The Leon reporter. (Leon, Iowa) 1887-1930, 1902-01-16
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An Instance of Tax oodging.

One of the companies established to
facilitate the organization of trusts has
issued an interesting little pamphlet
setting forth the advantages of New
Jersey over New York. At the same
lime the pamphlet throws side-light
| upon the motives of the republican gov
ernor of New York. 1t queues the New
York Herald of December as saying:
at was in the hope of attracting ag-
gregations of capital to incorporate in
this state that the governor had the
last legislature to pass an act liberal
lzing the corporation laws by reduc-
Ing the organization taxes from one
eighth of one per cent to one-twentieth
of one per cent of their capitalization,
besides making additional exemptions
favorable to concerns which obtain
their charters here.
The Herald complains that even these
concessions were not sufficient to in
duce the Northern Securities company
to take out a New York charter, as
New Jersey was even more liberal.
The pamphlet says: 1.-The laws of
New Jersey governing the formation
and management of corporations are so
framed as to invite confidence and in
veStment. In another sentence the
pamphlet pays a doubtful compliment
to the New Jersey courts, saying:
1.-The judiciary of New Jersey is above
reproach and corporations organized
in that state are not subject to non
sensical attacks
boo f<r
| its object the protection of the public
or the compelling of corporation to
bear it's share of public burdens is al
ways considered "nonsensical" by those
who derive profit from favoritism
shown great corporations
AS an illustration of the difference
between New York and New Jersey
the pamphlet says: sin the year 1899
the United Verde Copper company as a
New York corporation paid to New
York city taxes to about the amount Oh
S34, 600 on an assessed valuation OF ~.
433, 800, to which the court OF appeals
said one million more might properly
be added. In the year 1900 the United
Verde Copper company, as foreign
corporal ton paid to New York
city taxes to the amount of $235 on an
assessessed valuation of $4,000. In
each case the capitalization, assets and
business of the corporation We're the
same. The difference in annual charges
between $4,000 and $235 represents the
net disadvantage of New York corpo-
ration
Instead of making the laws of New
York more favorable to corportions or
gained there, why not not make the
laws more stringent in regard to the
foreign corporations doing business
there? in the instance above cited the
people of New York city lost S34 900 in
taxes by a nominal change in the resi-
dence of the company, and the rest of
the people had to pay a little more in
taxes to make up for the loss.
The only remedy suggested by COR
porations and friends of corporations
is to relieve resident corporations of
nearly all taxation in order to induce
them to remain in the state, notwith-
standing the fact that such a policy
would permanently increase the bur-
den upon the small property holders.
When Tom johnson wins his Ohio
fight against the tax dodgers he ought
to go to New York and give some les
sons down there. Or, if Mr.. johnson
cannot be spared from Ohio, probably
Judge Owen p. Thompson of Illinois
might go to the Empire state and with
the assistance of a few school teachers
bring the corporations to time as he
has done in his own state.
Ex-Governor Shaw, the new secre-
tary of the treasury, agues that be-
cause the railroads control the num-
Der of cars they use, therefore banks
should be permitted to control the
volume of money used by the people.
Whether he takes this position on ac-
count of his bias in favor of banks or
because of his ignorance of the money
question is immaterial, the fact that
he holds such views shows that the
people at large will not be considered
during his administration of the treas
ury department.
Some of the republican papers are
speaking unkindly of Senator Yelling
ton. Among republican leaders it
seems to be an offense for public
man to have a conscience. Senator
Wellington honestly opposed imperial
ism and militarism, and he allowed his
convictions to control his political con-
duct. He will lose his place in the
senate, but he will doubtless enjoy his
exile more than he would enjoy fellow
ship with the republican if purchased
by the suppression of what he believed
to be right.
Judge Dunno said that Judge Hanecy
had recourse to a suit for libel against
the Chicago American, but j dge Han
ecy has taken no steps in that direc-
ton. This recalls the story of the
man who complained that another
man had called him liar. When ask
ed what he was going to do about it
| he replied: .!Nothing am afraid he'll