The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-12
TAX MAY DRIVE
AMERICANS IN
FRANCE HOME
Some Would Leave Country
to Eyade Securities
Assessment.
OTHERS ABANDON
HOUSES FOR HOTELS
In Case of Death Charges for
Ten Years Back May
Be Collected.
FRENCH TRADESMEN
COMPLAIN OF CUSTOMS
But Few State Their Grievances
Against America
Publicly.
FRENCH TRADESMEN
COMPLAIN OF CUSTOMS
Spsc,ai ci5is Despatch 10 Tnr srN.

PARIS, July IA great. bitter cry Is
going W from self-expatriated persons
living in France owing TO the new tax OF
S per cent. on all securities which they
possess either In France or abroad
An American who is building a fine
muse here declares that he will stop the
construction OF this residence and will live
at R hotel. Others say they Intend to
move 10 some country where no such tax
Is imposed. Yet others declare they will
return to their old homes.
II tax free Monaco were seeking immi-
grants the present moment would afford
great opportunity for gaining great ad-
dtions to it's population. A partner in
ore OF the rar~s American banks said to
the correspondent OF THE sun:
The law has caused CONSERVATION
among foreign residents who do not relish
the idea OF losing 5 per cent. Of their in
comes. IL has even caused CONSERVATION
to bankers, as the law makes them col
lectors NJ the tax. which II not In our line
o. business. We are blamed by our ex-
cited clients for collecting the tax. and at
the same time we see them removing their
securities to foreign banks while We are
compelled to employ more clerks to ex-
plain and enforce the new Law.
Intended - Help Farmevs.
Y do not see any chance Of having the
law repealed. II was passed TO tighten
the taxes on the farmers, whom France II
obliged 70 favor In order that their big
families shall not only fill the regiments
but put new life into the cities The new
law will undoubtedly be difficult to en-
force " does not consider the different
classes OF income. II uses the ambiguous
phrase 'domicied in France W. X. Van
d.rbilt, with his racing stables, chateau
Al Deauvile and a house In Paris. IL GER
tainly 4 resident. but Is not domiciled IN
France He is domiciled In New Yorl
CITY nder the present plans ne should
not have 10 pay the tax.
1T g true that Americans are removing
their securities to other countries and Civ
Ing M their houses FOR hotels, but hitherto
Americans have been paying too little.
Modern Governments require money and
the only place to get 1t Is from those haN-
Ing H. \ classic example Of taxation II
that Of an American living In Germany on
hls income from British consols. lie pays
English, German and American taxes and
reduces his interest from 2ig per cent. "a
per cent
THE French themselves are disturbed
hv the impending income tax law, and not
Without reason. az politics will permit
ravor'tsW In its assessment | am con-
vInced that France. like other countries
vii bee disappointed In the receipts IRON
me income tax.
Leading lawyers. like Donald Harper
and charles 6. Loeb express the opinion
that there are many ways at present oil
evadiug payment of the 3 per cent. tax
hut in case Of death French officials may
examine tho securities and collect the un'
pa'd taxes for ten years back. II Is posi-
- Al
hhUsh'ng a system OF investigation fol
mutual Information in regard to foreign
residents Violations Of the present law are
punishable by fines varying from loo
francs $500 To 10000 francs s2.0O0).
Complain Of Our Tariff.
whether or not the French traders az
sxaggerating their grievances against thu
United States Treasury Department be
cause Of the inqu!sitorial methods OF the
representatives OF the American customs
service Il IA significant that very few o
them are willing TO state their complaints
ior publication. They say this Ia because
they are afraid of reprisals later. Thi'
reason Is hardly convincing II the com
plants are well grounded. Here Is speci
men Of the stories which have been told
70 the correspondent OF THE SUN on con
ditlon that no names be given:
one OF the worlds most roted dress
makers said that treasury agent wen
10 her one day and said that an American
client OF hers was In trouble with tn
ocstoms officials at New York He aske'
ne might see the woman's account OF
te dressmaker's books. The dressmake
''tus"d to allow him to do So The agen
went away, but returned the next day an
baoWed the dressmaker a cablegran
signed with the name Of her client, who l
The mother of A duchess, authorizing tn
agent to see her account. The dress
maker sun refused to permit the agent t
&c the books
Ho returned the next day with anothe
cahe IN which the customer OF the dress
maker expressed regret that she had no
allowed the agent to see the books, as
would have assisted her (the cllenD u
New York, The dressmalSer was obdurat
ana st,ll refused TO produce the account
Later she learned that her customer ha'
never sent any cable to the treasur