Evening journal., 1921-03-05

are actually residing here; and with
out our corporation business we see
no possibility Of raising such an
amount Of revenue from any citi-
zens. except by a further tax on
real estate.
"Why should we give up the larg-
est source OF revenue the State has.
and which is not a burden upon the
residents Of this State. for a fanciful
and problematical theory. which. In
our opinion. will eventually result
in the necessity OF taxing the resi-
dents OF the State for a sum sufi-
cient TO make up this huge loss?
The letter points out many alleF-
ed Objectionable features. In this
line the letter says:
SECTIONS a and rs Of this bill re-
fers TO doing business in the State
There is nothing in the bill. so far as
we can determine, that clearly out
lines what constitutes doing busi-
ness
Section so contains certain ex-
emptions and article II OF said Sec
ton attempts TO exempt certain
holding companies said article is
not broad enough or clear enough to
exempt the companies that come
into the State OF Delaware for the
purpose OF obtaining n charter and
do business outside OF Delaware.
THE trainers OF this bill have
evidently overlooked entirely the re-
taliatory features OF the laws OF sew
eral OF the States. for instance, the
State OF New Jersey has a retalia-
tory feature whereby a Delaware
corporation doing business in New
Jersey would be taxed In New Jersey
at the same rate and under the
same conditions as a New Jersey
corporation coming into the State
OF Delaware would be taxed.
! The history OF the so-called char
I ter granting States has been such
as to clearly prove that any attempt
at taxation affecting corporations or
ganized for the purpose OF taking
advantage Of the law OF the State
OF Incorporation will drive such cor
porations out OF business.
III Il is absolutely essential that
the State of Delaware receive more
money through some medium OF tax
alton. / would suggest that the
franchise tax laws be amended so
that every oil or pipe line company
not doing business within the state
OF Delaware shall pay a franchise
tax the same as all other CORPORA
tons. Under the law. as existing at
the present time, oil or pine line
companies can. by filing an annual
report called oil or Pipe Line Com
panies, become exempt from the
assessment OF any tax against them
in the State OF Delaware II they are
not doing such business within the
State. In an opinion given by Rob
/ ert II. Richards, Esq, when he was
attorney general. dated April g..
/ 1908, he states ii follows from the
above that an oil or pipe line cor
poration. under the existing law
may transport any quantity Of oil or
petroleum through its pipes or in
I and by its tanks or cars elsewhere
than in the State OF Delaware and
be absolutely exempt from taxation.
do not believe that It was ever
Intended by the Legislature that this
class Of corporations be exempt from
the provisions OF the franchise tax
law ana am urmly convinced that
the State OF Delaware should not
grant charter to any corporation
upon the payment OF the organiza-
tion tax only and then allow that
corporation to continue in business
indefinitely without any payment OF
any kind Except the two dollar fee,
payable 20 the Secretary OF State,
with the filing OF the annual report)
to the State OF Delaware for the
privilege OF exercising its franchise
Il would he impossible for me. or
I believe. anyone else. 10 say how
much revenue the State OF Delaware
could collect n these oil and pipe
line companies were taxed the same