The herald., 1894-02-26

EDITORS HERALD -, IN com mon with
the single takers OF the club, were glad
to read in Sundays HERALD your edi-
torial entitled "Single Takers Active"
and while we feel grateful for the spirit
which moved the writing OF the article,
there are several points therein TO
which | wish to respond. You say
1.-THE principle is undoubtedly correct
that just taxation is that which will
reach everybody equally according to
capacity for paying it," This, az you
properly 60 on to say, ia not reached
by present methods, and in the very
nature of those methods cannot be so
reached but we single takers deny that
this principle is undoubtedly correct, or
is indeed correct at all. 10 go farther,
we say it is entirely wrong. The
capacity of the Gould estate to pay
taxes is very great. yet that estate owns
comparatively little land and the single
tax would bear on il but very slightly.
This might seem very widely at variance
with the fundamental aim OF the single
tax, which is to absolutely destroy
monopolies and trusts, 6isperse the
millions of millionaires and to equalize
conditions and opportunities among
men but if we will refectyou will see the
justice OF the principle | espouse.
Gould'e money is mainly in stocks and
bonds, that is, it 10 capital in active OPP
GRAFTON; we tax that capital, tax those
bonds and stocks, and impair ite Tree
working, we limit the body CT capital,
certainly, to the extent OF what we
draw from it in the form OF tax; that
Gould money under investment ia work
ing. it is employing labor and effecting
production, not dollar of it but what
people are getting beneht from;
let the Gould possessions 30 far as
they sbide in floating capital alone.
You cannot successfully tax 1T through
any method even attempted to be APP
plied, and what is more, you ought not
to tax it.
But let us see If under single tax the
Gould millions would not in some
fashion be equitably and justly reached
to the benefit of the commonwealth and
without injury to Gould. Say that few
millions go into railroad; it increases
the quantity and betters the character
of the rolling stock, increases traffic and
improves that road throughout; imme-
diateiy thereupon the right OF way has
taken on an increased value; towns and
villages spring up along the line, and it
t. kes a value through this means. Now
while the railroad, unlike the ordinary
land owncr, has actually made large
part of the value OF it's own landed pos
sessions $50 far as they ale confined to
its right of way, yet the single tax
would take the annual renta! value of
that right OF way. Gould's mill
lions increase the value of the
right OF way; the increased efficiency
of the road causes towns to be built
along the line. Theee afford local traffic
to the road and this confers value on
the right of way, and that value the
community takes through o tax levy at
an interest rate.
Suppose one OF Gould's millions is
invested in bank. Some people decry
banks; they say, what let all that
money in the banks go free OF taxation
and me, a poor man, have to pay big
tax on my lot?
That is exactly so. You let the money
in the banks 90 practically free of taxa
ton under the present system, so the
single tax would bring but little
change in that regard. On the
first of March last the county assessor
returned $265, 900 as being all the money
in Los Angeles county that could be
that time certainly not less than So ,000,-
600 in money in the county and some
tinanciers place the amount at $l0,000,-
600.
We practically do not eat money and
we ought not tax it; nor should we tax
the bank stock nor the bank building,
nor the bank presidents head and the
pulls OF his clerks, nor should we levy a
A1fn ht1a
which latter we call license.
But would not single tax get any taxes
out OF that bank? OF course it would,
and get big tax. A bank ia a business
that must be conduced in the business
heart OF the city. 1t must be conducted
on valuable land, hence the annual rent
or tax Of that lot would be high, the
city, county, state and nation would get
q big income off OF that lot, for it would
be say per cent on the market value OF
tbs lot.
So you see the bank and the building
ia the machine on that lot making
money to pay that annual tax; every
dollar that passes through that
bank helps to pay the annual tax.
Gould's millions come into the bank,
this increases the banks customers
it draws business to the bank and makes
the bank a CENTER this reacts upon sur
rounding real estate and increases its
value, and it in turn reacts upon the
value of the lot on which the bank is
located, which in turn causes it to yield
an increased annual rent to the commu-
nifty.
So you see the millions of the million
aire come to yield tax under the single
tax method which they do not yield
under present methods; at the same
time these active working mill
lions 60 untrsmmeled OF taxes
which obstruct their operations
what the single tax takes lie that
usufruct which now goes to the land
lord as the owner OF bare land; this the
community takes. Why? Because it
belongs to the community. The owner
OF the land has neither made the land
nor the value that is on it; one was
made by God, the other by the whole
community. No single man can make
the value in any lot. 1t arises from
the industry and virtue of the whole
people, so that the community,
In taking as taxes the an
nual rental of bare land. takes
only its own. You can therefore
see that under single tax rules, people
are not taxed according to the property
they possess or have accumulated. but
according to the natural opportunities
they possess, and land with valuable
M ksxua