The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-01-25
yERsrr avn our r1r 1Aws.
A Measure 70 Min late methods or New York
Tax Comminstouern.

TRENTON. Jan. 2A.-Tho fight between New
Jersey and New York over tn o corporations has
been removed in the Legislature. A bill was
introduced tonight rendering IL unnecessary
FOR corporations organized under tho laws Of
New Jersey TO set forth in their certificates or
statements the location of their business
outside OF tho State Of New Jersey, or the
address OF any stakeholder or director.
merely requiring thom to give tho address OF
the principal office in Now Jersey and provid-
Ing that oil notices for tho corporation or its Of
hcers sent to that address shall be sufficient
notice. The passage of this act will do away
with the necessity for placing IN public records
OF value only to the tax gatherers
of othor States, and will block any Now
York inquisition based on New Jerseys
public records. Last year tho New York
Legislature, by tho Lexow act, sought to mako
1t impracticable for q foreign corporation to
do business in New York. Thsreupon the Now
Jersey Legislature, without O dissenting vote,
passed what has been described as an act in pro-
lection OF corporations, which destroyed much
of the force of the Lexow act.
This year the tax department in New York
has caused records to be searched In Now Jersey.
and from these records has been made q list
which includes the name Of every corporation
organized under the laws OF New Jer-
sey whose certificate OF incorporation
states that It intends to do business
In New York. The name Of every stockholder
obtained from the certificate OF Incorporation.
which is filed of necessity In. the Secretary Of
States office. who resides in New York or has
oa Siie and II a EeS T9 or i % New TEE ,5sps es% esro of sTf5y
whose residence and Post Office address are con-
tanned in the statement filed. and who resides
or does business in New York. was got in this
New York State has been more clever in pro-
tecting its corporations from foreign taxation.
1t only requires n Post Office address of tho
stockholders and directors, and this is not neces-
holders are ut liberty to designate as a Post
Office address a box in the New York city Post
ssE.s co ras a%nnH in% Mil PT Sa ( only iS the ss ser,
The state OF New York. hayipr, obtained tho
Information concerning stockholders of Now
Jersey corporations residing in New York. has
served notice of t%axation against the corpora
address appears from the records to be in New
York. State. irrespective Of tho question
directors, of a New Jersey corporation
that the corporation has never. transacted any
business in tho State o fNcw York; that 1t has no
office there. and has no property there and never
filed the company will be taxed such, an amount
as the assessors, may see At. The New Jersey
in New York. thus served is in n dilemma. II
he makes no return. then the tax will be assessed
o of a tRs Company s6s SS%p'tn S t the s STATE % ana made Upon q af is
non.payment a suit may be brought against
him as one of the directors residing
act. and the only way in which he can get the
tax removed is to begin proceedings in a court,
which will put him to an expense not inconsid-
cradle. Frequently the New Jersey director
or stockholder. is served with Il subpoena
to appear before a Commissioner and is
papers of tho company. The proceedings are
carried on until the director and stockholder of
so much harassed and annoyed that frequently
he concludes it better to organize his companies
hereafter under the laws of New York. or to
withdraw entirely from the New Jersey corpo-
ration. New York has added to the personal tax
of every stakeholder in u New Jersey corpora
tion within its Jurisdiction the amount Of stock
held by him in a New Jersey corporation.
Last year New Jersey received more than
81, O00, 900 franchise tax from corporations
doing business practically wholly out Of the
State, and each year this amount Is increasing.
The Legislature has always practiced libcrality
with the corporations. and there is no doubt
that the proposed bill will be passed.