Year: 1868

those held by the savings-baaks and
the life insurance companies. These
numerous corporations have their capi-
tai stock, their, reserves and the sur
plus earnings invested in Government
bonds to the extent named, and they
are in this form just as open to taxa
tion and are actually taxed just as
much as though they were invested in
any other form Of security. Making
me deduction of this one hundred and
twenty-five millions we find remain
ing but four hundred and seventy-live
millions of the six per cent. gold bear
ing bonds that are not already practic-
ally subjected to local taxation AL
lowing for the possibility that one
hundred millions of the five per cents.
are held instead of six per cents. in all
the channels of Investment | have
named, and it follows that at the out
side figure there are to day in the
whole country less than six hundred
millions Government sixes, not full
subjected to the power Of local taxa
tion. And these six hundred millions
are rapidly growing less as the various
corporate institutions, | have named
continue to invest their funds more and
more in the bonds. These institutions
desire security that is of steady value
not liable to great huctuation, and at
all times convertible into money and
hence they seek Government bonds
in preference to any other form Of in
vestment. The high premiums on the
bonds induces individuals to part with
them and hence they are readily trans
ierred to corporate ownership, where
they become in effect at once liable to
local taxation and are no longer OBJ
noxious to the charge Of cvading or
escaping theirjust share Of municipal
burden. In the hands Of the individ-
uals the bonds may be concealed but
in the possession of corporations con-
cealment is necessarily impossible.


Ifthese statistical statements needed
any yeriiicaton it would be supplied
by an examination Of the income re-
turns recently made under oath and
published in all the large cities of the
country, disclosing the fact that the
amount of bonds held by the wealthy
men Of the country has been contin-
ually growing less, just as they have
been absorbed by foreign purchases
and by corporate Investment. The
correctness of the income returns in
reference TO the investment in bonds
will be accepted even by the incredu-
lous and the uncharitable, when it is
remembered that the interest of those
making them TO exaggerate rather than
dcprociate the respective amounts held
by them. Instead then of nineteen
hundred millions of these bonds run
free Of taxation it is clear that less
than six hundred millions are opelr to
that ,charge-less than one third Of
the whole amount. The remainder,
largely more than two-thirds of the
whole, are either held abroad where
no local taxation can reach them, or
they are held at home in such form
as subjects them to local taxation.


And now let us suppose that we
were in possession of the full power to
tax by local authority these six hun
drcd million of bonds presumtively
owned by individuals Would we
realize anything from it On its face
the prospect might be fair and inviting
but in practice it would assurcdly
prove dclusivc and deceptive. The
trouble would be that the holders of
the bonds could not be found. No
form of property is so easily concealed
none so readily transferred back and
forth, none so difficult to trace to ac-
tual ownership. We have hundreds
of millions Estate bonds, city bonds,
and railroad securities in this country
and yet every one knows that it is
only an inlinitessimal proportion Of this
vast investment that is ever represen-
ted on the books Of assessors and tax
collectors. As pertinent illustration
| might cite the case of the bonds of
my own State, of which there are over
five million in existcnceto-day, largely
held as a favorite investment by the
the citizens of Maine. OF this whole
sum | am safe in saying that scarcely
dollar is found on the lists ofany as
SCISSORS in the State. And yet the IA
cility for concealing ownership in ma
tional bonds is far greater than any
other form Of security, and the pro-
portion in the hands of individuals
that would escape the assessment oflo-.
cal taxes may be inferred with reason
able certainty from the analogies |
have suggested and which are familiar
toall who have given the least attention
TO the subject. Indeed, Iventure to as
sert with confidence that if the power Of
local taxation of these bonds were fully
accorded to-day, the tax lists of our
cities and towns would not be increas-
on an average of one per cent. Many
of those who to-day may be am
bilious of parading their bonds when
protected by what is deemed an often
sive exemption would suddenly have
none when the power Of taxation ap-
piled to them. Indeed, the utter fail
urc to realize anything from this source
if the power to test it were granted
would in the end create more dissatis-
faction than that exemption, which, in
theory, is offensive, but in practice is
absolutely Of no consequence what
ever.