The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-06-29


tied policy of the State. Against the
threatened danger, rather than against
present evil, | wish to warn you.
The speaker then went on to complain of
the inquisitorial features of the laws
that seek to ascertain the true value of
corporation property, and declared that
in this respect the corporation suffered
many things of which the partnership
or individual owner knew nothing.
''The owner of a mill makes no report
whatever of the condition of his bust
ness, the amount invested or the profit
derived from the investment. corpora
tion may have built exactly the same kind
OF mill, at the same cost. in the same
town, and before assessing their prop
erty, the corporation is required to make
a report, stating:
First. Total authorized capital stock.
Second. Total authorized number of
shares.
Third. Number of shares of stock is
sued
Fourth. Par value of each share.
Fifth. Amount paid into the Treasury
on each share.
Sixth Amount of capital stock paid in.
Seventh Amount of capital on which
dividend was declared
Eighth Date of each dividend during
said year, ending with the first day of
June.
Ninth Amount of each dividend during
the year ending with the first Monday
in said month.
Tenth. Amount Of surplus
Eleventh. Highest price of sales of
stock between the first and fifteenth days
of May
Twelfth. Highest price of sales of
stock during the year aforesaid
Thirteenth. Average price of sales of
stock during the year.
a''And, strange to say, this is required
only of those corporations chartered and
organized under the laws of this State.
We say to the public, If you come here
and organize under our laws and subject
yourselves to the jurisdiction of our
courts we will require you to make to
the public a full disclosure of your af-
fairs, but if you will go to New Jersey
and get your charter, you may come into
the State and carry on your business all
the same, and you need not make any
report To my mind this seems unwis-
dom double distilled"
MIR. Pou then referred in terms of
strongest condemnation to certain pro-
posed sections OF the Revenue Act when
it was under consideration by commit
tee in the last Legislature.
These" he added, "are but few Of the
manifestations Of a purpose in some quar-
tiers TO discriminate against private cor
porations in the method of taxation. Few
Of these schemes have been formulated
into law. but they have been so strongly
urged that they are worthy OF the Sc
rious consideration of the State"
The franchise tax likewise met Mr..
Pou's sore displeasure. The only conso-
lation he could End in it was that at
present it was small, "but, he added sor-
rowfully, 'it is one which, if not limited,
will surely grow. 1t is too fruitful
field for the tax gatherer to neglect, if
he is permitted to cultivate it at all.
After thus demolishing the work of our
recent law makers the speaker turned his
efforts for awhile to the work Of con-
struction. He declared that the ideal
system of taxation is one whereby:
q. Every piece Of property is placed
upon the tax books at it's real value and
taxed once, and only once.
80 Every piece of property is taxed al
its actual situs. If land, in its township:
if chattels, where they are; if credits
and chooses in action, at the home of the
owner; if a corpora tion, where it's princi-
pal business is carried on.
"3. When property is taxed in one form,
it shall be exempt from taxation in an
other form. When a corporation is taxed,
the certificates representing ownership of
a part of that corporation shall not again
be taxed.
a. When property situate in this State,
hoI n
is assessed for an amount not less than
the value of the stock of that corporation
held in this State, such stock held in this
State shall not be taxed for it represents
property already taxed in this State
'"That these rules are equitable and
Just, | apprehend none will deny. That
they are practicable, is, | think, easy Of
demonstration. If engrafted upon our tax
system, no man could dodge his own tax,
no man could Shift a part of his tax upon
a neighbor in the guise of special tax
or of tax upon some duplicate form
of property
Further, in his plea for better treat
ment of private corporations, Mr.. Pou
said:
'It is not true that other States op-
press and discriminate against the private
corporation. Some sections in the Code
Of some Of the States may seem to do So
but it will be found that there are count
ervailing benefits, more than offsetting
the oppressive section. We are told that
Pennsylvania requires corporations to
answer all the questions required by our
new Revenue Act This is true but that
State provides that the total tax levied
on private corporations, except such as
engage in the manufacture or sale of Ii
quor, shall not exceed for all purposes five
dollars on the thousand Corporations in
Wilmington, Raleigh, Charlotte, Ashe-
vile and other towns pay more than $50
on the 81, 900 valuation. If these corpora
tions could have the benefit of the Penn
syIvania limitation. no d0tsbt-the Off
GERS would he willing to answer ar "Sbe
questions in the Shorter Catechism Y
"Virgina's Constitutional Convention is
now considering proposition TO grant an
entire exemption for a number of years
from taxation to manufacturing enter
prises hereafter established. Mississippi
and Alabama have given qualified exemp-
tion from taxation to manufacturing con-
Germs and after generous treatment to all
that build in their borders. Now if our
sister States, to the North and to the South