Evening journal., 1921-03-09

MI. Ntoll cdlu ne ptiHhhall9 N'NA'
prefer an increase Of the income tax
to the proposed corporation tax with
the possibility Of il driving charter
business away.
Senator Alice said a heavier in
crease Of the income tax had been
considered but that the committee
had been warned II might drive peo-
pie out Of the State.
Mr.. Richards Gives Views.
r. II. Richards, who had been given
a schedule OF the income received
b, the state the past year from va
rious sources. said In glancing over
the schedule. he noticed number
Of sources from which IL might be
possible to get more revenue with
out injuring anyone. He suggested
there might be revision OF the Ii
cense revenue laws by increasing
some OF the business and vocation
licenses. For instance. he said law
yers only pay $40 and doctors S5'
and there seemed no reason why
they should not be increased.
Mr.. Richards explained that he
was only making suggestions that
might be looked into. He thought 1t
might be possible. without damage,
TO increase the merchants license
tax based on gross sales.
He said he noticed by the sched-
ule, that the banks OF the State only
paid $4,000 tax the past year, and.
while he was n director OF a bank
himself that seemed TO him a small
sum from such a source. Mr.. Ros-
"a trFa a
that the bankers have a bill prepared
which probably would double that
tax.
Continuing. Mr.. Richards sug-
gested that there might be a way to
/ increase the amount received by the
+ Insurance department. He then said
the tax on railroads might also be
increased. The railroads now pay
lump sum in lieu OF all other taxes
which amounts TO $4,000 a year
for all the roads operating in the
/ State. Mr. Richards said he did
not know whether or not that
amount was adequate. but IL might
+ he learned what and how railroads
/ ray in other States and. in that way
+ it could be judged whether or not
/ the amount is adequate. Telegraph,
telephone and express companies
were suggested as other probable
sources for more revenue.
Mr.. Richards said II must be re-
membered that the sources Of rev.
cnue in this State are comparatively
: few and that there could be no
doubt but what land is already
bearing its burden. The income tax
might be another source. the speak
or said. as the rate suggested did
not seem TO be unreasonable.
AS TO the proposed corporation
tax of three per cent, Mr. Richards
said the only serious question in
volved was the one that had been
discussed as to the possibility OF
driving the charter business away
from Delaware.
That, he declared. is a very
serious question. as II would be an
injustice and a wrong TO the peo-
pie OF the State to jeopardize the
revenue received from that source
Provision Is Dangerous.
Mr.. Richards said he did not rur
a charter business and does not pro-
pose to. but he had read the bill and
found II to be very complicated as
tc the three per cent. corporation
tax. 1T seems to me that this pro
vision is a very dangerous one, hav'
ing in mind the large amount OF
revenue that is received from out
side the State" said Mr.. Richards
THE language OF the bill is sucf
THAT IL is susceptible 10 different
opinions" He said that fact alone
might stop many corporations from
coming TO Delaware. The speaker
said that he in way. resents soms
OF the criticisms that have beer
made in newspapers about the char
ter business, as he saw nothing dis
graceful or dishonorabie about the
business.
Mr. Richards referred 10 the New
Jersey corporation law OF som'
years ago and how that State. aftel
passing what was known as thu
seven sisters bill" lost most Of il
charter business and a great deal o
70 came to Delaware. New Jerse'
has now repealed the "seven sister
law" and is again a competitor o
? Delaware for charter business. ]
vas the tinkering with the corpora
tion-law in New Jersey. he said, tina
drove the business away from tina
state and he feared the same thin
, would happen in Delaware II tn
! law is tinkered with. He suggeste'
, that the Legislature advise with at
, torneys who are conducting char
/ ter business and said their advice
E should not be despised, as their in
o. terests are the same as the States
D ic make money.
{ Mr.. Richards asked II the thre
I per cent. corporation tax provisio
e could not be eliminated entirel
D from the school bill and provide I
the code for a license tax on cor
porations doing business in a cor
porate form.
4 Frederick Brady said he did nc
q see why the school bill and tax bi
e should not be separate.
j Colonel Houston remarked tina
0 the executive committee thought a
e fist they should be separate. bu
7 the committees OF the Legislator
D strongly thought otherwise.
Phillip l.. Cannon said he though
the only thing to do was to cut dow
9 tie expenses Of the schools to with
In the revenue.
Mr.. Richards told OF the geners
counsel for the Hercules Powd,
! | Company talking to him recent
about the bill and said it was niue
; different from the New York bill
> Under which the company pays Ia;
!, Mr.. Richards said the Hercul'
- --.....,-..f. ,,nran1 oafd he undpi