The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-05-17
The Commissioner of Corpora.
tions Submits a Report
Covering Methods of Raising
Revenue in New England.
BY SPECIAL LEVIES
Vermont Pays All the Expenses
Of Government.
Corporations Pay One Third of
Massachusetts, Bills.

washington, May IA unique and
interesting report dealing with state
taxation of manufacturing, mercantile,
transportation and transmission COR
porations has been made public by,
Herbert Knox Smith. commissioner 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 Com
missioner Smith and the results of the
inquiry are presented in concise form.
The report presents in a popular way
digest of the tax laws and the meth
DDS of their administration. While In
sense it is legal publication, it was
prepared rather for the general public
than for lawyers.
1t contains much of information par
ticularly interesting to legislatures and
all other students of taxation.
Commissioner Smith points out that
while the taxation of individuals
throughout New England is on SUBJ
stantially the same basis, there is q.
wide diversity among the several states
in both the theory and practice of the
taxation of corporations. He notes as
particularly interesting the Massa-
chusetts plan of taxation of corporate
excess on the market value of stockless
property otherwise taxed. 1t is pointed
out, too, that Massachusetts, alone sue
ceeds appreciably in efforts to tax
specially the manufacturing and mer-
camille corporations.
Railroads. it is noted, are among the
largest taxpayers. Public service cor
porations are most often brought under
new systems of taxation. A review OF
the six systems of taxation. indicates to
the commissioner that the entire sub
ject matter is still In an unfinished
condition and will need. yet further
careful thought and consideration.
Report by States.
The report shows that approximately
one-half of the expenses of the Maine
state government. which. amount to
over.stwo and a half million dollars an
nually, are met by special state taxa
ton OF corporations.
The total amount of revenue in New
Hampshire for state purposes is little
over a million dollars a year; from the
special taxation Of corporations there ia
derived for state purposes little over
one fourth of this amount.
All of the expenses of the state gov
ernment in Vermont. approximately a
million and a half dollars a year, are
met by the special taxation of corpora
lected by the state. The corporations
are paying approximately Sc per cent OF
the total state expenses.
The total expense of the Massachus-
etts state government in 1907 was ap-
proximate1y SIS, 100000. The receipts
from the special taxation of corpora
tons in Massachusetts, paid about one
third of this sum.
To corporations desiring to do busi-
ress in Rhode Island the tax system of
that state offers an inducement to in
corporate under her laws. This consists
in a deduction for actual Indebtedness
from taxable personal property to do
nlestic corporations only, corporations
without a Rhode Island charter not be-
ing allowed this privilege.
Moreover, no corporation doing busi-
ness in Rhode Island is taxed or its
Intangible personally. such as bank de-
posts and net credits. The result is
that it is not uncommon for most, if
not all. of the personal property of a
domestic corporation to escape taxa
ton, the intangible personality not being
according to law, and the tangible per-
sonalty being Cancelled by indebtedness.