Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-06-09
ss1nNn
Truat Capitalization.


Moodys Manual for 1903 contains a list
OF ga Industrial trusts, not including trac-
tlonsl and other kindred companies. The
most important Of these trusts-thirty-one
in number-have capitalization of F5O-
100000 OF more. the aggregate capitalization
being more than N.OC.OOOOOO. and all bear
evidence Of being controlled by the same
capitalists. The statement was made by
Representative Charles r. Littieton that
there were 798 trusts. capitalized at over
t4OOO. 10000. not including the railroads,
which are capitalized at over Si2,Oo0OOO,OOo
more.
A working Example.
The scope OF an Inheritance tax Is I'M
defined so far as the practical permanent
working OF It in this country is concerned.
However, a very good example of the sys-
tenn was shown by the war revenue law
OF 1895, amended in 1901, and In force for
four years. The section relating TO legacies
and distributive shares Of personal prop
erty provided that such property, exceed
ing the sum of $4,000. passing by will or
transferred by deed. grant. bargain, sale
or gift, made, or intended to take effect
after the death Of the grantor. should be
subject 10 duty or tax 70 DO paid at a
rate to be governed according to the cir
cumstances governing il. Thus where one
was entitled TO any beneficial interest In
the property as the iineal ancestor, brother
or sister, to the deceased person, the rate
OF the tax was fixed at 70 cents for each
and every 800 OF the clear value OF interest
in such property. Again, where the bene-
hcary was a descendant Of a brother or
sister OF the deceased person, the rate was
81 5O for every 500 received. or, in the
event that the beneficiary was the brother
or sister of the father or mother of the
deceased person, the rate was 50 for every
500. Where the beneficiary was the brother
OF sister OF the grandfather or grand
mother of the deceased person, the rate
was "a for every 500 received. A nth
clause provided that where the beneficiary
was a stranger in blood to the testator that
the rate should be s. for every 800, pro-
vided that all iegacies or property passing
by will, or by the laws of any state or
territory, 10 the husband or wife of the
testator should be exempt from tax or
duty. The clause enumerating the taxes
on other amounts provided that where the
sum bequeathed exceeded $4,000, but not
10000, the rates of duty should be multi
piled by one and one-half, and where the
amounts of value Of the property exceeded
100000, but not $4,000. the rates Of duty
were multiplied by two; where the value
exceeded S5OO,O 0O but not 100000, the duty
was multiplied by two and one-half, and
! where the sum exceeded 81 900, 600 the rate
| was multiplied by three. Requests for
religious, literary, charitable and educa-
tional purposes we're exempt from taxa
ton.
ss War Tax Returns.
From a financial standpoint the inheri-
tanee tax during the life OF the war
revenue acts proved a success, the gross
| total receipts from that source during the
! four years amounting to S1A174,792, while
the gross total receipts from all the items
included in those acts during the period
was $3.50, 81. 7e4 In the fiscal year ending
June 80, 1901, the inheritance tax amounted
to 1921, $685. which was about - per cent
of the total receipts of the internal revenue
department for that period. Based on the
wealth of the nation, which at that time
was s65 1000. 100000. the receipts from the
inheritance tax today would be-in a CORE
spending ratio, when the wealth has in
creased about one-third-$e,5oo,OO0 annually
/ Or, II we take the lowest rate of the in.
| heritance tax levied during the enforce
ment OF the war acts, we should have re.
| ceipts accruing from the entire. passage
from one generation to another of the tota
national wealth of today-S94, 900. 900. 00O- the
sum Of SOS, 10000. about $1,000. 900 less thar
the total expenditures of conducting the
United States government last year. Blu
with the much higher rate for requests
where the descent is not direct it is prob
able that with an inheritance tax in force
the government would have received las
year enough additional revenue from thi
4 source to have made good the deficit o
S23, 100000 in the governmental accounts
Those who favor an inheritance tax main
tain that the man worth t5O.0O0,0OO require
just nifty times as much police protection
and other care from the government a
the man worth 100000. and on this basil
they urge that, in receiving a fortune a
a gift, for which he exerts no persona
efforts, he should contribute TO the genera
revenue of the state. OF course, the esti
, mates that have been given might not b
applied in working out a new scheme 70
an inheritance tax should such a measur
be contemplated. They have been presente
merely as an illustration OF the possibili
ties of such a system.
While the so-called conservative elemen
OF the United States has strongly com
batted the idea of even hint at an in
heritance tax in this country. such a ia,
has been levied in great Britain for a lon
time, and, in fact, recently there has bee
a discussion with a view OF increasing
It, In England the tax is known as tn
death duties. The present death dutie
in Great Britain are in the form OF
graduated scale, as follows: