The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1905-05-24

BACK TAXES MAY
Be COLLECTED
State Official Says There Is
a Law on the Statute Books
Enforcing One Years
Payment.
xlense, ann nAap sm nnsMr
vlNELAND A CASE IN POINT
Town Collected SIC, ,248 From
q Man BY Whom It Lost
800, 900 Law Will
Likely Be Amended

Major Carl Ientz, President of the
State Beard of Taxation, recently refer
red 70 the fact that in Germany there is
a law by wich the government can col
lect from the estate of a deceased resi-
/ dent Of the country the amount of taxes
which he may not have paid during his
life, as revealed by the inventory, and
such other proof as can be obtained
! The advisabiIity Of having such law
in this State was suggested, in eonnee-
tion with the proper enforcement Of the
new Eillery maximum tax law.
+ When this was called to the attention
of prominent State official he remarked
that there existed on the statute books
Il law by which the government can col-
trouble lay in the fact that the assessors
and governing bodies of municipalities
did not enforce it.
/ On searching the books it was found
I that there is a law somewhat of that ma
tune, but limited in operation. II does
NOT provide for the collection of more
| than one years taxes.
lis application was instanced in the
case Of Benjamin n Maxham, who died
in July. 1890, at yineland
For twenty years Maxham had not
/ paid taxes on fortune which it was
/ afterwards found, amounted to more
than $40O. .000 At his death Maxham
left 100000 to found the State Home
] for Feeble Minded Children. This was
looked on somewhat as a sort Of restitu-
/ tion OF conscience fund.
Nevertheless, the present Cumberland
County Assemblyman. Louis Fl. Miller,
who at that time was attorney for Vine
/ Iand, began suit on behalf of the muni-
cipality under d law passed in 1890 and
supplemented in 1900. and collected from
the estate sl0,24S for one years back
taxes. Maxham had been paying less
than S1o0 year taxes. With the pro-
ceeds in this one action the borough of
! yineland was enabled to erect an in
/ voluntary monument to the memory of
AIaxilam in the form of public build
ing
/ Had aTaxham's fortune been the same
during the twenty years he had not paid
tslxes, ald had the law not limited the
collection Of back taxes to more than one
year, the authorities might have collect
| ed abont 100000 in back taxes. Allow
ing for the growth of Maxham's fortune
J TO the total it had reached al his death,
it was estimated that the average
ainofnt of the fraud on the municipality
for the twenty years entailed a loss OF
| 5000 year, or total Of $4,000.
How many Maxhams there are in tile
State cannot be accurately known, but it
ii not doubted that there are thousands
who evade paying the honest amount Of
their taxes in various ways.
During Maxham's life he was known
/ to be wealthy, but the character Of his
| investments was not known. He owned
only a little real estate, and when the
tax assessors questioned him he said that
! his property consisted of n few mort
cages, which appeared on the record
books Of Cumberland County, besides
some government and municipal bonds
which were not taxable. He said has
personal property was all in safe de-
| posit vaults outside the State. 1t was
therefore not taxable in file opinion of
the assessors
The Inventory of his estate was filed
in tie office of the Cumberland Surrogate
about two months after his death, and
Mr.. Miller was named as an appraiser in
acceptance with the provisions Of the
collateral Inheritance tax law. In that
capacity he discovered the extent Of The
fraud perpehated on the community and
reported tlle matter 10 the municipal au-
thorities,
The estate was found 70 consist Of
warrants issued BY municipalities ii
Montana and other Western States. all
Of which were subject = local taxation,
and valued ii 4 sum ID excess Of S4,o.
900 Nj aiaxham's books had beea
earefullx kept. and the entries showed
flsai M Narfsnts had been owned for
years. ana That during the whole time
Alaxlpa had been defrandlnK the conn