Middletown transcript., 1897-12-25
THE ADAMS LAW.

(
Chapter 2814 ian act TO e1ualize tax.
alton for State and county purposes
passed May 20th last by the General AS.
sembly of Delaware is receiving consid.
cradle attention now from the public
press and from persons affected by it. II
isknown as the Adams Law, having been
introduced by Representative Adams
of Kent county, but it is understood to
have come from John +. Salisbury,
Esqr., who has been working for years
to put such a law upon the statute
books.
The object is without doubt a
good one and proper one: that all
property paying interest shall share in
taxation. The fear has been that to
attempt TO tax investments would be to
place an additional tax on the debtor
class, the creditor class being judged as
Shylocks who would demand the last
pound of flesh making the tax to fall
finally on the debtor.
Section l. makes it the duty of the
assessor to assess at three fourths their
actual cash value all Investments pay
ing interest or yielding an income and
not now taxed for either State or
county purposes.
We quote Section 9:
SECTION 2. Under the head 'Invest-
mentsp the following kinds are included
Ali bonds for the payment Of money, mort
cages, stocks of every kind, not herein ex-
pressly excepted; all judgments. recogniz-
ence and DEGREES for the payment of money;
az Judgment notes and certificates of in
debtedness Except such as are given in
good faith for goods sold and delivered, for
wages and such Judgment note or other
evidence of indebtedness, as may be given
for short periods in the course of business
and not used or intended as investments);
all alienation bonds bearing interest. or
when the inter est is included in the body
thereof; all interest-bearing loans to any
person, firm, company, limited partner
ship, banks, banking association and cor
poration Of whatsoever kind, whether do
ing business in this State or elsewhere.
Payment of interest in advance or adding
ito the principal shall in no case exempt
the lender or creditor from, the payment of
the tax. The following are excepted and
excluded from the operation of this act
All loans and evidence Of indebtedness of
the United States, of the State of Delaware
or of any of the counties thereof; ofreIig-
ious or benevolent associations whose real
estate is by law exempt; and of such other
securities as are now express provisions of
law; all loans which are made to local
manufacturing companies. hypothecated
upon the real estate of such companies,
when their real estate is expressly exempt
by law; all stocks, bonds and mortgages in
educational, charitable. benevolent or cem-
etery institutions, whether incorporated or
not, and all Investments by savings banks
and shares Of building and loan associa-
lions and investments made by them.
Section 8 provides that all property
shall be taxed whether held within or
without the State, except that property
taxed elsewhere shall be exempt here.
Section provides that the President
and secretary of all corporations com
ing under this law shall make report
nnder oath on Dec. 1st. Of every year.
Section 5 provides penalty against
corporation officials fail ing to observe
Section 4.
The next section Is as follows:
SECTION 6. The intention Of thi act be
ing to tax the ovners and investors OF cap
itaI and not the borrowers or debtors; there
fore. every individual person, corporation,
company or association whatever and
every officer thereof, asking. demanding,
contracting for or receiving any money or
consideration whatever on account OF said
tax, in reduction thereof or otherwise c,
who shall by any device whatsoever in
pose or try TO impose such tax or any parl
thereof upon any debtor whomsoever, un.
der any pretext whatsoever, shall be guilty
Of misdemeanor, and shall, upon convic.
Hon ihe cor, be fined In any sum not les