The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1900-12-19
JERSEYS BIG INCOME.
State Receives Nearly 49,.
100000 in Taxes and
Fees from Cor
porations.

formation regarding the corporations
business of New Jersey is contained in the
annual report of the State Board of Asses
sors. The report shows that during the
year just closed assessments were levied
against 6505 miscellaneous corporations,
the tax amounting to $2,051, ,259. This IS
an increase in the number of corporations
assessed. over 1899, of 1.136. Commenting
on this increase, the report of the Board
says
There has been an apparent increase
in the number of miscellaneous corpora
tions assessed during the year. last past
over that of 1895 of 1,136, although, as a
matter of fact, 1907 new companies were
added to the levy of 1900. The difference
of GIL companies represents those whose
charters were forfeited for non-payment
of tax by the proclamation of Governor
Voorhees, dated May O. 1900. This con-
tinued growth is most gratifying and
bears eloquent testimony to the favor with
which the laws of this State are viewed
by persons desiring to invest their capital
In corporate enterprises.
''It should be a matter of congratula-
tion to those who have been instrumental
in forming the broad and liberal provi-
SONS Oh the COTpOrdLlou dclS VI lillS Sld-S
that, notwithstanding the attempts of
some of the other eommonwealths of he
counry to attract capital by enacting
statutes enacting greater exemptions and
mort liberal Incorporation terms as well
as exacting less annual tax than our own,
our laws are still held in the highest
esteem by incorporators desiring charters
which are broad enough to meet almost
any requirement, and over which the
State still exercises not a nominal, but
an actual supervision in consequence of
which other States, as well as foreign
countries. extenS a welcome to our cor
porations when hey come within their
borders
Although it is a generally accepted
fact that a great many corporations have
drawn their existence from our laws and
make their homes within our State, still
| it will undoubtedly surprise many to
know that upon the books of the State
Board of Assessors appear upward of
10000 existing corporations.
From these corporation the State
treasurer has collected on account of
franchise tax for the year 1900 the sum
of 81 392, ,47229 In addition to this sum
| the State treasurer has also, received for
taxes of previous years $102, ,247.41, and
| through the secretary of State on ac-
| count of Incorporation and reinstatement
| fees the further sum of $3.50, go, making
| the total amount received during the
| fiscal year, from miscellaneous corpora
tions, on account of Incorporation fees
| and franchise tax, the sum of s1,SS4, ,67032
"The board is 10th, as it has always
| been, to recommend any amendments to
! the corporation acts, but owing to cer-
tain recent decisions by the Supreme
Court in suits brought up by writs of
| certiorari, we now urge the necessity of
| adopting amendments to cure the de-
fects which we will mention hereafter,
and we beg to impress upon the Legisla-
ture that unless the relief asked be grant
ed, that in many instances the spirit, if
not the letter, OF the law, may be violated
by certain classes of corporations desiring
so to do
"It has always been the custom of the
Board to exact from all corporations,
| whether mining. manufacturing or other
| wise, return statement among other
things, giving the amount of capital
stock authorized by the by the certifi ate
of Incorporation, the amount of capital
stocn issued and outstanding and the
business carried on by the corporation.
If it appeared from the returns that the
corporation was actually engaged in man.
ufacturin or mining, and had 50 per
cent. of its issued capital stock invested
within the State, the exemption allowea
by the statute was graned to the cor
poration. In he absence of such return
the Board being without any Information
whatsoever, taxed the corporation upon
the full amount of capital stock author
lied by its certificate of Incorporation
IF the corporation then felt itself ag-
grieved, it could appeal to the board, and
if, upon such appeal, it was proven that
the corporation was entitled to the ex-
emption aforesaid, the exemption was
granted. Under the act of April s. 1887
however, the time for making these ap.
peals was limited to three months from
the levying of the assessment A number
of corporations which failed TO make re.
turn were assessed upon the total amount
! of capital stock authorized by the certifi
cate of Incorporation, and failed to TAX.
the appeal within the time limit by the
act of 1887 They consequently founs
themselves taxed, when, if they had mad,
the return showing that fifty per cent. o
their capital stock was invested in thi
, state, they would have received the ex
emption granted by the statute
Among these companies were th
Newark brass works and the New Jerse,
Zinc Company, the former a bona fid
manufacturing corporation, with all of it
capital stock invested in the State, ant
the latter a mining company, with owe
four-fifths of its capital stock invested il
this State. Both of these companies ne
elected to makt returns, and in the alb
,, sence thereof were taxed upon the full
amount of capital stock authorized by tn
certificate of Incorporation, and there
upon took their cases to the Suprem
Court by writ of certioran for a review
> of the taxes imposed.
I'm each case the Supreme Court Sc
aside the tax, on the ground that tn
corporation was entitltd to the exemp
tion granted by the statute, and that th
e failure to make the return was not
: valid ground for refusing set aside th
tax assessed against the corporation
While acknowledging that this is un
doubtediy the true Interpretation of tn
law, the Board respectfully submits tina
| inasmuch as this return is the only meth
j | cd which the Board has of ascertain m,