New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-16
INTANGIBLE ASSETS AND BED SHEETS

INTANGIBLE ASSETS AND BED SHEETS.
The quarrel between the Governor of Texas
and the Texas Legislature is now over. the
Senate having agreed TO tax the corporations TO
suit the Governor. This was not ACCOMPLISHED
without special and scOdng message from
the executive and an intimation in the news
papers that another session would be called in
August. Midsummer In Austin is very hot and
1t was believed that the legislators might care
less for the comfort of the corporations than
for their own personal comfort during the dog
days. However, for the proper discipline OF
the Legislature session in the heated term was
not required.
Before the Governor wrote his recent n,asso no
| the taxation situation was as follows. accord
ing 10 The Austin Statesman: The Senate
had passed bills TO tax everybody but the cor
porations; the House had passed bills to tax
only the corporations. They have every known
device of getting at the corporations in Texas
The House had passed franchise tax bill
| similar TO New Nork's law; gross receipts
tax, by which tribute levied on the total
income. and an intangible assets" tax. The
| last proved the winning measure. An in
tangible assets tax is tax upon the differ
ence between the physical and the market
value of a corporations holdings. Thus, If a
railroad cost $4,000 a mile to build and Is
quoted in the market at 100000 a mile the in
tangible value is $4,000 mile This IL now
TO be taxed. along with the physical value and
1t is said that the difference In taxable value
on Texas railroads alone is the difference be-
| tween S5O,GO0,0O0 and S15O0OOOOO. Some Of
the Texas legislators, who were grieved nj
what the newspapers said about them wanted
to tax the intangible assets of newspaDcrs lint
a wall went up from the Texas press which
clearly showed that they were not tho kind
of corporations that it would be popular TO tax
The fame of the Texas Legislature will NOT
rest upon the intangible assets tax alone IT
wrestled VIGOROUSLY with another grave oues
ton, and with its conclusion all Texans ogroo
ms was the intangible bed sheet question. The
new bed sheet law takes effect in July. II
provides That all top sheets in hotels lodging
houses and sleeping cars shall have n mintmum
length of nine feet The ancient distinction no.
tween the physical bed sheet and the intangible
bed sheet is abolished. Under the old law .
Texan might cover himself from his toes nm To
his midrin with the physical bed sheet and
spread the intangible one thence I'M m his
chin, or II, being of a ChOlePic disnosition he
pulled the physical sheet up to his chin ba
was compelled to content himself With tho
intangible sheet as q covering from his knees 10
his toes. The legislators themselves are said
TO have expert knowledge of the problems nra.
scented by the intangible bed sheet Wbetber
the legislation regarding intangible bed sbeats
suggested that regarding intangible assets mr.
rice versa. we do not know. Two such laws
are enough even in these DAYS of Axact,ro
standards Of legislative duty, to entItle +hs
Texas Legislature to relief from a .sdoo starn
session.