Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-01-01

Indicated by the dividends. and they oo
not want the public to know all tncse
| things. Then many firms do not wan.
! their competitors to know what they
are doing In certain fields. as 1t mlgnt
| Induce competition. Some OF the sr"ail
| firms of the country urge this nrgu-
mcnt in regard to the gigantic COM
| bines who will reach out and crusn
| out the lives of many smaller concern
they say. Whether or not these fearS
and surmisingS are warranted time
| alone will tell.
There is however this fact about
| the law which works a hardship upon
| corporations as against private INNS
| or partnership concerns. and thnt iS
no cognizance Is taken OF the latlsr
| by this law. The law only applies ~
corporations. The American Sugar ana
Refining company OF New York VIII
have to comply with the law. but Ar
buckle Bros, its great competitor, ara
under no necessity of doing so. In
this city there arc several largo private
firms, doing a big share of the business
of the city In their respective INES
who will not have to make report, or
pay any tax. In addition to the w
Justice az regards the payment of the
tax. there Is also the fact that while
the reports OF the corporations VIII be
open 10 the people. all private conf
panies will have their business secrets
protected as heretofore.
TENDENCY OF THE ACT.
At first sight it might be thought that
the tendency of this legislation would
be to increase tho number OF partner
ships and private firms, yet this idea Is
d,scredited by some of the most prom
incnt business men In the city In
discussing the matter yesterday one
of the leading lawyers OF the state SAID
in1 haNa q tnn-
dency that way, but owing to the au-
vantages OF the corporation against q
partnership, do not look for 1t to
change things greatly You see. In ao-
dition to the fact that a corporation
continues its existence even II all the
Incoiporators die, when partner dies,
the affairs of partnership have to be
closed-often a serious disadvantage.
In addition there Is the serious point CT
liability"
"A partner Is liable for the debts OF
"a firm II may be, to the loss OF every
thing he has on earth, except the NJ
tie that Is exempt by law, whereas a
member of n corporation Is only llaole
to the extent of his investment in that
corporation. These points Will no doubt
still make the corporation favored In
spite of the discrimination In favor OF
the partnership.
The law has been framed to exempt
organizations. for charitable. religious
and educational purposes from the tax.
1t is intended. says the law, that moth
ing In the section shall apply to labor,
agricultural or horticultural organiza-
tions. or fraternal beneficiary socie-
ties, orders, or associations operating
under the lodge system. and providing
for the payment of life, sick, accident
and other benefits to the members of
such societies, orders or associations,
and dependents of such members, nor
to domestic building and loan associa-
tlons, organized and operated exclu-
sively for the mutual benefit of their
members, nor to any corporation or as
ISOLATION organized and operated ex-
clusively for religious, charitable. OF
educational purposes. no part of the
net income of which inures to the
benefit OF any private stockhclder or In
dividual."
ALL MUST REPORT.
In spite of that clause exempting
them. however, all such organizations
will be expected to make the report
and the decision as to their exemption
is not to be left to themselves, but that
is to be passed on by the commits
sioner of internal revenue at Washing
ton. 1t is stated by Collector Callister
that all Of the ecclesiastical wards of
-
day Saints viii come within the law,
and each of them will have to make a
report of their financial condition for
the year 1909, their exemption being
afterwards decided by the Washington
authorities.
How the law operates, and what
tax OF l per cent means to the cor
porations of Utah is forcibly shown
by the application of 1t merely to the
dividends, not the full earnings paid by
a few companies during the year, Each
firm Is allowed $1,000 profits free of
tax. In other words. the 1 per cent
tax only applies to the amount made
over and above $4,000. The following
dividends have been paid this year by
five leading corporations of this state.
They have no doubt earned more than
the sum they have paid out in divi-
dends, and according to the law that
total is what they Will be required to
pay taxes on.
LOCAL APPLICATION.
The dividends of the five companies
are as follows:
H. C. NJ. 1. ...,.........-.......S 129,400
Deseret National bank ... $4,000
Utah Idaho Sugar Co. ......,... 100000
Anal Sugar Co, ..,.......-.-. 10000
Con. Wagon & Mach. Co. -. 1850
Iotal '..''..'..-..'.,-..- 81, S.4OO
According to the above figures these
five companies will have to pay to
the government the sum of s11,O94, or
l per cent of the above amount, at
least. and probably more.
a more striking example of the
revenue producing power of this law
Is seen In considering a few of the
mining companies of Utah. Taking
the six largest dividend payers OF the
year 1909. which paid dividends amount
Ing to sI295,219 during the year, the
amount OF tax due on dividends only is
s72.952.l9 This is divided as follows: