El Paso daily herald. (El Paso, Tex.) 1881-1901, 1900-01-26

limited partnership. as SHOWN III INC
sworn statement required to be maze
to him.. and shall deduct therefrom
the value of real and personal proper
ty rendered for taxation by such firm:
association, or limited
partnership, and the residue shall be
deemed the value of the franchise
owned and shall be subject to taxation
in that amount az such.
Article 5235b. Persons, associations
of persons, joint stock companies and
limited partnerships having no capital
stock or funded debt and owning such
franchises within this state, shall be
assessed on such franchises, the valua-
ton to be ascertained and measured bV
the earnings and by the amount OF
profit made and declared in dividends,
or carried into the surplus or sinking
fund accounts, and the value OF sucn
franchise shall be fixed in the discre-
tion of the assessor and the ooaro OF
equalization at the sum at which SUCH
earnings would pay elk per cent in
terest on, and from the value SO as
certained shall be deducted the
amount of real estate and personal
property rendered for taxation by
such person, association, joint stock
company or limited partnership, ana
the residue shall be deemed to be the
value of the franchise and as such as
sessable for taxes.
If there were any possible way to
get at the value of the franchises OF
individuals the above tax might be
made fairly equitable, but under ex-
listing conditions and in view OF the
weaknesses of human nature and the
of tax assessors and boards
of equalization the tax becomes an out
h.,6shIn m oorDoratiOna and
as against individuals,
without just cause.
The provisions of the bill for get
ting pay for the state on account OF oil
special privileges granted by the state
corporate charters have been
already described. The tax on the
gross receipts of CORP >rations provides
for q further return to the state on &C
count of franchises" properly 90
called. Elsewhere the HERALD has re-
commended a return ID the cities from
some corp ora.ions on account OF
franchises enjoyed. But the above
if resi- carefully, will be
seen to refer, not - actual franchises
en- joyed, but TO the good will of the
business.
The good will of the business-that
is what the bill would tax. Now in a
reason, what has the state got to do
with the good will of any private bust
ness? And especially, why should the
good will of corporations and limited
be taxed to death, when
the good will of Individuals is allowed
to 60 untouched? In one way the good
will that has been accumulated by any
one individual engaged in business is
Of greater proportionate value than the
good will that has been accumulated
by a corporation. II once lost or i'm
paired, in the former case it is harder
10 regain than in the latter.
In the case of corporations the "good
will' is represented tangibly by
shares of capital stock-get-at-able. In |
he case O. an individual his good will |
s absolutely intangible, and unless a |
regular inquisition is instituted, and |
,he mans actual income in some way |
it is an absolute impos- |
.ibility to determine what sum would |
e present the good will, enormously |
called franchise" in this report.
Let it be kept in mind that this pro- |
vision, if any attempt we're made to |
enforce it, could never be enforced |
ave against corporations, the amount |
If whose outstanding stocks and bonds |
8 matter of public record-never |
against partnerships or individuals. |
Thus the measure is grossly one sided, |
md discriminates against corporations
n a way that would certainly injure |
The state of Texas immeasurably. 1t
s just another phase of the insane fight
IN corporations that has kept Texas
back for many years.