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There should be no reason for dealing differently with associations and individuals, for no injurious franchise should be granted, and charter privileges properly guarded should be easily accessible under general laws. The reason usually given for a different policy lacks force, for a monopoly is the one thing that cannot be made to pay compensatory taxes, and it will always be able to shift exceptional burdens from its own shoulders to those of others. With the strong as with the weak, equality is the only safe rule. There is no power or privilege conferred by law upon an individual or association which may not be equitably taxed according to its value, for any value it possesses will take a tangible form in something which may be appraised like any other property.

Let State taxes be paid directly, and not indirectly, according to the value of all possessions, by everybody, and the strong will pay no more than their share, with which they will be content, and the burden upon the weak will be cheerfully borne, because it will be equitable; while all classes and interests and uses, business, social, charitable and religious, will be concerned to see that there is an honest and economical expenditure of the revenues to which all alike contribute. Is it possible to achieve this reform? Should we not be able to look into the revenue system for the lineaments of the State, without being confronted with the likeness of the coward, the demagogue, and the bandit? And if the State could be thus ennobled would it not elevate the manhood of the citizen? Is it too much to hope that we may be rid of the embarrassments, annoyances, injuries, evasions, corruptions and perjuries which characterize the enactment and administration of our tax laws.

What proportion of moneys at interest is returned for taxation? Who lists his stocks in foreign corporations for the assessor? What percentage of the taxable fees of officers is reported to the auditor general? How many corporations are there who fail to make returns of income? How near is the valuation of real estate to its real worth? What amount of property has, upon fraudulent pretexts, been exempted from taxation in the city of Philadelphia alone?

In the assessment of direct taxes upon real and personal property an effort has been made to apply the rule of equality. I will

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not quote here at length the oath which each assessor is oblige to take. It binds him to discover all objects of taxation, and to honestly value each piece of land, with its improvements, and all taxable personal property at the rate or price which he shall believe it would sell for if sold singly and separately at a bona fide sale after full public notice. Plain as its provisions are they are generally disregarded, and property is assessed in many counties throughout the State at from a third to a fifth of its value, but as there is no standard when that fixed by the act is abandoned, there are the most flagrant inequalities, the lands in one part of a county being often assessed much lower than in another part, and pro. perties lying along side of each other may be rated, the one at a fifth of its real worth, another at a fiftieth, and another at its full cash value. In such case the power of revision on appeal lodged in boards of county commissioners may be invoked in vain, for the suitor, not in favor in this peculiarly informal, irresponsible, and usually partisan court, may be obliged to say that his property, though rated out of all proportion with that of his neighbors, is not as high as the price he would be willing to take for it. The law which should be his security is invoked for his defeat.

This vicious practice on the part of assessors grew up when lands were subject to a State tax, and was the result of a patriotic effort of each officer to protect his neighbors and constituents against the demands of the State, and it is maintained from habit, or for a defense against county rates since the State tax upon lands has been repealed. It is of such generality and antiquity that it is an authoritative interpretation of the assessor's oath, and it will be difficult for that reason to effect a reform.

In the general system of collecting taxes great improvements may be made. The plan of making the county treasurer the receiver of county taxes has been tried in some counties, and is found to be better than the general system of appointment of a collector for each district by the county commissioners. This power of appointment is often used to reward active township politicians for services rendered to a candidate or the party, and men who are defaulters and bankrupt have been kept afloat by reiving a new duplicate to enable them to settle their indebtedness on an old one, a practice which, like others of which there is occasion to speak, is directly contrary to law.

Usually in each township and borough there is a collector of county rates and levies, a collector of school tax, and a collector of borough or road tax; a system which is full of evils. Generally neither of these officers has enough to do to justify him in attending to his duty, and as a consequence he gives it attention but now and then, or neglects it wholly, and there is consequent embarrassment and loss. There is the further evil that citizens are unable to find out who the collectors are, or to be certain that their taxes are paid, and I can instance the case of one proprietor who is obliged to see and settle with thirty-six collectors in paying taxes on lands lying in a single county of the commonwealth. The evils of this method of collecting taxes are intolerable, and instead of altering it by special and local laws, and patching it a bit now and then, a general and thorough reform should be made.

