Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1913-02-21
JURY DENOUNCES
STATE TAX LAWS

grand jury Of the Hastings Court OF
the city of Richmond. which has been
10 session four months and which SUBJ
mitted its report yesterday to Judge
ID. G. Richardson. All manner OF in.
justice and Inconsistency in the tax
ing system is laid bare, and the blame
for the situation is placed on the
members of the General Assembly,
who have consistently refused to give
to the people of the State the reforms
d demanded from year to year. In fact.
so acute does the grand jury fed the
situation that unless State officials
give relief, such communities as al Q
honestly trying to do their duty in
the matter of assessments might
|plausibly consider themselves Justi-
d ID in failing to investigate State
taxes in the future unless they wish
- assume practically the whole bur-
den of the States expense" The
local grand jury investigations. it is
felt, mean only that communities in.
tent on evading the law will continLe
to do SO.
The city OF Richmond for instance,
with 6 per cent Of the population of
the State, pays Is per cent of the en-
tire net revenue of the Commonwealth,
and this proportion will be increased
as the result of its grand jury's work.
THREE SEEM To BE EvASIvE.
Three concerns doing business In
Richmond in the opinion OF the <. and
jury, are seeking to Grade their Just
taxes. They are the Standard Oil
Company, of New Jersey, Armour g.
Co., and Morris & Co., the two latter
being packers of Chicago. Local
managers of these concerns have pro-
fessed ignorance Of their own affairs
the jury has instructed the Common
weaith's Attorney to proceed against
them according TO law. This mears
that the officials named will file peti.
tons against the firms in the Hust.
in2s Court, and have . trial by jury
OF the amount of business done BY
them in this city. II a verdict is rem.
dered to the effect that fake list fol-
taxation was made by them, the courl
will enter an order requiring payment
OF double the amount of taxes whiot
they should have paid, with costs and
| fees.
While the grand jury does not re.
turn an Indictment, it does not pre-
lend that all other errors in giving in
property for taxation were for the
purpose of avoiding payment of just
dues. 1t thinks. however, that in
IN my cases the mistakes we're due to
failure of the State.
LARGE AMOUNTS ADDED
| AS result of its deliberations and
Investigations. the following amounts
have been added to taxable value on
the books of the Commissioner of the
Revenue personal properly, tangible
and intangible, 81, 256, 429; mercha ants
purchases, 1919. 96l; incomes, s643,
OPT; fatal. S6,879,4t7. In common
with many writer's on the subject, the
grand jury thinks the system of tax.
ing bonds and mortgages distinctly
unjust. involving double, if NOT triple,
taxation of the same values. |,
recommends law patterned, for in
stance, after that of New York, which
requires payment of specified tax to
tn clerk of on e-half of per can't of
the property conveyed in trust, this
to be the last payment to the State for
The mortgage.
Deposits of individual citizens in
the banks, says The grand jury. should
not be taxed nor should savings ae.
counts. 1t points out the injustice of
robbing the deserving and thrifty
people Of moderate means by taking
more than half their interest income
for taxes.
WOULD RUIN ENTERPRISES.
More attention is paid by the grand
jury to the subject of taxation OF
capital stock of companies other than
merchants capital. 1t would seem
| that the almost unintelligible State
. laws on the subject require taxation
OF books accounts considered good,
plus bills receivable, plus all mer-
chandise on hand, plus real estate,
separately taxed. The jury was un-
willing to stand for this without de-
Quoting what might be called live
liabilities, including borrowed money
and merchandise paid for. Many ia
dustriai concerns do large part of
t1eir business on borrowed capital,
and to tax this borrowed money, on
which interest is paid, besides ali
other forms of taxation, would speed
lily result, it is argued, in driving the
most important enterprises from the
State.
No wonder, thinks the jury, many
business men regard evasion not only
psrdonable but necessary to self
preservation.
Losing patience with the laws as
they stand, the report exclaims: "We
do not see how the State can expect to
exact uniform tax when she appears
to be trying to adapt eighteenth GEN.
fury laws to twentieth century busi-
a sss conditions %
The jury might recommend q tax
c )mHissiop, it says, out such a body,
with authority to enforce the present
antiquated tax laws OF the State, with
instruction as to capital, credit
m 'nty, bonds and income would be
disastrous. While for time it would
immensely increase the revenuse IL