The news & observer., 1901-02-06

same ratio to the entire capital STOCK
at par as the gross assets employed
invested oI held within the State bear
to the gross assets of the corporation
wherever held or invested. An addi-
tional tax is to be levied upon dividends
IN the same ratio.
WILL STOP WATERING" STOCK.
In addition. many corporations that
are really New York concerns, but
which incorporate under the laws OF
other States, the trainers of the Dlil
believe, will be compelled to take up
their domicile here. In doing this they
will become liable, for the organization
tax, and from this source the State VIII
derive an income estimated at S'o0'ooo.
One OF the most beneficent results
IF the proposed law will be to prevent
the watering" of stock, because every
share of water viii be as much sub
Iect 10 taxation as a share of actual
value drawing capacity. No corpora
ton can afford to increase its capital
zation beyond bounds when an ineXor-
able tax collector is lying in wait to
levy tribute on each share of the in
dated issue.
Next 10 lIe Id& Oh COIIJOI1llOil9' AiN'
tional and State banks are expected to
produce the greatest revenue. These
Institutions are required to pay annual
iy into the State treasury a tax of one
1er cent on actual value of their shares.
The value of shares is TO be deter
mined by adding together the capital
surplus and undivided profits and di-
viding the result by the number of
outstanding shares.
From the report of the Comptroller OF
the Currency, as of September 5th last
year there We're in New York State
}36 national banks, with a total capi
.alization of $97, ,21S,210, a total surplus
Of SCI, 500 ,653.2S, and undivided profits
eggregating $3G, ,059 360.01. From these,
.ogether With the numerous banks or
yanized under the State laws, it is es-
timated that at least 50 100000 in rev.
anue will be derived annually.
REVENUE FROM INSURANCE
COMPANIES.
Insurance companies, fire. marine.
'ife, casualty and title, come third in
The category as revenue producers un-
Ter the proposed laws. Concerns or
yanized under the laws of other States
and Territories are required to pay one
half of one per cent on premiums re-
ceived in this State each year.
OF these concerns there were in 1899
% life. 106 fir1 and marine and Il cas-
lalty New York State companies,
which in 1899 numbered IA life, 81 fire
md marine and 13 casualty. are requir-
al to pay q tax of one per cent on CAPT
al and surplus. These concerns will
pay, it is estimated, 81, 100000 in taxes
annually, besides supporting the In
;urance Department.
From the 129 savings banks in the
State Governor Odell expects to raise
Il 500, 900 in taxes by the new measures,
which levy an impost of one per cent
lpon the surplus Of such institutions.
On January l. 19O0 the total savings
bank surplus was Sill ,920,2 but it
1as increased greatly in the last year,
md is estimated now at more than $l50
100 600.
This bill will be amended so as to
provide that the surplus shall be de-
.ermined by deducting the total lia-
oilities from the total assets. This will
materially increase the estimate.
BILL AIMED AT TRUST COMPA-
MES.
Trust companies, which have for
years been conducting a banking bust
ness and escaping through the provi-
sions of the law the penalties imposed
upon banks. are expected to contri-
butte 81 100000 in taxes annually
through the bill aimed at them. There
are now in the State eighty-seven trust
companies. capitalized at $47,15O00O,
with an aggregate surplus of $76.123, 1873.
and a total in undivided profits of ST.,
479, ,321 BY the new bill they are re-
luired to pay one per cent on the sum
of these items.