The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-05-18
Problems of Reaching Central
lied Wealth Set Out by Com
missioner Smith.
COMPREHENSIVE SOLUTION
Is PRESSING NECESSITY
State Revenues Depend to Large
Extent Upon More Equitable
Adjustment.

4
camille, transportation and transmits
| sion corporations was made public to-
! day by Herbert Knox Smith, commits
sioncr of corporations. That part of
the report transmitted 10 President
Taft concerns particularly the six New
England states. II is stated that ad.
/ ditional parts with other groups OF
states will he published later.
\ careful Investigation into the tax
! laws of each state WAS made by Mr..
I Smith and the results of the inquiry
arc presented in concise form. The re-
port presents in popular way digest
of the tax laws and the methods of their
administration 1t contains much IN
formation particularly interesting TO
! legislatures and 10 all other students oil
taxation.
Commissioner Smith notes as particu-
larly interesting the Massachusetts. plan
of taxation of corporate excess on
the market value of stoclilcss property
otherwise taxed. 1t is pointed out, toe,
that Massachusetts alone succeeds ap"
preciablv in efforts to fax specially the
manufacturing and mercantile corpora
tions.
Railroads Take Lead.
Railroads, ii IS noted. arc among the
largest tax payers. Public service cor
porations are most often brought under
new system of taxation. ~ review OF
the six systems of taxation Indicated to
the commissioners that the entire sub
iect matter is still in an unfinished con
dition. and will need yet further care
full thought and consideration. The re
port III part follows;
"Thc 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. II gives prom.
incncc to underlying principles rather
than to details,
1.-THE taxation OF individuals is sub
Stantially the same throughout New
Eugland Corporate ta1ation. on the
other hand. shows wide diversity both
in theory and in practice. Individuals
are taxed or property. Corporations are
taxed on property, or on income: CT on
combination of both. or on capital
stock, either par OF market value, or
occssionally--as in the ease of tele-
graph aud telephone companies--on
mileage or number Of instruments. Ad-
ministration ranges from a system
highly developed. handled centrally by
state officials with large powers, 10 no
centralized administration whatsoever
Systems Compared,
Particularly interesting is the Masss-
chusetts taxation Of corporate excess
on the market value Of stock less prop
orty otherwise taxed. and applied to all
domestic corporations. Connecticut ap-
plies this 10 railroads. adding also their
bonded indebtedness as a measure of
ability 10 pay taxes.
Railroads are among the largest
H. -.
a graduated percentage Of gross trans
portatiou receipts; in New Hampshire,
ON property, but through Il state board,
in Vermont. upon gross earnings; in
Massachusetts, by the state on their
corporate excess (markeC value of
stock. less amount of property taxed
locally, and by the towns on much of
their property; in Rhode Island. on real
property by the local authorities; in
Connecticut, on the sum of bonded debt
and market value of stock.
"Other public service corporations,
such as street railway, telegraph. telc
phone, express, car, gas and electric
companies. arc most often brought nm
der special and new systems Of taxa
ton Taxation OF public service cor
porations on gross receipts is growing in
use Maine and Vermont use this
largely: Massachusetts, Connecticut and
hnOac JSldnu III p"ll, pub -NtO lump
shire not at all.
Success Of Bay State.
Massachusetts alone succeeds apprc
ciablv jill efforts to tax specially the
manufacturing and mercantile corpora
tions. This state taxes the corporation
itself on IT'S corporate excess through
the state tax commissioner. The other
states make unsuccessful efforts 10 reach
this corporate. excess in the hands Of
the shareholders through local officials,
Massachusetts receives over two mil
lions OF dollars from this source; the
other five states very little.
Banks, insurance companies and
other financial corporations pay large
amounts, often exceeding the tax paid
by railroads, but they do not come
within the scope of this report, except
in the comparison Of financial results
"Maine alone Of the New England
states secures large revenue by char
tcTing orporations-ncarly quarter
of million dollars annually.
NEW England has made considcra-
bic advance in separating the sources Of
state from local revenue. supporting the
local jurisdiction through the tax npom
local property, and the state govern
ment by taxes upon corporations and
inheritaDccs Vermont and Connect.
cut are the only states which thus pay
practically all state expenses. In the
other states the towns collect large
amounts to turn over 10 the state.
T,aGsons tO Ee learned