Evening journal., 1921-03-15

ago and their ruinous effect on New
Jersey corporations They simply
left the state by the hundreds, caus-
ing a. loss OF thousands OF dollars
Senator Alice asked Mr.. Gray 10
state just what the Seven Sisters
Laws" were.
isn't It true that these laws had
for their purpose the driving out OF
certain corporations and were not
tax laws" Senator Alice asked. Mr.
Gray replied that while the measures.
were not tax laws they resulted In
driving out OF the State OF New Jer-
sey practically every important cor
7 poration." No corporation stayed
there that could possibly get out"
Mr.. Gray said.
Would Afect Powder Companies.
Judge G. G. Rheuby, general coun-
sci for the Hercules Powder Com
pany. the next speaker said In his
opening remarks that he agreed with
what Mr.. Gray had said as TO the ef-
feet on the corporation incomes in
this state. Judge Rheuby, called
attention to the retaliatory statutes
in other states and the effect that
Il would have on the business done
by corporations OF this state in those
} states where they have the retalia-
J tory features. In this respect he
called attention 10 the American
Car and Foundry Company, which
was incorporated IN New Jersey, but
! which has a large plant in Whining
} ton. Under the proposed law. he
said. this company would be requir-
: ed to pay a tax on the business that
IL does in Delaware and under the
b retaliatory law would have TO pay
? another tax in New Jersey on the
= business done in that state.
b Judge Rheuby said he represented
the Hercules Powder Company
which has two large plants in New
Jersey. II manufactures no goods
in Delaware and practically does nc
/ business In the state and therefore
; takes practically not a cent OF profit
D from anyone. in the state OF Della
b ware. He said the pay roll OF thii
e company alone amounts to probably
$4,000 a month, the pay roll OF th'
e dupont Powder Company. from
4 t40o.O 900 to 100000 a month an,
- that the three powder companies
T. the dupont. Hercules and Atlas, o
e probably Sc. .0OO.O 900 a year. OF thi
u amount. he said. that so per cent o
r r. eventually finds It's way back 10 tn
n pockets Of the people OF Delaware.
Judge Rheuby made II plain tina
he was not spaking for either o
u the other powder companies, tha
he only represented the Hercule
u company and that he only referrei
y 10 the other companies because h
l. knew OF the plants that they had Il
other states that might be efecte
d by retaliatory laws. The duPon
r. company. he said. has seven plant
"a In New Jersey. and that he woul
oI predict that the company under thi
law would have to pay twice as muc
ol in New Jersey as il would pay
n Delaware. He said the three powde
le companies mentioned have te
plants in New Jersey which woul
D. have to pay a tax in that state IN
L der the retaliatory law.
Judge Rheuby also referred {
Pennsylvania as State that
probably the greatest consumer q
explosives Of any in the Union. /
that state alone, he said, over z
million pounds OF explosives an
used annually and that in additio
TO all other taxes paid there. II tn
? bill should become a law the con
panies selling explosives in the sta
would still have 20 pay another "a
under the retaliatory law.
y In conclusion Judge Rheuby sa
that the only things that has kel
the explosive companies plants
Delaware has been the fact thi
le, they started here and that the sta
s. has good corporation law.
- James ii. Hughes asked Judi
Rheuby what tax the company ,
n' represents pays in Pennsylvania l.
II. replied that it paid a tax on n
IN amount Of business done in n
n, State.
'' Judge Rheuby added that II a
's' the States would put their retalii
m. tory laws into effect. enough mon,
- would be secured from the thrl
companies that he mentioned in a
those States TO pay all the scho
taxes needed in Delaware. but 9TH
10 States would get most Of IL
lr- Manufacturers Favor Tax Raise.
g. Speaking for Delaware man
'er facturers. Willard A. Speakman sa
c. that manufacturers sympathize wi
rst what the Legislature is trying to d
'er and are willing TO do their shaI
"a Manufacturers agree. he said. tn
the state must raise the mon
TO needed for its schools and tina. q
re- only question is how 20 get IL
rec The personal income tax Is n
on collected fully, Mr.. Speakman sal
he adding that merchants recommel
lg- It's collection and that the prese
he taxes be increased.
Delaware manufacturers. in !
ell opinion. will not make any mon
ISL this year and probably not next yet
nts he said The manufacturers car
net here. not to fight the school bill.
ne, explained but TO suggest means
on cooperation.
on motion OF Representative Grl
bill the floor was given 20 Senator All
tax TO reply to the speakers
ng- Senator Alice Explains.
his I'VE begged you to aid US in dra
ich ing this law. You threw up 20
his hands and let us go it alone and M
i'd when the bill is on way 10 passa
will you come here and object 20
lte, Senator Alice said.
ons Gentlemen. we have faced a
problem and have done the best II
hat we could. Our problem has been
ave find means Of supporting our sch'
e is system properly and TO distribute {
An burden equitably. We felt that
ing the state was to give its children {
ure proper education there could be
low ravorcfon 10 the old laws