History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial TimesMyers, Gustavus
History
History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial Times
Myers, Gustavus
United States -- Economic conditions; Wealth -- United States
Occasionally, however, some fragments of facts were brought out by a
legislative investigating committee. Thus, in 1890, a State Senate
Committee, in probing into the affairs of the tax department, touched
upon disclosures which dimly revealed the magnitude of these annual
thefts, but which in nowise astonished any well-informed person, because
every one knew that these frauds existed. Questioned closely by William
M. Ivins, counsel for the committee, Michael Coleman, president of the
Board of Assessments and Taxes, admitted that vast stretches of real
estate owned by the Astors were assessed at half or less than half of
their real value.[158] Then followed this exchange, in which the
particular "Mr. Astor" referred to was not made clear:
Q.: You have just said that Mr. Astor never sold?
A.: Once in a while he sells, yes.
Q.: But the rule is that he does not sell?
A.: Well, hardly ever; he has sold, of course.
Q.: Isn't it almost a saying in this community that the Astors buy
and never sell?
A.: They are not looked upon as people who dispose of real estate
after they once get possession of it.
Q.: Have you the power to exact from them a statement of their
rent rolls?
A.: No.
Q.: Don't you think that ... if you are going to levy a tax
properly and fully ... you ought to be vested with that power to
learn what the returns and revenues of that property are?
A.: No, sir; it's none of our business.[159]
This fraudulent evasion of taxation was anything but confined to the
Astor family. It was practiced by the entire large propertied interests,
not only in swindling New York City of taxes on real estate, but also
those on personal property. Coleman admitted that while the total
valuation of the personal property of all the corporations in New York
was assessed at $1,650,000,000, they were allowed to swear it down to
$294,000,000.
Here we see again at work that fertile agency which has assisted in
impoverishing the masses. Rentals are exacted from them, which represent
on the average the fourth part of their wages. These rentals are based
upon the full assessment of the houses that they live in. In turn, the
landlords defraud the city of one-half of this assessment. In order to
make up for this continuous deprivation of taxes, the city proceeds time
and time again to increase taxes and put out interest-bearing bond
issues. These increased taxes, as in the case of all other taxes, fall
upon the workers and the results are seen in constantly rising rents and
in higher prices for all necessities.
LICENSED PIRACY RAMPANT.
Was any criminal action ever instituted against these rich defrauders?
None of which there is any record.
Public-domain text, read in full here on John Shaqi.
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