Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-01-31
MANY COMPANIES IN FIGHT.
Case Which Judge Richie Has
Under Amusement Brought by
Consolidation of interests.
Cnfairncss is Alleged In That the
Really Big Public Service Com
pnnles Escape Lightly.

With Stuyvasant Fish paying his
respects to T.. II. Hartman In the
FORM OF an attack Of one Utah law of
the last legislatures making, with
Judge Lewis finding another uncou-
sututional, and with Judge Richie
holding still another "under advise
ment' pending a future decision as 20
lts consututionality, the work OF this
legislature is suddenly coming into the
limelight in more than one quarter.
The law under advisement doals
with collecting a license" from cor
porations, and the attack on it is re-
ing made with view of getting IL
out of the way. SO that a more sweep
ing and inclusive one may be drawn
up at the next session.
The law originated I'm the needs Of
the state for more money MANY
schemes Were devised to accomplish
this result, most of them aimed at get
ting taxes from the large corporations.
1t was found, for instance, during the
session, that the farmers of Salt Lake
valley were vastly more valuable to
the state, as taxpayers. than the big
smelling plants, despite their enormous
wealth; also thnt county assessors had
mysteriously failed to get the money
from big mining plants located in those
counties.
TO correct this evil the state board
of Equalization was authorized to levy
against certain kinds of corporations
instead of the county assessors.
WAS TINGEY's BILL.
Harry Joseph, for the house,
fostered many measures to in
crease the taxable assets Of tho
state, and as many originated
in the senate, meanwhile Secretary OF
State Tingey brought in a law of his
own making. and 1t was introduced
county. 1t was this BILL that finally
became a law, and that is now being
attacked as to its constitutionality.
Two Interesting questions are raised
in the attack. One is what is a fran
chise2" and the other. what is a H.
cense. The suit curiously enough is
brought by a firm of lawyers, one of
whom was chairman of the judiciary
committee of the senate, when the bill
became a law, and he Is now leading
the attack on its constitutionality
NOT LICENSE BUT a TAX.
1t is held on this side of the case,
that license. by supreme court de-
cision, is To be granted as n requisite
for giving certain powers, which other
wise would lapse or be roscnded.
They hold that in this case of corpor-
alton license. 1t is not really a IL
cense. but tax, since 1t ne Their grants
the power to do business, nor has the
power to take away this right.
The corporation tax is a graded one.
with an increasing fee for increasing
valuation of corporations, according 70
the size OF their capital stock. Their
il a restrictive CLAUSE, and this Is what
ENa In
Niger in the woodpile." It provides
that however big the valuation OF the
stock of corporations, their fee stops
when they get to paying $50. This lets
off with a nominal tax the holders of
big franchises, and all public service
corporations.
WHAT G. N. LAWRENCE SAYS.
"Our laws clearly define" says Geo.
~ Lawrence, chairman of the state
senate's Judiciary committee, who Is in
terested in the attack on the bill, that
Il franchise is property and the consti-
tuition declares that property must be
taxed on an advalorem basis This
law taxes a real estate holding COM
pany, with capitalization of s25000O.
but really no powers except to levy
assessments on its stock, exactly the
same as u S2000,000 public service
corporation with II franchise allowing
st 10 levy tribute on the people, and
collect its revenue In this way.
II strongly favor movement 10 adopt
here the Kentucky law. talng Franchise
es. since they arc clearly property. IN
Kentucky there Is state board OF
valuation. and this board finds out tho
market value OF corporation, through
taking the market valuation OF its
stock Then this board takes tho as
sessod valuation OF all it's personal and
real taxable property, and It deducts
this valuation from the total value OF
Its stock The remaining sum Is
named as tho valuation OF tho fran
chlse. which IL what gives the com
pany whatever value II may have In
addition TO is actual property hold
ings.
This law. hold. gives the people
n chance. and puts tho tax burden ON
a basis whore each corporation must
pay it's share
The Black Rock Copper Co, I'm whose
name the suit h brought n only used
In order To get case, with a capt
talizatiou OF $4,000 tho company ~
taxed ti5 aE n license fee, aud seeks
10 recover tho sum. Tho rcnl force
behind tho test III an alliance Of abou,
100 mining companies. and they AFRO
working Ia tho belief that the law ut
present ~ too liberal altogether tu mo
really big corporations
THREE MEN INJURED nv