El Paso daily herald. (El Paso, Tex.) 1881-1901, 1900-01-26
THE VARIOUS TAXES ON CORPORA
TONS PROPOSED IN THE NEW
BILL-SOME OF THEM HIGHLY
VICIOUS.

VICIOUS.
In the new tax bill several attempts
are made to get a bigger share OF the
profits of corporations for the state
than has heretofore been obtained.
Several chapters of the bill are devoted
TO this subject. Chapter thirteen
provides "tax on the capital stock
of corporations" This includes tele-
graph, telephone, and express COM
papies. The scheme is to ascertain
the whole market value of the com
bined interests of the corporation, in
whatever state they may lie; to as
certain then the proportionate value
located in the state of Texas; to deduct
therefrom the value of all real estate
and personal property whose taxation
has been already provided for; and
upon the residue to impose state tax
of one-fourth of one percent on the
capital stock or capital employed in
the state.
The total value of the concernis to
be ascertsined by taking the total mar
ket or actual value of ali the shares OF
capital stock or interests, and adding
to such value the amount of mortgages
which may cucumber the property
usually representing the amount OF
bonds outstanding. The value OF the
property of the concern in the state CT
Texas is to be ascertained by taking
the same proportion of the total as the
length of lines of the company within
the state bears to the total length OF
the lines belonging to the company.
From the value of property in the state
SO ascertained the amount OF property
of all sorts subject to local taxation is de-
Quoted, and upon the remainder q state
tax of one-fourth per cent is imposed.
The same provision is made to apply to
persons or individuals having no CAPT.
tai stock.
Chapter fourteen imposes q similar
tax on all sleeping car, dining car,
palace, stock, fruit, refrigerator, tank,
furniture, or other car companies doing
business in the state, and the amount
of taxable capital lie to be ascertained
in the same way, by proportioning the
number of car miles run or the mum Der
of cars used to the total number OF car
miles run or total number OF cars
employed throughout the United
States.
In both the above cases it will be
seen that determined effort is made
to get at the real value of some of the
great corporations for taxation
purposes. It is really taxing the
franchises of corporations organized
under the laws of other states or doing
an interstate business. The tax Is in
addition to the tax on gross receipts
which will be referred to later on. 1t
has the sanction of many supreme
court decisions, and has certainly great
merit. Such taxation as this is the
fairest way of getting at the intangible
personal property so hard to reach. 1t
serves to maintain state control of the
great corporations, and the amount OF
the taxes 90 collected will no doubt aid
materially in reducing the burden on
real property owned in the state.
In the chapter on taking the gross
receipts of certain corporations" q
number of changes. and innovations are
met with. Generally speaking the tax
on gross receipts of public and semi
public corporations is not only very
lust one but also q good one on the
ground of public policy. Under the
old law express, insurance, railroad,
and sleeping car companies paid taxes
on their gross receipts, while telegraph
companies paid certain tax on each
MESSAGE, telephone companies paid on
each instrument, and telephone, insur-
ance, electric and gas companies paid a
specific tax; most of these taxes came
under the head of occupation taxes.
Railroad companies paid the tax on
their passenger earnings only. Under
the new law taxes on gross receipts are
to be paid By express, sleeping car,
wharf, telegraph, telephone. insurance,
railroad, street car. gas, electric
lie ht, water, oil, text book, and special
car companies. Railroads are to pay
on both passenger and freight earn
inRs. The tax is generally two per
cent, and in most cases represents an
increase over the present law. Sleep