Gross estate

“ Under the income-tax laws which prevailed in the past for many years, and which covered every conceivable source of income,-rentals from real estate,-and everything else, vast sums were collected from the people of the United States. ”

“ All these took a prodigious rise in all parts of the Union, and most men mistaking the effect of a redundancy of money for a real rise of price consequent on our increased [Pg 278] population and capital, believed that real estate was the best investment they could make of their money, and purchased it accordingly—looking for remuneration, not to the rent or immediate profit, but to that future rise in value which was inferred from the past. ”

“ Thus, in spite of the enormous increase of property passing at death, amounting to over 150 per cent, which is more than the increase in the income-tax income, the amount of property per estate has not sensibly increased. The increase of the number of estates is more than double, and greater therefore than the increase of population; but the increase of capital per head of the capitalist classes is in England only 19 per cent, and in the United Kingdom only 15 per cent. ”

“ But what comfort is it to the owner of a small estate, who is reduced to the necessity of selling it for what it will bring—perhaps for some such price as we see recorded in the transactions of the Encumbered Estates Court of Dublin—or to the farmer, who is preparing to carry his family and the remnant of his capital to some other land—or to the labourer, who finds his earnings cut down to 6s. ”

“ The various ways of taxing commerce, as by insurance, freightage, storage, lighterage, packing, financing, &c., have afforded, on the whole, safe and good returns on capital. In countries where family improvidence is prevalent, and where capital is scarce and dear, as is the case generally in the Far East, both the opportunity and the inducement to invest in real estate are afforded to those who are in a position to take advantage of them,—for the same conditions which bring property into the market provide the tenants for the new proprietors. ”

“ There was the house in which they lived, free of mortgage, which would bring at least thirty thousand dollars in the market; ten thousand dollars in bank stocks and other securities—solid, paying investments, and five thousand dollars’ worth of real estate—chiefly unimproved lots in a growing part of the city, that might be very valuable in time, if they could be held and the taxes paid. ”

“ But the property of business corporations, as rail-road, banking, insurance, manufacturing, and other stock companies, like that of individuals, is liable to taxation. Real estate, or real property, is land with the buildings and other articles erected or growing thereon. Personal estate, or personal property, consists of movables, as goods, chattels, money, and debts due from solvent debtors. ”

“ He proposed to form a large company, with a capital of £4,000,000; to buy a large estate, and to erect churches, schools, factories, warehouses, dining-halls, dwelling-houses, at rents varying from £30 a year to £300 a year ”

“ Thus before his land yields him one fraction, he will have invested eleven thousand pounds, if he clears the whole of his purchase. Many persons lose sight of this necessary outlay when first purchasing their land, and subsequently discover to their cost that their capital is insufficient to bring the estate into cultivation. ”

“ The simple and universal Pole keeps an account of the great Wealth and Strength of the Kingdom, the People.
(3.) Rating the Houses per Chimney, gives a good account of Improvements and Dilapidations.
(4.) Excize gives an account of Domestick Expences, and publisheth Exorbitances.
(5.) Land-taxes keep the Payments to the proportion of entire value, not of Annual Rent: So as an Estate in Housing pays no more than if it were in Lands, nor considerable less than Goods, and may bring Mortgages to their just contribution ”

“ In many parts of this country, perhaps in most, but particularly in the Western States and in the neighborhood of flourishing towns, these two methods of rating the pecuniary magnitude of real estate will habitually not coincide. Due allowance, often very considerable, being made, the capitalised rental value of the land may be taken as measuring its current serviceability as an item of material equipment ”

“ The wages of a common laborer were from fifteen dollars to twenty dollars a day, while real estate went up so fast in price, that few dared to sell, lest the next day should show that they had lost a fortune. One man, who died insolvent, but having, in his name a small tract of land, left after all a million of dollars to his heirs, so much did the lands increase in value before the estate was settled. ”

“ If he have not cash in hand to pay for the new purchase, he will mortgage his property to the amount of the price. In this era of capital the value of land goes on increasing, and so the mortgage will in time be paid off by the estate itself. ”

“ Thus a new estate and property sprung up in the hands of mortgagees, to whom every house and foot of land in England paid a rent-charge, free of all taxes and defalcations, and purchased at less than half value. ”

“ May not the term interest, contained in that enumeration, considered in its relative collocation to the terms rents and profits, be understood as equivalent with the word estate, especially when the terms rents and profits may be correctly taken to cover interest understood as mere revenue, and still more especially when we keep in view the previous purpose set forth in the deed,-that of settling on the feme, and subjecting to her disposition by deed or will, the whole of her estate, real and personal? ”

“ You will then sell all your annual increase, and the profits will be greater every year. At the end of ten years from this time, if, as I think probable, you will have had enough of this life, we will sell the estate. By that time it will be the center of a populous district, the land will be greatly increased in value, and will be equal to any in the country—so much so, indeed, that it will probably be out of the question to find a purchaser for the whole. ”

“ The market value of property is what it will bring when sold as such property is ordinarily sold in the community where it is situated; and the fact that it is its market value cannot be questioned because attributed somewhat to good will, franchise, skillful management of the property, or any other legitimate agency.
'It will, we think, be conceded that the earning capacity of real estate owned by individuals may be considered in fixing its value for taxation. Take an office building on a prominent street in one of our large cities. ”

