Evening journal., 1921-03-26

latter bills we're explained in these
columns yesterday.
There was no discussion what
ever on the school bill carrying the
administrative features but amend
ments offered to the tax bill were
explained and discussed.
Three amendments to the tax bill
offered by Mr.. Kramer were adopt
ed and one offered by Mr.. Corbit at
the request of Judge Daniel o.
Hastings Of Wilmington. was defeat
ed by a party vote. the Democrats
voting against it. The Kramer
amendments were explained by
Charles f. Curley, who with r. r.
Kenney, drew the bill. Two.of these
provided for the exemption of de-
pendents from the provisions Of the
bill.
These were adopted unanimously
and the third Kramer amendment,
which had been prepared by Mr..
Curley and would exempt certain
corporations from paying a tax was
also adopted.
This amendment reads as follows:
Amend Section 9, paragraph 10 Of
said bill by adding to the said para
graph 10 the following; Corpora
tions whose only business is the col
lecting of rent for all of their prop
erty located in this State leased to
another corporation of this State,
provided that the lessee of such
property shall pay the tax assessed
| against it as provided in this act;
and provided, that the tax so paid
shall be at least as much as would
have been paid by such lessor cor
poration, il such lease had not been
made"
The Corbit amendment by Judge
Hastings would exempt foreign cor
porations doing business in this State
from taxation under the bill The
necessity for exempting such corpor-
ations was the fear that other States
would tax corporations Incorporated
under Delaware laws and doing bus
mess in such foreign States.
The only object of the amendment,
Judge Hastings said, was to make
certain that our corporation business
from which we get great revenue
would not be disturbed.
Mr.. Curley replied that he was not
certain that what Judge Hastings
said was not true but If it were true
it could be remedied within two
years by the Legislature.
Judge Hastings said that It was
better not to have this small amount
Of tax from corporations than to
take the risk OF starting the corpor-
! alton business running away for in
that case no Legislature would ever
be able to catch IL.
Judge Hastings also said that ad-
hitting all that Mr.. Curley said was
true the State would be safer under
his plan.
Mr.. Curley did not agree with
Judge Hastings in this respect and
argued that under his plan even
should a small amount of tax be
lost for two years by corporations
going to some other state and get
ting a charter and then returning
to Delaware to do business and be
exempt from taxation under the bill,
that could be remedied in two
years.
The Corbit amendment was then
voted on and defeated and the pass
age of the two bills followed by a
: party vote.
r by Attorney Charles f. Curley, and
which passed the House and Senate
2 yesterday is substantially like the
5 tax measure previously passed by
b the Senate so far as 1t relates to the
: tax on individual net incomes, but
il differs radically from the Senate
bill in the tax corporations are
obliged to pay. In this bill tax OF
! 25 cents is placed on each 500 of
/ the actual value of the corporations
3 invested capital in this State. In
. vested capital is defined as the diff
ference between the value Of a cor
poration's assets and the amount OF
= its debts. A procedure is furnished
for ascertaining the taxable invested
capital in this State Of a corporation
a portion Of whose capital is invested
outside the state.
The Senate bill placed the tax on
Delaware corporations only. This
measure places It on all corporations
, with invested capital in this State
but introduces a provision designed
to protect against retaliatory laws OF
other States. The amount of the
taxable invested capital is to be de-
termined as of December 81 of eacf
- / year NAIfHA III AAAA RtAAR - ' 49, 80
: alton, whose fiscal year is different
from the calendar year.
Various kinds of corporations are
7 exempted from taxes. such as labor
horticultural companies, fraterna
n and beneficial societies, building anc
s loan associations. cemetery compan'
d les, chambers of commerce, socia
s clubs, mutual hail and fire Insurance
K companies, etc, banks, savings
=, banks, insurance companies, trus
t companies Cthese latter being taxed
d under another act passed at thi!
r SESSION. and corporations which un
der existing laws pay a lump sun
g to the State in lieu of all ta-es under
& the laws OF this State, and corpor
T. atlons merely maintaining an Office
d in this state with resident agen
e in charge thereof for the purposl
r---..f..r- II 1r.fa-4raI dnn1faof.