The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1909-05-22

today by Herbert Knox Smith, commits
sioner of corporations. That part of
the report transmitted to President
Taft concerns particularly the six New
England States. 1t is expected that
additional parts, dealing with other
groups of states, will be published
later. A careful investigation into
the tax laws of each state was made
| by Commissioner Smith and the re-
suits of the inquiry are presented in
concise form. The report presents
in popular way a digest of the tax
laws and the methods of their admin
istration. While, in a sense, it is
legal publication, it was prepared rath-
er for the general purpose than for
| lawyers. 1t contains much of infor-
nation particularly interesting and i'm
| portant to Legislators and all other
students of taxation.
Commissioner Smith points out
that, while the taxation of individuals
| throughout New England is on sub
stantially the same basis, there is a
wide diversity among the several
states in both the theory and practice
of taxation of corporations. He notes
as particularly interesting the Massa-
chusetts plan of taxation of "corpor
/ thD arlyn 1ttn
of stockless property otherwise taxed
1t is pointed out, too, that Massachu-
sets alone succeeds appreciably in
efforts to tax specially the manufac-
turing and mercantile corporations.
Railroads, it is noted, are among the
| largest tax payers. Public service
corporations are most often brought
under new systems of taxation. A
review of the tax systems of tax
alton indicates to Commissioner Smith
that the entire subject matter is still
| in an unfinished condition and will
need yet further careful thought and
consideration.
Mr.. Smiths report to the President
is as follows:
Sir: l have the honor to submit
herewith part I of report on state
taxation of manufacturing, mercantile,
transportation and transmission cor
porations. This part deals with the
six New England States. Additional
parts dealing with other groups of
states may be published later.
The great growth of corporate
wealth has made corporate taxation
the first factor in the problem of
state revenues. This report gives, by
states, a digest of taxation laws, the
methods of administering the same,
the financial results and comments.
1t gives prominence to underlying
principles rather than to details. Al
though it deals principally with law, 1t
is not a legal publication, nor has it
been prepared especially for lawyers.
1t is intended rather for the use of
the general public, and it will lie par
ticularly interesting to Legislators and
tax officials. The statutes have l0'n
examined and digested. The pro n'
officials in each state have been IN
tervicwcd as TO Interpretation, admin
istration and financial results. No dis
| e-essC - n 20.
practical value if based merely on the
statutes.
The taxation of individuals is sub
stantially the same throughout New
England. Corporate taxation, on the
other hand, shows wide diversity botl
in theory and practice. individuals
are taxed on property Corporations
are taxed on property, or on income
or on a combination Of both, or OF
capital stock, either par or marke
value, or occasionally-as in the cas-
of telegraph and telephone companie
on mileage or number of instru
ments. Administration ranges from
system highly developed, handle'
centrally by state officials with larg
powers, to no centralized administra
ton whatsoever. Particularly inter
estipg is the Massachusetts taxation
of corporate excess" on the marke
value of stock less property other
wise taxed, and applied to all domes
tic corporations. Connecticut apple
this to railroads, adding also thei
bonded indebtedne ss as a measure o
ability TO pay taxes.
Railroads are among the largest tax
payers In Maine they are taxed al
a gra duated receipts; in New Hamp
shire on property but through state
board; in Vermont. upon gross earn
ings: in Massachusetts, by the state
on their corporate excess (market
vaIue NJ stock. less amount of proper