The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-20
PURDY Is SCEPTICAL
AS TO INCOME TAX
Doubts Efficacy, but Would
Not Oppose It, lie Tells
Mills Committee.
TESTIMONY BY AMATEUR

Those citizens of New York who w.-.
awakened on the morning OF October
by the Joyful announcement that they had
become immensely wealthy overnigh,
will never know just how their opulenc.
came to be thrust upon them. Tha, IA
a secret locked In the breasts OF Nh.
members OF the Department of Taxes
and Assessments. The only satisfaction
the favored ones may nave is to know
hat IL a promise hadn't been mad.
never to reveal 1t there never would
have been such a sudden accession n
riches.
so. at any rate. testified Lawson
purdy yesterday before the Mills legs.
lative committee on taxation. As pres.
dent OF the department and genius pr.
siding over the enforcement OF IN.
personal property tax law. in which N.
does not believe. Mr.. Purdy is pre-.
sumed to know what he is talking
about. He disclosed the fact that tele.
! phone books and city directories. lists
Of interpretations and the records "
the Surrogatc's Cour had been used TO
get new names on the personal tax lis.
and that any one living east of second
avenue in Manhattan hadn't been con.
sidered at all. When It came to say Ing
whence came the Information on which
assessments Of persons already on the
list were boosted to the tune OF 81. o00..
600. 900 Mr.. Purdy respectfully declined
The Information came from A
reliable source" said Mr.. purdy. "bu,
il was furnished on condition that the
source would not be revealed. Other
wise il would not have been given. The
board believed itself justified in takirs
the information under the conditions
laid down"
Did the department have access 70
the figures upon which the Federal in.
come tax is collected? ?" was asked.
mo. I dc not think that the Fedora
law would allow such information 20
come to us"
II think the result of the increased
valuation said Mr.. Purdy later in dis.
cussing the possible effects Of the III
crcascs. will be an increase III collected
taxes. A great many people were IN
prepared for this increase. They viii
nrd II difficult to convince us that +,
7 lower assessment is correct. They vii
pay this year. but as for next year. tie
taxable property may go scurrying ont
Of the State. The assessment was made
with more care than is commonly h..
lieyed. The action of the present com.
mission, which includes several members
appointed by Mayor Mitchell. was the re-
suit of honest effort to enforce the law.
Just what will be the return in taX"-
will not be known until next July"
As for substitutes for this tax Nj
Purdy said that he would not be rf-
posed to an income tax. although he
indicated that he was by no means
convinced OF it's efficacy. He said he
would exempt all Incomes below $500
and would collect nothing less than s.
the expenses for collecting anything
less than this sum being too great
He also spoke in favor Of the hab..
tation and occupational taxes as ad-
d~itional sources of revenue He favored
the abolition of the personal property
tax. calling Il repeatedly that interna!
thing
A. T.. Holconb. tax attorney for the
American Telephone and Telegraph
Company. said in beginning his test
mony that he wished to correct the falls.
impression that he was an expert 10
matters of taxation.
All I know Is merely from eNper
ence as a tax attorney for the last
twenty-five years. My experience has
been limited to New York state AID
thirty others in the Union. ! have
attended all the tax conferences ~ IN
portance in these States during tie
last twenty-five years and am cha
man OF the tax committee of the .Nme''
can Bar Association and a member ~
the national tax conference
'outside Of that you don't know any
thing about taxation, DO YOU" inIu.r '-i
Senator Mills. and the hearing prnCcelel
with low rumblings from the w.,'ess
chair to the effect that its ocrupir
didn't want to be posed as an cNper'
Some time later Mr.. Holcomb IN de.
scribing the operation of various Kind.
of taxes on corporations said that sue
cess depended much on locality.
For example" he said. the CO..
portation tax works we'll in Rhode l.
ana. hut Rhode Island is a very swa''
State-especially at high tide"
The hearings will continue this morn
ing at 10 80 o'clock.