Evening journal., 1911-12-15
TRADE BOARD
AND TAX LAW
Working on Changes in
Statute Affecting MANU-
faCturerS Of State
LAWSON PURDY SAYS
CTHER STATES MORE SEVERE


not given up It's intention 10 have the
faAufaoturors' tax laws OF tho State
q. Delaware made to meet the ap-
prevail OF the manufacturers.
Years ago, when tho State had IN
force what was considered an inquisl-
teFlal manufacturers tax law, the
Wilmington Board Of Trade interest
Cd ltaolf and had the law repealed
which was great relief to the local
manufacturers as we'll as consider
able inducement in having new manu-
featuring industries locate in this
city. Every one appreciates the fact
that a state or municipality, in order
10 conduct the government, must have
revenue, and the usual sources OF rev
enue are resorted to. Subsequently,
manufacturers tax law was enact
ed which was considered by some OF
the manufacturers as indefinite and
not clear as to the intent upon which
the manufacturers should pay their
tax. At the last session OF the State
Legislature, the State enacted a law
which was intended TO clarity this
situation and which, according 70
some manufacturers, does materially
clarity the conditions upon which the
manufacturers should pay their tax
The whole purpose Is to have the
tax uniform and the less burdensome
it is possible to make it. AS a.
question has arisen as to the enact
ment of the legislature, the Whining
ION Board of Trade has set itself upon
thorough study Of the subject IN the
hope that the situation may be sun
further considered.
In reply to a communication from
the secretary of the Wilmington Board
nf Trade, the Board has received
communication from Lawson Purdy,
who is regarded as the leading tax
expert in the United States, in which
he states: "YOu ask me I'm regard
10 the laws of different states impos-
ing taxes upon manufacturers. The
usual rule is that no distinction is
made between a manufacturer and a
person engaged in any other business.
In many states the laws are FAR more
severe than in Delaware
Mr.. Purdy's opinion was asked as tc
how the Delaware tax laws upon
manufacturers compared With those
of other states.
In order that all the information
upon this subject may be secured, the
Secretary of the Wilmington Board of
Trade has addressed a letter to
George w. Sparks. Secretary Of the
Delaware State Revenue and Taxa
ton Commission. and has received a
reply. both of which are printed here
with. Nothing is to be left undone so
far as tho Board of Trade Is concern
ed that will aid in having the tax laws
OF the State made satisfactory to
them and the taxes made as light as
possible.
The letter Of Secretary McGovern
to Colonel Sparks was:
Nov. Is. 1911.
Mr.. Geo. w. Sparks. City Dear
Sir: You will recall that at the meet
ing Of the manufacturers Of this city
who were called together at the in
stance of the Board of Trade on Oc-
tober 1lth in order to lave "a con-
ference with the State Revenue and
Taxation Commission, IL was suggest
ed that Manufacturers Committee Of
the Wilmington Board of Trade should
be created. This Committee has beer
appointed and Mr. Richard W. Bond
has been made chairman.
AT a conference with Mr.. Bond this
morning. it was decided that should
communicate with you asking that
sif any revenue measures are cOnsid-
cred in the future for the passage by
the General Assembly OF this State
which would in any way affect the
manufacturers of this city that we be
notified with reference TO same be-
fore they are presented TO the Cen
eral Assembly. ] believe I may also
say that the attitude Of the Commit.
tee Is that of cooperation with your
Commission in order to secure the en-
actment Of revenue legislation agree
able TO all as far as possible. rather
than an attitude of antagOnism and
uuwarranted public criticism.
You are a manufacturer associated
with one Of the oldest companies that
has been identified with the industrial
development OF this section Of the
country and il is well-known that
such action as you would recommend
looking TO the securing OF revenue for
the city would be the least drastic
that could be enacted For this reason
! believe that you have made a can
vass OF the revenue laws of the yari-
GUS states as they affect manufacture
ers and In order that the Committee OF
the Wilmington Board OF Trade may
be properly advised of the facts IN
relation to a comparison of the pres.
ent manufacturers tax law with that
Of other states, / would thank you for
any suggestion you can make alonf
+ this line which will enlighten us
( upon this point. You will recall in
your statement before the meeting
Of manufacturers that in reviewing
the tax laws Of the State of New Yorl
it was readily seen that they we're Sc
drastic in nature that the Delawar,
!. law would hardly stand I'm compari
son wGh it. Yours very truly, Geo. II
McGovern. Secretary"
The reply of Colonel Sparks is al
follows.
George H. McGoyern. Secretary
Wilmington Board OF Trade, City.
Dear Sir: As secretary OF tn,
State Revenue and Taxation Commits
sion I will take pleasure in forward
ing to the Manufacturers Committel
OF the Wilmington Board of Trad,
copies oc all measures suggested b,
our Commission for enactment. o
those presented by any other persol
$ or persons. which may come to m,
attention.
Il would repeat what has been sal
{ in public before that our Commission
did make some three or four year
ago a very careful canvass Of the ia
laws OF most Of the states of III
Z Union, and II ! remember correctl,
Ihnro W.. hut nrn nlnIn ,.hinh L..