Little Falls weekly transcript. (Little Falls, Morrison Co., Minn.) 1894-19??, 1899-01-06
CORPORATE TAXATION.

consideration at this Sesslon.
CORPORATE TAXATION.
Foreign Companies Should Do Treated
the Same ~ Domestic Ones.
Akin to the question discussed, but
separate and distinct from 1t, and not In
anywise dependent upon its disposition ID
the subject Of licensing and taxing cor
legislation ON this subject, you can OBJ
more than make up for the proposed re-
with other corporation taxes, In the course
Of time. increase the permanent revenues
Of tho state to such an extent that d.
pensed with. Our law now requires the
payment Of minimum Incorporation fee
of $50 to obtain corporate charter, and
capitalization In excess Of e50,00O.r This
provision is bringing large sums OF money
into the treasury annually. 1t can and
tions doing business In this state. This
selves and to our own business interests.
i no 41CoOSo 4C0 0uOu4O U0 uuAOAAA "AVAA
that imposed on our domestic corpora
lions, and may then be collected on the
sntire capital stock Of the foreign corpor-
alton, or on that portion Of the capital
engaged in business in this state, as is the
law in Now York. Either course Is valid,
and has been. sanctioned by the courts Of
Of last resort, both stateand federal.
Tax ON Forsiss Corporations.
. In addition to this, many Of our sister
states levy and collect an annual fran
chise tax upon corporations. Domestic
corporations and foreign corporations do
ing business in the state are alike subject
to it, with such exceptions as the leRisla-
lures have chosen to make. This, 1t seems
to mo, is one Of the most available - we'll
as legitimate sources that you can turn to
for revenue without burdening tho indi.
svidual citizen. The tar, in itself 10 . just
one, both ON economic grounds and from
the standpoint Of public policy Tho cor
poration permits the union Of the capital
Of several owners in q way peculiar to that
form of organization. 1t gives the mass
. solidarity and efficiency that can never
be attained in partnership. It 10 well
recognized fact that there IL an economic
advantage in the harmonious oo-opera-
ton of numbers over individual effort.
The business of tho corporation IL not In.
terrupted by the vicissitudes that befall
individuals. It enables tho owner Of linn
tied capital to participate in undertakings
that would be beyond his reach but for
its aid II business reverses befall the cor
poration tho shareholder Is only liable for
its losses to limited degree. Numerous
other advantages might DO referred to,
but this is enough to show that tho state
confers special value when 1t grants q
corporate charter. The state comforting
these special powers and privileges, which
are constant and continuous in their
character it 10 clearly just that IN
Annual Return should He Rendered
for them. It 10 no sufficient answer to say
that the capital is taxed In the property in
which it is invested. The capital as such
would be liable to taxation In whatever
pressed than In the language Of tho Su-
S. 8o5). The court ssys: 1.-THE right and
privilege, or the franchise, as it may be
termed Of being q corporation, 10 of great
property separate and distinct from the
"MCA VAA0 CVEkOI0UOA AA40y W.
quire, According to tho law Of most Of
the states, this franchise or privilege Of
being . corporation 10 deemed personal
property, and Is subject to separate taxa
ton" Tho state having conferred tho
franohise-the special value-s entitled to
the taxes imposed 1t 10 one Of the easiest
taxes to collect; practically self enforcing.
II domestic corporation refuses to pay,
~ ho do ~ <hA
fixture of the charter. In case Of the for
eign corporations, they can be denied tho
process of our courts. This IL the law in
erence to domestic corporations applies
with greater force to the numerous foreign
corporations doing q largo and lucrative
business in this state, such a. the various
machine. companies, the loan companies,
tho various trusts, and mining companies
in the northern part Of the state.
Express, Telegraph and Other Taxation.
Referring to express, telegraph, tele-
phone and sleeping car companies, the
governor says that In his opinion the tax
Of per cent upon gross earnings on busi-
ness originating and ending within the
state 10 grossly inadequate, besides being
liable to abuse. Railroad companies pay
8 per cent of gross earnings including in
terstate business. Tho tai, he says,
whether 1t be per cont or . greater rate
should be computed upon tho valuation
of the corporations property employed in
business IN the state
-.ar TAXATION OF RAILROADS.
Rate on Such Property 10 Considered
Another branch Of taxation that de.
mands your earnest attention and we'll
considered action is that of the franchises
md property Of corporations engaged in
transportation by railroad In this state.
The total amount Of taxes paid on the
gross earnings Of the railroads In this