Every evening, Wilmington daily commercial., 1921-03-09
CORPORAT|ONL LAW
! CHANGE DANGEROUS
Financial interests See Repri-
sails II Legislature Hampers
With Old Statute.

Members of tho Daia ware Tleglsia ttire
have boon warned by financial interests
that any tamperins with thu corpora
ton tax law ia dangerous IN that II
may lead % raprisaln upon this state.
HuaineaH men fore=ee TINT any NJ
tempted chanRe IN the provisions Of
tho low will react very unfpyorshly on
the state treasury and havr ao warned
the rnaubcra of tho Legislature II ia
said that tho rcdraftinE 81 the measure
to rewrite the aertion as to tax for
school purposes has already done much
harm. aud q ia believed that financial
intereatp viii ba suspiclnua that add
tionai tsv is intended. II not now. theu
et Hnme future time
II ia pointed out that rctaiiatorv
measure has already hnen introduc cd
IN the rennavivania Legislature al Har
riHburR. calling Cor tho taxing of Dela
ware corporations IN that State ~ tho
same extent that rennayivania cor
porationa were supposed e. he subjected
to a tax IN this state MANY Della war a
corporations are doing business IN
PonnHylvaula
Tho Pennsylvania neHRura. intro
duced by Chairman Dawson OF the
WayH and Means Committee. provides
when. by tho laws Of any other
stat or nation. any other or greater
taxes. fines. penalties licensees. fees or
other obligations or requirements are
lmpoaed upon corporations Of this state
doing bunincHa In such ether State or
nation. upon their agents therein
thHn the laws or this State impose upor
their corporations or agents doing buHl
neas In this state. so long such laws
continue In force I'm such foreign STATE
or nation. tho same taxes. ftnes, penal
ties. licenses. fees. obligations and re
| quirementa. Of whatever kind shall b.
| imposed upon all corporations OF such
| other State or nation doing businea
| within this State upon their agent
! here. provided that nothing hereii
shall be held 10 repeal any duty. con
! diuou or requirement now imposed b
law upon such corporations of othe
! States or nations transacting busines
IN this State"
Yesterday several briefs opposing tn,
| proposed changes IN tho corporation
| tax law were sent 10 Dover Amonl
! these WAS one by ] Nj Frere. prcsf
/ dent of the American Guaranty ant
/ Trust Company. with offices at 20g wes
| Ninth street. Another was from Jarnet
| II. Manter. assistant secretary Of tn,
| Corporation Trust Company of America
with offices in the du pont buildins
! In the letter of Mr Frere. II il
| stated that the bill. IL ii should be
come q law. would instead of reduciu,
taxes. double and perhaps triple then
| inside OF two wears. and would driv,
away nine tonths OF the corporation
NOW organized ia this state but doini
| business elsewhere.
This would be a direct blow a
the numerous holding companies I'm
| corporated In sthis State" was the ex
preston of Mr.. Manter. IN regard L
| the bill He points that New York
| New Jersey and other States suffere,
under a similar bill. and If this Stat
should adopt the present form tn,
| greater portion of the 81 500 600 yearI
| revenue derived by this State would II
lost
The passage of this bin. said Nh
Manter. would cause the loss of thou
sands of holding companies now in
corporated here. and hereafter holdin
companies would not incorporate 1
| Delaware.
THE revenue loss 10 the State fror
this class of corporations alone woul
amount to a worry considerable item
This may be easily verified by an ex
animation of the records Of tho Secre
tary Of State"