote a somewhat tritc, but
none the less truthful. saying, The best place
for a surplus is in the pockets OF the people"
Controller Campbell further confirmed the
common opinion tlat he is using the $2,20o,000
In
approved of by Governor Hill by saying to-day ta
The Tribune correspondent:
81 deemed it prudent to send my letter to the
nnislatnre warnng il of the failurc of the direct