“ Much more so is this true when the effort is to ascertain the value of real estate in the country, where sales are few, and where the elements which enter into and determine the value are so varied in character. ”

“ As rent ate up the fruits of a man's energy, under feudalism, interest and dividends do likewise under the modern system of industrialism, which has given to income-yielding property a permanence that rivals that estate held by the mediæval landlord.
There is one further feature of the property income situation which cannot be dismissed without a word of comment—that is the tendency of property income to concentrate in the hands of a small group of the population. The tendency is revealed by the record of wealth distribution in every society about which history contains a page. ”

“ The property of the whole people is for purposes of taxation a single estate, but the debt we have incurred, plus the capital represented by our ordinary taxation, is greater in amount than the value of the whole of the property of the people of the United States ”

“ They know that when that day comes it will not be best for them to have their enormous fortunes in such get-at-able property as real estate, in which so many of the legitimately acquired American fortunes are invested. ”

“ It further provides: 'The term 'real property' as used in this compact includes lands, * * * and interests in land, * * * and any and all things and rights usually included within the said term, and includes not only fees simple and absolute, but also any and all lesser interests, such as easements, rights of way, uses, leases, licenses, and all other incorporeal hereditaments and every estate, interest or right, legal or equitable, including terms of years and liens thereon by way of judgments, mortgages, or otherwise, and also claims for damage to real estate.' N.J.S.A. 32:8-4. ”

“ But the man who has a country estate bordering on the property is willing to pay the company a small sum just to round out his estate, and your interest in it we calculate would be about two hundred dollars. ”

“ He may change from one line of business to another, but may not buy or sell real estate for mere speculation. He may not acquire property other than his earnings until he reaches maturity, and designs to marry and become the head of a family. If his intent fail, or remains unfulfilled for three years, the home thus acquired becomes public property, and may be sold to another who assumes the marital relation, and the proceeds divided equally between the municipal treasury or bank and the former owner. ”

“ When tired we have taken a look round the estate to see what was growing, learn the shape of it, and its capabilities with more minuteness. It seems to be agreed on all hands, and we have opinions from many practical men, that we have not made a bad exchange, even in the commercial sense, of our cash for land. ”

“ Under these conditions, while enormous amounts of capital in the aggregate have been invested in agriculture and urban real estate, the former has suffered relatively in comparison with transportation, manufacturing, and speculation. ”

“ I think it very clear from thousands of examples that an estate is valued ‘as a going concern.’ The question that the jurors put to themselves is: ‘What will this estate bring in, peopled as it is and stocked as it is?’ In other words, they do not endeavour to make abstraction of the villeins, oxen, etc. and to assign to the land what would be its annual value if it were stocked or peopled according to some standard of average culture. Consequently in a few years the value of an estate may leap from one pound to three pounds or to five shillings or even to zero. ”

“ People are now flocking in here in considerable numbers, either to settle or to make investments in real estate, in the hope and expectation [Pg 225] of realizing a fortune by the rise in the value of property. We have dally stages from the east and south, and they generally come loaded inside and out to the extent of their capacity. The land-office is crowded both by settlers and speculators eager to enter the choicest lands remaining unsold. ”

“ The money kings over-reached themselves by encouraging people to secure loans and pledge their real estate for interest and principal, and then by contracting the circulation in order to increase the purchasing power of the money which they received as interest. As long as only a minor fraction of the land was mortgaged the interest was promptly paid, but a time came when nearly all of the lands were mortgaged and the people were compelled to force their products on the markets all at once to get money to pay interest. ”

“ Say property to the value of not over five hundred thousand dollars to the wife, of not more than one hundred thousand dollars to each child, and of not more than fifty thousand dollars to any other relative, extending to the third or fourth degree, and that the balance of the estate should escheat to the State, to be used by it for the support of schools, charitable institutions, the employment of laborers in making roads, and other good purposes. ”

“ By using their real estate as banking capital, they can not only get an income from it, in the shape of interest on money, but by supplying capital to mechanics and merchants, they create a large class who will pay high prices for agricultural products, and high prices and rents for manufacturing and commercial real estate ”

“ Right of Way and Real Estate.—The valuation work which has been accomplished during the past decade, and the study of values for taxation and rate-making, have brought into prominence the perplexing features of land values as applied to corporation property. It is comparatively simple to fix within very close limits the reproduction cost of tracks, bridges, locomotives, or any of the other elements of physical structure. ”

“ In arriving at the total value of the shares of stock of such corporations, the amount of their capital actually invested in real estate, owned by them, shall be deducted from the real value of such shares, and such real estate shall be assessed as other real estate, and the property of such corporations shall not be otherwise assessed.↑ Sec. ”

“ It would not be difficult for the estate's executor to realise a vast sum in short order on instantly marketable, gilt-edged securities—say, half a million dollars. Not very bulky either—in large bills! ”

“ When real estate rises in price, the benefit accrues to the man who has lands and lots of houses to sell or to let. When provisions or clothing or boots and shoes rise in price, the benefit accrues in the first place to those who have stocks of provisions or clothing or boots and shoes on hand for sale ”

“ On the other hand, all kinds of real estate fall in price under a scanty currency, for these reasons, to wit: Agricultural real estate falls, because, manufactures having been in a great measure stopped, and the manufacturers driven into agriculture, there is little market for agricultural products, and those products bring only a small price. ”