Evening journal., 1911-09-06
DEFENDS THE res
NEW TAX LAW
Senator Sparks Says Measure
the Best Unler Cir
CumStanCeS


the manufacturers tax law passed by
the last Legislature, is the best that
could be devised under the circum-
stances and after careful consideration
when no opposition developed, 1t was
fairly passed. Mr. Sparks said:
The manufacturers tax law pro-
vides a tax on real and personal
property. The law which It repeals
and amends required exactly the
same thing.
"The old law required that a man
should pay tax for state purposes on
real estate at it's true or full value.
The new law requires that he shall
pay on the real estate as per the
county assessment, which varies in
the respective counties from 40 TO Go
per cent. of the true value. The old
law required that he should pay the
actual cost value on machinery and
equipment: the new law that he shall
pay on its true or present value,
which items would necessarily be less
than under the old law as machinery
is subject to depreciation, and 40
per cent. value of real estate is less
than the true value.
ne ODJttl vi luC Nndnbt Wdc
that under the old law It seemed i'm
possible to make a number of inter
pretations as to what is personal
property. I myself as a manufacturer,
had had five opinions from as many
different lawyers. The object was to
frame a law whereby as nearly as
possible all persons would pay on the
same basis, and raw material having
been considered by the commission
and its then legal adviser, Henry
Ridgely of Dover, and after debat-
ing the question for two years and
maving solicited openly through the
press opinions and conferences Of
manufacturers through the state, the
present law is evolved. It passed the
session of the legislature in 1909 in
its present form with almost IL not the
unanimous vote, having been held at
the latter part of the session for any
possible objections.
Through the failure to insert ?
date of beginning, the Governor de-
clined to sign IT, The commission
held the bill for another two years
Represented It at the session Of 1911
where it laid until the last day of tho
session. being publicly and openly
posted on the calendars Of the Cen
eral Assembly throughout vat time
Il am not, and do not know of any
one who is an aggressive defended of
the bill, believing as has been the
general opinion throughout the coun-
try that manufacturing being a crea.
tive organization, should not be taxed
but inasmuch as a similar law haf
prevailed in this state for years with
out any particular opposition, and az
the state could lily afford to lose the
revenue, the judgment of the commits
sion was that we would better at
tempt to amend than to lose tha
amount of revenue for the state or &c
leave the law in such a shape that J.
could be interpreted almost any way
Contrary to the statement mad
above as to the policy that has pre-.
vailed throughout the country or
manufacturers tax, there is no
pending before the international Tay
Conference which meets in Richmond
this week, a report Of the manufac-
turers' committee of the international
Tax Association. recommending tha'
manufacturers tax generally be
laid, based on dividends or profits.
Il have the honor to be a membe
of this association and committee and
have dissented on this report, know
ing full welr that there are man.
ways books may be kept to show lit
tie or no profit, but might pay excess
sive salaries
1T is possible that the cumulative
feature of our bill. whereby the aggre.
gate value Of the raw material for the
year is considered, is a mistake, and
personally | rather think IL is, but
am unable, as we're all the other
members of our commission as well
as our attorney. to formulate a pro-
vision to that effect in any other way
II am very glad that the manufac-
turers at last have taken an interest
both as a manufacturer as we'll as one
who devoted four years TO the ques-
tion, and l feel positive that If any
brain superior to ours can evolve j
better measure, it will not meet with
opposition on the part of the com
mission, but on the contrary, We will
assist with its passage
Reference has been made as well
as comparison, TO the old manu-.
facturers' tax law which was amended
some ten or twelve years ago and the
inferesce made that this law was g
like kind. l wish to say that in my
own business the tax paid under this
bill was.about one-third of what it wa;
under the old law, as at that time man
ufacturers were required to pay tal
on money paid for labor as we'll a;
submit to imposition which was OBJ
jectionable."