Evening star., 1900-03-24
DISTRICT TAXATION
Important Meeting Of the Washing
ton Board of Trade.
some VITAL QUESTIONS CONSIDERED
Reports of Committees and Reso-
lutions Adopted,
DISCUSSIONS OF INTEREST

A meeting of much interest was he'd
last evening by the board Of trade at Ma
sonic Temple. Reports were heard from
committees which indicated the activity Of
those sections Of the general body in the
consideration of subjects which are re-
ferred to them. The most elaborate report
read was the one from the committee on
taxation and assessment in the measure
proposed by the District Commissioners in
regard to the personal tax and the license
regulations generally. After discussion the
recommendations of this report were adopt
ed President John Joy Edison presided.
The Committee's Report.
After the minutes of the last meeting
were read by the secretary. Mr.. George H.
Harries, and approved the report Of the
committee on taxation and assessment was
read by the secretary
Taxation and Assessment.
The renort states at the outset that the
bill which is proposed to be introduced In
Congress to regulate the assessment and
collection of taxes and licenses in the Dis
trict of Columbia and for other purposes
which has been referred by the Commits
sionrrs to the board of trade for its opin-
ion has been given careful examination ana
Consideration by the committee during the
mast two weeks II al3L1tdIS u tIlt Yin
1nlttee that if church property Is TO De
in arv degree exempted from taxation so
also for perhaps stronger reasons shoulu
the property of charity organizations not
conducted for profit In the opinion of the
committee the interests of the community
would be served in a larger degree by the
preservation of the present system of the
semi-aunual payments of taxes than by the
payrrent of the entire tax in the month OF
MAY as proposed in the bill
The report then takes up the sections OF
the bill for the taxation of personal prop
errv and after referring to the proposed tax
of one and half per centum of the gross
receipts of corporations which is intended'
according to the bill. in lieu of any per
understand why under such conditions cor
{orati0ns should be required to make
schedule Of all their personal property.
Varying System.
The report also declares that the bill
establishes as between private and corpo-
rate owners of personal property varying
systems Of taxation destructive of all uni
fornity. For instance. by section a
partnership owning personal property to
the extent OF 100000 would be taxed an
rually 81 800. a corporation owning the
same amount of personal property would
be taxed one and one-half per centum OF Its
gross receipts (or as the Commissioners
now propose, some per centum of its earn
ings) and such tax might be. in either
event only small fraction of the amount
paid by the partnership used as an illus
tratinn.
Of the bin beyond question authorizes dou-
be taxation, as, in the case of notes Sc
cured by deeds of trust. the tax may lie
not only upon the property on which the
loan is made. but also on the money with
which such property IS purchased. rms
double taxation also, according to the re-
port. applies in the case of corporation
whose Investments for the most part are
in real estate. It is further pointed out
that where the invisible evidence of owner
ship consists of shares of stock held by
one corporation in another corporation 1t
is possible that they might largely go IN
taxed under the provisions of section Z.
Fundamental Objections.
These and other criticisms. the report
states. after all are minor. while tie major
objections to this bill and to any bill that
the ingenuity OF man has yet drafted for
the enforcement of personal taxes are fun
damental. The report then mentions with
much detail the objections to the system
Of personal taxation In the first place 1t
Is asserted that 1t is inqufsitOrial In It's
nature as Illustrated by the pending bill.
1t demands from the owner an exposure Of
the condition of his business affairs. which
he might be unwilling to make or which
Justice to himself and his creditors for
bids.
In addition there may be a natural shrink
ing on the part of the business man from
as to matters purely personal. Because Of
these and other reasons, the report states,
false returns as to personal property are
rendered. While this may not be commend
able. at the same time it is well nigh uni
versal. and the result is the enforcement II
the personal tax law causes truthful men
10 suffer while the upscrupulous gain by
their unprincipied actions.
Unequal Taxation.
The report further alleges that personal
hT,S
may be OF such a nature that it can afford
20 stand the Interference and expense Of
personal tax, another business can not, so
that those engaged in 1t are forced out and
rnonopOlies are fostered. Further. per-
sonal tax does not commonly reach those
a. whom it is directed. In the case Of a
tax levied on the stock of stOrekeeper,
l. is pointed out that in the end it is paid
by his customers So that in the last analy-
sis such tax IS not upon accumulated
wealth, but upon the necessities of life.
The report proceeds 10 argue that the
direct effect of the personal tax is to inter
fere with thrift and throttle industry. The
assessor. the report urges, can know little
OF the personal property he assesses, and
the difference between a fye-dOlar paste
diamond and a 5000 gem, or between a
chrome and MurillO. may not be obvious
TO the tax officer. The assertion IS made
that a personal tax corporations must
fall under the same bane as other taxes,
except it be placed upon corporation en-
joying natural or artificial monopolies.
Tax ON Corporations.
If corporations are proper business in
strumentalities then no needless drag
should be placed upon their activities. The
committee Is OF the opinion that If any
special tax is to be levied to corpora
tions 1t should be a tax, subject perhaps
to a qualification as TO those enjoying spe-
cial monopo}ies, upon their net, not gross,
earnings. However, the committee adds,
ii does not at this time consider the best
method of dealing with corporations, wheth-
er such treatment be through the exercise
OF the taxing power or otherwise.
In regard to trade licenses fixed by the
bill. the committee is of the opinion that
the principle upon which the bill Is based
remains for the most part obnoxious. At
tcntion is specially called to the inequality
of the tax. and number Of instances are
cited. 1t is said that hucksters who pur-
sue occupation, humble but useful to the
community. are required TO pay SIS annu-
ally, while brewers. whose gains run into
the tens Of thousands each twelve months
pay s1O0. While criticislng the effect of
the license law nearly taxing out of
existence the poor and defenseless, the re-
port states that it must be borne In mind