The times., 1901-06-07

classes of exemption exist under the law
| as follows:
The frst and second-ReIate to real es-
| tate only.
Third class-Property exempt from
taxation by the laws of the United States
other than those for the government Of
the District of Columbia.
! Fourth Class-Gcods Chattes and other
I personal property owned by persons tenn
porarily residing in the District of Column
/ bia. and which property is taxed else
[ where.
Fifth c!ass-PersonaI property not held
/ for sale To the value of $500.
/ Corporations, not exempted specifically
! by Congress. are taxable on their capital
. stock. Assessments thereon are paid by
+ the corporations. and not 10y the indi-
! vidual stockholders"
J Mir. Darneine the Assessor. is opposed
/ to the personal tax law, thinking il wrong
! i'm principle and impossible of enforce
ment Asked to give his views upon the
4 subject. he cited the last paragraph of
! his recent statement TO the Commis-
/ Now. MS to my position on personal
/ tax law thIt could he enforced, about
( which ! have hg,n misunderstood or mis-
I quoted. dcsirc jo state that | am un-
/ yguNoC-lN opposed 90 such law in the
! District iur u srvat many reasons, and
{ nave taken occasion several times 10 SO
7 state 'u fccommvuaatiouS made 60 the
! commissioners ! believe II would be lust
E as equitable Go iVvN poll tax on our cit
T ls'n> as personal tax, FOR Washington
+ IS cosmopolitan city, a larger portion
SoHalcTS. Representatives statesmen, poll
Z NlCtaU>, army and navy officers and
4 farse army 20 CfiiccholdcVs who enjoy
. tae San'c police, uvC. and other municipal
F NTo'Sc;top as DO oar citizens. but who.
+ from ttc fact that they are from diff
T 5orcrt States aud exercise the risht to
I veto teyrViu, could not he reached by
Z Personal TAX law houH. And. on the
: either hand e has hCca argued that there
4 ought 20 be a stringent personal tax law
. on account of few rich people coming
Hr = Hna. ..f.r .N... M,
/ thai point 1 wish 90 say that it Is better
( - let a few escape than 20 pass n meas
uTc opprCSSiNC 10 the large mass of the
people. Tor I believe Tn the principle OF
4 the EFeateSt good TO the greatest num-
I bCr and being satisfied that a stringent
I personal law would be an unjust measure
under the circumstances. ! cannot but he
Z against II. I am still OF the opinion. how
ever. that stock in trade should be taxed,
{ Tor Il Is not fair 10 license one class of
business enterprise and let another go
MIR. Darneille states that the chief diff
Guilty in the way of collecting the per-
/ sonai tax is that his office is not pro-
Nldeu with the necessary clerks. meSSen-
gers. and assistant assessors to do the
work He finds himself ordered TO do a
SPECIFIC thing without the necessary
force TO accomplish the task.
The Washington Board of Trade and
the Business Mems Association, compris-
ing nearly every business man in the
District. are both opposed TO the tax.
The opinion has been expressed at meet
( ings of both bodies that the tax is in
~ uitable and unjust, if not unconstitu-
| uonaL Apparently the only reason that
the question has never been pushed to
the front more by the associations is be-
cause II has been largely a dead letter UP
to the present time
Some months ago S. ". Woodward,
Isadore Saks. and other prominent mer-
chants Of the Board OF Trade We're ap-
pointed a committee to take the question
under consideration for that body. They
4 a
Of the law and the substitution of an
other plan of taxing merchants that was
considered more feasible and less unjust
This bill did not contain any provision Tor
taxing household goods, as it was the
opinion of the committee that such tax
is not Just one. Their measure was
laid before the Commissioners but seems
to have been shelved by those gentlemen,
according to a member of the committee
who was seen regarding the matter last
night.
The bankers and brokers generally are
opposed to the law for much the same
reasons assigned by the merchants. 1t is
considered impracticable and unfair and
the criticism is made that in its practical
workings il is a tax on honesty. The
conditions existing in the various States
where it has been attempted TO enforce
the tax are cited. Some Of the richest
men in the country pay taxes on almost
nothing, while others not nearly so
wealthy pay much more. In the case of
stocks and bonds and other securities it
is found that they are hypOthecated or
otherwise disposed of in such a manner
that it is very nearly if not quite impos-
sible to find them.
Bank, said last night in discussing this
phase of the matter: L am much op-
posed to the law. l don't know whether
IL can be enforced or not, but l am of
the opinion that the attempt to enforce
IL VIII result in it's repeal l am told by
business men generally that their opinion
Of it is the same as my own ana l am
A., Ia+ rr-f11 ha GTp
effort made TO have 1t repealed. 1t IS
unjust and ineqUitable.
''The tax on stocks and bonds is espe-
cially Onerous. because many Of these
securities pay in dividends or interest to
their owners only 3 or per cent on the
market value, and the tax Of Sl.JJ on 500
thus cuts the return from them in half,
or at least materially reduces it. A man
may have his entire fortune invested in
gilt-edged bonds. If he receives an in
come Of 5000 year from them the tax
will reduce his income from Sl.J4 10 S,Jy1.
The result viii be the same if his income
is 50 Gl1 a year. Many fortunes in this
city are invested in bank stocks, in Capt.
tai Traction stocks and bonds. and in
Washington Gas stock for instance. In
all such cases the tax Will be from 80 TO
80 per cent on the income derived from
Il believe that the practical effect of
the law, if il is enforced, will be exceed
ingly harmful to the city 1t will keep
people away that otherwise would make
large class Of wealthy and desirable peo-
pie have been taking up their residence
here during the past few years, and the
law will stop this tide Of immigration
one of the chief beauties of Washington
TO wealthy people has been the fact that
their personal property has not been
taxed. They have come here temporarily
as members of Congress or as members
Of the Cabinets and have discovered that
they had no trouble with the authorities
over their personal property. This has
been In pleasing contrast 10 the conditions
In their home States
Mr.. Hibbs, the broker, said regarding
the tax: Il do not believe the personal
property tax will be popular. and ] do not
believe that il can be enforced equitably.
/ am not opposed 10 the idea OF per
sOnai tax, but ii has been found in the
States that it is almost impossible to col
lect il. The effort 10 collect taxes on
stocks and bonds has been abOrtive in
almost every instance"
Isadore Saks said: Il do not favor the
other take its place. II is an unjust tax
as it must operate II has proved abor
tive always in the States in which IT has
been brought to the front. have eX-
pressed myself on several occasions
against the law, and with other gentle
its repeal The only good thing about
the law in the past has been the fact that
il has been. to q large extent. a dead let
ter Where 1t has been enforced # has
placed a premium on dishonesty The
hopeful thing about the present agitation
is That il is almost sure in my opinion.
to result In the repeal Of the statute
Il am not opposed TO a tax on a mcr-
chant & business. in such a form as Will
be iust in it's enforcement. 4 committee
member took the matter up 4 few months
q ga al nd end,a yorpd TO persuade the Dis