The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-15
Industrial Chaos Would
Follow Their Strict
Enforcement.
BLAME is PLACED
ON LEGISLATURE
Standard Oil Believed to Be
Evading Taxes-Large Sums
Added to Books by Richmond
Grand Jury = Mortgage,
Capital and Income Tax
Laws Assailed.

Terrific indictment OF The tax laws of
Virginia is made in the report of the
special grand jury Of the Hastings
Court OF the city Of Richmond, which
has been in session four months. and
which submitted its report yesterday
10 Judge ID. g R:chnrdson All
manner Of injustice and inconsistency
in the taxing system is laid bare. ana
the blame for the. situation ~ placed
on the members of the General Assem-
bly,. who have consistently refused to
give TO the people Of the state the re
forms demanded from year to year.
In fact. so acute does the grand
jury find the situation that unless
state officials give relief. such com
lnunities az are honestly trying to do
their duty in the matter of assessments
might plausibly consider themselves
justified in failing TO Investigate State
taxes in the future unless they wish to
assume practically the whole burden
of the states expense" The local
grand jury investigations. IL is felt.
mean only that communities intent on
cvading the law will continue TO do
The city Of Richmond. for instance.
with per cent OF the population or
the state. pays 20 per cent OF the en-
tire net revenue OF the Commonwealth.
and this proportion wll be increased
y
work.
Three Seem TO Bc Eynsive.
Three concerns doing business in
Richmond. in the opinion of the grand
jury, are seeking to evadc their just
taxes. They are the Standard Oil Com
pany. Of New Jersey. Armour & co. and
Norris & Co, the TWO latter being
packers OF Chicago Local managers
OF these concerns have profcssed ig-
norance of their own affairs. The jury
has instructed the commemorative
Attorney to proceed against them ac-
cording to law. This means that the
Official named Will Tile petitions against
the firms in The Hastings Court. and
have trial by jury of the amount OF
business done by them in this city. II
verdict Is rendered 10 the effect that
a false list for taxation was made by
them, the court Will enter an order re
dulrins payment of double the amount
of taxes which they should hav. paid.
with costs and fees.
While the grand jury does not return
an Indictment. IL does not pretend that
all other errors in giving in property
for taxation We're for The purpose OF
avoiding payment OF just dues II
thinks. however. thar in many eases
the mistakes We're due to failure To
understand the faulty tax laws OF the
state.
Large Amounts Added.
AS a result OF It's deliberations and
have been added 10 taxable values OH
The books OF the Commss ioner OF the
Revenue: personal property, tangible
and intangible. 3l,25642a: merchants
purchases S+.91S.Sii: incomes S643Uo1
total. s6,S79.4I1.
liz common with many writer's or The
subject. tho grand jury thinks the sys-
TEN of taxing bonds ANA mortgages
distinctly unjust involving double. il
not triple, taxation of the same values
"A la ~ ,..,ff al g,
stance. after that of New York which
requires payment, OF specified tax to
the clerk OF one-half Of l per cent OF
The property conveyed in trust this to
be the last payment TO the State for
the mortgage.
Deposits OF individual citizens i'm
hanks. says the grand jury. should not
nc taxed, nor should savings accounts
II points out the injustice OF robbng
the deserving and thrifty people OF
moderate means by taking more than
half their interest income for taxes
Would Nuin Enterprises.
More attention is paid by TIE grand
jury to the subject OF taxation Of CAPT
ial stock of companies other than mer-
chants capital. II would seem that the
almost unintellgible State laws on the
subject require taxation of book ac-
counts considered good plus bills re-
ceivable plus all merchandise on hand.
pius real estate, separately taxed The
jury was unwilling to stand for this
without deducting what might be
called live liabilities. including bor-
r0wcd money and merchandise paid for
Many Industrial concerns do n large
part OF their business on borrowed can
itai, and to tax this borrowed money
on which interest is paid, besides all
other forms of taxation, would speed
ns result, 1t is argued, In driving the
most important enterprises from the
State. '"o
NO wonder, thinks the jury. MANY
BUSINESS men regard evasion not only
pardonable, but necessary to self-pres-
crvation.
Losing patience with the laws 40
they stand. the report exciaims. ",vo
no not see how the State can exncct tn
exact UNIFORM tax when she appears
10 be trying to adapt eighteenth cen
ness conditons,' "'''
The jury might recommend ,ox
commission. 1t says. but such q bodv
with authority TO enforce the present
antiaunted tax laws of the state. with
construction as to capital, credit,
disastrous. While for a time il wouIJ
immensely increase tho revenues ~
would drive away or BANKRUPT hoif
It's Industrial enterprises, rcsuItino. in
industrial chaos. i''
The report, which is destipod 20 ho
q historic document in the annals ne
public affairs in Virginia. is as fol-
lows:
Text of Report
TO Hon. u. c. Richardson. Judge Hust.
ings Court OF the City OF Rich
mond:
The special grand jury impaneled Mt
the October term Of your honorabie
court and charged with special ex-
animation OF the tax returns, received
the charge. and after months of in
vestigataon begs leave to report ms
follows:
Tho Jury held its first session on
October Z, 1912. and since that time
has had almost continuous sessions
going carefully into the tax returns
as made by the taxpayers to tho Com
CONTINUED on seventh Pnge.l