The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-09


Of registration the registration tax Is to
- one-half Of one per cent. Of the face
value OF such secured debt.
amendment Is assaulted.
The Talmage amendment to the
secured debt tax law was attacked At a
hearing to-day before the Senate Taxa
ZION Committee AZ a direct blow to the
prosperity OF the State, a huge joker,
supported only by real estate interests
and "A measure which would decrease the
revenues of the state.
The bill would impose an annual tax
of two mills on secured debts, which
were exempted from further taxation by
the payment OF five mill registration
fee under the terms of the secured debt
law passed during the Dix administra-
ton.
A. C. Pleydell. representing the New
York Tax Reform Association. made the
chief argument against the changes IN
the law.
THE present secured debt tax law" he
said, "has yielded an average of $1,000
oo0 annually. mostly from the city OF
New York, and has not reduced the
aggregate personal property assessment
II can be made TO yield considerably
more by amendments extending Its
scope such as were before the Legisla-
ture last year.
The present secured debt tax Is spe-
cifc. payment is evidenced by stamp
affixed to the bond. Many bonds thus
stamped pass out of the state and others
are stamped in their place by the owners
TO the gain Of the state.
Omen to Evasion.
"An annual tax would apply only 10
bonds had on assessment day. ana would
he open to evasion as much as the ordl-
nary personal property tax
THE present law invites wealthy citi-
sens from other states to make their
residence here. thus increasing the de-
mand for high priced real estate In
the cities and also for suburban estates
and ultimately bringing additional prop
Srty under the Inheritance tax.
"The present law applies to the Sc
curities owned by many corporations
The Talmage bill eXempts all corpora
tons. but not individual investors. That
bill also repeats the present secured debt
tax so that this exemption of corpora
tons will permit them as formerly TO
offset their bonded and other debt
against securities, and also against their
holdings of shares in corporations Of
other States which are made taxable
by this bill. when held by individuals.
This discrimination notably fav"rs all
holding companies.
The Talmage bill establishes list
Ing system. which has always heen
strongly opposed in this State. and which
has been denounced by commissioners
Of other States as merely a school of
perjury
THE Talmage bill makes taxable at
cash value all shares owned by residents
IN corporations Incorporated under the
laws Of other States, whether or not
these shares nay dividends This Is
contrary to the settled policy of the
state which eNelnpts all shares tdo-
nestle and foreign in the hands oi
the stockholders on the Just theory that
they are only certiiichtes or any interest
in property that ~ taxed where located
thus reducing dividends, ana that amy
addltlonni TAX on the snare n 'ouhlt
WNatoi'
He declared that the bllI would re
cure voluntary Hstlhs OF so"o'"oo'
wv 10 set the same revenue as ths
present taN'
f.. j. Fay. coutsei To the Bankers
Trust Company. declared N. nill wa
prepared by real estate interests only
He said the taxation situation IN New
York Is in a confused state ana he sal,
the hope for New York state would b'
the appointment OF tax commission
TO revise and put the laws In q cordl
ton such as the banking laws have beer
placed by the recent revision. He sal,
there is a Joker IN the bill concernin,
mortgages,
"Notice how carefully th.s. Zen
estate men have left out a tax on mort
cages" he said
Although he rsprc.ented A comunr,
which Is exempted under III. bill, n
declared NJ. onnosed ,h. measure as
nlnv ia the rroau.rIty Of New Y, TX n
advocated /, direct AK as an efnereenc
measure ur,u such tIr,e .s y.ou,h r.r
.,i , ,o,o,., ~ I, cnn,n,iselon r., codIN
,a,ion -, ,ha tox laws OF IN, St,t. "A
s.c,,sa1 ,ta raaI .stat. mon ,r ."tr,inI
-, ,,,, yon,a,liro o,.., IN th. ornon.u,
-, ~ ,iiI IN sl,nrir, IN thie haarin
.ia.,,n, -
WITHOUT Hot'Ht"''",'