The news & observer., 1901-02-23
OBJECT IOQUEST|ONS
Finance Committee Fixes on
a Line of Inquiry.
Railroad License Tax Amounts toNearly Si8,
600. The Bill Alll be introduced


ing that they be not compelled to an
swer all the questions put down in the
proposed revenue act for every corpor-
alton to answer.
There were present to protest against
the inquisitorial feature of the new law
Mr.. G. @. Latta, President of the Raj
eigh Cotton Mills; Attorney James H.
Pou, of this city; Mr.. Wheeler, Pres
ident of the Business Mems Association
of High Point; DR.. ]. A. Turner, of
High Point; Mr.. c. Fl. Ireland, of
Greensboro, Manager of the Odell Hard
ware Co.; Mr. G. E. Holton, of Green's
boro. Mr.. W. G. Hammer. editor of the
Asheboro Courier: Mr.. Scales, repre-
senting the Industrial and immigration
Association of Greensboro, and Mr. A.
A. Thompson, of Raleigh
The principal objection raised was to
the questions as to gross and net earn
ings and loss. Mr.. Latta made strong
argument against this line of inquiry.
Mr.. Wheeler said that High Point had
more manufacturing concerns than any
other town in North Carolina, regard
less of size. There are, he said, 36 fac
tories. one for every 140 inhabitants. ac-
cording to the last census. We fear that
under this law, as we understand it.,
stock in small factories will not be very
popular. We shall have to tell how
much we owe. The individual has to
state only how much he makes"
DR.. j. A. Turner said the principal
point was that they did not like to say
what was made and what was lost. I'VE
want some credit" said he.
Mr. Pou made the point that stating
the amount of net earnings would invite
competition. 1--WE are willing to tell
what we believe the stock to be worth.
the amount paid in on the capital stock
and the surplus fund. But, if we should
happen to strike a novelty, we don't
want to say how much we are making
on it. That would be requiring a man
to divulge what are considered the
world over secrets of the business. As
to the fact that railroads and banks
make all such statements, they are pub
lie institut tions, and insurance compan-
les act as guardians and trustees of
other peoples money. as do banks
Mr. Pou then suggested the following
line of questions
l.. Require the officers of the corpor-
alton to swear to the value of all prop
erty. including franchises and intan-
gible property, as well as physical prop
erty
.. To state under oath the amount
of capital stock paid IN.
3. Amount of surplus, if any. carried
oyer.
4. The selling value of stock if they
know it. If not, their opinion under
oath as to what the stock is worth.
The Auditor and Treasurer to take
these statements and assess tax which
in their opinion is just.
Mr.. G. II. Ireland spoke to the effect
that the disclosure of the profit and loss
would increase competition, as the ac-
tual net profits would not appear and
a wrong idea OF what was made in
the business would go out, inducing
many to engage in the line who would
not otherwise think of doing so. He
made the further point that if all these
disclosures We're made. the labor lead
ers would cause much annoyance by or
del'ing strikes. That was one reason so
many concerns were moving South, to
avoid the prying into all of their af-
fairs by the local labor organizations,
which are so strong in the North. The
speaker claimed that no other people
are taxed as corporations are, and that
it is becoming a serious question how
long they will be able to stand UP under
it. Even now, some OF them, like the
American Tobacco Company, depend
upon making enough from the stock
market to pay good dividend, whether
they clear anything from the business
or not.
Mr.. G. E. Holton said he had little to
add to what had already been said.
Mr. w. c. Hammer, although a lawyer
as well as an editor appeared simply in
the interests of the people of Asheboro
not as counsel. He said the cotton mill
people of his county were not in the hu-
NOR for additional taxation. There were
he said, many Roller Flour Mills in his
district. "All, he said. we ask is just
such law for corporations as you give to
individuals. If you tax them, don't ex-
pose too much of their business. GER
tainlY think the public has nothing TO do
with some things corporations do. l
would suggest that you require the list
ers to swear all persons before asking
questions, as the registrars did in the
last election. (Laughter).
Il said to my people. when they wanted
to hold meeting on this subject: These
LEGISLATORS are BOiHS 10 uO ItSHt Dy you.
They are going to introduce all kinds of
bills. but they have to do that to scare
you. In the end they will give You ex
actly what you want Qaughter)
Mr.. Scales said that the committee
ought not to throw wet blanket On
progress. THE people feel that this is
an inquisitorial proceeding 1t seems to
me it is not wise to press q measure OF
this kind just at this time. There is a
feeling that the Legislature is hard on
corporations. This IS feeling that is
likely to discourage corporations, and
corporations are the life of industrial
progress"
Chairman Gattis. Of the committee,
stated that these changes in the method
OF taxation were all made by the business
men of the committee, who were for the
most part themselves interested in cor
porations. Every politician he said.
sis kicking like a steer
Mr.. A. A. Thompson. made few hui
mcrous remarks, saying he knew the
committee could be trusted, but his only
fear was that in the effort to reach
every taxable dollar, they might get just