The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1913-11-01

requirements of the law. Later when the
rulings of the treasury department re-
specting the administration of the entire
law are published, other questions are
likely to be raised not to be answered
until there has been judicial interpreta-
ton
What Some OF the Banks Are Doing
Many of the executive officers of che
New York banks have notified their re-
ceiving tellers that If hereafter any cou-
pons are offered for deposit the teller shall
announce to the depostor that the coupon
will only be received subject to collec-
ton. The bank officers are fearful lest
the banks themselves may be held liable
for the income tax unless they protect
themselves in this way.
1t Is understood here that action of this
kind will be taken by banks in other
cities and it is not unlikely that so far as
coupons are concerned, they will not
hereafter be received as they have here
tofore been received as a deposit which
may be Immediately credited to the ac-
count of the depositor. Some of the
great corporations, including the larger
railroad companies, are likely at first to
pay the designated interest upon bonds
directly to those who hold the bonds as
thought there were no income tax law.
This, of course, would entail the payment
of the tax on the companies themselves.
Evidently this Is what the United States
Steel corporation proposes doing. That
corporation will more easily meet this
additional expense than some of the rail-
road corporations will be able to do.
Taxation the Real Issue
There are many good citizens and
great many business men in this city
and state who depiore some of the meth
DDS which have been adopted by the poll
=. ..-l,. in, aba,y tf. ~ n
now in progress in the city and state 1t
seems to these men as though the great
issue of this campaign was beng blurred
by the campaign of Chinese noses and
the beating of political tom-toms which is
now in progress.
For it has been felt that there has been
admirable opportunity for very digni-
fled, honorable and yet very earnest cam
paign based upon the subjects of economy
in the state and city administration, and
also upon the subject of state taxation.
New York state has now for some 10
years been collecting very large reve-
nue. from taxation of kind which for
merly was unknown or at least unprac-
ticed. The revenue which the state re-
ceived from the taxation which it i'm
poses on corporation franchises is al
ready large and, with the growth of the
state is yearly increasing. A revenue
very great in the aggregate amount of
each year is received from the inherit
tance taxes and 1t has been observed that
there is a disposition OF recent legislators
to increase the rates of taxes imposed
upon estates, especially when estates go
to collateral heirs.
The legislators devised a few years ago
a plan for obtaining a very large reve-
nue. from the taxation of stock exchange
transactions. This revenue has proved to
be even greater than that which was
looked for by the legislators who ordinar
lily proposed the tax. Taxation upon such
franchises as permit the utilization of the
highways by trolley lines or by telephone
or telegraph companies yields a consider
able revenue.
The aggregate revenue from all taxa
ton of this kind is very large. Yet the
citizens of the state do not observe that
this increase in revenue has been fol-
lowed by a decrease in general taxation.
one explanation for this condition which
Is sometimes given is that the state is
compelled to pay large amount of money
in the form of interest upon the bonds
which 1t has sold for good roads and for
the Improvements of the Erie canal.
In New York city this question of taxa
ton is of vital Importance. 1t will be
necessary for the city at some time In the
administration of the mayor who is to be
elected next Tuesday and who is to take
office on January l to raise hundreds of
millions of dollars for public improve
ments of one kind or another.
Recent appraisals of real property in
New York justify the suspicion that APP
precautions of real property on the whole
are relatively speaking not large enough
fully to meet the increased expenditure.
Attempts to Improve System
Everyone familiar with the city's admin
istration since the day of William NJ
Tweed has known that the wastage due to
extravagant methods has been much
greater than any conceivable dishonesty
in the form OF improper contracts. Yet
Ii has been impossible even for men OF