The San Francisco call., 1895-07-16
HOME RULE IN NEW YORK.
NOVEL VIEW OF THE SINGLE TAX OUTLOOK.

No one thing in all the category of evils that
beset California industries exerts so disastrous
an influence as our idiotic mode of taxing
them. The Half-million Club, the Merchants
and Manufacturers Association and kindred
organizations are exerting themselves to the
utmost to revive industrial prosperity, but 1t
ought to be apparent to them, as it certainly
will be a little later. that whatever. If any
thing, they accomplish in that line, viii come
by infinite labor, by main strength and awk-
wardness.
Why do make this dogmatic assertion? Be-
cause any one who will clothe himself in his
senses and do little-just a little-unpreju-
diced and independent thinking, will marvel
to see that while we are trying to force devel-
opment Of domestic industries by all the fam
tastic hothouse methods in vogue our entire
State and municipal revenue system is cum
ningly and elaborately devised as If with the
express purpose to suppress and tear them
down. For, to tax the results of industry is
the same as to tax industry itself. You will
hear the idea of double taxation condemned
on every hand, yet our scheme OF municipal
taxation of industries is one of the wonders OF
the world.
You want me to explain this more in detail?
Well, the first thing think of is that four
horse truck you see going by. The making of 1t
is one of the industries of this City. The raw ma
terial in it was taxed as the output of the saw
mills of Wisconsin and the ironmills of Penn
sylvan1a. The same material was again taxed
in the lumber and iron dealers warehouse in
this City. After it was built into truck, If the
maker happened to have it on hand on the LIST
of March, the City Assessor taxed it again to-
gether with the previous taxes added to it and
also the cost of its construction, and now the
drayman who uses 1t must pay taxes on 1t every
year as long as it is capable OF being used, and
at last it will be taxed again in the scrapheap OF
the junk dealer Now it Is obvious that the
burden of all these taxes falls on the business
of draying goods. And so it is with everything
produced by human industry that comes into
the State from abroad or is made within the
State. So it comes to pass that every useful
days work performed in this State is taxed and
taxed and taxed-well, figure it up for your
self-and then the man who does the work is
taxed because he is man, able to work. And
then think of the license taxes no end, and the
tof collecting them.
Do I believe in the single tax doctrine and
would apply that as remedy?
Yes, 1 do and 1 would, but there are other
people who would shudder to be called single
takers, yet who are working in the same line OF
tax reform. Let me call your attention to what
recently transpired in the Legislature OF New
York, and, by the way, if The CALL deems it
matter of Importance, it may be the first news
paper to publish all the facts.
There is in New York City an organization
called the Tax Reform Association. On Its
membership roll are the names of such real
estate men, bankers, manufacturers and others
whom readers of THE CALL will recognize as:
Cooper, Hewitt & Co.; Dodd, Mead & Co.; John
Jacob Astor; Bolton Hail. Phelps, Dodge & Co.;
Drexel, Morgan & Co.; William Steinway; B.
Frank Cooper. president Colweu Lead Com
papv ord hu ndreds of otherS
These brief extracts are from the platform of
the society:
Capital engaged in production or trade
should be exempt from taxation, because taxes
on capital tend to drive it away, to put
premium on dishonesty and to discourage in
dustry. Real estate should bear the main bur-
den of taxation, because such taxes can be
more easily, cheaply and certainly collected,
and because they bear least heavily on the
farmer and worker.
For the last three years the association has
had introduced in the New York Legislature
and urged the passage of an act providing for
what is there called "Home Rule in Taxation"
Briefly stated, it provides that the Board of
Supervisors in each county may direct that
county taxes shall be laid exclusively on per-
sonal property, or on land and the improve
ments alone, or on land alone, or on all
together The same provision is extended to
cities for the purpose of city taxation. At
the ldle beeSlOu the Dill reCeIVeQ On teSL
vote Emotion to recommiD a majority, but
pending the passage of the bill the Speaker
threw the weight of his influence and his Of
flee against 1t and it was lost by narrow
margin. The vote for it was pretty evenly
divided between Democrats and Republicans,
so it is not regarded in any sense as party
measure. 1t confidently believed that the
bill will be passed at the next session, and
even more confidently that as soon as it does
pass New York City will at once abolish all
taxes on personal property and probably on
Improvements also, thus collecting all its rev.
enues from land values alone. A prophecy of
this is recorded in the vote on the BILL Of the
% members from the city voting, 21 voted for
and but against it. From this you may see
where the people of New York City stand on
the subject of tax reform. The have de-
termined to untax the city industries, at the
same time permitting the country districts to
pursue the old way as long as it seems to them
good.
What effect would that rule have on the
prospective half-million San Francisco?
Figure that out for yourself, too. Communi-
ties often remit the taxes on manufacturing
stock and plants with gratifying success. The
city of Sacramento lately agitated the subject
of raising bonus equal to the amount of taxes
for term of years to induce new industries to
start there, and the same thing is suggested in
this City. Any business man will tell you that
2 per cent will in nine cases out of ten make
all the difference between failure and success.
But taxes amount to much more than that,
owing to the multiple taxes before described.
But suppose the taxes thus remitted were
laid on the land in the city, would not the
landowner charge the difference in increased
rent? will be asked.
Not bit OF it. He charges every last dollar
he can get now; he could get no more in any
case. He would be simply giving up for public
revenue part of that great fund (ground remit
which industry alone, and not the landowner,
creates.
Iwould not oppose anything the Half-Million
Club is doing, but would supplement their
efforts by having them and all organizations
having the same ends in view to join hands for
an amendment to the State constitution in line
with the policy mapped out by the business
men of New York, namely Home Rule In Taxa
ton. JAMES s. REYNOLDS.
PATRONIZING HOME INDUSTRIES.
If the San Francisco manufacturers expect
to hold their own against Eastern manufac-
f1,ra 1aff @l.o