The sun., 1906-02-25
THE TAXING POWER.
Eryecss or Proposed leSissatioe On No"
yorL,s interests 40 n financial Centre.

EItects Of PROPOSED l'06msauoS ~ w"
YOrk,s interests ~ Financial Cehtre'
To 1uE EpiIoE OF THs srS-Sir' IL 10
be uoped TINT IN tho interest OF tnls oIly nnu ,
indeed OF the ire state the Senate "n
niye careful scrutiny and consideration 10
bill which has passed tine houe' ~ ..o..
NO amending the existing tax Ia" ns 70 ,nA
the personai property Of noh-resideh'". VINO"
has during half " century been exempt
The measure. II adopted BY the Senate, anu
IL II shall escape u veto by w" uoVerho'' W.
upset IN. ancient tax system which has CON
trbuted 80 much 10 the growth ana prosperity
OF this city. ,.,
A, originally presented the bill purportea
TO amend only otion OF the existing statnte'
" hioh reads thus:
Non. .residenth OF the STATE doing business W 'ne
State. either as principals or partnors. shah DC
taxed oil the capital invested 'n such puS'hcA' IN
personal property. at the place wheie s"cn ous, @
meas Is carried on 10 the same extent - " 'HeS
were residents OF the state.
This Is the apparently innocent amendmeht
In the form OF an addition
The personal properly Of non n.rcsldents OF we
State having on actual stus In the state, and not
forming q part of capital Invested III business In
the State shall be IA Ied In the tax district where
such property Is situated.
This act shall tako effect Immediately
/, does not disclose that 1t repealed Sub
sect ion l3 OF the lourth sectioh eAe'"p''As
certa In property Of ron-residents.
The banks ofthis oity saw. however. nat tne
proposed amendment would tax deposits
by foreign banks. and on their motion the
following addition was made In the House
This subdvision does not apply TO money on
deposit by or debts owing to auch non -resdents'
That covers only money and debts, and does
not apply to ioanable capital, or corporate
securities. or products sent to this CITY ior
sale. all Of which are embraced In the existing
law and have for ffty years been exempt
from taxation.
As the New York law now is and has so
long been. the capital Of a nonresident. en-
gagged In permanent business In the city
and having business domioile hero, is taxed
as IL should be; but all things sent hither by
outsiders for custody. collection. sale or
In veatmcnt, as temporary TRANSACTIONS. are
exempt.
Thereby our city has become one of the
| greatest of investment and loan markets.
The ledgers of commerce Of the world are to
be kept here, II that tax law shall be unds-
turbed and our loaners Of capital can Freely
| compete with Paris, London and Berlin
They may not II the pending measure shall
become the Law.
Probably money deposited by an out -of-town
bank in a city bank will create debt due by
the latter to the former. to be taxed as such
| debt II at all. All negotiable corporate secur-
, ties, promissory notes, bonds and mortgages
are concrete, tangible evidences OF debts
due, and thus may be exempt from taxes
under the proposed amendment Why then
enact it? II 1t Is only to hit the household
furniture and such possessions OF non-resi-
dents. is the boo worth so small calf which
of our residents pays taxes on the value OF
such articIes' The possible pecuniary bene-
| at which can come to New York from the
| proposed measure, so long as New Jersey
has safe deposit vaults Tor securities, Will be
! rifing.
The Injury which the bill pending IN Albany
can .nflict on New York by alarming non
residents with the fear that the Legislature
| is to reverse the ancient tax policy Of the
State and the Empire City thus become so
far az DOM est ic taxing Is concerned no longer
| a free city, g obvious: but the benefit to be
| derived by repeating existing tax exemptions
! is not obvious
Every one knows that New York city pro-
! ceedings to collect taxes are entirely in rem.
II will be difficult to invent at Albany statute
| by which personal liability against non
resident can be- enforced for a tax which can
| be lawfully assessed only on property within
the State, and can be collected only by dis
| training property in the State belonging to
| the nonresident. The dfaushtsmen Of the
| amendment have made no effort to deal with
| that dinaculty. but simply declare that all the
personal property in the State belonging to
non residents shall be taxed. excepting
money on deposit" and debts owing to
them How the tar shall be collected the
drau shtsmen do not exhibit.
1t 10 to be hoped that a majority Of the
Senate will refuse to permit this half-baked
measure to 60 on the statute book until after
1t ha. been favorably reported on BY oom-
mittee Of experts on taxation.
| A HIoHLY TAXED RESIDENT.
NEW YoRK, Feb, ~.