Evening journal., 1921-03-04
STATE LOSS
OF REVENUES
LOOMING UP
CONTINUED from nrst page)


amendments, to avoid 1t putting a
stop to the consideration OF all other
business. The proposition will likely
be made that general business Of the
Legislature be considered in the
mornings and the school bill during
afternoons.
Under this plan, probably every
afternoon next week would be taken
up in consideration OF the school bin,
as just the reading OF the bill. with
tax features, will require several
hours, and the Offering, reading and
considering of amendments will take
up many more hours.
President Pro Tenn Handy has ap-
pointed Senators Highheld and
Prettyman as a committee on the
part Of the Senate to arrange for an
audit OF the accounts OF State officers
and institutions and report back to
the Legislature by March 20. The
House members OF the committee
are representatives b. +. Davis and
Schneider. The Joint committee
will likely employ expert account
ants TO do the work the same as is
done every two years.
Warn OF Revenue Loss.
Every member OF the House to-
day received a letter from the Cor
poration Service Company, OF Will
mington. protesting against the pro-
posed three per cent. tax on the
business OF corporations done in this
State. which is one OF the tax pro-
visions of the proposed new school
law. The company in its communi-
cation, contends that such a law
would drive the charter business
from the State and consequently re-
suit in the loss OF enormous revenue
to the State.
After the communication had been
read by the reading clerk. Repre-
sentative Kramer said he did not see
a copy OF the revised tax provisions
printed until about o'clock yester.
day afternoon He criticized the
fact that this company apparently
got copies OF the bill before the
members did.
Mr.. Kramer suggested that 4
would probably be better for tn,
Legislature to do business here thar
some place else"
G. l. Ward is president and Jo-
siah Marvel, vice-president OF tn
Corporation Service Company. Th
letter in question follows:
Dear Sir:-This is a little plair
talk about the million and a hal
dollars OF revenue OF the State iron
corporations organized here and do
ing business elsewhere. which vii
be lost IL the proposed taxing feat
ures OF the school law are adopted
New Jersey, Maine and West Vir
ginia all had great incomes from
their corporation laws until the
changed their laws so as to drive tn
business to Delaware. In 1914 Del
aware's income from corporation
was s165.60O. In 1890 II was 81.
572.6O0. At the present rate it vii
be so large in a few days that 1t vii
almost pay all the expenses OF tn,
State, unless Delaware commits sui
eide.
mo matter what may be the In
tention OF the Legislature. il canno
help raising a question as 70 whethe
the tax is not imposed on corpor
ations doing business outside tn
State. No matter how that question
may be answered by the courts,
will kill the corporation business
Lawyers outside the State will not in
corporate here IL there is any ques
ton whatever. as there certainly
under the present bill. They can
not wait until the courts decide tn
! question. They will go only wher
there is no question.
Il Maryland now has a law YER
like ours and is wondering how
can get the business which Delawar
is enjoying. 1t will not have I
wonder long, IL this law passes. TIL
immediate result OF the law will b
the dissolution OF great numbers q
our corporations and their reorgau
ization in Maryland or eIsewher,
New corporations will be cut of.
is only necessary for rumor TO z,
about that Delaware is taxing h
corporations to kin the business.
The bill has been submitted
several OF the foremost lawyers
- this State and they all say that