The times. [volume] (Richmond, Va.) 1890-1903, 1901-11-22
a CASE POINT.
Tho Baltimore sun prints the following
interesting item OF news:


4-..a Baltimore Sun prints the following
interesting item OF news:
AS the first step toward merging the
great Rhinclander estate into stock
company and as presaSinS what ma!
, soon be the customary method OF adinHi-
istering great landed estates. an action
now pending in the supreme Court Tor
the partition of the Rhinclandcr estate
is considered by lawyers as OF much IL
1erest and significance.
This partition suit is entirely or h
friendly nature and is preliminary 20 a
merger of the William c. and Julia
Rhineiander estates, involving property
worth many millions, into the Rhine!an1-
er Real Estate Company
When all legal steps have been taken
by Bowers & Sands the attorneys in tie
case. the various heirs viii sell TO the
real estate company. all their interests
81 the property, aud with the money they
receive viii purchase stock or bonds III
the company.
So far as the general public Or indi-
riduai tenants of the company are con-
cerncd, there will be no apparent change,
but in the management of the estate
much more economical methods VIII be
possible. improvements are frequently
demanded OF so expensive nature rs
practically to bar them under present
to obtain such money as it needs with no
unnecessary forInalities and little dif-
1iculty.
This course of action is made possible
through the passage last winter by the
Legislature of general law authorizing
the merger of landed estates into stock
companies after permission in each case
has been obtained from the Supreme
Court.
This is especially interesting to The
Times. for we have, in discussing the
question Of taxing stocks and bonds, sup
posed Just such a case. Here is an es-
tate which will be merged into cor
poration The property involved is real
estate and it will be the same when own
ed by a corporation as when it was
owned by number of individual heirs
The property will be assessed as usual
and the taxes upon the real estate will
be paid as usual and the State will get
the same taxes from the corporation
that it formerly got from the property
when it was owned by individuals There
will be no change whatever except in the
form OF ownership. Each heirs interest
will be represented by shares OF STOCK
scented by bonds.
Now, can any reasonable man say that
after the corporation owning this estate
has paid all taxes assessed against its
real property that the stocks and bonds
should be taxed also? Has any new
property been created because of this
issue of stocks and bonds? Would it
tax both the real property and the stocks
and bonds also? Would it not be the
same thing as taxing both the substance
and the shadow?
There will also be a certain amount of
personal property involved But this viii
be assessed against the corporation own-
ing the buildings and the tax will be paid
by the company. This is such a clear
case that we commend it to the careful
attention of those who argue that stocks
and bonds should be taxed. What is the
difference, pray, between a corporation
OF this character and a railroad corpora
ton manufacturing corporationo
The same principle applies in each case.
A railroad corporation or q manufacture
ing corporation may have certain prop
urty which we call a franchise. and fran
chises are perfectly proper subjects fer
taxation. But II these corporations are
made to pay taxes upon all their physical
property and their franchises, how in
the name Of justice can It be claimed that
the stocks which are mere evidences of
ownership, and the bonds. which are mere
evidences of debt, should be taxed also?
The principle is perfectly plain and clear
and this should be the underlying prin-
ciple in all tax laws. When the State de-
parts from that principle, it departs from
the path of justice, and endless confusion
and complications result.