New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-05-03
TAXATION'S ms AND OUTS.
SOME PREVALENT IMPRESSIONS COR
RECTED.
RANKS PAY MORE TO THE CITY IN PRoPoR-
TON THAN ANY OTHER CLASS OF Coi'-
PoRATIoNs-soME INHERITED
METHODS.

=. 70 .ss.r,ed that a corporation has no soul
Some corporations that recently assumed ssah.i'
proportions. and then melted away Hiys'e'iousi!'
leaving nothing behind but cries ana creo''ois D.
o,,d naturally induce ore TO dispute the asser-
ton Their sudden appearance and dissolution sa-
yor somewhat of the supernatural
The declaration that a corporation has no soul
has a tendency to operate disasirousiy' LOT II 10
daeni,elv established that II is body without d
.o, t,,en there Is nothing TO be saved ana WICKED
.x,ravarsnce NAV result in its financial rum.
porhaps on the score of economy 1t would be bet
ter 10 assume that II has soul corporation Is
not likely to deterorate because or the INFUSION OIL
little spirit into its official life.
II is the corporal part Of a corporation that the
tax gatherer is interested in. and consequently the
o,roreal mart does not his curiosity or
owoken his concern lie is usually as well posted
on dividends as an old fence is with pia!pls' ana
he watches the fluctuations OF the STOCK market as
ntentlv as a Yorkshireman does the thickenng OF
his stirabout If he discovers director VINO
.,brouVh lfe's dark road his sordid way ne
,,.rds an incarnation of fat dividends" then his
Gun of 10y Is full to effervescencc, for he knows
,ha. the era of prosperity Is dawning, ana that
there is a cheerful prospect for good tax harvest
II Is a harvest too, that is not affected by
drouth or drzzle, by iorridity or frigdity FLOODS
cannot destroy It, locusts cannot devour It, conia-
rrations cannot consume IT, and Billiards canno.
nudge IT, for the hand of the law is upon 1t. ana
the budget of the city awaits IT,
TRADITIONS OF CORPORATIONS.
A corporation may not possess SOUL but II ma.
an individuality and character as we'll dehheo anu
outlined as II it were living human oeihs' III
this respect It seldom changes. the virtues anu
v,ces Of the parcnt officers descend 10 'heir sue
cessors as property does, by inheritance IL INC
original executives tax dodgers 'ha' Pecui's'
trait Is certain 10 become one OF the cardiiiai ous
ness requirements of those VINO iolo" ''''i " Wv
mana seqn1nt Of tiIe concern
renarka able case Illustrative OF this peculiar
law Of natural descent occurred lately wheh TWO
charming Young women called upon one Oh inc
,rsx Commissioners They were TOO ola 10 DC cia'
.;Aed as girls and too young 20 be denonihu.eo
women but had just reached that m'eres'ine
neriod of a woman's life that the Commssio"e'
oualntlv described as being between grass ana nay
.Well ladies' what can do to serve you IN
op,red the Commissioner. in his politest manner
after the visitors were seated i,
'Ohw' replied the elder one, my sis'er anu !
have come down here TO swear OIL 49,
..Have YOU got your tax notices with your 49,
.Ob no, We never received any. Did we, Lily?
I'VE never received any," echoed the younger
sister , .,
TIE Commissioner touched his little electric oei
snaa deputy appeared so quickly indeed that II
.aonad "a II he had sprung upward through d
trapdoor In the floor. He was directed 10 learn IL
the Young women's names were on the tax roll ne
soon returned with the information that there "ere
no such persons assessed
81 do D01 understand WHAT Pio4"P'NN '~N
here said the Commissioner. when you are not
assessed" .,,,
az told YOU sir that came here 10 swear OH.
.But YOU are not on our books
"Ueu" answered the elder sister, papa used to
saw every year that he had been down to the TAX
office and swore off, but he's dead now anu la.
o,d thought we'd come down here to-day ana
swear off. too"
Tho elusive tactics to which corporations some
times resort to escape taxation are occasionally
shrewd oftentimes bewildering. and always annoy
ing AS their tax statements are sworn TO- tha'
fact alone is liable TO engender confidence IN the
minds Of the tax officials But II you swear by that
,h., e M, Won are not forsworn more was this
knight swearing by his honor for he never had
any"
DEPRECIA TED CASH.
There are two methods resorted to by the I'M
scrupulous officers Of certain class OF corporations
10 evade taxation. The first, and that which s gen.
erallv practised is 10 mark down the value of their
assets 10 the lowest possible figure. They aHese
denrecaton in value all their property The Of
hcers of one corporation lately carried this Trick 10
IT'S extreme when ii was discovered tnat tney hau
actually marked their cash on hand as deprecated IN
value from so 900 TO 1900. When this was discoV-
cred they endeavored to explain by saying that
they had placed the other $1,000 in reserve fund
The second method is TO fix the salaries of its Of
fcers at a high sum, which Is fictitious. WINE the
real salary. which is actually paid, is much lower
The difference appears In the tax return as saiaries
unpaid
These corporations make two distinct and sepa-
ro,e renorts each year-one to the stockholders. in
which all the property owned by It is marked up to
the TOP notch. and another TO the Tax Department.
where the statement appears so utterly lacking IN
tangible assets that it would be base iattery to
call them iRsolvent. These two reports are prepared
within few weeks OF each other.
Tbese tricks and devices conceived by men who
claim social recognition and who walk in the paths
NJ life that are trodden by honorable citizens. AS
Nahometans mako their yearly pilgrlmages to
Mecca 10 pray at the birthplace OF Mahomet, so do
these unbelievers in taxation make their annual
,is,t ~ the tax Office to prey upon the community
A corporation may be solvent and yet have no as
sets subject 10 taxation. 1t may have large capl-
+al and yet little tangible property which the local
assessors can reach although the state oncials may
be able at the same time to squeeze considerable
out of H. this respect the law applicable 10 taxa
,on nv the State differs from local taxation AS an
instance the franchise OF railroad Is not ta&ao!e
for local purposes. but it can be taxed ny the state
There are other intangible assets OF corporation
that cannot be assessed by the tax commissioners
and these include besides franchises patents gooo-
will formula and trade marks. AS large num-
Der OF corporations have issued their STOCK IN pay
ment Of these intangible assets. 1t Is surprising
that 20 much is collected by taxation. FOR whlle
tax gatherers are expected always 10 achieve the
Impossible yet those persistent gehtieiheH
cannot get blood out of a turnip.
II stocks were not watered until they became
dropsica and all men were honest the duties OF
tax gatherer would be as pleasant as those oil
lovers who linger in the silver moonlight. 1t is
dIscouragng for officials to have water and dis
honesty allied against them.
STAGE REALISM.
Some years they had two celebrated theatres
on the East Side one known as the Chatham
Theatre and the other the Bowery Theatre
Each contained a pit for the boys of the period,
and each place of amusement had its admirers.
who often sought TO maintain by force Of arms Its
superiority over the rival house. Chatham
Theatre pit boy would more think Of patti onizng
the Bowery Theatre than rooster would think OF
taking asswim in a duck pond