The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1909-05-20
In the New England States
Says Commissioner Her
bert Knox Smith.
IN UNIQUE REPORT
Submitted to President Taft
on the Taxation OF
sCorporatiohs.

WASHINGTON q. G., May IA
unique report dealing with statc tax
alton OF. manufacturing. mercantile
transportation and transmission cor
poratlons was nude public today by
Herbert Knox Smith, commissioner
Of corporations. That part of the re-
port transmitted TO President TAFT
concerns particularly six NcN Eng
land states and Il lis expected aldi-
tional parts dealing With other groups
of states viii be published latcr
Commissioner Smith says in his let
liter of submittal:
Sir: hiye th- honor to,submit
herewith Part l OF report on state
taxation OF manufacturing, mercanilc.
transportation and transmission cor
porations. This part deals with tht.
six New England states. Additional
parts dealing with other groups Of
states may be published LATER.
The growth Of corporate wealth
has made corporate taxation The first
factor in the problem OF s,utc reve-
nues This report gives. by states,
a digest of taxation laws. thu meth
DDS of administering the same, the
financial results. and comments. II
gives prominence TO underlying prin-
ciplcs rather than to details. Al
though it deals principally with law
il is not a legal publication. nor has
1t been prepared especially for law
ycrs Ii IS intended rather for the
use of the general public, and it viii.
be particularly interesting TO lesis-
lators and tax officials
The statutes have been examined
and discstcd. The proper officials in
each state have been interviewed as
to Interpretation. administration. and
financial results. No discussion OF Il
tax system would he Of practlca; value
IL based merely on tn statistics.
"The taxation of individuals is sub
atantialiy tile same throughout New
England Corporate taxation, on the
uthcr hand shows wide diversity both
in theory and in practic., individuals
are taxed ON property. Corporations
are taxed ON property. or on income
OF on a ccmilnation of both. or on
capital stock. either par % market
value. or Occasionally in the ease
OF telegraph and telephone cpnpan-
ics-on mileage or number Of in
s.ruments. Administration ranges
from system highly developed.
handled centrally by state officials
with large powers. 10 no centralized
administration whatsoever.
Particularly interesting Is the
Massachusetts taxation Of Corporate
excess on the market value of stock
less property otherwise taxed. and APP
piled 10 all domestic corporations.
Connecticut applies this to railroads.
adding also their bonded indebted.
ness as u measure Of ability to pay
taNes.
Railroads are among the largest
taxpayers. In Maine they .rc taxed
at graduated percentage OF gross
transportation receipts; In New
Hampshire, on property. hut through
a state board. in Vermont upon gross
earnings; in Massachusetts. by The
state ON their corporate cxcrss'
tmarkct value Of stock. les amount
OF property taxed locally. and by The
towns on much of their properly: in
Rhode Island. on real property 10y the
local authorities; in Connecticut. on
the sum Of bonded debt ami marke,
value of stock.
Other public-servicc. corporations
such rs strcct-railway. telegraph, tel-
cphone. express. car, gas, aud clcctri,
companies. arc most often brought
under special and new systems u tax.
alton Taxation Of publc-scrvicc cor.
p"ratirn pn gross receipts IS growing
In use. Maine and Vernon; use thi,
largely; massachusetts. Connecticut
and Rhode Island in part; but New
Hampshire not At all.
Massachusetts alone succeeds ap
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