Evening journal., 1921-03-08

Of the schools is certain and sure
and at the same time the burden Of
tax on real estate is relieved. TN
der this plan the State school sys-
tenn is supported by the State and
contributed TO by the wealth Of the
State
Some ind objections as 10 the
corporation tax feature. ! have no
complaint 20 make OF those who dis
agree with men on that point.
don't want TO drive away the cor
poration tax Others object TO the !
machinery for collecting the income /
and corporation tax. but that is a I
big job and IL is necessary TO have |
machinery that is efficient TO do the !
work. 1t is provided. however. as a |
safeguard. that the total OF all the /
expenses for collecting the tax. in |
cluding salaries. shall not exceed the /
amount appropriated by the legisla- /
ture.
I'VE have attempted 10 carry out
safeguards. Notwithstanding the fact
that boards have broad powers.
/ Every item that goes into the school
/ budget must be passed on by the
/ legislature and not a cent can be
used not appropriated by the iegis-
lature. If the people are not safe
guarded as TO expenditures OF money
IL will be the fault Of the legislature.
We have attempted 10 give you a
system that is better than what you
have today and one that will grow
and improve from year 10 year. We
have also attempted TO make your
revenue sure for the schools.
What we offer you is much bet
ter than going back to the old school
laws. There has been complaint
about attendance officers yet under
the old school laws. the power is
there TO appoint attendance officers
under the old truancy law. II you
did go back to the old law. 1t would
not last long for the State Board
which under that old law has
broader powers than under this bill
would be driven 10 take care Of the
schools OF the State. with the result
that taxes would be raised and the
state asked TO make large appro-
priations.
Some people may prefer the pres
ent law. / don't II is not as dem
, ocratic and the financial system is
not provided for. The State would
be compelled under it TO scrap the
treasury for every cent that could be
raised TO support IL and make large
, appropriations as was done at the
special session Of the legislature last
year. We have written better
school law and provide means Of
supporting IT,"
Would Clarity Corporation Tax.
Representative j. Z. Wilson. in
, quired Of Mr.. Hughes IL it would
not be possible under the bill being
considered to appoint attendance
b officers under the section which
, gives the county boards authority TO
b name what clerical force is neces-
b sary.
{ Mr.. Hughes replied that IL would
Z be possible but pointed out il could
{ not be done without the assistance
% of the legislature as the salary
would have TO be provided for in the
- budget which would be passed on
e by the legislature.
20 Representative White asked Mr..
r ughes what is meant in the corpor-
alton tax provision by doing busi-
o. ness in the State"
{ He replied that IL included any
% corporation engaged IN some sort
OF business in the State"
n AT this point Mr. Hughes said
o. that il the objection is made that
s the bill might effect these corpora
d tions securing charters in Delaware
e but having their business outside the
State. he had prepared an amend
d ment and given to Representative
Clark chairman Of the House Com
n mittee on Education 10 clarity the
l. matter. The amendment. he said
o would provide that mo company
20 that has no part Of its capital stock
g invested in the State OF Delaware
shall be taxed under this bill"
II Railroads Are Exempted.
e Mr.. Hughes said there was no idea
o Of the trainers Of the bill to tax cor.
IS porations that simply secure theiI
charters here but do no business In
y the State. He said he had been IN
-t the corporation business for many
a years. that he helped TO draw tn,
d general corporation law while Sec.
= retary Of State in 1899. that he haf
II travelled over the country huntinl
.
y and that in his opinion such bust
n ness will not be effected by the pro
u posed tax provision. He added tina.
Delaware will get this business a
70 long as the State does the business
e cheaper than other States.
Is Representative Wilson also by
question brought out that railroad
e are exempted from this tax pro
vision under the bill. Mr.. Hughe
le said there are some corporation
'e that pay taxes in a lump sum TO tn
oil State but that there are other cor
lt porations that should but do not pa
le tax and will not even to schools un
'e less forced TO do so.
te Senator Short. as a concrete ex
ID ample asked IL the Ford Motor Com
IN pany under the corporation ia
o. provision would be required 10 pa
ne a tax on cars sold in the State.
Mr.. Hughes replied that it woul
s. not unless the cars were manufac
e. tured and assembled in the State
10 but that the agencies buying the car
'n and selling them in the State woul
o. have to pay the tax.
IN DIR. Cooper Explains Finances.
o. Dr. r. W. Cooper in his address,
" said It was not his. Hughes o
al Houston's bill. '1t belongs 10 tn
members Of Senate and House" h
We added. 1T was the best we coul
or provide after being appointed b
Isl YOU as members of executive com
be ,,,fttoo of cffizonsf counnftfee n draf