The times. [volume] (Richmond, Va.) 1890-1903, 1901-10-06
examine the system that IS attended

Inefe5 Is morning sItlS OBSERVATION-DISCLOSURES
principle that taxation should be equal
and uniform, that real and personal
property should be equal taxed,
The trouble arises from u perversioN
of that principle, from the attempt on
the part of tie State TO tax that which
is not property, but merely the eyl-&
dence OF ownership.
The Landmarks correspondent gives
the following illustration showing how
the Virginia tax law operates. lie
says:
As the law is now sought to be en-
forced, there is great inequality be-
tween the tax on personal property
easily demonstrated. Let us suppose
that two men die; each OF whom leaves
$4,000 life Insurance. Tor the benefit ..
his family. Iil the case of one, The
personal representative collects The
money from the Insurance company
and invests it in a house and lot TO DE
rented. The other invests the amount
collected from the insurance company
in 4 loan on real estate. In the lirst
case no limit is put by the State TO the
amount of rent that may be legally
demanded for the house and lot. In
the second case, the law forbldS that
more than six per cent per annum he
received for the money loaned. Ia The
matter of renting property. allowance
is always made in the annual rent tOT
taxes and insurance.; and a rent 10
Yield at least six per cert net is al
ways sought and generally obtained.
Moreover, it is well understood all over
the State that real estate is not as.
az from thirds
three-fourths Of its actual value in the
cities and at even less than this in the
counties.
With 50 much promised. let us now
see how the two investments will turn
out:
The house and lot that cost $4,000
Will be assessed at about $1,000. Ii
the city of Norfolk the city and State
tax on this vii be. ..s......... $73 SO
The annual cost of insurance,
say. ~ w
The taxes and insurance would
require. ......S 50 50
Six per cent. on $4,000 is. ..... 800 90
SO that we should have a rent Of
S393.50 per annum to yield SIX per
cent. net: and. in this city. it is not
difficult matter TO obtain such rent
for such 4 house.
Now as to the loan on real estate.
The bond is for $1,000 and is assessed
al its full value. $1,000. City and
State taxes. S105. The State forbiis
that more than six per cent. shall be
charged on the loan. so the gross WELD
annually would be-. $500 00
Deduct taxes paid. loo w
And there remains net in
In the one case the beneficiaries would
receive $500 per annum, and in the
either $685. The result would be even
worse than this if the $4,000 should
he invested in some good corporation
bonds At this time good bonds of
this character only yield about four
per cent: if the $4,000 was invested
in this way the annual income there.
from would be only. 5000 GU
And, The taxes would amount
to.. ... 100 t,g
leaving net annual income of. s % GO
This amounts to cGntiScalon.
The Injustice OF the first case cited
is in taxing the mortgage. If the
owner of the house and lot pays taxes
on the property. how can the State
in fairness compel the person who
holds the mortgage to pay also? This
is double taxation and is confessedly
double taxation and there is no sort
of justification for it. When the PROD
erty itself has been taxed it is scarce
ly less than a public outrage TO taXtfhe
debt on the property.
The same privilege applies in the sup
posed case Of an Investment in cor
poration bonds. What is bond eX-
cent, an evidence of debt? 4 corpora
ton bond is the same thing as a mort
gage on a house. and if tie property
of the corporation he taxed all its
property. including the franchise, then
there is no Just ground for taxing the
stocks and bonds of the corporation,
no matter by whom they are held. II
is 10 wonder that there is taX-dod2ln9
when the State attempts to enforce an
unjust tax law. and this law is pecul-
iarly unjust and obnoxious and oppres-
sive. because, as the Landmarks cor
respondent points out, the legal fer
rcts'' may bring the widows and or
plans TO book and make them pay
LsiAtS- NIlltc 1ltil ilitIi siit >it'iS ~ ii'N.
ing away their stocks and bonds to es-
cape the tax gltherer.
This is one of the most important
questions now before the people of
Virginia, and we have been doing ours
best to open their eyes to the absurd
system Of taxation now in vogue ii
this State. If the Constitutional Con
yention viii only adopt the principle
that all actual property should be
taxed once, but only once, and then
let the Legislature frame a tax law
based upon that principle, the soln-
ton of the tax problem would be easy
---------------------------------=-
ALEss0N FROM WALL STREET.
: The United States Steel Corporation,
the largest of all The so-called trusts,
has set Il worthy example in taking
the public into its confidence and max
III :, Jy,+, la