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

Special to The Evening Journal.
DOVER, Feb. 19.-The committee 20
devise a new financial system for tho
state OF Delaware to bring more
money into the State, and run IL at a
greater profit, brought in 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 sub
nit a minority report
Following is the report Of the spe-
cial committee on revenue and taxa
tion appointed by the speaker OF the
House:
Immediately after its organization
the committee held a conference with
the state treasurer. 1t was learned
that there was a deficit In the state
treasury, and also that the $3.50 600
three per cent. bond issue OF 1887 Is
due June / OF this year AS there are
no funds in the State treasury to meet
these bonds at maturity Il will be nec-
essary for this General Assembly to
enact a law empowering the state
treasurer to borrow $780, 900 and TO is
sue bonds therefor After careful con-
]
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 Brealwater Railroad
Company. and bore interest at six per
cent. The company receiving the
money gave a mortgage to the State
bearing interest at the same rate The
bonds issued by the state were sub
sequently refunded at four per cent,
and the rate Of interest on the mort
gage correspondingly 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 The
committee, therefore, recommends that
the money be borrowed at four per
cent. and that the railroad company be
asked to pay the same rate on the
mortgage against II 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 It would
have been II more time had been at its
disposal IL does believe that II its rec
concentrations are approved that
enough additional revenue will be
raised to amply meet the expenses OF
the state government. II this is done
| IL will be comparatively easy for a
committee Of the next General Assem-
lbly to supply or remedy any defects IN
our revenue laws which may be found
then TO exist.
The committee makes the following
recommendations
First. A State tax on all public SER
lvioe corporations.
/ Second. A revision OF existing taxes
on public service corporations.
Third. A State tax on State banks
national banks. trust companies ant
savings banks.
Fourth. A State tax on direct ant
collateral inheritances
Fifth. A State tax on malt liquors.
Sixth, An increase in the rate Of in.
terest on the mortgage held by the
State against the Junction and Break
water Railroad Company or tn,
lBreakwater and Frankford Railroad
Company from three TO four per cent.
The committee has had bills prepared
4 a49hb lhe Alc VI IT'S recommendation
land has instructed its chairman 10 in
ltroduce them.
Respectfully submitted,
William II. Baggs. Chairman,
Charles S. Conwell,
T. o. Cooper, NJ. d.
Chauncey p. Holcomb, Secretary.
Representative Corbit refused "a
sign the majority report, and will SUBJ
init a minority report in a few days.