The daily sentinel., 1910-06-06

the 'cApltal-StOck TAX IN otner states,
with two branches-t1) a tax on the
par value Of authorized capital stock
OF certain domestic (businessl cor
porauons organized after March 10,
1893. and doing. less than SO per
cent of their business in Delaware.
and t3l a tax on domestic gross re-
ceipts of transmission, insurance
tother than life). light, heat. and
power, and certain transportation
companies, with the same qualifica-
lions as to date of organization and
place of business. The second branch,
aside from insurance, is almost en-
tirely imperative, because. with the
exception of few telephone COM
panles. no corporations with such
qualifications appear as having any
gross receipts in Delaware.
Manufacturing. mining and mer-
camille companies NOT subject to the
annual franchise tax pay a graduated
license tax on the cost of the prop
erty used or bought by them.
In cases not subject to the annual
franchise tax there is gross-receipts
tax applied to express. light. heat,
and power companies, and tax on
wire mileage applying to telegraph
and telephone companies Express
and telephone companies also pay
certain license taxes.
The constitution forbids the taxing
Of stock Of domestic corporations in
the hands Of nonresidents. and stocks
and bonds in thc hands of residents
are not taxed
While there are a number of laws
taxing railways upon their business,
earnings, rolling stock. etc. these
taxes have all been commuted to the
payment of fixed lump sum in each
case, policy which has existed for
a number of years.
In 1909 there was received by the
state from railroads about 100000:
the annual franchise tax brought in
about $4,000. and the tax from
transmission companies about $IO.-
600. Organization fees of corpora
tons amounted to about $4,000
Maryland. The proportiouate
amount derived by the state from
special taxation of corporations, is
small. about g. per cent of the total
state tax receipts. This. however.
does not include a large sum receiv-
ed from corporations under the gen
eral property tax, an amount which
can not be segregated. There is
sQ-called 'capital-stock tax" which
however, is in essence a general prop
erty tax applied to corporations. II
is collected through the corporations.
based on their assets. and may be
charged by the corporations to the
stockholders, which in some cases is
done Railroads are exempt from
this tax Most OF the proceeds of the
tax goes TO the public schools, so that
both in principle and application it is
hardly a state corporation tax.
Railroads, transmission, and other
public-service companies are taxed on
their gross receipts. Shares of stock
in corporations taxed either by the
capital-stock or the gross-receipts tax
are exempt in the hands of stock
holders.
By far the most important single
tax for state purposes is the gross
receipts tax. which in the year ended
September 1909. produced about
S642,000. The capital-stock tax pro-
duced about S107 600. The only
other large item is the tax on insur-
ance companies and savings banks de
posits Of about 1907 600.
District OF ColumbIa-Th pro-
portionate amount derived from spe-
cial taxation OF corporations is about
6 per cent This. however, does not
include a large sum received from
corporations under the general prop
erty tax, an amount which can not be
segregated. In the District there is
perhaps the broadest application of
the general property tax so far OBJ
served. The majority OF corporations
come only under that tax.
There is gToss-receipts tax on
street-railway companies and a gross
earnings tax on gas. electric-light.
telephone, and certain financial COM
panies. There is no special tax on
railroads. telegraph companies. ca
nal companies, express or car com
panies, or on business or manufactur-
ing companies. Stocks and bonds are
not taxable in the hands of the hold
ers.
For the year ended June 1909.
there was received by the gross
receipts tax about $17S.00O from
street railways and about S199.000
from gas, electric. and telephone com
panies By the general property tax
on public-service corporations there
was received about S254,000. From
special taxes on financial corporations
there was received about S272, 900.
Fresh stock of screen doors for oil
1nish at the Independent Lumber Co.
Fine and compIete line of refrig-
orators. Crown Furniture Co.