New-York tribune., 1918-01-14
Experts Say City Will Not
Collect More Money
From Millionaires
Trouble Lies in Law
On Assessments
Mayor Suggests $5,OOO,O0O
Levy ON Rockefeller
Is Too Low

and in the Finance Department, is that
unless Mayor Hylan can induce the
Legislature radically to change the law
governing the assessment of personal
property Of individuals he will utterly
fail to collect moro real money from
Now York miliionaires.
Mayor Ilylan last week wrote Prcsi-
den. Jacob A. Cantor, of the Depart
,ncnt of Taxes ard Assessments, call
ing his attention. to the reported great
taxable wealth Of John d. Rockefeller,
who was assessed by Cleveland on
S400,000,O00, and refused to pay per-
soral taxes levied in Cleveland, on
the ground that he is a legal resident
and voter in this city. The Mayor sug-
gested that Mr. Rockefellcr's personal
assessment here of $4,000, 900 is too
low.
The Mayors letter is interpreted in
The tax Office as an indication that the
Mayor will endcavor, by radically in
creasing personal assessments, to raise
more money.
Plan Never Succeeded
ne lOlNS mas Deol urea again ana
.gain, with varying degrees of failure.
! never has been success. The trou-
bic is manfestly with the law.
The late J. p. Morgan year or two
BEFORE he died called at the tax Office
one day with his notice of personal
assessment. He had been doubled up
without warning increased from
about half a million to million. What
he said to Commissioner Kaufman
y t,r 3,l
Of the great majority of men of large
wealth whose names arc on the per-
sonal tax rolls.
81 want to pay my fair share of
personal taxes" said Mr.. Morgan, "but
] don't want to be Disseminated
against and | won't he imposed upon"
He thereupon proceeded to reduce
his assessment by affidavit. leaving it
at the old sum-about 100000.
BY advertising in advance what l,c
lntends to do. or wants to do. the
Mayor makes the chase by the Tax
Department after more money from
personal assessments all the more un-
certain. it is said. Warned that the
assessors may be on their trail next
under the present law can cvadc with
ease being taxed in greater sum
than they are willing to pay
Easy 10 T.Stdpc tTSOUdt JHA
About one-half of the people of large
wealth doing business in New York
maintain legal residences outside the
city. But even if they wish to live
and vote in the city it is not difficult
under the present law to escape pay
merit of taxes on personal property.
The working of the personal tax law
j. so ''liheral'' that it has attracted TO
New York large numbers Of wealthy
4 few of these have visited the tax Of
flee and requested that their names be
placed OH the assessment rolls for a
considerable personal assessment.
While the local assessing authorities
have no proof that tho newcomers have
moved away from other states to avoid
the payment OF personal taxes. they are
convinced that such - the fact
The records show the assessed valua-
ton of real and personal property in
the City of New York for 1917 TO be as
follows:
Real estate .................. IS, Isl. 4.a4a. 900
Personal property ..-......-... 4l9l56,3l5
Total Observation-Disclosures. .ss,s73, ,7o5, ,3l5
Carnegie Pays No Tax
Prior to 1912 Andrew Carnegie paid
on d personal assessment of IS 900 900.
In 1912 he was raised to i0.OOO, 600.
and paid on it. In 1913 Mr. Carnegie
reduced this, to nothing, on his allega-
ton that his debts exceeded his taxa
bic assets. There is a detailed state
ment IN the tax office. setting forth
just what these assets and liza
bllities were, as Of October |. 1912. the
legal tax date. In 1916 his name was
put back on the rolls for $4,000 600,
and he sworc it all Off. as before on
the ground of debts exceeding taxable
assets.
John d. Rockefeller. up to 1918. had
been assessed, year by year, in the sum
of 81 100000 on personal property For
1903 he was raised to $4,000 900 In
1912 he was raised to $4,000. 900, and
has been kept at this sum ever since.
lie never has made a personal appear
ance on personal assessment in order
70 reduce it. He lust pays, and lets
IT go at that
Henry ?. Dawson. OF j. 2. Morgan
d Co., assessed in 1916 in the sum
of $1,000, 900, and paid on it. but he
personally appeared before the com
missioners the following year and
s"ore 1t al off. on the ground Of non
residence, he having voting residence
in Suffolk County.
Mrs. Sylvia II. G. Wilks, daughter of
the late Hetty Green. after the death
of her mother. was assessed for the
year 1917 in the sum of $4,000 600
She personally appeared and swore this
down to SAP roo
Say Law Must Be Changed
The experts in the tax office saw
that If the city is to collect more money
from personal assessments the law
must be entirely ovcrhaued. made much
more "inquisitorial' in its working, in
volvlng the appointment of hundreds
of new examiners and inspectors. The
possible political effect of the working
OF such a law deferred Mayor Gaynor
from changing the old law. He was in
favor Of abolishinp the personal tax
law altogether. so far RS it related to
the personal property of individuals.
The new tax board is glum On the
prospect that the Mayor is about to
"march up the hill and down again"