The citizen. (Honesdale, Pa.) 1908-1914, 1909-09-15

wealth, provide liberal assistance
to several hundred hospitals and
homes; pay seven and one-half mil
lion dollars yearly to the school dis
tricts OF the state, about one mil
lion a year to various universities
and other educational institutions,
build some highways, and eXpend-
ing great sums for numerous other
purposes.
The receipts of the Treasury de-
partment for the fiscal year ending
November 80, 1908, were $25,670,-
540.97; the expenditures during the
same period were S29,15S, ,S7S.40.
The income for the first nine months
OF the nineteen hundred and nine
fiscal year are S21,2S4, ,626.05, an
increase over the same period of
nineteen hundred and eight of S4,-
171,9O7.17. The payments during
this period have been $20,66
6G3.04, an increase over nineteen
hundred and eight of $2,O0S, S,51S.57.
| know it will be a great pleas
ure to you and all Pennsylvania
to hear that, yesterday, the seventh
day of September, the accumulated
interest added to the amount of
money in the Sinking Fund equalled
the entire state Indebtedness, and
to-day, if it were possible to secure
all outstanding bonds, Pennsylvania
would be free from debt.
In returning to the subject of
Taxation, there was resolution
introduced and passed by the last
General Assembly and approved by
the Governor, providing for Il COM
mission to consider the laws OF the
commonwealth relating to corpora
tions and to revenues. believe
this to be a very proper procedure,
and even if the Legislature OF nine
teen hundred and eleven will not
adopt the measures which this COM
mission might draft, still Il great
amount of very valuable information
may be secured by the commission,
which will guide the members who
will take an active part, in what
should be an important improvement
III our tax laws, which are far from
perfect from the commonwealth
standpoint.
| am firmly convinced that It
would be a tremendous benefit to
the people of the commonwealth,
if they would discriminate in the
selection of their lawmakers for the
session of nineteen hundred and
eleven, but should the members of
the General Assembly decline to
enact laws which will clothe the tax
levying and collecting departments
OF the State Government with au-
thoritative power, backed by clear
ly drawn, infexible and equitable
laws, then the Executive should
use every power and every preroga-
tive of his high office; concentrate
this force upon the lawmaking
body, and bring about the passage
of such very necessary laws.
Corporations pay little more
than one-half the revenue received
by our commonwealth. The vari-
Gus forms of corporation taxation
in use by Pennsylvania, are not
conclusively applicable, and are far
from equitable and they should be
speedily amended or repealed. If
repealed in their entirety, but one
tax should be levied, and this a
tax upon the gross receipts or the
entire value of the production of a
corporation within the common
wealth; but equaling the present
combined income from gross re-
ceipts, capital stock, loans and
bonuses. This method of taxation
would be more equitable, and
would reduce taxes now paid by
| domestic corporations, and increase
taxation upon those corporations
that operate under foreign cor
porate law, while using the natural
resources and facilities of Pennsyl-
| vania for the benefit of their COM
panies.
insurance companies and bank
ing institutions should be in two
| separate tax classes. The manner
or taxing insurance companies
should have most careful considera-
ton by the commission selected to
revise laws in relation to corpora
tons and revenues. The manner
OF taxing banking institutions seems
satisfactory, with the exception of
the four mill tax on time deposit
certificates, and the fifty per cent.
fine for failure, on the part of a
banking institution, to file it's re-
port and pay its tax by Aug. 1st of
each calendar year. This penalty
seems unreasonable and should be
made the same amount as all other
| penalties, eXacted for non-compli-
ance within the time limit as pro-
vided by law.
The four mill tax upon time de-
post certificates should be repealed,
as such deposits represent a class
of savings rarely amounting to
large sums. The interests paid by
banking institutions on these ac-
counts are too large to admit the
bank to pay this tax, and the in
come derived by the depositors is
such that they cannot afford to