The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-05-23
Professor Seligman Says That's
What We Are Becoming.
All Due to Enforcement of Per-
sOnal Property Tax.
BUFFALO CONFERENCE
On Taxation Called by National
Civic Federation.
Addressed by the Chairman of
the General Committee.

Buffalo. N Y, May 28.-The conference
on taxation called by the National Civic
Federation. held in the rooms Of the His
torical society. was called to order by
Prof Edwin b. Seligu7an of Columbia
university. general committee chairman,
who introduced Mayor Diehl. The mayor
welcomed the delegates and extended the
freedom of the city TO the visitors
Frederick. n. Judson Of St Louis was
then called to the chair and presided at
the opening session.
Prof Edwin B. Seligman delivered an
address outlining the object of the con
The session was devoted to the discus
sion OF general property tax and the tax
alton Of the farmers, with papers by
state Senator James r. Garfield Of Ohio
and Max West of the United States In
Prof. selieman said in part:
THE calling of this, the first national
conference on taxation. is matter of the
highest signifcance it shows that the
national conscience has been ava kened
and that the whole country is now per-
rneated by the conviction that we are con-
frOnted by grave problem Why should
this be SOP What are the causes of the
existence of this problem2 In the first
place the burdens OF taxation are now be-
ing ouiIt- The growth of democracy has
brought with il new conceptions as to
the duty and functions of government.
Expenditures which would have appalled,
our fathers seem to use reasonable and
necessary. To hope to remove the prob
- lem of taxation by cutting down eSpendi-
lures is vain Economy we must indeed
have but not parsimony. The ideal of
expenditure is not to expend little but to
spend we'll. The population of New York
civ today is about the same as that of
the entire country at the beginning or
the present government. Yet whereas.
New York spends about one hundred mil
lions a year, the expenditures of the
United States began at four millions and
ence under the present constitution aver
aged only eight millions a year In the
federal government whereas since 1880
the population has increased twenty fold
expenditure has Increased $50 foId-from
four million dollars to go million dollars
are stin more striking New York state
spent in 1896 less than S150.009; it spent in
1850 80, 100000, or lb6 times as mueh- New
York city spent in 1900, with population
of $1,000, little over 10000 BY 1900 its
expenditures had increased 1000 times
The burdens are beginning to be felt.
For many decades our country was an
agricultural community Differences of
Weaitn NeTe sllEut5 anu Miistt ap5tsl ese-
listed was invested elther IN land or IN
the commercial enterprises connected
with the marketing OF the raw produce
N1th rs 1t vas not until ABOUT ls2V that
corporate activity assumed any impor-
lance at all Just as individuals We're
then replaced by unions OF individuals, so
now. whether we like it or not small cor
porations are being replaced by unions Of
corporations INTO nuge enterprises tnStt
are popularity called trusts. Industry is
no longer confined to merely local limits.
commercial interests nave oNerstepped
the boundaries Of any one commonwealth
may maze II dl1ncllp Tor MIN 70 sell MS
product in the world market An unjust
man may drive MIN out OF the business
in that state; an unequal tax on the cor
poration may cause it to move to another
state aetion Dy any one confnonWealth
inevitably reacts upon its neighbor- Bush
ness has become national. and even in
ternatiOnal- fiscal methods framed on the
old assumption that business is local are
t aSS.'' - = s'''s '7'''s anu ui=7' &C
Let US now apply these considera-
tons to the practical questions Every
where IN this country the chief re-
lance for revenue is the general prop
erty tax There is no doubt that in
most respects this responds in theory
TO the ideal of the community The
difficulty arises when we attempt to
realize this ideal amid the complica-
tons of modern society. So far as
property consists Of real estate, indeed
no one raises any fundamental objec-
ton Yet even here there are minor
difficulties which often become of con
siderable practical in portance. The
unequal assessment of real estate
which sometimes assumes the proper
tons of a scandal, is above all due to
the mad race of the local assessor to
diminish the obligations of the county
to the state by keeping down the nomi-
nal valuation. The separation of state
from local revenue. the selection of
different sources of revenue for each Of
which / trust you will hear much more
Is the one avenue of escape, which is
even now being sought for by our most
progressive commemorative.
But 1t is about personal property
that the chief controversy RACES. The
change from the tangible personality
Of modern society has resulted in the
gradual disappearance of personal
property from the tax lists Can we
help sympathizing with the farmers?
Their personality is tangible and thew
thuspay not only their own share but
that of the others as we'll. But although
we sym pathize with their complaints.
can we approve of their remedy2 The
attempt to enforce the taxation of in
tangible personality has been tried
again and again It's only result has
been to produce not revenues, but dis
honesty. The enforcement of the per-
sonal property tax is coneerting us
more and more into nation of per-
5urers.
But If the personal property tax is
Impractical and practically inequitable.
As there not a method Of reaching the
owner of personality in an indirect
manner Here again our foremost
commonwealth are pointing out the
way II You cannot reach the person
atty of a living man, you can reach
that of a deadman. If you cannot
reach the intangible personality of the
security, you can reach the corpora ton
which issues the security. We shall
/ trust. hear much of the inheritance
tax. i pass il by with the simple men
ton that here also are important ques-
mons to be solved Shall the inheritance
tax apply to direct relatives as we'll as
TO Ollaterials. shall the rate be progress
sive or proportional and finally, shall
the federal government continue, as it
now does. to interfere with one of the
growing resources of the common
Wealths2
with the corporation tax we come
to the knottiest part Of the subject
How to make the corporation pay its
share Of the taxes, and yet not burden
il unduly, IS the question of questions.
Here the difficulties seem to be multi
piled. To mention only a few Of the
points; What is the franchise of a
corporation. and how shall 1t be esti-
mate.12 Shall earning cana CITY OF. ntlnar