Evening star., 1915-01-09
TAKING INTANGIBLE
PROPERTY IN D. c,
Suggestion Advanced in Sem
ate Debate on the Dis
trict Bill.
DIFFICULTIES TO BE
ENCOUNTERED IN PLAN
Experience of Connecticut q Warn
ing-Washington's Pecul.
lar Position.

ing-Washington's Pecul-
lar Position.
In view of the injection into the Sem
ate debate yesterday on the District
appropriation bill of the proposal to
tax the Intangible property of Wash
ngtonfans as a means of raising moro
local revenue, the following matter.
written for The Evening Star May IA,
1909. Will be of immediate interest:
some years ago when the legislature
OF New York had the subject Of taxa
tion under consideration, a subject to
which the greatest students Of eco
nomfcs In all ages have certainly devot-
eo more time and study than to any
other, and probably more than to all
other political problems combined. af-
fecting the welfare and prosperity of
the cltizens OF their respective govern
ments. editorial comments were made
by the press of New York city that
may not be considered altogether inap-
propriate for republication at this
time, In the country's capital Refer
ring TO a very able report that had
peen recently made to the legislature
of Connecticut by a special commits
sion. one of the papers commented
thereon as follows:
NO report of a special commission
mas attraced SO much attention as that
sent TO the legislature by the tax COM
mission. and its recommendations are
being discussed with much favor. Thew
are, principally. that the state should
cease to attempt to tax debts, notes and
ponds, the argument being that there
is no Justice IN such a tax, as the prop
erty on which the loan or debt rests
pays a tax, and that bonds. and loans
are, In a sense. intangible. The COM
mission points out that only per cent
Of the grand list of the state is made
up OF this class of property. notwith-
standing the fact that Connecticut
capital is largely invested in loans on
property in the west, showing conclu-
sively that such tax will be avoided If
possible. Investors have long COM
lion" The instructive comments of an
other paper follow:
Benefits of Fair Taxation.
Tt Is a fact very well known in GER
tain quarters, although it would be
almost impossible to produce the evil
dence for it, that the easy administra-
lion of the law for the taxation Of per-
sonalty in this state has drawn hither
an enormous amount of that class of
property. 1t has led many persons of
wealth to select this city as a place of
residence Gin spite of the fact that they
often pay higher taxes in the form of
rent than they would otherwise be sub
iected toy.
The violation by other states Of the
principle not to try to tax what can
hide or run away has increased both
The population and wealth of this state.
The benefit, however, has in a measure
extended to the whole country, for the
existence of a great center where evi-
dences of debt are practically secure
against government robbery has low
sred the general rate of interest. Every
borrower in the land may be said to
IF the comparatively enlightened policy
of the state of New York.
''The policy of the neighboring state
Of Connecticut has been in several re-
spects less judicious; but the shrewd
inhabitants of that community are
learning wisdom from experience. A
commission appointed under a resolu-
lion of the general assembly has been
,or some time considering their system
Of taxation, and has just rendered a
believe in the taxation of intangible
property cannot possibly. complain that
The legislature of Connecticut has not
been sufficiently stringent. It has pro-
gided at one time that all taxable prop
.rty not listed should be conflscated: at
others that it should be taxed three or
'ourfold, or that like penalties of va
rious degrees should be imposed; and
the taxpayer has for many years been
required to make his own return of all
his possessions and swear to the truth
Of it. In spite of all these measures,
The proportion of personal property to
real estate subject to taxation in Con-
aecticut does not very greatly exceed
property who do not change their resi-
Ience simply will not return it. This
s no mere conjecture, but a fact estab-
ished by evidence that is conclusive.
Disappearance Of Wealth.
IN the first place it appeared that in
1885 the amount of property in the
shape of bonds, notes and money at in
.erest returned for taxation in the state
was about s19,000.0O0. In 1885 1t had
sunk to about s13.00o.o00. The inhabi-
tants of eighty-one towns do not own
single bond. Not bond is to be found
in the rich city of Meriden. The 10000
nhabitants of the thriving city of
Waterbury by their united efforts man.
age to scrape together only $3.50 in
bonds. So far as cash is concerned
there was never a community since
mankind emerged from state of bar
ter mat got along with so little. On
the list of October. 1885, the root Of all
evil had been entirely extirpated in
.orty-three towns and the remainder
got along with only $1,100.000, about
sne-tenth of the amount estimated by
ItatisticiaMs to be used by such popu-
alton.
"If this evidence is not sufficiently
.ogent it can be supplemented. An
examination of the probate records,
made by the commissioners. revealed
he interesting fact that people in Con-
necticut. as q rule, have no conception
IF their own riches. Executors find
that their testators have been ignorant
Of the existence of from 40 to so per
cent of their real wealth. In one dis
trict the search made included every
estate probated during the last ten
years. and was conducted with the aid
Of the judge of probate The amount
Of taxable property inventoried was