REPORT OF THE COMPTROLLER OF THE TREASURY xi

urged against it the '' driving of capital out of the State," " the
counties milking the city,'' etc., losing sight of the fact that the

capital in this business, as in every other, should contribute its

/

fair share towards the burdens of the State and not discriminate

against their brother merchants of smaller capital. Upon what
basis of equity can you reconcile the rate of $125 per annum for
oiie merchant with a capital of $40,000 while adjoining him his
rival with $1,000,000 invested pays only $25 more per annum?

"It is a franchise tax, it is true, one for the privilege of doing
business in the State, and as such the merchant is liable for the
additional tax upon his stock of goods. Some companies, elec-
tric light, trust, etc., pay in addition to their other taxes a fran-
chise tax as well. *****

"There is only one question involved in the above measure:
Does the above schedule make everyone operating thereunder
bear his fair share of governmental expenses?

There can be but one answer to the above proposition. It does
not. 1 therefore recommend your honorable bodies to so amend
the above schedule, as uot only to give to the state additional
revenues but require the trader of larger means in comparison
with his brother of lesser resources, to equally contribute to-
wards the expenses of the State according to the capital em-
ployed.
FRANCHISE TAX ON ORDINARY BUSINESS CORPORATIONS.

The taxation of ordinary business corporations was radically
changed by the General Assembly of 1914, Chapter 324, Section
88-C of which is as follows:

''Sec. 88-C. Every ordinary business corporation shall be
subject to taxation upon its property, real and personal, which
would be taxable iii this State if such corporation were a natur-
al person and engaged in a similar business, and the taxes there-
on shall be levied, assessed and collectable in the following man-
ner and not otherwise: On all real property the taxes shall be
levied and assessed, and shall be payable at its situs, as now
provided by law. All personal property of such corporations,
exclusive of bond, shares of stock and securities as enumerated
in Article 81, Section 214 of the Code of Public Civil Laws