Palisadian., 1925-11-20
NEW YORk'S WEALTH
WIDELY SCATTERED
Earnings in Many States
Pay Tax in Metropolis.

WaSn1ngt0n.-Ihe actual ownership
and location Of railway and steel cor
poration properties, which have their
headquarters in New York, has been
traced by the American Association Of
State Highway officials in connection
with the work of that association in
determining the original sources of
revenue for road building. Out-of-town
bank deposits in New York also have
been traced with same end in view, ac-
cording to a statement issued by the
association.
The Union Pacific and Southern Pa
cific are taken as railway examples.
Both Of these companies pay income
tax in New York, but in each case,
highway officials point out, earnings
are derived from properties located
half the width of continent away
from New York. The Union Pacific
stops at Omaha and the Southern Pa
cific stops at New Orleans. Therefore,
In the view of highway officials, west
ern states and not New York should
be credited with the $9,500,0OO paid by
these corporations into the federal
treasury in 1923, since their earnings
come from territory outside of New
York. mo attempt" says the state
ment, ''is made to give the list Of
stockholders of these two railroads.
but it is common knowledge that they
live in many states"
Scattered Through States.
"The United States Steel corpora
tion," the statement continues, paid
an income tax of $16,OOOOOO in New
York in 1923. Only two of the 145
plants and warehouses owned by that
corporation are located in New York.
and of it's 153,350 stockholders only
32,322 live in New York. The remain
ing 121,028 are scattered throughout
At states and Alaska, Canal zone, Ha-
wall, Philippine islands, Porto Rico
and foreign countries. Although New
York has 32,322 stockholders Pennsyl-
vania leads with 41,917.
''In the case of banks" says the as
sociation report, "the United States
treasury statement on May Is, 1925,
showed that while the deposits in the
New York city national banks totaled
$2,218,027 900, a study of that state
ment disclosed the fact that 30 per
cent of those deposits were from
banks and trust companies outside of
New York state.
naturalization of business In GER
tain centerS," the report concludes, "iS
a natural growth and economically
sound. Surplus funds gravitate to GER
tain cities; industries develop where
power is cheapest or raw materials
nearest at hand. Water transporta-
tion cannot be developed around a
desert town. Fertility of soil is not
the gauge Of land values. The federal
Constitution, at the beginning, refused
to curb domestic business relations and
would not allow states to set up toll
gates at state lines.
Poor State Helps Rich State.
Estates do not own the corporations
OF the individuals in their business re-
lations. There is not single large
city In the entire country which Sc
cures its prosperity exclusively from
the citizens who live In the same
state in which that city is located.
Insurance-fire, life and casualty-are
much needed parts of our business
life-yet New York, Hartford and Bal
timore are foolish to lay claim to the
prosperity Of these institutions.
Boston Is the center of our wool
market and yet the Boston common
cannot take the place of New Mexico,
Arizona and Utah as sheep pasture.
The poorest state helps to enrich the
richest state"