The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-05-14
FRIDAY,
MOVING TO ESCAPE TAXATION.

MON1Nu III LSOaEH u 1A&AAA AO->.
The time was when the Standard Oil
magnates lived in Cleveland, Ohio. They
all moved to New York. giving as the
reason that they desired to be in the
metropolis because Of dts business advan-
tages and opportunities. The true rea-
son was that Ohio passed law to COM
pei them to pay taxes. The law COMPEL
ed any man to testify in public, under
oath, concerning his income, the rev.
enues Of his estate, the values of his
several investments, and, if his testimony
was not satisfactory and did not agree
with the returns to the assessor, experts
could be summoned to convict him of
perjury. The result was that Ohio rich
men moved to New York and Washing
ton, where it was supposed they could es-
cape paying taxes ON their invisible prop
erty.
According to Mr.. VIM. E. Curtis, who,
is now writing to the Chicago Record
from Albany, those Ohio milhonaires like
Rockefeller who moved to New York to
escape the Ohio laws, jumped out of the
frying pan into the fire. For several
years the officers of New York have been
SO diligent to put the property of the big
rich ON the tax lists that George Gould
has moved to Lakewood, n. j., and the
Astors and Vanderbilts claim Newport
as their home, and New York merely as
places they visit in the winter. Mr.. Cur
tbs writes:
Others are going to Lenox and to the
pretty places along the Connecticut shore
and the New Jersey highlands. If what
is known as the inheritance law, now
before the governor for his veto or APP
proval, is signed, the exodus will be
general and rapid.
This law requires that in addition to
the existing tax of 5 per cent upon the
appraised value Of all inheritances, there
shall be a graduated tax of l per cent
upon each $250,OO0 in excess of 100000
until the sum Of $3,OOO,OOO is reached,
when there shall be fixed tax of Is per
cent. In other words, a man who inher-
its $1,OO0,OOO from his rich uncle, or
any one else, must give per cent Of it,
or $4,000, to the State. If it is $1,000
600 he must give II per cent, or $220,0OO,
and so ON. II it is $3,OOO,OOO he must
surrender $45O,OOO; if 100000, ST.
100000.
"At present the inheritance tax is
per cent, and even that has been consid-
cred too large, for in some places it has
been assessed upon the nominal or ex-
pressed value Of the legacy, and not up
on its market or actual value. For ex-
ample, a man in his will bequeathes an
annuity for life to friend or faithful
servant on a fixed amount, so much in
bonds or other securities. The tax is
assessed and collected upon their present
value, while slump in the market to-
morrow may make them worthless.
in the case of Jay Gould, whose estate
was appraised at $7O,OO0,OOO for taxa
ton, and assessed $3,5OO,OOO under the
present inheritance law, the heirs went
into court and get large reduction, be-
cause much of it was in worcestershire
securities. Several other estates are now
fighting the assessors under the existing
inheritance law, and expect to be relieved
of a considerable part of the assessment.
IF Cornelius Vanderbilt should die,
his heirs would be assessed to pay about
SO, 100000, under the proposed law, and
the heirs of Mr.. Rockefeller would be as
sessed more than 10000, OO0-enough to
pay the expenses of the State for two
years. The opponents of the law argue
that its enactment is unwise, because, if
it is passed, rich men will not die in New
York, but will remove into neighboring
States, which will profit thereby, where
as under reasonable law they will re-
main. This inheritance tax cannot be
avoided by the gift Of property before
death, as it applies to all transfers Of
all real and personal property for NOM
inal consideration"