The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-11-15
WILL DRIVE OUT CAPITAL.
Mr.. Williams Discusses the Taxing
Commissions Bill.

Mr.. J. p. williams has written Senator
Grovenstein, expressing his views upon
the features Of the Tax Commissions bill,
now under consideration in the Legisla
ture, relating to the taxing of the stock
and evidences of Indebtedness held by
corporations. In his letter Mr.. Williams
takes a decided stand against the bill.
THE bill would be a heavy blow to cor
porations of all classes" said Mr.. Will
Jams. TT would not only compel the cor
porauons to reorganize their business, but
would almost certainly drive many from
the state. II the bill becomes a law Ii will
not only mean double taxation, from which
we already suffer in many instances, but
triple and quadruple taxation. The build
Ing and loan companies, of which there
are several in Savannah, would be practi-
cally forced out Of existence. The compa-
MES would not only be taxed upon their
capital stock, which represents their IN
Vestments In loans and mortgages, but
would also be compelled to return these
evidences Of Indebtedness for taxation,
meaning a second taxation on the same
money, and in addition the properties upon
which these loans are made would also be
taxed"
1T Is not only the building and loan cor
poratons which would suffer Take, for
instance, the J. 2. Williams Company
Our capital stock represents to large
extent money invested in lands throughout
number of counties In Georgia and in
ALABAMA and Florida. We are compelled
10 pay taxes upon these lands in the sew
eral states and counties in which they are
situated. The stock is merely an evidence
OF investment. II often represents expec-
tatlons OF the future value of these prop
efties. The result of such taxation will
De 10 force the corporations 10 reduce their
eapitaizations, even if they do not aban-
oon their corporate form altogether 1t is
easy 10 see how a corporate organization
when Is compelled to pay taxes on its
STOCK would be at a disadvantage with a
lrm In the same line of business which
Is not incorporated. There are a number
of corporations in various lines of business
In savannah which would be very seriously
aHected by the passage of this law" .
Int Williams gave an instance of two
firms in the same line of business in the
same city competing for the same class of
trade, one being incorporated and the 9th
er not. The Incorporated firm would have
10 pay taxes on its capital stock, as well
as on its goods and money in bank, while
the one which is not Incorporated would
simply be taxed on its stock of goods and
money in bank, although the two firms
might have the same amount of capital
invested.
THE effect of such a bin" said Mr.
Williams. would be to force many cor
pora lions to remove their headquarters
without the state, in order to avoid this
double taxation. Others which would be
SO situated as to be unable to move would
be compelled to abandon their corpora e
form Of existence. Observation-Disclosures Of
corporations would be another result. The
further formation of corporations would
be discouraged and capital would be kept
from coming into the state. The effect
upon building and loan associations would
be extremely serious"
Mr.. Williams regards the whole trend Of
the bill as in the wrong direction In
stead of more liberal laws to encoura ge
the states development its effect would be
to so hamper capital as to discourage in
yestOrs