Los Angeles herald., 1906-10-15

critics or for purposes Of taxation. see
next page. Company not assessed byI
state controller
Now, on the next page we find at
the time of Incorporation the company
issued bonds IN the amount OF &l,OOOOOOl
to purchase the stock Of certain cor
porations. It's indebtedness was not in
Cured for the purpose OF evading taxa
tion. Uaughter).
"a company organized under the
laws OF the state Of New Jersey, with
a capital Oh 100000, issuing bonds toI
purchase the stock OF certain corpora
tions, the star company having no
property except apparently this stock
No goods. no accounts, no property of
the ordinary sort used in business, but
stock of other corporations. Why, that
Is what we call a holding company
That is the device with which all cor
porate attorneys are familiar.
"1n other words, companies are or
ganized and their stock Is taken by q
company that Is organized for tho pur-
pose of holding the stock and all that
last company Is for is to hold the stock
and vote on the stock and take divi-
dends IL there arc any on the stock, and
all that It owns is the stock, and IL II
issues bonds against the stock some-
body. we don't know who, holds the
bonds. (Great laughter and applause)
Like Some Trusts
"They sometimes organize trusts that
way. (Great laughter) Now, in this
letter OF Mr. Shearn's It appears that
the New York American is published
by the undersigned Star company
Well, that is not this Star company
This is a holding company. Where Is
the other Star company that publishes
the American? Where are It's state
ments?. Does 1t pay anything2 Has It
paid any taxes? I should be very glad
to be Informed of the payment by 1t of
taxes. And the star company which
we have here is holding company
which owns the stock of other corpora
tions.
I'VE go q little farther We find in
Mr.. Shearn's letter the statement that
the New York Evening Journal is pub
lished by the New York Evening Jour
nal Publishing company. Well, in this
case we have a different name. and 1t
seems that the New York Evening
Journal Publishing company was as
sessed, and 1t seems that on February
2S, 1906, Clarence J. Shearn, as secre-
tary, requested that the assessment
should be revised and corrected, as the
New York Evening Journal Publishing
company felt aggrieved.
ted that the total assets, including real
estate. are stated to be $190,10S.96. We
find that the value at which such per-
sonal property is carried on its books
as an asset is $3.50, 10S.96. 1t is stated
that the Indebtedness, accounts paya-
BILE. are $3.50 910799, and bills payable
$50, ,927.22 making up $219,935.21. So APP
parently there is nothing that can be
assessed.
"Then we find Das Morgen Journal
is published by the Das Morgen Journal
association. When we take UP the
statement of the Das Morgen Journal
association in it's request to be relieved
from taxation, under date of February
2S, 1906, by Clarence ]. Shearn's secre-
tary the assets are stated to amount to
$19, ,654.3S, and we find accounts payable
and bills payable amounting to $751;
295.77.
There does not seem to be anything
to , tax. (Laughter) You cannot sue
my opponent. Oaughter) If the
Journal wagon runs over you, he is not
personally liable. Uaughter.) 1t is
the property of a, corporation, and, ac-
cording to that statement it would seem
to be a very difficult thing to get any
thing paid by it, If you got a judgment.
AT all events, it apparently does not pay
taxes, for my information is that upon
this statement the assessment was re-
moved. Great laughter.)
"Now 1t is stated in the editorial to
which referred moment ago that
nobody denies utility and the necessity
of corporations. (Laughter.) And it
goes on to say:
But the legitimate, serviceable cor
poration is one thing; the predatory
corporation is another
Eyes, and the sham corporation is an
other. (Applause)
And the corporation that does not
pay it's taxes is another. (Applause.)
And the corporation that tries to
evade legal provisions is another" (Ap-
plause) u