The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-26
Virginians Rush to Buy
Nontaxable Bonds by
February.
FEAR TAX LAWS
WILL BE ENFORCED
Money Drawn From Banks and
Put in Stocks and Bonds-In-
equality of Laws Causes Rush
70 Evade Assessments.
Demand for Reform
Grows.


erty of all kinds in Virginia must here
after be assessed for taxation accord
ing to law, there has been a tremendous
rush during the past weeks and months
TO invest funds in nontaxable securi-
ties. The assessment for 1918 Will be
made as Of date February /, and dur
ing the past few days the demand for
property that cannot be taxed has been
especially active.
While this trading has been quiet.
the volume is something almost I'M
believable. A broker Of this city said
Yesterday that he would place the fig
ure invested in Richmond during the
last sixty days for the purpose OF evad-
ing taxes at more than SO 10000. or
course, any sum is necessarily a mere
estimate
Put Money in Bonds.
Holders Of hduciary funds are with
drawing the money from banks and
are selling taxa bic stocks and bonds and
reinvesting in United states bonds.
Virginia bonds and stocks like those
of certain trunk line railways. non
taxable in Virginia. Citizens of thia
city have put large sums in Richmond
bonds, which are taxable. while held
here by the State only
Large amounts have been withdrawn
from savings banks and from balances
on time deposit or even subject 70
check The latter, being money IN
use, will naturally End its way back
into the regular channels within
very short time. for after February
many Of these securities will be back
on the market.
No more significant indication of
me situation could be found than IN
the prices of Virginia century bonds
Ali last year they hung about 3s4 -.
Sal. and as high so. while on
Fridav last there were sales on the
Richmond exchange at ssss Riddle
berger bonds brought 81. Such an ad-
vance in less than a month could mean
only heightened demand Not many
sales have been reported on the local
stock market. since most purchasing
OF this kind has been done quietly
Local brokers assert that more United
States government bonds are now helo
in Richmond than a: any time IN the
history of the country, and That many
have come here since January J. Con
ditions are believed TO be similar
throughout the state
VIII Enforce Tax Laws.
State Auditor C. Lee Moore has
announced that all property IN the
state must be gwen in this year Tor
taxation a. It's fair market value IN
accordance with the Constitution Every
taxpaver must personally subscribe TO
the oath this time The people have
become thoroughly familiar win the
details of the tax laws during the past
few months and are no longer ignorant
OF the requirements investigations
will be held ia every county and city
in the State this year by grand Juries.
and indictments not only for false re-
ports. but also for perjury. VIII lie
against those who fail 70 list all they
possess. Commissioners OF the revenue
who do not see thai the citizen takes
the oath will be fined. and those com
ruissioners who do not enforce the law
will be removed from Office
The General Assembly has persistent
IL refused from year TO year 10 deal
with the unequal tax laws Of the state
II is believed that she only remedy
- 20 enforce them. and .ben the law
makers xiii be compelled by tho folks
hack home 10 sec that such changes are
made as TO equalize the burdens of taxa
ton as far IS possible
stirred by Income Returns.
The work OF publicity with reform
in Wow vas began by The Times Dis
match las, autumn. when it published
the conspIcte income tax returns from
every county and city in the State
4 dozen counties failed TO return d
single citizen whose income IL IN ex-
cess of s. 600 the year Sworn returns
shoved the earnings Of very rich men
their own statements. In other cases
men Of modern means paid taxes on
every dollar they owned Nothing ever
presented 70 the people OF the state
has so graphically shown the evils Of the
lack Of a tax system IN virginia IS was
shown in The Times Dispatch
The whole state was aroused. and
the agitation grew when Auditor Moore
inforccd the law requiring grand jury
Investigations of the returns As
result many citizens have corrected
their income and other assessments
In some places the investigations have
not been concluded Grand huries
in many places we're ienicnf. thinking
that the public was not fully informed
last February. IL viii be fully in
formed this .-car.
Noney Is Diverted.
Enforcement Of the law Is likely 10
be most disastrous. People having
money in savings banks. drawing 3
pcr cent interest. and paying ia per
cont in taxes in Richmond. state and
CITY are unwilling 20 give I'D most Of
their earnings. Consequently. they arc
buving United States. State. city and
county bonds and certain non-faxabic
stocks. The money Is taken from the
balances available IN banks for loans
uscd IN Tho ordinary course Of business
s.s..h a. moving crops. handling whole
lie purchases and sales. and building
opcrafious some % b. viii 20 back
after February I. some viii never 20
hack Holders Of money belonging
40 widows and orphans Use the money
in .his way. feeling 10 but JUST 20 their
clients 10 earn per cent. clear. rather
than leaving only Ia per cent. income
on the money.
Bosidcs this. n the income oxcccds
81 nn the year from all sources. including
earnings and interest. tho cxccss -
subiect 20 a furfhc state tax Of ! per
cont almost vriping out the yield
Yet farms In most parts Of tho State
are assessed II from 10 - pcr cent OF
their real value.
IL - now believed that the Lcgisls-
sure can no longer delay tax reform
winch has been refused because every
bodv was afraid that he would have 70
nav more himself. 10 ~ felt that NJ the
tar burdens were eduaiized. the average
man viii pay lees. since the rate would
be lowered