Year: 1876

There is a homespun adage that there's use cry
ing over split milk" Well the milk has been spilled
the apportonment settled and the ''moan is made "
But the future all before u.s. and there is little use
looking back unless the purpose OF proatng by ex-
perience The presentation OF of the features OF
the laws OF Pennsylvania has for the pur-
pose OF recommending them standard to be fol-
lowed literally and in detail, but for the pur-
pose OF showing that that great Commonwealth lying
contiguous to ours and closely resembling popua-
tion, and resources has ventured to cut loose
from traditional customs and usages, and successfully
adopted methods and systems in harmony with tho
changed conditions Of financial and business affairs.


Tho vital principle underlying the present system
that State il the separation division of the subjects
Of taxation by and between the State and the munich
palties The State selects its objects of taxation and
to the counties, ~ will take these and leave you
those" 1t is an accepted saying that "if two men
ride one horse one must ride behnd " but physically
as to creatures and economically to taxation has
been found moro convenient and advantageous for
each to have horse Of his own That the very sub
stance of the proposition respectfully submit While
two powers tax the object there must always be
abundant material for contention and friction


do not propose to exempt AL personal property
from taxation; the contrary, propose to
oreas OF millions that now escape and subject all that
Is taxable to the operation OF just and equal laws to be
justly and equally administered by the authorities OF
the State


AS to real estate-that propose to relieve entirely
from the burden of State taxation and from the
equaities and, perhaps, might say, oppression, of
State equalization which, even If we'll made and fairly
will never seem TO Do made by large portion of the
taxpayers.


The suggestions have to make are briefly thcse:--


l. That all corporations created by or doing busi-
in the State shall be assessed by the State Assess
ors upon returns to be sent to them Albany,
and the taxes paid directly to the State Treasurer


That the taxes shall be fixed upon the value Of the
stock percentage upon gross receipts or in proper
ton to dividends including scrip and stock dividends
at such rates as will attract capital and yet yield
large revenue and that the scale of taxation be ad
Justed not to call for any deduction for investments
in real estate.


8 That discrimination shall be made in the rate of
taxation upon corporations formed under the General
Manufacturing law SO as to foster such interests 80 far
as may be practicable and equitable.


That If 1t shall be found necessary to ample
the State license tax moderate In amount
may be imposed upon certain classes of business to be
paid to the State.


g. That shall be left to each county to determine
by its local legislature, whether 1t will tax for its
local purposes other descriptions of personal property


That real estate be relieved entirely from taxation
for State purposes.


That the real estate Of corporations shall continue
10 be taxed where situated, as under present laws


These propositions vary somewhat from those sub
mitted two years ago. but have poor opinion of
man in active life VINO has learned nothing and has not
advanced his views during such term The same
principle however underics both plans, the difference
being chiefly in details


The first proposition herein stated is based upon the
fact that corporations the Of the STATE
and especially accountable to the State The cti
zen in his individuality older than the State, and in
some aspects higher than the State but corporations
neither and utterly subordinate and RESPONSE
BILE to the State. The system proposed nsures uni
formity both in the method of assessment and the
rate Of taxation upon tho classes into which corpora
tions may be divided The effect would be to subject
to taxation, light though 1t may be, hundreds Of mill
ions OF property which cannot be reached by present
laws


The second proposition is designed TO avoid compli-
cations as to investments in nontaxabe securities,
such as government bonds.


The object Of the third proposition is obvious. II is
to make taxation light upon organizations the purpose
of which is TO enable several men OF limited means
form corporation to do what one man of large means
may and does 1t is interest OF the poor man
and avors the cooperative organizations OF that class


The fourth proposition is conditional do not ap
prove the principle yet II may be expedient SO
urgent however IS the need OF immediate reform in
our tax laws that would even concur in what might
not tapprove.


OF the fifth proposition may be said that novel as
the plan may seem has precedents in the legislation
of the State. There personal property which
the law now makes taxable in one county and exempt
In another county 1t Is valuable suggestion IN tho
report Of the state Assessors that on certain condi
tons mortgages should be exempt from taxation in
New York city. Those conditions may not be admssi
ble but the principle involved this fifth proposition
is practically Endorsed by that suggestion. The plan
proposed recognizes the doctrine OF what is called
'local option" and applies II 10 taxation of certain
property The effect would be that the farmers
of the INTERIOR while relieved from the State tax upon
their lands, might If they chose, have substantially
the basis OF personal property upon which to dis
tribute their local taxes; this basis being diminished
only Dy sucn property as the state may take ior the
purpose of taxation very little Of which,
represented, is to be found in the strictly rural
tions.


OF the sixth proposition little need be said. 1t con-
fcrs boon upon the landed interest which that interest
should be quick to appreciate. The present laws for
assessing real estate would work we'll enough when the
incentive to irreguarity is removed proposed
the lifting OF the State tax from such property.


The seventh proposition explains ITSELF


1t is with dindence that mako these suggestions.
To formulate them into effective and practical law
would be serious task and call for the exercise of the
highest wisdom and the most enduring patience. But
something must be done Look at the growth OF the
State in nifty years; at the changes tho methods OF
business and in the habits OF the people, at the
ton of property in forms; at the devices In other
States the effect of which to sap the resources OF
this and at the progress made toward reform in tax
alton in adjacent States.


Then look at the miserable patches affixed from time
TO time upon the system which was but indnerenty
adapted to the requirements of the State fifty years
ago and If II is not high time for the State Of New
York TO reform her tax laws; to make them equitable,
efficient and productive; to cease complaining about
evasons which the law now provokes and favors; TO
let 90 Of that which you cannot hold and TO hold that
you may hold but do not owing TO the defects OF your
laws


The germ Of the system proposed was presented in
the able reports of Mr. David A Wells, and Mr. Isaac
Sherman has since pressed for reform taxation In
like general direction with singular ability. But lt
aud patience shall devote himself TO the work OF
reform Not patching but entire reconstruction Is
needed The hope OF obtaining satisfactory results
from the present broken, shattered, eaky laws is
VAIN It would be to expect highly useful returns
from the toll OF one who


Is dropping buckets into empty wells


And growing old in drawing nothing up.


No other State has such resources for taxation and
other has suffered its to utterly
waste for want Of judicious legislation


GEORGE II. ANDREWS.


NAVAL INTELLIGENCE.