Arizona republican., 1910-12-09
THE THINGS THAT ARE CAB.
 SAR'S.

woman living on an income of
 &l.OoO a year recently paid out of it
 an annual tax of s425-nearIy half.
 says Albert J. Mock, in the Decem-
 Der American Magazine.
 Another. living on an income of
 of s1 200. paid $25O-one- fifth.
 Asiatic Russia? some may ask. No.
 New York. They live in New York
 City and paid these taxes there.
 The first is the wife of a paralytic.
 the disease impaired his mind. he became incapable of managing his
 affairs, made ducks and drakes of
 most of his property and finally the
 courts adjudged him incompetent. A ! trust company-God save the mark took over the remnant and invested
 1t in corporation bonds Under the
 New York law these are taxable. and
 his wife had to pay.
 She did not know the difference
 between taxable and non-taxable in
 vestments. Few small investors do. The trust company knew, and was guilty of plain misfeasance for not
 investing her money otherwise But she was smallfry, and the company probably did not waste much thought on her or her affairs. At all events. between the New York tax law and the trust company. she was knaved out of half her income.
 The second woman is widow whose whole capital is invested in mortgages on New Jersey real es- tate. Her lawyer had given her a ] curbstone opinion (she also being | small fry) that these were not tax able. and he was wrong They are | exempt if the holder lives in New | Jersey.- Ignorance again. coupled | with professional carelessness. cost that woman one-fifth of her income.
 We are told that Russian taxation takes away all mans income. but as far as I know it has never tried to take any more. New York taxation. however. has done just that, and succeeded
 Some years ago a farmer and his wife. advanced in age. sold the farm Tor S5.0O0. and let the money stand n mortgage. intending to live 'n the interest. They discovered. oo late to do any good. that the mortgage was taxable. In the first ear. local circumstances put up he tax rate above the rate of in crest. The poor man did not get though out of his investment to pay lis tax. and had to go out to days york to raise the balance.
 We will now look at the other side f the picture In the stringency f 1907 Mir. August Belmont. finding hat little ready money would come andy. proposed to mortgage the lark Row Building to the Roth hilds. The tax on the mortgage you'd amount to s40000. Now Mir 'elmont is not small fry. His law CTS are never careless and never i've him any curbstone opinions. o among them they arranged the plan. Mir Belmont deeded { he property outright to the Roth \ hilds. and had the deed recorded eeds are. of course. exempt. At the anne time he drew up a "gentlemens greement" with the Rothchild's re- calling for the return the property when the conditions payment should be fulfilled This greement was marked private"
 But by some oversight of the othchilds' attorneys. when the deed { ent down to the registers office 'r record. a copy of the agreement ent along, too. The frecdrding - erk is paid by the folio. and copies hatever is set before him. He | 1tered agreement and all into the scord of the deed. Nobody in the E ffice noticed the peculiarity of the h but one day an outsider e afing through the records saw it e nd showed it to the authorities. D erceiving at once that the instru- = ient was no true deed at all. but ally a mortgage. they tried to have le mortgage tax collected: but for ,me reason the states attorney. Mir. ackson, did not see his way to Iove in the matter. and MT. Belmont ever paid
 Just such iniquities are perpe- 'ated from year under the riclIety.