New-York tribune., 1905-03-03
OPPOSE STOCK TAX BILL.
HEARING At ALBANY.
Prominent Nezg-Yorh;ers Predict
Loss of Financial Supremacy,
[sr TELEGRAPH TO THE TnIBUNE.l

! York Stock Exchange the Consolidated Stock ana
| Petroleum Exchange and the Central trust com
panv who urged that this measure would ineVltaoiy
| destroy the financial supremacy Of New-fork al-
vert its present enormous business to other cues
| from which 1t derives go per cent OF its STOCK
| business. and build up Boston. Philadelphia ana
| Chicago at the expense of the metropolis Inc
measure was opposed as class legislation. directed
against particular branch of industry being char-
acterized unjust since it Disseminated against
the dealers in stocks and bonds, and finally as be-
| ginning form OF taxatlon leVled not Oh
| property, but trade.
! The opposition of the New York Stock Exchange
| was voiced by John G. Milburn. as counsel; H. h
! Pomroy, president, and Rudolph Keppler. f. Is
/ Sturgis. F. L. Eames j. r. Atterbury and H. c.
| Swords; that of the Consolidated Stock Exchange
] by w ]. Curtis as counsel; l.. V. f. Randolph
| president, and NJ E. De Auguero, T. s. poremus
| and w. f. Ross Albert Rathbone opposed the
measure on behalf of the Central Trust Company.
| In speaking against the measure, President POM
roy of the New-York stock Exchange, said, in
| part:
cannot why the State goyeEplmen1tt 1t.tOs sbsuld
| the expense Of those within the limits of this
State The damage that grain dlnerentIas Y 3af9 3it
is such that the State is about to spend SOl 600 600
| in building canal to bring back lost commerce.
In my opinion, if this law be enacted il will not
be long before the State government will be con, con-
supremacy. 1.'' which viii be driven away.
Mr.. Pomroy dwelt the growth of New-Yorks
financial supremacy and the gradual absorption by
II OF the stock business OF Other centres SuCn dS
Boston and Philadelphia due III part to the large
volume of money available for loans call That
the effect of the proposed measure would be to re-
this flow of business and send it back TO other
cities which were not hampered by such tax op-
struction the keynote of Mr.. Pomroys ad-
dress.
PREDICTS SMALL DEALERS DESTRUCTION.
F. X Sturgis, the next speaker, dwelt on the fact
that the tax would single out business and
place burden it not borne by others. He en-
phasized the extent to which New-York City had
become the market of the country, receiving not
merely the business of the other sections Of the
country. but also the best clement of Western cap
italists nonresident members of the exchange
He pointed the manner in which trading in
certain stocks. notably Reading and Chicago Bur
lington and Quincy, the specialtes of Phlla-
delphia and Boston respectively, had gravitated to
New York, and declared that the passage of this
measure would send them back, ana also that the
broker would send his orders. like the buyer. to
these cities where the tax did not exist The
small operator. THE Sc broker" as he described
him. the speaker declared would be destroyed. He
indicated the fact that the sale of two different
stocks in the quantity, 100 shares one selling
at a market price of $780, the other at $780, would pay
the amount of tax, and that to sell an amount
of lower priced stocks equal in value to that of
100 shares of the higher would cost more than three
times as much under the provisions of the proposed
measure.
1--WE feel very keenIy." he said in closing. I'VE
who have spent all our lives in Wall Street and
have tried to build up the supremacy of city,
that it is hardly fair for us to be called upon TO
pay tax aimed against business so carefully
nurtured.'
President Randolph of the Consolidated Exchange
declared that the proposed measure would abso-
lutely eliminate the floor trader who made the
market, since his margin was so small that the
tax which would cost him 5000, was really tax
of a confscatory nature He insisted that the en 1t
of the measure would further be- after eliminating
the floor trader. promote the bucket shop The
tax measure. he asserted, was onerous taxation,
imposing kind of punishment for honorable ef-
fort He described it partial peculiar and op-
pressive" as double taxation levied not only on
property. but the capacity to earn money. Mr..
Randolphs reference to bucket shops called forth
a number of little suggestions. questions and jokes
from Senators Raines and Aids, until, in closing,
the speaker bowed to these Senators and said smil
ing: Il defer your better Information on that
subject"
MAKES IMPRESSION ON COMMITTEE.
Mr. -Kepp,er was the first of the speakers whose
attack on the measure made obvious impression
on the committee. and it was apparent that the
feature OF the measure he attacked would be elimi
mated. He directed his remarks to the section of
the bill containing the words TO secure future
payment" lie declared that this was taken from
interpreted by the federal authorities this had
threatened Upheaval in financial business, since
lateral @ for loan ana hat it had been shown to be
so unjust 3 taat Ire it %s @ TPfsq Se in 9y m
Mr. KeppIer analyzed the. effect of this phrase
result Of these words it might cost $4,000 in add-
the $4,000 regular interest, to borrow 100000
In discussing the bill in detail he declared that it
would drive the business in large part to other
cities, insisting that the capital now III New-York
would soon follow in such quantities as to offer
adequate advantages In other cities Po;Hting out
shipment, he asked the committee estimate the
result Of tax WHICH would impose on the transac
of approximately $3,15Q0CO annually. which could
be escaped in other cities.
Mr. de Aguero spoke against the Jill from the
point of view of the floor trader, Mr.. Eames
similar attempt at taxation in Berlin. declaring
that the Berlin Boerse transactions had sunk into
terrogated by members of the committee as to
alternative sources of revenue, Mr.. Eames declared
declared that under the war of the same
ma & o. per f GSit t 95 ms earnings had been taken
liver from confscaton."
MILBURN CLOSES ARGUMENT
IN closing the argument for the Stock Exchange
Mr.. Mlburn attacked the measure first, as intro
ducing the new principle Of taxing trade a long
and dangerous step, he declared. If this princple
were to be employed, he insisted it should sebe
spread over the length and breadth of the realm
of industry. not restricted to one little corner
Secondly he attacked it discriminating against
industries of the State. He said:
ALREADY you cannot advantageo9sly organize q
corporation in this State because of the tax laws
NOW, gentlemen of the committee. do YOU suDDoss
the people of the United States such fools that
when they find that they have to paw Sc 75a O,0
more 10 have their business done in New-York than
IN Boston they VIII keep on doing IL in New-York?
| In SIX months Boston would take away New-York's
supremacy
In closing the argument for the Consolidated Ex-
change, w ]. Curtis said:
The purpose of this bill Is to assess 90 per cent
of the States a few gentlemen in one in
dustry No similar case of such action exists. But
g. ~ So ' ~ IitIyC'S eFciy investor
IN tne state. II Is particularly unjust to tax
agreements to transfer stock and not bonds