Daily Kennebec journal., 1893-03-02
he carried think .ha, the tax committee

( IL wouldn't hurt them to hit.
The gentleman from Piseatsqais says
that we have done nothing here as yet
towards Increasing the reyenar, bm |
think that saw i'll the papers lately thst
one of the acts passed. at this session ~ i.
bring in an additional $40. 600 to the treas
ury this year.
| think am not GU, Of the way when
say that l.2 per cent on the net proceeds
of their business is no more than fair rate
of taxation, and that double that amount
would be an injustice.
/ The motion of the senator from penoh-
scot to indefinitely postpone was then put,
and was lost.
1 On motion of MIR. Mallet of Cumberland,
! the matter was then laid ON the table and
tomorrow assigned for its further consider
alton.
| On motion of Mr. Seiiers of Cumber-
land. House document No. l07, an ac; re-
lating to the taxation of corporate fran
chises, was taken from the table.
Mr.. Seiders In presenting this matter,
| | would move, first, that we concur with the
House in indefinitely postponing this bill,
| presume that of all the matters which
have come before the tax committee this is
the one of which there is the least known
about. | have no question of the good
faith of the tax committee. have no
question at all from the facts which they
got before them but that they reported a
bill which seemed to them TO be fair AMI
just. But ihink l shall be able TO con
vince the Senate that beyond any question
rather than being benefit to the State this
bill would be the reverse. As a matter of
theory it looks well, as u matter of expert
ence | contend, from my own experience
and from the experience of many brother at
torneys, that the State will be loser
from the course of procedure proposed
by this bill. These corporations come TO
Maine not because there is no other place
TO organize, not because they love the State
but because it is an advantage TO them.
When the advantage to them becomes less
than that of some other state they will 90
to other states to incorporate. do not
wish at this point to go into the figures and
details of the matter. simply wish TO
say now that from my own experience it
will not only be detrimcnt TO the State, a
loss to the State, hut that it would occasion
A loss of money that would come into the
State collaterally. know of one
instance where corporation
came into the State to organize,
and while here they heard of plant
that they could have. They took 1t, and
are now engaged in a profitable bust
ness which is taxable in this State So
that when we throw a corporation out of
the State We do not know how much We
may lose. will not present this matter
further at this time, but if necessary will
90 into the details further later on.
Mr.. DecriDg of York | cannot of course
meet the gentleman from Cumberland with
an argument, but wish to say just word.
This bill is the child of the tax committee.
1t was sent into the House. and ii appears
that il came ont of that hallowed place
without any clothes. They almost killed
the poor chill there after taking every rag
from it. II seems to me that it would be
wisdom on the part of this honorable body
to recloth it and send il back, and then
think it would receive more favorable treat
ment.
This bill provides that every corporation
organized in this State shall be taxed S2j.
1t will include every corporation now or
hereafter chartered, with few exceptions
But it does not Apply to Il single corpora-
ton within the State. The
gentleman from Cumberland has
made a sort of personal appeal. know
that it might affect the business interests Of
the attorneys of this State. The reason of
the defeat of the bill in the House | leave
to the Senate to judge for themselves. 1t
seems to me that any corporation that
comes in here to be organized can afford to
pay pittancc of S25 AS a fee for the privi-
lege. Several attorneys appeared at the
hearing and the committee heard
them, and this bill was supposed to be
compromise bill 1t was SAID there that
if we passed this bill all corporations would
90 to West Virginia to organize, where it
was cheaper. We took the pains to write
to West Virginia, and we found that the
annual tax there was $50, and the commit
tee thought that there would be no obiec-
ton to a bill which would impose a fee of
half that amount. In New Jersey there is
a tax of LILO of per cent. on the capital
stock of corporations. do not believe
that this bill is so bad AZ has been repre-
| sented. 1t was not the intention of the
committee to introduce bill here which
| would injure any profession in the State.
This small pittauce is asked for to help to
help to pay the expenses of the State.
There are 2000 corporations living on the
books of the State, which would give lis a
revenue of S50,000. The only argument
used against this bill is that it would drive
| these corporations away.
We are willing to have this bill amended
if is right aud necessary that it ought to be.
We are willing to have sec. 2 and sec. 3
amended if it is agreeable to the gentlemen
who now oppose it, But we do not pro-
pose TO give up one dollar of this tax if we
can help it. ! will dare to say that this bill
I h., , al, ~, m tho ni
our State.
Mr.. Swanton of Sagadahoc 1t seems TO
me that this is a similar case to that last
under the consideration of this Senate.
There seems to be wish to tax something
but when we come to put our finger on 4
particular thing there seems 10 be "A dl>in
cination to be the particular man who j.
taxed Everybody wants somebody else
t. be taxed. We have patiently hear,
tie gentlemen who say the State woul
lose and they say that this tax will drive
these corporations away. Ii don't think il
viii. The committee had another objec
in view when they framed this bill, ant
that was that this tax would enable thu
State to keep the run of these corpordti ,n7
so that we should have some sta
iistics as to these corporations
This small tax of 80, would assist in d1ing
this, and we should know what the value o
these franchises was. II seems to mr tbs
so5 is not tax which would prevent an
company from doing business.
Mr.. Seilers: | wish to say Il few NOR,
words in relation to this matter. IL /.
WE'LL known fact to every member of ih
Senate tba, business is being more an,
more done by corporations. All classes o
business are being done under corpor
ate forms. That Of course brings about
large number of corporations. We have
reaped from these corporations in year
past a great advantage. The tax We hsv'
received from these corporations has beer
easily collected, in fact there is no tax tba
comes into the treasury that comes easier
Men come here to orsanize because tber'
is an advantage for them TO do SO. II q,
advantage is taken away they will go else
where. The Law passed two years ago in
creased the tax on corpo 'ations anil the re
suit was decrease in the number orgs's
. ized. In 1889 there were organized I3 80
/ foreign corporations, in 1880, 1925; il
/, 1891 this Law which spoke o
was in force and there were osI
~ ,260 organized. In 1892 there were %.
COS. bat that number does not come up t
the increase which existed prerinus to ill
amendment of the law made iB 1891. /
view of these figures do not think it we
, that we should again increase the tax. Tn
very first question asked by any infendn
, corporation is, what is the fee and
, there an annual tax: II there is We will z
elsewhere to organize
In West Virginia the only expense Of ol
, ganizing il - 30. and only few paper
: have to be sent there. The annual tax
. $50. II will be seen that there the expens
Of organizing il far less than it is here