The Bridgeport evening farmer., 1915-03-12
MANUFACTURERS AT HARTFORD PROTEST
 NEW TAX MEASURE.
Four Mill Assessment On Corporate Excess Values
 "Bucked" In Hearing

BuckeQ LII nearing
 Hartford. March 2.-The finance committee Wednesday took up for the first hearing the series of bills designed to afford new sources of revenue from the taxation of proper ty at present not taxed in the state for the state The hearing yesterday was upon the bill providing for tax up- on the corporation excess, or in other words that property of a corporation, known as intangible, which now es- capes taxation. The measure was fa- vored by the grange and was pretty universally opposed by the manufac- turers of the state. The manufac- turers put up such a plea for a con- tinuance of the hearing that their request was granted. No date was set as the committee now has a large number of matters assigned for hear ings One of the interesting features of the hearing was the presentation through ex-Mayor William F. Henney of a new plan for financing the state.
 Tax Commissioner w. H. Coroin said it was pretty well known that the state was going behind. The de- felt for 913 and 1914 was between s5.0oO, 900 and s$6, 100000. It is ap- parent that something must be done to increase income, so the state may pay it's way. The three bills before the committee provide for taxation of corporations. one is for a corporate excess tax.
 Another provides for taxation on firms and partners on the income, based upon the federal income re- turns, at 1 per cent. Another pro- vides for flat license tax.
 Regarding S. B. No. 238s MT. Cor bin said it was intended to exclude insurance, trust companies. banks and savings banks. ''It seems to me 41sis 4ese o1. faf1 n is nothing that will be burdensome. unfair or a handicap The rate was but mills. Holders or ponGs of these corporations would be exempted from paying taxes upon the bonds. No one knew the amount of bonds which escaped taxation.
 MT Corbin offered an amendment to Section 12 Of the bill as follows:
 Section 12. The owners of shares Of stock, bonds, or debentures of any corporation liable to tax upon it's corporate excess under the foregoing provisions shall be exempt from tax atton in this state thereon; and the owner of any other evidence of in debtedness of any such corporation shall be exempt from taxation in this state thereon whenever such other in debtedness forms a part of the cor porate excess taxed in this state to such corporation. Every corporation liable to taxation upon it's corporate excess under the provisions of this act shall be liable to taxation upon chatteIs by any city. town or sJbdi- vision thereof. provided that nothing in this act contained shall be con- strued as limiting in any manner the taxation of 1egacies, tnheritances and successions in accordance with all laws now or hereafter in force
 There were about 5,000 corpora lions liable to the tax. An estimate had not been made of the revenue that would be derived. Based on thirty corporations however. it show ed a revenue of $300,O00 from the thirty. On 5000 corporations the revenue would be proportionate.
 J. A. Sherwood representing the state grange introduced Herbert Knox Smith to speak for the grange.
 MT. Smith said it was obvious why the state was interested. There were two alternatives before the state, one by direct property tax, and the other by property that now is not taxed. There was no excess of farmers products. The grange would not and does not favor any inequality of tax ation. The grange feels that the cor porate excess tax will to a large ex- tent neutralize. the present ineeuali-1 ties. He had had for nine year much experience with corporation taxes. The average corporation necessarily escapes taxation on a large part of it's value. He quoted from the fig ures of the returns under the federal income tax law which showed that the average income of the corpora dons of the state was 10 8-10 per cent.
 Rev. D. D. Marsh of West Hartford said the bill was inherently fair. Stock should be taxed at it's market value. Some people had such a fiIia1 respect for par value that they were willing to call $10O daddy any time. Companies which were rolling up immense profits should bear their share of taxation.
 Iverson c. Fanton of Westport said the bill would work an injustice on no one, and would also relieve the state treasury.
 William T. Andrews of Stamford, representing the manufactures in Stamford, was opposed to the bill. It was noticeable that those who far vored it were those who would not have to pay the tax. Manufacturers felt that they were burdened enough already. They paid as much as any farm that they knew of. He wanted to know why should manufacturing corporations pay 9 special tax. The manufactories of Connecticut were it's very life. The business could not be carried on without corporations. Why should the manufactories be taxed because they took the form of organization necessary to do their business. He was afraid of what was in store for them. Corporations might be taxed out of existence. All the taxing ingenuity of the state had been brought to bear to increase the revenues. Why should corporations pay upon something intangible? The mere paying of the tax was not the worst burden of it. A certain amount of privacy was necessary to success full conduct of business. The in quisitorial feature of the bill was the worse thing in the bill, in his opinion The intangible something to be taxed was the goodwill of the company.
 The special genius of the compa- nies should not be crippled. He was opposed to being married by corpo- rate ghosts" They should have the