Evening journal., 1912-01-19
MANUFACTURERS
TAX DISCUSSED
Business Men Favor Law That
Would Tax on Gross
Sale Basis
MANY GIVE VIEWS
ON THE SUBJECT

0AAAlbh AVAhAAiAnNAlA nNdiA tli
IN the Board OF Trade rooms against
the recently passed Manufacturers
Tax Law. Representatives Of the
leading manufacturing concerns of
this city were among the speakers.
and George B. Miller. secretary OF the
Manufacturers Association said nc
represented that organization in the
matter The chief fault advanced
against the law last night was its
complexity.
Tho meeting was called TO order by
Philip L. Cannon, member of the
State Commission, who said that no
one was better qualified TO talk on the
subject than George w. Sparks.
member of the organization. In
opening his remarks Mr.. Sparks said
that at the meeting held last fall, to
hear the reasons opposing the tax, the
attendance was small. He had sent
out 26S invitations TO the manufac-
turcrs of the state to attend last
nights meeting, and he felt disap-
pointed at tho result. There were
only about % persons present as a
result
Continuing. Mr.. Sparks said the pur-
pose of the gathering was to hear from
the manufacturers whether the amount
of tax was too large; whether there
should be tax at all; or IL the law
cxacted moro tax than similar laws
IN other states or was more complex.
If the latter was the case, Mr.. Sparks
said. the commission would be pleased
10 hear of any suggestions that would
assist in making the law clear.
Mr. Sparks said that some people do
not believe in the tax. and he himself
agreed with them, but as II was the
law they must observe ii. IF 1t is
wrong let us so 10 the Legislature and
have IL recthed' said Mr.. Sparks.
w. c. Corey. representing the Della
ware Leather Company, drew attention
TO the complcxiiy of the law and cited
illustrations of confusion In the yari-
GUS clauses as well as the confusion
resulting in determining what was raw
material. Mr.. Corey wanted to know
whether the foundations of new
machine was to be included in the
costs of the machine TO be taxed. What
was raw material to one he said might
be finished product to another. One
method in which the taxes could be
evaded. according to Mr.. Corey,
would be when three firms using the
same material I'm various forms might
NOInUlHt anu 1NAAN INeAH AefN'N ~
two forms of material.
William r. Budd, Of the Harlan and
Hollingsworth Corporation. approved
q. the method advanced by Mr.. Corey
and he suggested that the tax, or IL
cense. be made on the sales of the
year. W. Townsend Miller. Of the b.
r. Shaw Company. agreed In this
-~sSlan and showed a schedule he had
worked out The figures read by Mr..
Miller were simply used as an Illus
tration and the taxes would be about
IS on every 81 600 business done;
$40 on every $4,000 and so on. The
speaker said he meant for the taxes
TO be made on the gross receipts
It was pointed out by Mr. Budd
thar this plan would not require
much clerical work to ascertain what
the taxes we're. but he thought the
tax on land as pronosed by the pres
ent law to be all right
Mr.. Sparks differed In this matter
claiming that he did not approve of
taxing the land of a manufacturer
Mr. Miller said that a firm like he
represented received little II any
money. from the amount of business
done I'm the state. vet they brought
money here II such a company were
10 be taxed he thought the tax should
be ON the amount OF business done
r. Allen Hnles. Of the Taxation
Commission. Thought II an easv mat
ter 10 say what was raw or finished
material and said the report made TO
the Federal gofernment could be
used as a medium for the tax.
Mr. Sparks then read a long list ot
questions asked bv the New York
authorities in arriving az what taxes
there should be and continuing he
referred TO the Conference Of Taxa
tion he attended in New York state
last week. A lengthy report made
hy Pierpont White of Utica. at the
couference was referred TO by Mr.
Sparks This began by stating that
fhe nav roll of the manufactures
and industries was the upkeep of the
state and the amount suggested by
tho writer for tax amounted C
$1,000 on a Sl.5O0000 plant.
Mr. Sparks. in a iocular vein. theI
said that when he was a boy he re
mcmbered manufacturers going q
the Legislature TO oppose a tax suci
as was being advocated and he woul'
cali on a man who was a member o
The Senate at that time. At the sam
time Mr. Sparks called ON Senate
David G. Rose. of Newark, who too
the floor amid laughter.
Senator Rose told of the repcalinl
of the old law in 1901 and said tn
amount collected under that law wa
about equal TO that collcctable unde
the present law.
George b. Parsons of the America
Vulcanized Fibre Company. urged tina
the tax be levied on the gross sales Q
the wear. Senator Sparks asked II h
meant gross sales or receipts and th
speaker said sales. If his receipt
we're not collectahle ii was his faul
and not the states.
A. S. Reed. Of the A $. Reed Broth
er Company. said there were man
sides to the question as he was
builder and might build many plant
vet buv no raw material The wor
could be done on the percentage pla
which was done in many cases an
proving popular
Mr. Reed said he favored the IN
come tax and did not see why IN
State did not have such a law. II wa
pointed out that it would be easy
defeat this law and Mr. Reed said
was human nature not to pay taxes.
George H. McGovern. secretary
The meeting read a statement pr
pared from the last census repo
which showed that the leather indu
tries would pay more under the pr
posed tax on gross sales than other i
dustries.
Senator Rose suggested that Alto