Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-09
LIMITATION URGED
IN TAX ON UTILITIES
Philip n. Gadsden Wants Pub
lie Service Corporations Put
in Class by Themselves
BUSINESS IS REGULATED

Philip H. Gndsden. president Of the
American Electric Railway Association,
discussing yesterday the proposed in
crease of the corporation tax contcm-
plated by the Ways and Means Com
mittee Of the House Of Representatives.,
declared such a move would be un-
fair TO public service corporations.
Mr.. Gadsden, who Is vice president OF
the United Gas Improvement Company
Of this city, as well as an executive OF
the American Gas Association and the
National Electric Light Association,
suggested that public utilities should be
placed in a special class for taxation.
Herbert Lloyd, president Of the Elec-
trio Storage Battery Company, also yes
terday discussed the taxation question
and declared that, outside OF the public
utilities companies. tho new increase in
corporation tax was much more prefer
able than the excess profits tax and the
new tax would not prove detriment to
business generally.
Reasons for Change Explained
In a formal statement yesterday Mr..
Gadsden said on the question Of taxa
ton Of public utilities:
Public utilities should be placed in
special class for the purpose Of tax.
alton. SO that the burden Of Federal
| taxation to be Imposed upon them may
be determined in tho l!ght of the fact
| that they are regulated industries. Pub
| lie utilities are already by law treated
as n special CasS for everything except
! taxation.
! but when il comes to taxation,
public. utilities have, up TO this time,
! been treated az any other business cor
poration, notwithstanding the fact that
its .,,,rN
ment is limited by law, whereas the or
| dinary business corporation is free to
make any profit which business con-
ditions will permit,
THE American Electric Railway AS
sociation, American Gas Association
and the National Electric Light AS
sociation earnestly protest against any
increase in the normal income tax or
gas, electric railway, electric light ant
| power companies, and urge that The
! normal income tax on public utilities bt
kent as al present at 10 per cent ant
not increased along with business cor.
porations generally aS hG9 been pro,
/ posed.
Suffered Heavily in War
THE reason for this distinction i,
apparent to any one VINO Is convcrsan
with the history Of public utilize
during the last four or five years. 1t Il
admitted that Of all classes Of business
enterprise, the public utilities hav,
suffered the greatest injury as a resul
VI the war.
Here is an opportunity however
for Congress 10 show Its appreciation o
the plight Of the public utilities Of thi
country and afford them some measur
, Of relief.
In speaking for business outside o
public utility circles Mr.. Lloyd, said
"The straight increase of the cor
. poration tax as substitute for the ex
cess profit INK is much more preferable
think. to the business world. do no
think that it will prove detriment t
business, but really think it will prov
10 be benefit"
The tax bill will be discussed toda
by the Executive Committee of IL
Chamber of Commerce. 1t could not !
, determined yesterday as to whether u
!. majority Of the members Of the Chambt
. of Commerce were In favor Of the ne
: taxafionr ball