Evening journal., 1907-02-19
MORE REVENUE
FOR The STATE
Special Committee Recon-
mendS a Loan Of
$3.50, 900
Special to The Evening Journal

Special TO The Evening journal.
DOVER, Feb. 19-The committee 10
devise a new financial system for the
state OF Delaware TO bring more
money into the state, and run IL at a
greater profit, brought in a full report
in the Legislature last evening.
Representative Alexander Corbit did
not sign the revenue committees re-
port, not being in accord with its en-
tire finding and will prepare and SUBJ
init a minority report.
Following is the report OF the spe-
cial committee on revenue and taxa
tion appointed by the speaker Of tho
House;
Immediately after it's organization
the committee held q conference with
the State treasurer. IL was learned
that there was a deficit iu the state
treasury, and also that the S25O,OO0
three per cent bond issue Of 1857 Is
due June 1 Of this year AS there are
no funds in the state treasury to meet
these bonds at maturity it will be nee
essary for this General Assembly TO
enact a law empowering the state
treasurer to borrow S250,OO0 and 10 is
sue bonds therefor. After careful con-
sideration, the committee believes that
in the present condition Of the money
market it is advisable that the bonds
bear interest at rate exceeding three
per centum
This money was borrowed originally
for the purpose OF aiding either the
/ Junction and Breakwater Railroad
/ Company, and bore interest at six per
cent Tho company receiving the
money gave a mortgage to the State
bearing interest at the same rate. The
bonds issued by the state were SUBJ
sequently refunded at four per cent.
and the rate OF interest on the mort
gage CORRESPONDENCE reduced. The
bonds were again refunded at three
per cent. In 1887, and in 1891 the in
terest on the railroad mortgage was
also reduced to three per cent. TIL.
committee, therefore, recommends that
the money be borrowed at four per
cent. and that the railroad company Dc
asked to pay the game rate ON the
mortgage against it held by the state.
The committee has given the subject
of taxation careful consideration. and
while it is not prepared TO say that
its report Is as complete as IL would
have been n more time had been at its
disposal, Il does believe that IL its rec
concentrations are approved tha
enough additional revenue will b,
raised to amply meet the expenses oi
the State government. II this is don,
lit will be comparatively easy for
committee Of the next General Assem-
lbly TO supply or remedy any defects II
our revenue laws which may be fount
then to exist.
The committee makes the following
recommendations
First. A State tax on all public ser
vice corporations.
Second. A revision OF existing take
on public service corporations.
Third. A State tax on State banks
national banks, trust companies an
savings banks.
Fourth. A state tax on direct an
collateral inheritances.
Fifth. A State tax on malt liquors.
Sixth. An increase in the rate Of in
terest on the mortgage held by tn
State against the Junction and Break
water Railroad Company or In
lBrealSwater and Frankford Railroa
Company from three to four per cent.
The committee has had bills prepare
/ along the line Of its recommendation
and has instructed its chairman to I'm
troduce them.
Respectfully submitted.
William II. Baggs. Chairman,
Charles 8. Conwell,
! T. o. Cooper, NJ. D.,
Chauncey p. Holcomb. Secretary.
Representatives Corbh refused L
sign the ma iOrftv renort aud will et,i,
j init a minority report in a few days.