The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-01-14
TAX DODGING.

including an unusually large nulnDtI |
of the rich descendants of the Puritans, |
show Yankee 'cuteneSs in lodging as
sessment and payment of personal
taxes. At least half, and probably |
much more of the personal property |
owned by residents OF the large east |
ern cities is so concealed by its owners,
that the tax officers are unable, or I'M |
willing to reach it for assessment pur-
poses.
Many rich men live in hotels, and do
not allow their names to be put IN the
directories Many move from one hotel
TO another, in order TO avoid ldentln-
cation. Many live in one suburban
town until they suspect that the as
SCISSOR is taking some note or them'
and they move to another town. -1any
of these tax dodgers have considerable
wealth When the rate Of taxation IS
two per cent, the saving or an Lem
of 81, 900 on an assessed valuation or
$50, 900, counts in the family income.
Married men who are compelled 10
proyide visible homes for their ram
lies resort to sworn understatemen:s
of valuation.
The millionaires as rule are assess
ed by contract with the assessors. Sew
eral years ago, Mr.. Chauncey DepeW'
representing one of the Vander5llts,
said to- the Tax Commissioners OF the
city of New York, How much per-
sonal property Mr.. Vanderbilt has is
not the question. He is willing to pay
a. personal tax on so much money, ana
if You don't accept his terms, ne VIII
make Islip, Long Island, his residence,
where the tax assessor will thankfully
accent any sum he chooses to name as
his assessable property. This memDer
of the Vanderbilt family thereupon
Maid ON an assessed valuation of 81
O0O. 900, although its correct marker
value was over $2O,O00,000.
The State of Vermont recently made
an attempt to defraud, in fact. hel
sister States in the matter OF taxation
Governor Smith suggested to the Leg
islature the enactment of law author
izing the tax commissioners OF the
State to make contracts with resident:
of other States running for 3Oyears, un
der which these residentsOf other states
would become residents of Vernon
and pay taxes at a rate much less thal
at the rate paid by the citizens OF tn
State and of other States. The Yer
mont farmers responded at once IN III
Legislature and the bill was passe'
WIN unanimity in the House. but l
was rejected in the Senate by major
ity of only one vote. The depravlty O
the attempt was conspicuous. but INT
crpidity of the great farming Gas
could not resist the temptation TO @
a gross injustice to other States, i
order to Indirectly lower their oWd
taxes. If this bill had become law, Yer
mont would have been the asylum 10
thousands of tax dodgers.
On the other hand, taxation as 1t
at present enforced is, in many case
the practical confiscatiOn OF propeTt
IN the income from it. There are SeN
eral hundreds of millions Of dollar
belonging to the estates OF women, chl
dren and orphans, held by the Iru
companies, upon which the rate OF II
terest allowed is rarely over three p'
cent. When the rate of taxation Is w
Der cent. and this is a very commC
rate, there is left the difference OF OF
per cent as the actual income from Il
investment. An income OF $4,000 p
year from an investment OF Sl,OOO,o
is so small, that even the tax commi
sioners become demoralized and refu
TO enforce the law.
One Of the chief reasons for the IA
ure to discover and assess person
property on the Mainland is the
seuce of Civil Service in the tax d
partmenr. If the tax officers becor
unpopular by ferreting out propert
they are removed, or. not reelected.
AS the communities become old
the method of collecting taxes will
readiusted, and made more equitab
In the early days, the dog tax CO
lector on these islands was lodged
the natives. A common method W;
on the approach Of the collector,
hide the dogs under trees, and especl'
Nv under calabashes, until the collect
had finished inspection. An unscru
ulous missionary boy had the office
tax collector for one year, in the fift1
in the Koolau section of Gal
Failing to find any of the numero
dogs owned by the natives, he TOT
on one occasion, the family dog W
him, as an assistant collector.
reaching the village of Kaneohe, MOI
dog could be seen. The moment, no
ever, the family dog entered a hou