, 1875-08-19


inferior ti,,ntities of sugar, eoffcc, and to-
bacco, mud tint tho army in tho samo region
il supplied with beef Of better quality nnd
at lower ratc t'nn tic Indian Bureau Now,
will tho Commission please keep right IN nn1
tell why nnl wherefore these things arc?
------~.
MULTIPLYING THE AMENDED TAX-LAw.
Tie Attorucy-t;e'icral Of this stato l,as
just given nn opinion to the Stnto Doar.l Of
Equalization wI'irl, promises to bo rich
harvest for the legal profession, II tho Stnte
will he at least 6,OO0 s1,its instituted. md Mt
The end tic State viii lose the double tax it
seeks to get. The facts leading MP to this
amendment 1nny he Tins stated:
The Stnto Revenue law Of 1872 provided
That, in addition to the tnx OH all the tangible
prorcrfy-roai md pcrsonal-of every indi-
sitlt,nl and corporation in tho State, the Statc
ASSESS and valne, for taxation, tho capital
stock, credits, and franchises Of nil corpora
tions Of all companies created under tho lawa
Of this Statc. For their government in
making this assessment tho Donrd was
authorized to mako rules and regulations,
which rules were to Aaye tho snme force rs
law. Under this net thu Stato bon1d hns.
since the date OF tho law, nssesscd ansl
valued for taxation the capital stock Of
railroads md other corporations upon tho
following plen:
TAr Il. Il. Cpmpnnu: ......
fnlue Of tangible Property. t100 So
yaine Of rar!tal stock. .tl51ouo
Amount OF debts-... OBSERVATION-DISCLOSURES. to0oo
ya1uc nf Nnc and !sanrhtss. .$Y0nNa
Deduct tangible property. ....... 100000
yaiue Of s,eek over tsngs'e property 500 600
Tho company would therefore bc taxed
first upon its act,lnt property. aud SECOND
upon tho excess in vnlnc Of its capital stock
aud debts over aud above its property. paying
tar III all upon 100000 The Supreme
Court OF Illinois, upon arpeal, affirmed tie
legality Of this monstrous mode Of nssess-
ment, holding that it WAS lawful to add tho
indebtedness TO the valve Of tho stock, on tho
assumption TINT tho debt represented prop
erty.
This law, as it was enacted in 1872, aud ns
it stood until July /, 1877, included all
corporations (erceFt banks, which were pro-
yitled for otherwise) created under general
mud special iaws Of this State. It's oppressive
workings may bo illustrated by takug tho
caao of firm of five persons doing business
under tho name Of JONES j. Co., mud corpo-
ration consisting OF fivo persons doing tho
same business under tho title Of tho BM1ru
Manufacturing Company. Assuming TINT
each Ind $10O, 900 cash invested In buildings,
machinery, and materials, and that each owed
$50, 600, the assessments OF the two concerns
for taxation would thus comraro:
/. JONES l. Co. would bo assessed:
VI personal pfopeFfT.... ''..,..'......... oJ00o
Total. ..:."...,.... .t1oo.up
Doduct asbta.. 60.0n
Amount 10 10 axe0...............- t3.021
Ia.e Of tax, % mills ......,.,...$ 1000
2. Tho Smith Manufacturing Company
won1d be assessed after the following fashion:
Heal eftatc...; Soon
Amount Of pl.n............... .tloo oo,
tsna.t ;no
cana, atoek anil dohts hts......-.-........ f4.o IN, :,
Excrs, of c,pt.l ,toek. stc.. over t,uv{,i,
,,wemry...:: .slsa 600
"''' ''S''' ''0's1 ''''''''''''''''' W .-o.oN
Amount to he 900
Tax Ut 20 mills. ACKNOWLEDGEMENTS. ....,.s 5000
Icro in a caso. an,f it in q common one,
.a,,... 49,. ,....s..,;. H,,:.. 49,, LIZ
""o.o .t'o eo'Po'"eoA '"iA"H 'au ''''t4'hs
precisely tho Ban,o amount OF property as a
IT,. \ +. 1. 1. :
to~,1 tho~oan o.. ,;n~. H., o,,.un. t,,at ~
49,, 49, ~ '..''s ~
wonlo nave peoh ta1su I'M 's not beoa do'ng
business under corporate name. Tho result
Of this discrimination ngaiust corporations
waa disastrous. It made combination of