The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-05-04
IGNORANCE ABOUT TAXATION
MAYOR GAYNOR WRITES ABOUT
1T BUT SAYS, WHAT'S THE USEP

Tells Andrew Carnegie That We Must
Leave Something for POsterity 70
A Dlspate About-some Editorial IN
struetoF % the Community Set Might.
Mayor Gaynor while discu ssing in
formally yesterday the bills pending az
Albany concerning this city. and partict-
larry thoss relating TO the proposed new
Charter, mentioned incidentally that ne
had written some days ago letter TO
Andrew Carnegie explaining. in reply to
a communication he had received from
Mr.. Carnegie. his reasons for AdyOcann
the wipinR out Of tho personal tax laS.
The Mayor was asked 20 make p~Dhc the
letter and he did -. This - u;
DRAR Me-. CARNE0IR: The general per
ponal lax Law OF this State nov applies
only 20 a remnant Of personal property
There was a time when Il covered all sorts
Of personal property. but by dsGrees
statutes we're passed. one after another
specincally taxing certain kinds OF per
sonaJ property until most Of the personal
property that formerly fell under the
general statute for the taxation Of personal
property came 20 be taxed under such
special statutes
| There seem to he people who deem
themselves intelligent but have no kn0Wl-
edge on this subject whatever Some one
cut an editorial out Of newspaper the
other day and showed II 10 me. The burden
OF Il was that the writer said that he hap
pened to know that my own estate vas
invested chiefly In real estate. but that
: was trustee OF large estate which con-
sisted almost entirely Of personal property.
| and he therefore did not see why ! favored
/ the taking Of the personal tar "a Of such
I trust estate and casting q on my own real
estate
! might have written TO this editorial
Instructor of the community that the large
estate which he mentioned Of which | am
trustee hss never paid any personal tax
under the general personal tax statute.
for the reason that Il Is invested IN bonds
and mortgages. stocks 81 corporations.
bank stocks and the like. which are all
taxed separately under separate statutes
and not under the general personal tax
statute at all. II pays ~ full quota Of
personal taxes. bat under such special
I statutes
Up 10 few years ago the statute re-
CURED that mort cages on real estate should
be taxed a. the same rate a. real estate.
/ u il hard for some people to perceive that
the making of a mortgage on . piece Of
real estate does not create any new pro-
perty or add anything whatever 10 the
stock Of property OF the world There ID
still nothing bat the piece % real estate.
u 10 equally hard 10 make some people
understand that Il you tax q mortgage
In some way or another the borrower will
be made to pay the tax. That is the result
Of an economic Law a. faithful a. the rising
snd setting Of the sun You cannot vary
such laws by legislation A. Macaulay
says. you might ~ well legislats that the
snow shall not fall when the sun h In Capri
corn OF that the flowers shall not bloom
when he h IN Cancer
! In the sane way ell the property Of
| corporations IL taxed under the general
/ laws Of taxation. and yet some people
/ would say that We should tau the certificates
4 Of shares issued 10 the stockholders also,
not DsTceiving that such certificates add
nothing 10 the property or substance Of
! the corporation. but are only evidence that
/ the holders thereof own the proportion Of
3 the property u the corporation mentioned
therein.
/ But Il seems Of little use for Ne 20 talk
about u. We must leave something for
/ those who come after No 20 dispute about,
however simple the matter may be