The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1912-01-20

FoJr year and a half The News has
kept for its readers daily resord of
ColE Buchanan Schley's visits to his Of
fcd. in Annapolis.
THE State Tax Commissioner Is one OF
the most important officials in Maryland.
His is the one office the good or bad
management of which affects directly the
pocketbook of every taxpayer in the
State.
Rouhgly speaking, the State derives its
income form three sources: "a Special
taxes on corporations; (2) the liquor
tax and other licenses, ETC.; 80 the gen.
eral property tax. Each contributes
about one-third the total income. 1t is
obvious that receipts from licenses, etc.,
being fairly constant, undertaxation of
the corporations must he counteroalanced
by over-taxation of general property.
What the corporation does not pay the
individual taxpayer must make up.
The duty os assessing general property
falls on the local authorities. The State
Tax Commissioner has nothing to do with
this. 1t is his duty to ascertain the
gross receipts of public service compan-
les and certain classes OF financial insti-
tutions and levy fixed tax upon them.
He is supposed to ascertain the fair
value of the stock of every corporation
in the State and thus by deducting from
1t the value of such real estate and ether
taxpaying or otherwise deductible in
vestments it possesses, to determine the
value of each corporations personally
and additional taxable assets.
His administrative and constructive
work is therefore almost wholly confined
to problems concerning the valuation of
corporation properties. In his last re-
port to the General Assembly, for in
stance, 279 pages out of 2S7 were devoted
to this subject. The fidelity with which
he performs his duties affects not only
the State tax rate but also the various
local rates, for it is on his valuations
that corporations pay their local person
atty taxes.
Since his reappointment in June, 1910,
Colonel Schley has appeared in Annaa-
oils forty nine times. This record might
not, in itself, be reprehensible, provided
that finding his office force thoroughly
competent to do the routine work, he had
devoted his own energies to the uncov
ering of hidden values and other con-
structive features of the Offices business
The real test of his diligence and eff
cheney, whatever excuses may be offered
from his prolonged periods of absence
from Annapolis, is found in the degree
to which the taxes o. corporations APP
proximate what they are required by law
to pay. Colonel Schleys last report, like
those which have preceded it, shows such
ridiculously low returns from corpora
tions of all descriptions that one is fore
ed to accept the verdict that his absence
from Annapolis is only part ana parcel
Of a general neglect of the duties of his
position as State Tax Commissioner.
Here are few such instances: In
19OS-9 the total receipts of the Western
Union Telegraph Company were $30,5i1,-
or. 1t pays to Maryland tax equal to
2 IL per cent. of its gross receipts from
business done within the State. The
gross receipts returned and accepted by
Colonel Schley were, in 1910, exactly $40,-
900. In 1911 they were again exactly
$40, 900.
Are We to believe that this Company
does only thirteen one -nundredths of one
per cent. of it's business in Maryland?
The Company has $4,000 offices, mostly
rural. Are we to believe that the "a
urban Offices in Baltimore do little more
business than the average office of the
Company, and that the Offices outside
Baltimore earn practically nothing?
The gross earning OF the Postal Tele
graph Company, which are similarly
taxed, were accepted for 1910 at $4,000.
In 1911 they we're again $4,000, This
State. The average return per once was
$112. Does Colonel Schley ask US to be-
lieve that this represents the true earn
ing capacity of the Postal Telegraph
Company?
In 1907 the tax rate on the gross re-
ceipt of express companies was raised
from two per cent to two and half per
cent. From 1904 to 1907 the gross re-
,eipta of the Adams Express Company
we're Invariably accepted by Colonel
Schley at $4,000 per year, and it's tax
bill made out TO r$3000 When the rate
was raised the gross receipts fell to
100000 and stayed at that figure until
1911 the amount due the State being,
therefore, kept the same, or $4,000
The reported gross receipts taxes of
these three companies are not only far
below what they should be but obvious
ly, also, the companies returns make no
pretense at accuracy. To Say that the
Western Unions gross receipts are in
variably 100000 per year-never cent