The Providence news. (Providence [R.I.]) 1891-1906, 1903-05-16
Interesting Address Before tho
Business Mems Association.
PRESENT SYSTEM A [ISEASe
II Is Not Satisfactory Anywhere, and the
People Are Demanding a Change,
He Declared.

Gov. Garvin spoke before the Rhode
Island Business Mems association last
evening. his subject being "scientihc
Taxation"
The governor was introduced by Vice |
President Bush and said in part:
81 a mpleased at the invitation TO ad-
dress the Rhode Island Business Mems
association. Our system or taxation is
a disease, as your chairman mas sus-
gested, and II Is disease because IL is
unscientnc. But there Is system OF
taxation that could not properly be called
a disease
THE tax laws OF the city of Providence
are not satisfactory. Bill after bill mas
come TO the General Assembly seeking
a change OF these laws. They are not
administered according TO the wishes OF
the citizens OF Providence. There's
liability OF the increase of the tax rate
| i'm this city. That's another reason why
we should consider the tax question.
| II speak TO you OF a new system De-
| cause this one Is not satisfactory. IL
is not satisfactory in this city, and IL is
not satisfactory elsewhere. l hope the
matter may be sifted in measure this
| evening.
"a system that IS unjust should be
| looked upon as unscientific. A system
that is extremely burdensome should be
| looked upon as unscientihc our present
system is fagrantly unjust and extremely
| burdensome.
There are In the community two class
es OF property-personal property and
real estate. They could really be divided
| into four classes, the former being oi-
! vided into credits and chattels ana tne
latter into improvements and land. Ihe
credits which the law attempts 10 tax
are not wealth. They can be increased
| f,aa al IN
double Intangible property In the COM
| munity IL hides itself and remains prac-
| tically untaxed When II Is FOUND IN
some cases II Is unjustly treated because
| the neighbors OF the person so taxed are
not so treated. and 1t is double taxation.
This is recognized In some states, ana
mortgages are exempt from taxauon'
UNEQUALLY TAXED.
Tangible personal property also Is un-
equally taxed. The assessors are unapie
to determine the value OF the contents OF
a building There is a great deal OF per
sonal property in stores on Westminster
street that is not taxed because IL Is held
by corporation But suppose we coulu
put them on the tax book. Could they
be taxed equally?
cit Is a great work to ascertain the
| value OF the stock in a department store
Could the assessors get anywhere near
the value? 1t Is utterly Impossible They
; might get the information from the own
er II the latter were willing or they
might guess at II. They usually guess
: and guessing is usually unscentihc.
! improvements can be estimated, yot
say? But they cannot be with any Ger
: tainty. There are some dwellings where
so 600 is put into the front entry ano
close by there will be building OF whicf
the whole cost was $4,000. The assess
). ors. cannot tell about those things accu
Q rately They usually undervalue suci
r buildings SO here we find a great degre
t OF inequality.
d Resides Il is burdensome. even II !
: were levied carefully and equally IN
- burden of paying the tax is so great ina
y, people hide their personal property whei
"a they can. The tax on improvements I
u really a fine The persons who improv
n the appearance of the community at
T. subject to an annual fine.
!, "is there any system OF taxation tha
"a Is equal and not burdensome That sys
- =, tenn Is one which exempts personal prop
M erty and improvements from taxation an
8 Increases the tax on land. Philadeiphl
is a city that exempts personal propert
from taxation and the benefits are evl
Ia dent.
"a 1T is only the tax on land that
!. levied equally. Land cannot run ava!
~. The burden OF other forms OF taxauo
" is often escaped by tax lodging. IL
ne often said that nothing can be take
I'd which can run away or stay away froi
nj the city. Land cannot run away. I'm
" " Is no inequality. IL Is simple matte
at and n just matter TO tax II and II is n,
Id burdensome. Every, individual alresd
paws a ground rent. but instead OF bein
paid to an individual II should go TO n
n state. The tax on improvements is pal
"a by the poor and those who can least
w ford to pay IL and IL burdensomc.
rs This single tax is practicable. Poop
of often say IL would be very fine " II wei
lie begun with new community. But we
ne only at the beginning now The ror
=. law in New York. which has just bee
=. pronounced constitutional by the sta
VI court. unanimously Is I'm line with IN
e system. IL taxes as real estate all u
ut difference betwcem the tangible propert
he OF auas-public corporations and the ma
IL ket value OF their stock. Ihere IS
~ practical example OF a tax on land value
IN TAXED AWAY.
$ "you will sec how this works II we 81
that anything produced Is divided Ia
three parts. Take load OF coal. One-thi
of the value goes TO the landlord for rel
one-third TO capital for interest and on
third to labor for wages. That part Will
goes TO the landlord should go 10 the sta
rS 10 support the government. We are ha
ing strikes Men strike and think they q
not getting what they ought TO get IN
are not. what they earn ls taken away
Is the form OF tax
m THE present system Is an Injury 10
bor and indirectly an injury To capit
n what is produced goes TO the monopolis
a They can't consume g. and what is pi
on duced Is called I'm part overproductc
g. The laborer cannot buy as much as
produces The effect OF the transfer OF
,d taxation To land values would he
- double wages. The cause or low wages
-, competition with persons out OF emplo
:. ment. So much OF the land Is kept out
= use bv reason of the system or taxati
that Il prevents the employment OF bo
" capital and labor. Taxation ~ land VI
W nos would increase interest and increa
MI wages II would increase interest, 7
cnuse there would he more purchasers
o. things produced by capital
Nm A discussion followed the address.
ed d,rferent points being taken up In tat
nj = ,n..o ,,roa.pt a nCrecd that "a u,