As many of the wrongs attending the assessment and collection of taxes are contrary to existing laws it will be doubted if they can be remedied by law. It may be asserted that the voluntary system is a failure, and that elective officers cannot be trusted with duties which are unpleasant and which may render them unpopular. It has been proposed to constitute a bureau of assessment, which shall also be a bureau of statistics, in charge of a commissioner having his office at the capital of the State, with assistants in each county, appointed by himself and subject to his directiou and control.*

This idea is worthy of consideration, but I am so strongly in favor of the elective system, that wherever it has once been established I dislike to abandon it. It seems like taking a step backward to do so. I think it has justified itself even where there was most doubt of its utility, as for instance in the case of the judiciary of the commonwealth, though the judges who have failed of a re-election would probably file a dissenting opinion..

The necessity of a general revision of the tax laws has been strongly impressed upon the people, and as far back as 1862 the Legislature appointed a special committee of its body charged with the duty of performing this work, which appointment was from time to time renewed.

*Form of bill prepared by Hon. D. J. Morrell, and partially adopted by a committee of the Legislature.

A bill was finally reported. It was based upon a careful examination into the resources and expenses of the State, and would be useful to any committee newly charged with the subject. It failed as a matter of course, for our representatives were at that time too busy passing private bills to give any consideration to a measure which was merely for the common good. Other legislative committees have been appointed since then, but they have accomplished nothing beyond the consolidation of the laws imposing axes for State purposes.

taxes.

The preparation in detail of a reformed tax system for the State involves much labor and should be conducted in accordance with a constitutional provision requiring the equal taxation of all property at its market value, and carefully prohibiting duplication of Examination should be made of the codes of the different States and inquiry into their operations. The system provided for the city of Philadelphia should be considered to see how far it is adapted to general use, and criticism upon it should be solicited. It is not advisable to seek for novelty, and the few suggestions which I shall make have no claim to originality.

Every inhabitant should be required annually to list* his property, real and personal, with his valuation of it, to be sworn and delivered to the assessors under proper pains and penalties for negligence or fraudulent concealment of goods. These lists, when consolidated, should be opened to public view and subject to correction upon notice and by evidence, and should contain in detail a statement of the amount due from each tax-payer. One person in each county or district should be charged with the collection of the lists when adjusted and settled, and there should be discounts for prompt payment and penalties for negligence. Copies of the consolidated assessments of each county should be forwarded to the auditor general for consolidation and publication, and his office would thus become a bureau of statistics, and the financial officers of the State would have accurate knowledge of the resources and local burdens of the people of the commonwealth.

It would be necessary to set apart certain classes of property to be returned to the auditor general and taxed for State purposes only, and it may be supposed that there will be difficulty in applying to them the rule of equality. One per cent. upon real and *To list is to enter upon a schedule.

personal property at a just valuation should be amply sufficient for all purposes, and it is as large a burden as should be imposed. I would favor a constitutional provision making this the maximum rate for State purposes, and providing that it should be reduced to the average rate of taxation upon other property when this average rate is below one per cent.*

In the schedule of property to be taxed for State purposes alone there will necessarily be placed railroads, canals, banks, telegraph, express and transporting companies, insurance agencies, and other natural and artificial persons having property distributed throughout the commonwealth and inseparable from privileges on fran chises, or in some cases having nothing taxable except the earnings of business.

The case of a railroad company is probably as difficult as any other, but its property is never worth more than the average value of its stocks and bonds, from which the value of all its property that is severable from its franchises and liable to local taxes should be deducted, to get at the valuation upon which it should be taxed for State purposes. I would propose this in lieu of all other direct and indirect taxes, such as the tax on capital and gross receipts and tonnage and coal, etc.

It may be that no railroad company pays directly into the treasury as large a sum as the maximum rate of one per cent. upon its property would amount to, and my proposition, if deemed at all worthy of attention, may be regarded with disfavor by the managers of this most important and powerful interest. A ten per cent. stock pays one-half of one per cent. upon capital under existing tax laws. Nearly one-half per cent. more must be made up now by the various other taxes mentioned above, by local taxes upon real estate, and by indirect exactions of various kinds which it would not be advisable to particularize. I doubt if the burden upon this interest would be increased even if taxed at the maximum rate, and it would be something to be safe from mercenary assaults, to be free from the necessity of placating petty and prominent officials, hungry politicians and scheming demagogues. Under the

*According to the estimates of the Census Bureau this is now less than onehalf of one per cent. of the true value of the real and personal property of the State, which will be reported at $3,808,340,112. The total amount of taxes except State and National, will be reported at $18,731,225.

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