charges made by the municipality for or in respect to the consumption of water, as and when bills therefor are rendered. If the demised premises or any part thereof be supplied with water through a mater which supplies other premises, the Tenant shall pay to the Landlord, as and when bills are rendered therefor, the Tenant's proportionate part of all charges which the municipality shall make for all water consumed through said mater, as indicated by said meter. Such proportionate part shall be fixed by apportioning the respective charge according to floor area against all of the rentable floor area in the building (exclusive of the basement) which shall have been occupied during the period of the respective charges, taking into account the period that each part of such area was occupied.

TWENTY-SECOND.—It is expressly agreed that if, in consequence of the use of the demised premises for manufacturing purposes, any Municipal or State authority requires alterations of or additions to the demised premises or the building of which the same are a part, the Landlord shall have the option of terminating this lease by giving sixty (60) days' notice in writing to the Tenant, mailed to or delivered at the demised premises, and upon the expiration of said sixty days the term of this lease shall cease and the Tenant shall immediately vacate the premises and the Landlord shall refund to the Tenant the unearned pro rata portion of any rent paid in advance, if any; the Landlord reserves the privilege of complying with any order, rule or regulation in order to remove such violation, if any, and in such event the Tenant waives all claims for damages growing out of the work in the building or the premises required to be done in order to meet the requirements of such order, rule or regulation. In the event of the Landlord not desiring to comply with the necessary work in order to remove such violation, the Tenant is hereby granted the privilege of doing the necessary work under the supervision of the Landlord at the Tenant's expense and without the right of making any claim for damages caused by the necessity of doing such work; in the event that the violation can be removed by the Tenant conforming to the terms 'thereof by limiting the number of employees in the demised premises and the violation is placed on said premises by reason of the fact that there are more employees than any department or bureau will permit, the Tenant agrees upon notice of such violation to

LABOR

LIGHT

immediately limit the number thereof in accordance with the order, rule or regulation of any such department or bureau, and no claim for damages or any loss whatever shall be made in any event by the Tenant against the Landlord.

TWENTY-THIRD.-The Tenant agrees to pay for all electricity used upon the demised premises by it at the same rate it would pay to the New York Edison Company, provided it had an individual contract with such company, upon rendering of bills by the Landlord and to be paid at the same time after such bills are rendered as monthly rent is paid and in default of such payment the Landlord to have the same rights and privileges as it would have as if default had been made by the Tenant in payment of rent.

THE LANDLORD COVENANTS:

FIRST.-That if and so long as the Tenant pays the rent and "additional rent" reserved hereby, and performs and observes the covenants and provisions hereof, the Tenant shall quietly enjoy the demised premises, subject, however, to the terms of this lease, and to the mortgages above mentioned and provided for.

SECOND. That during all usual business hours, on all days except Sundays and holidays, the Landlord will furnish elevator service, and, during the same hours on the same days in the cold season in each year, will furnish steam heat for the demised premises, but the Landlord reserves the right to shut down either or both of such services at such times as may be necessary by reason of accident, alterations or repairs desirable or necessary to be made.

IN WITNESS WHEREOF, the parties hereto have duly executed these presents the day and year first above written

PART VII

CHAPTER XXXVI

TAXATION

By FREDERICK DAVID BIDWELL 1

Government cannot exist without revenue, and this revenue is largely raised through taxation. Taxation is a compulsory contribution from the person to the government to defray the expenses incurred in the common interest of all. Property, whether real estate or personal, as such, owes no duty to pay taxes. The state has direct relations not with property but with persons. It is the individual who, from the fact of his existence within the state, is under definite obligation toward the state to protect and support it. The basis of taxation should be the ability of the taxpayer, whether that ability is measured by property or income. Thus, there are property taxes and income taxes, supplemented by business taxes levied on the earnings of industry.

Development of Taxation.-In the early days of the republic, state and local revenue was practically all obtained from property taxes, and this form of taxation today still supplies most of the revenue of the state and municipal government. Property taxes are apportioned according to the value of the property upon which they are levied.

Assessment.-Assessment is the valuation placed upon property by officers selected for that purpose and known as assessors. In England, real estate is seldom sold but is leased out, and so the assessed value has been altogether upon the actual or conceded rental value of the land. This has developed an abuse, in that it has encouraged land to lie idle and receive a nominal assessment. In America, where prop

1 Frederick David Bidwell, Albany, N. Y., has been, for twenty-four years, the statistician for the New York State Tax Department. Author of "Taxation in New York State," and "Special Assessments in the United States."