Evening journal., 1914-11-13
Smaller
TAX ON Capital
Governor Miller Would Aid
Corporations That Increase
the Wealth of States
MAKES SUGGESTION
TO OTHER EXECUTIVES

MADISON, Wis. Nov. ia paper
written by Governor Charles r. Miller,
of Delaware, and read in his absence
opened a discussion at the Governors
conference yesterday of the subject of
uniformity of laws liking the conditions
TO be met by foreign corporations before
doing business in a State. Governor
Miller declared that New York's fran
chise tax on foreign corporations doing
a development business was computed
in a fair and satisfactory manner.
"Ihe total sales in the State of New
York, as compared with the gross sales
of the corporation elsewhere, and the
proportion of the capital stock employed
within the State, form the basis of com
putation.' he explained. ut is but
proper that corporation engaged in a
development business, such as mining,
should pay a heavier burden than cor
porations that come under foreign
charter to settle in State and add TO
its wealth. instead of taking out wealth.
as does the corporation merely estab-
lished as a selling house or warehouse"
All the States. Governor Miller's paper
said, have had difficulty in defining the
meaning of the phrase doing business,
a. applied TO foreign corporations. He
had reached the conclusion that what
constitutes "doing business" in State
could best be defined by an enumeration
of the acts which do not constitute
"doing business"
A plea for greater responsiveness
by Legislatures to the popular will,
with suggestion as to the part a
Governor should bear in bringing
this about. was made by Governor Il.
NJ Byrne, of South Dakota, whose ad-
dress followed a discussion of ex-
tradition problems, led by Governor
S. V. Stewart, of Montana. After es-
tablishing his premises that, because
of the veto power and the right or
duty TO recommend the enactment of
desirable measures, the Governor is
part Of the Legislature. Governor
Byrne said:
"Why should not the Governor, IL
matters he deems of great import
ance, or in support of a measure hC
( believes the people desire enacted
into law, accompany his recommen'
/ dations with a draft of a bill fol
which he is willing to assume re
sponsibility? How often we see &
measure in party platforms made
the issue on which the party carries
the election, urgently recommended
by the Governor, and apparentl,
/ earnestly desired by a great majority
! of the people, and yet the Legislature
! comes and goes without such meas
! ure being enacted into law, and WI
see no way definitely TO place tn
blame.
81 do not advocate an extension o
the power of the Governor, but presen
this as means toward making hi
leadership effective, and at the sam
time fixing with accuracy his respons
bilitv. The time has come to brm
legislation out of secret committc
rooms. to give the people opportunit
TO see the process of lawmaking and {
Judge the motives that prompt actio
for or against measures and policies"
n Governor Stewart of Montana, toll
of the difficulties of administering law
between states, and speaking on tn
operation of the Massachusetts, Work
mems Compensation law, Governor Da
vid l. Walsh of that state, enumerated
the benefits TO employers and injured
employees, including a reduction OF 3
per cent. in liability rates and go pc
/ cent. less in premiums paid, togethe
with larger cash benefits to victims.
/ "The Workmen's Compensation law
cannot be a success anywhere withou
state regulation OF employers liabilit.
insurance companies" he said. "Whel
the state undertakes to pass a law il
the interest of working people, it shoul'
see. that it operates for their inter
est"