Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-11-04
Would EXEMPT SHAR[S
Illinois Manufacturers Protest
Against the Taxation Of
Capital Stock
THEY THINK THE LAW UNFAIR
HEY THINK THE LAW UNFAIR
plea Made Before the Illinois Board of
Equalization Says Taxing of Capital
Stock Gives the Co partnership an
Unfair Advantage Over the Corpora
ton.

sentatives of the Illinois Manufacture
ers' Association appeared before the
state board of equalization yesterday
to protest against the assessment OF
the capital stock of mercantile corpor-
ations.
Attorney E. Allen Frost. spoke for
the committee and statement was
read by c. NJ. Newton. in which the
association claimed that the method of
assessment now followed by the state
board is double taxation.
The statement in part Is as follows:
The assessment of the capital stock
of mercantile corporations will place
such corporations in the conduct OF
their business at a great disadvantage
with firms organized as co-partner-
ships or corporations organized under
the laws of other states. When the law
of 1872 was passed, mercantile con-
Germs organized as corporations did
not exist in this state. Such corpora
tons as dill exist, except public utility
companies, were exempt from taxation
on capital stock, and we feel certain
If the legislature had any knowledge
of the existence of such corporations
as we now represent 1t, 1t would have
included them in the exemption under
the law.
Those who wish to conduct a mer-
camille business In the state of 1lli-
nois under corporate organization
find themselves handicapped by the
law referred to. Their capital stock
represents their tangible assets. II,
therefore, the local assessor reaches
the tangible property and assesses 1t
at its proper value he reaches every
thing owned by the corporation. ex-
cept the name itself. This being the
case why should action be taken which
has for III. purpose additional taxation
which means additional burden.
The merchant who conducts his
business 'under corporate ctrganiza-
ton Is unable to compete on equal
ground with his neighbor. who con-
ducts his business as an individual or
thru &C. partnership. II costs the
one as much to manufacture his goods
as the Other: each pays equal salaries;
rents In n like neighborhood are on a
like basis; sales must be made AT
equal prices, and If an individual or
co-partnership can do business by
paying only one-falf that the corpor-
alton does, 1t can be readily seen how
the individual or partnership can out
class its competitors.
If facts be required of how double
taxation in Illinois on mercantile corr
porations influences the upbnilding of
industrial institutions in other states.
we have but to look at the northern.
portion OF Indiana, which is dotted
with great Industrial enterprises. in
which millions upon millions of dollars
have been expended, and the one thing
which Induced this vast expenditure
was the injustice of our laws on tax
alton. Every one of these great COM
mercial industries belongs to Illinois
and would gladly avail itself of the
opportunity of remaining here If 1t
could be assured of justice In the mat
ter of taxation.
Pennsylvania and most Of the other
states do not tax the capital stock
and in IL number OF Instances do not
tax the tangible property OF industrial
corporations. They lose nothing by
such liberality. Pennsylvania, for In
stance, has thus become the greatest
manufacturing commonwealth of the
union. The influx to the state by the
inducement given is adding more
money 10 the state than the taxation
of the corporations would.
Illinois. if it were thus liberal, would
outclass Pennsylvania within the
next decade. and even New York.