The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1910-01-13

! United States Steel Corpora
ton. $40. ..... 80. 81 .332, 449
Pennsylvania, Railroad. $50. 254,245
Baltimore G Ohio Railroad. TIA, LASS
Union Pacific Railroad. 80. 295, 1896
Southern Pacific Company 276,9S5
American Telephone and Tel 258,197
American Tobacco Company 191 900
! Atchison, Topeka & Santa
Fe...... .... ......... 243,6S2
New York Central ...... 110,S38
The income tax imposed by act
of congress passed Aug. 5, 1909. be-
comes effective tomorrow and is re-
troactive, providing for payment of
the tax for the year ending today
The law levies a tax of / per cent
on the net income of all corpora
tons. joint stock companies. associa-
tons and insurance companies with
net income in excess of $4,000 an
nually.
1t is calculated that the tax will
YELL to the United States govern
meAr an annual revenue of from$25,-
900 900 up. This is only rough figures
as. it is impossible to get the exact
data OF any corporation but the
railroads, excepting as the corpora
lions have consented to give informa-
ton in their periodical reports. The
railroads are obliged, by law, to file
complete reports with the Interstate
Commerce Commission. Under the
corporation tax law all corporations
will be required to file with the in
ternal revenue department by March
| next, a detailed statement show
ing the amount 'of their business for
the past year.
The United States Steel corpora
ton will be The largest contributor
to Uncle Sans Golfers under the 1
per cent tax. In it's report for 1907,
which is regarded as good indica-
ton of what it's present business is,
its earnings, upon which the tax
could be levied, were $133,244, $780,
This figure represents the earnings
after the fixed charges, such as il
terest on bonds. were deducted. On
basis of l per cent the steel cor
poration would pay a tax of $780,
449.
The Standard Oil company with
its many subsidiary corporations, will
pay the next highest rate. Standard
Oil does not make habit of taking
the public into its confidence, and
to arrive at definite conclusion is
out of the question. Wall street fig
ures that the new tax will compel
the Standard to pay 100000.
There are score of large corpor-
ations which will be compelled to
pay a tax of anywhere. from $780,
900 to $350.OOO. Many others will be
taxed from $4,000 to 100000.
The census of 1905 showed the
capital of corporations engaged in
manufacture at that time to be $780,
$40. S11, 1906. The growth of corpora
tions for the five years prior to 1905
was about 40 per cent. 1t is regard
ed as altogether likely that, with the
constantly improved conditions of
business throughout the country 1t
will be found when the census is
taken this year. that there has beer.
considerably greater increase than
40 per cent over 1905, even with the
setback of the panic. If this is found
to be the case the corporation tax
yield will be much bigger than$25,.
100000. ~
! 1t is foregone conclusion that
strenuous efforts will be made to
have the corporation tax declared
unconstitutional. Test cases will be
brought just as soon as possible
and one of these will be carried to
the supreme court and an expeditions
decision asked there. All sorts OF
corporations are going to fight the
measure tooth and nail, and are con
fidently predicting that 1t will be
forced to go the way of the income
tax law of the Wilson-Gorman tar
if.
On the other hand. there are many
who believe the supreme court viii
sustain it, and still others are in
clined to hope that there will be al
j, least an obiter dictum opinion ex
pressed on the income tax question
They think that the court canno