The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-05-27
THE sEw TAX Law AsD CORPORATIONS.

The Upton Times publishes a letter
from Attorney general Smith In answer
to n from the editor in regard to the
changes made by the new law in the
taxes on corporations. The Attorney
general says:
There 10 nothing in the charge that rail-
road, telegraph. telephone and other cor
porations have been favored In the new tax
law. This charge originated with the In,
annapolis Journal. aud was Dottomeo
wholly upon Journalistic hct1on-more
commonly known as falsehood. One OF the
representatives of that paragon of high
protection and indiscriminate robbery OF
the people by q system OF federal taxation
promoted for the enrichment OF the few
and the impoverishmept of the many, ad-
mitted to me that the charge was false, but
that it would serve TO deceive and hum
bug the farmers. who were easily made
believe q falsehood, and, once believing,
were hard to be convinced Oh the truth.
He also said that the new tax law was
right and would prove beneficial to the
State. but il would be the policy OF the
Journal to make is appear that the farmer
was injured by it, that taxes were Increased
enormously on the people while the corpo-
rstions were released from their share of
the burden. All this was to be done to di-
vert attention from the "robber tariff" and
the record of the late biilion-dollar Con-
gross. lie 8uD8b0uCo Il lie o0ni olO Id
that Republican newspapers IN this State.
following the example OF the journal, In
the next campaign. will promulRate q sys-
TEN of falsehood, by which the people are
to be deceived and led astray.
This statement is utterly false. No
representative of the Journa ver made
any such admissions as Smith says were
made to him. The entire statement is
a plain, unadulterated lie, such as Smith
is in the habit of peddling on the stump
in campaign times.
Smith says ''there is nothing in the
charge that railroad, telegraph, tele-
phone and other corporations have been
favored by the new law" The Journal
has never said that railroads were spe-
cially favored. The new law makes no
changes in their favor. AS to other
corporations, we cite the law itself. As
likely as not, Smith has never read it. or
if he has probably he could not construe
it.
The act of March 9, 1889. concerning
the taxation of express companies, Acts
of 1889, page 272. requires them to make
a report of their gross receipts on bust
ness done within the State, and a
upon the filing of such report in the
Office of the Auditor of State such car
rier shall pay into the treasury of the
State a sum of money equal to 9 per
cent. of the aggregate gross receipts, as
shown by such report" The act of
March 6, 1891, Section 60, requires ex-
press companies to make report of re-
ceipts on business done within the State.
and says: "When such statement is
made such express company shall, at the
time of making the same. pay into the
treasury of the State the sum of 81 on
each 800 of such receipts; provided,
that the amount which any express com-
pany actually, pays to the railroads
within this State for the transportation
of their freight within this State, and
the amount of wages paid to employees
within this State, and the amount paid
for the purchase of tangible property
within this State, may be deducted from
the gross receipts of such company, as
above ~ascertained.n This makes the
taxation on the net receipts instead of
the gross receipts. No such deductions
were allowed under the law of 1889.
The law of 1891 reduces the taxes on
gross receipts of express companies from
Q per cent. to / per cent, a reduction of
80 per cent.
The act of March II, 1889, concerning
the taxation of telegraph companies,
Acts of 1889, page $50. requires every
telegraph company doing business in the
State to make to the Auditor of State a
report of it's gross receipts on business
done within the State, and says: "Upon
the fling of such report in the Office of
the Auditor of State. such carrier shall
pay into the treasury of the State a sum of
money equal to 2 per cent. of the aggre-
gate gross receipts, as shown by such re-
port" The act of March 6, 1891, re-
quires the companies to file q report of
their gross receipts, and says: when
such statement is made, such telegraph
company shall, at the time of making
the same, pay into the treasury of the
State the sum of one dollar on each one
hundred dollars of such receipts" The
law of 1891 reduces the taxes on gross
receipts of telegraph companies from 2
per cent. to 1 per cent, a reduction of so
per cent.
The act of March II, 1889, concerning
the taxation of telephone companies,
Acts of 1889. page S97, requires such
companies doing business in this State
to make an itemized report of their
gross receipts on business done within
the State. and says: upon the filing of
such report in the Office of the Auditor
of State. such company shall pay into
the treasury of the State q sum of money
equal to | per cent. of the aggregate
gross receipts as shown by such report"
The act of March 6, 1891. requires tele-
phone companies to make a report Of
their gross receipts, and says: "Such
corporation shall, at the time of making
such report, pay into the treasury of the
State the sum of 25 cents on every 500
of such receipts" The act of 1891 re-
duces the taxes on gross receipts of tel
eph0ne companies from 81 on the hun
dred of gross receipts to rs cents on the
hundred, a reduction of rs per cent.
The act of 1889 affixed a penalty of $50
for each and every day that the CON-
pany failed to file its report and pay its
rD