Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-01-21
BOARD Of TRADE
URGES REPEAL OF
CORPORATION TAX
Calls on Jersey Members of Con-
gress to Aid in Having Law
Wiped Off Books.

a resolution eritieising the corpora
ton income tax law submitted by the
commerce and trade committee of the
Board of Trade was adopted at a
special meeting of the board last night
by a big majority. The resolution
calls for petitions to be made, through
the congressman and United States
senator of this State, for the repeal OF
that portion of the Payne law impos-
ing this tax.
The action was taken after many ar
guments for and against the law had
been heard. When it came to d vote
practically all of the members who
crowded the board room voted in favor
OF the resolution.
Some of the reasons advanced
against the tax We're that it was dis
elimination to tax corporate business
While the ordinary partnership bust
ness escapes taxation and lat the fed
eral government had no right to I'M
pose taxes upon corporate franchises
giver by the different States. Tt was
said that the essence of our govern
ment was that the States should be
preserved in their sovereignty and
that, therefore, the act was a legis-
lation, without regard to its consti-
tutionality.
1t was further argued hat the act
was especially vicious, because of the
publicity clause which requires that re-
turns made constitute public records
which are open to inspection, and that
no business could be carried on sue
cessfully if-one must exhibit to the
Federal government all his business Sc
crets, while rivals who are not corpora
tons may carry on their business with
out making these disclosures.
In defense of the corporation income
tax it was said that there was no
doubt that there We're some corporate
evils, and thai because most of the cor
porate business was of a national char
acter, and as it was acknowledged thai
the corporate evils should be corrected
this correction or regulation should be
a national one. 1t was also argued that
no one should object to the injection
of a reasonable amount of publicity
into corporations, and that as long as
the government must have revenue nc
measure of taxation would be more pre-
ferable, less b~urdensome or odious and
as resultant as this me-.
The arguments were made by Rich.
ard V. Lindabury and Edward Q
Keasbey for the adoption of the reso.
luton submitted by the committee and
by former Railroad Commissioner
Borden u. Whiting and David Grotta
against it. Herbert w. Knight also
spoke for the resolution and against
the law and a letter from John e
Helm to the same effect was read.
Frederick L. Eberhard, as chairman
OF the committee which submitted the
report, said that there could be only
two reasons why there should be sucf
o law. First, the revenue, and, second
convenience for the Federal govern
ment to supervise over the affairs o.
corporations which in latter days havf
grown to be of great magnitude
With regard to the first point, h
said. that levying an arbitrary tas
upon only a portion Of the business II
this country, would be nothing more
or less than plain discrimination. Z
revenue was the object sought, Mr.
Eberhard continued, why would no
a stamp a such as used during thu
late Spanish american war meet the
condition.
The revenue derived from this tax
during the first six months of tho
operation of the law was S724, 073. "a
During the next full year it was
&3s, SIS, O1s.2 20. and for the second year
S3s.41e.0s2.
Then the tax was abandoned" Mr..
Bberhard said. mot because it had been
unpopular, but because the government
had received more revenue than it had
expected