The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-03-22

SHIPPING AND THE INCOME TAX.

Ar. David A. Wells, IN a recent letter 70
she New York Evsatng Post. calls attsr.-
zion 10 a phase ~ tae incouae tax Law.
which, as ns notes. has not attracted
much attention, to-att; The imposition
Of sax Of : per cent. upon the annual
earnings of ali American vessels in ex-
cess OF st.aae He remarks that the
majority os Amerseaa vessels do not prob
SHY net annually more than the sum ex-
enaptsd or are protected from foreign
composition ia coasting or Inland waters.
II may not bear uron them very heavily.
bat as 10 the larger and more expensive
class Of vessels considered essential for
the profitable prosecution Of foreign trade
~ wtli work dlseouragsment and hardship.
Esgsec laiiy will It affect the ocean steam
marine. which has 10 some extent, besn
encouraged and helped by subsidies. and
for whose aid much larger ones are zeal
euziy advocated.
One agency that has Largely contrib
ussd 20 the 6eca1ence az our merchant
marine and prevented It's resusc!sat.en
has been the local taxation 20 which YES
sells have been subjected. ana from which
their foreign competitors are free. "Au
the states says Mr.. Wells. regard YES
sels as personal property. ane nearly all
FltTfSA lAsHs tkaFAT current rates or
state. risnicipai or local taxaf.os.' Tho
leading maritime nations content them
selves with tax upon the earnings only.
or. in ether words. an income tax. asxuu-
sng correctly ths, "from the very nature
OF sts use shipping cannot share In the
benefits which are bestowed by the eslstsi-
huiion of the proceeds OF state and znuni-
elgaA taxation for public pnrposex"
The commissioner OF navigation In his
late report 10 the secretary o. the treas
Ury presents some ngurea ssowing the bur
den Of local taxation borne BY cur ship
fsng thst ssea 20 justify criticism upon
fhe further levy az an additional tax upon
the earnings. The city 81 Bath. Me. levied
In iSss on = total registered tonnage Of
isese tons. with an assessed valuation of
sl.ea7.s@5. more tasas than are paid ~ the
North German Lloyd Company on over
sis.n.so worth % shipping tn Germany.
Portland. Ale. levied more taxes on sSe-
$50 worth Of SHIPS than The Cuuarsi COM
Tany paid Great Britain ca s. Qssa. go worth
As to these great companies. tbs esamIs.
sioner sSys that none 81 them could have
been operated under the Maine TAX laws.
because the taxes levtei would aavs ex-
ceedcd tho dividends declared IN that year.
Coming nearer home. the city of San
Francisco levied upon shipping registered
At that port in 1876 q Suga within .sao 90
the combined taxes paid within a ike
period by the Cussrd line, the Hamburg
American line. the North German I.icya
and tAs CamnaEaie Generate Transat~
ianticas IN iheir respective governments"
Tas local taxation at New Orleans.
Charleston. ). G.. aud Savannah Ca. IS
stsh more eneFoGs. when 80 this heavy
harden OF locsl taxation upon American
shipping. burden bors;s by the vessels
az no other maritime power is aided
tax on earnings. which Is the oaly tax
collected by foreign governments upo.,
their sh3as. IL Ia manifest that the erits.
esSsn OF Mr.. Wells - amply Supported ana
justified. The imposition CO tails TAX en-
earnings, unless met by a subsidy Of sauaI
amount Will ala 20 the disadvantages
under wASsA oar mercantile marine -
iahoFtng. ard tend 10 nsussAllzs The ef-
feTts whsch have lattsviy ecea encour-
aged 20 rcsuTTec; ana reh&eultAta Amer
team shipping