Milford chronicle., 1935-01-04

the statement was made, Il cannot
over emphasize or impress upon
you too strongly the alarming stu
alton as regards the States loss of
income, particularly from its two
chief sources-initial fees for GER
tificates of Incorporation and sub
sequent franchise taxes for the priv
ilege of these charters" UnfOrtu-
nately there would seem to be moth
ing that can be done TO revive this
+ income from corporation fees, since
it is dependent entirely upon an inn
provement in business. In the case
of Ihe franchise tax, however, the
situation is quite different. Since
1881 we have been losing, and are
still losing, hundreds of thousands
Of dollars each year from this
source. The decease last year was
$6OO,00O and the estimated loss this
year is almost as great. This situ-
alton furnishes a most alarming and
dangerous outlook for the taxpayers
of the State. AS you know the pub
lie school system has been founded
upon and chiefly financed from re-
ceipts from this annual tax on the
stocks Of companies chartered in the
State. If some amendment to the |
franchise tax law isn't made soon, !
prOphesy that within a few years I
time the citizens of the State will !
have to be heavily taxed if the I
schools are to be kept open.
Some adjustment Of the tax on low
Par shares of stock would seem to
be required if this revenue, which
in 1881 reached $5,14S,0O0 and last
year was s3,500,000, is not to disap-
pear like snow in the spring.
Some weeks ago asked several
corporation service experts and
other business men who are awake
to the seriousness of the situation to
tell us what action they thought
should be taken to conserve this in
;Ome for the State. Their report, at
he time this was written, had not
,ome to the Executive Office and
I'm unable to venture any sugges-
ion that I would feel content to
lave you adopt. My request is that
his session shall not adjourn until !
ou have had an opportunity to un- ,
Ierstand clearly the problem and to
Ass Judgment upon It.
State Revenue Laws
Your attention is respectfully di-
ected to our State Revenue Laws. A
reat number of these various acts
king the fees for licenses for con-
ucting the many different classes
{ businesses being carried on in ;
delaware are sadly out of date. :
'hese antiquated laws should be re- j
laced by new statutes, and / re-
pectfully suggest that the Attorney
eneral be given charge of this work
nd asked to have ready before the
lose of the session such Bills as n
ay be required for the Legislature a
revise properly our existing Rev s.
nue. Laws. ModernizatiOn of these a.
d statutes should result in a sub G
antial increase in revenue to the D.
ate. u
Public Schools Z. oS
Our public school system is one of b.
e serious concerns of the State Iii
Dvernment and will remain as such n
r some years because of the sys- tfi
ms continued expansion at a per- b,
d when public revenue is falling CO
pidly. The educational budget OF
w absorbs 39S0 of the total expen- ST
lures Of the State. Many citizens
lieye that a part of this expense
uld be avoided and at the same
ne better results obtained in the
ucation Of our children il more
.ention were paid to fundamentals - =
less to non-essentials. -
With respect to both physical ~ ~
1ipment and teaching staff the ~ ~
bile schools in Delaware will e..
npare favorably with the best of y.
m in any state. In fact the free -
tools in the State should be a - -,
lrce of pride to every Delawarean, ~
] the only care we need have is
see that the system is not ex- -.
lded TO a size where the State ~
] be unable to support It without ~,
ressive taxes upon our citizens. ela
New School Buildings dsb
ince 1926 the State has appropri- qui
] $10,375,O00 for erection OF mod NEE