| Show r I INTEREST SHOWN BY Recently Imposed Excise Tax Draws Much Comment In Utah IMPOSSIBLE OF APPLICATION Account Accountants nl S So Declare Lw ns as Passed By Con Duo Un En deE tier Dig Big March 1 Business s firms banks Insurance and I In fac fact ni all forms I or of activity In the form of oC corporations era greatly Interested In inthe the blank forms torms which leave have been re Fe rece ce this week weel from rom the orce of the collector Of internal revenue for the State of Utah On them seine time duing during thee the next next GO 0 days das w will bo be placed the tho sought b by Uncle Sanc which Is to determine the amount o of corporation ta tax which the they are arc to pa pato pay I to the government This Information i when It Is sent to the or office e or of the tho collector o of Internal r venue for or thee tho state wi will then be transmitted to lo loras ras I It wi will there bo be passed upon and recorded by thee the commission commissioner or er or of Internal revenue who wI file al all the report reports so that they ma may these thele oer after b ho accessible to the public Peo People plo will then Imo know what Salt LI Lakes s big wi stores and banks are arc earning or the they may find out what thc h UnIted States State Mining company or UH thc America American Smelting Refining con com compan pan pany hn lies been doing during the year 1909 The Tho private life as I it were ot of moro than corporations In the United States wi will thus be placed on exhibition at Washington for rOI the edi I featon ot of the people o of the tho United St States es and for that mater matter of oC the tho world And the strange thing about It Is that while the Inner life or of the corporations Is made public partner partnership ship concerns may pursue the tenor of their wa way undisturbed b by this new edict of the government which has raised such a a hue and cr cry in n tl the financial world PENALTY FOR OR DELINQUENTS Although the work or of mailing the blank forms to more than cor In thee the State or of Utah wa was completed on b by the tho orce staf staff of the tho Internal revenue collector It is possible that saro some may have Men been missed The name names or of the fIrms were taken from the secretary of states or of lc flee but should an any firm bo be missed the they would not bo be excused If the they failed to report on the tho dat date set whIch Is Marh March I 1 at the latest and the lIce fine ot of 1000 00 for tor failure to com comply ph wih with the law the penalty against them just the tho saro same a as I If the they had received elvo I due notice Ignorance or of thee the law Is I no excuse and It if there are ay any cor corporations In the state who have failed to get the tico blank blanks referred to above the they had better notify the tho collector or of internal revenue at once This 11 lab which Is designated an ox ex excise cise ta tax on corporations stock corn com companies panics associations and Insurance corn com companies was passed by Congress Aug 6 5 ot of the tho present year ear A pamphlet or of regulatIons was Issued from the commissioners office Wash Washington rash Ington under date ot of Dec 3 1909 In Inthis Inthis this booklet are explained ma many ot of the details or of thee the law so that officers of the corporations as wel well as the ac accounting counting force torce mn may know just what Is required b by the department In spite or of the high authority which has ma made e the edict which Is filling the men or of the country countr wih with con and In some cases with In indignation many defects In the scheme nr are pointed out Is Its legaJ legality and con are disputed and the ox ex expert pert accountants o of the count country bold boldly state that the provisions o of the law lass rio 10 late 11 all the accepted principles o of sound accounting ACCOUNTANTS PROTEST PROTES Prior to the passage or of tho law 12 firms of oC public accountants of New ct city protested against the incas meas measure ure to George IV V stating among other othel things lice tho followIng Ve o havo formed the opinion that some o of Is Its provisions are are absolutely Impossible ot of application and others violate al all thu accepted principles of sound account accountIng leg Ing They hey also say As account accountants accountants ants actively engaged lie In the audit and or of a number o of varied busInesses Ind and enterprises we un I W say that tho law as S trained Is absolutely Imposible impossible or of application tion ton The in answering the tho Idles referred to said answering Your further statement that as a accountants I we ee unhesitatingly sa say that the law as framed Is I or of application cuse causes me vary great surprise 11 My personal with you and a a number o of the oth oIlier r si signers or of tho bItes leas leads me to the blet belief that you hue underestimated your Certainly the thc statement o of objections made In your hOtter Is en cn Urel insufficient to support thee the cn cie which you OU express PROTEST IRO FROM t UTA UTAH or of this phae phase or of the law yesterday J Vi Edmunds o of this city who Is a certified public accountant or of Utah said The commissioner or of Internal revenue appears to slightly modIfied thee tho position taken b by the In note A on the form forne to ho bo hued by mercantile corporations lie he states that the glIS amount or of income shan shall be ascertained by taking thee the inventories at the thc beginning and the end ot of tIn tw calendar year ear It If is noteworthy that thee tho law itself contains not the tho slight est eel reference to an any inventory Inventor without which It Is for tor an any mer mercantile cantIe cantile corporation to accurately de determine termine what Its profits havo been Nor or does the tho note to obviate oblate the difficulty I It saYI gays I inventory or Its which shows hows thee thc dUr between the price received to for I goods sold and the cost ot at goods purchased during the theer er I 1 submit that It Is sible ible to ascertain this without taking Into consideration thee tho goods sold on credi credit aud not beon paid for tor at the tho end o or the calendar year car carTe Te The objection the thc a na had against the tho law was are require required to make wa a statement showing their receipts and disbursements for or thee the calendar year ear earthe the accountants contending ver very prop properly properly erly that a or of and only does doc not and can cannot cannot not disclose the lice true financial condi ton Itoh time o of an any ordinary business corpora CORPORATIONS IE Th Tub the tho accountants of Now cw York end the objections from ne nc all 1 over the Union II is ho hoever ever not a drop II in the bucket as tar far tarus faras us as strength Is to the ton o of thee the various corporate or of thc tho countr country man many of at whom hoin have hae a positive dislike to leaving having al all their bu bud budness l ness slen given awa away to their rivals not to 10 speak or of paying a I 1 fr per cent tax Thero ero arc some In Salt Lake City which leave llave paid bl big dividends for ye years pat past pastI I c J whoso whose profits aro far in excess or of tho e indicated d b by the dividends and the they 1 da not want evant tile the public to know al all thOse the things Then many firms do not w want nt thing competitors to know what the theare they are thel doing In certain felds fields as It might Induce Some or of the firma ot of the country urge this arg frs ment its In regard to the tho gigantic corn com combines bines who wi will reach out and cru crush out the lve lives or of many smaller the they say a hether or not these fears and are warranted titer time Slone alone wi will tel tell There Thore is 18 however thIs fact about thee tho law which s a hardship uron ns as against private films I or partnership and that is 19 I Ino no co cognizance Is tuk taken n of oC the latter b by this law lass Tho lay law only appl applies s t to corporations The he American Sugar And company ot of New York wi will hue have to comply wIth the law but Ar Arbuckle buckle Bros Is its great competitor aPe I no necessity or of doing so 80 In Inthis Inthis this city thoro ae are several largo private dries doing n a bl big share or of the tho business of the city In their respective who wi will not have havo to make n a report or orpa pa pay any tax In additon addition t to the In injustice justice as regards the payment or of th the tax there them Is Ilso also the tact fact that the reports or of the tho corporations wi will bu open to the people al all private COl cons wi will have havo their business secret secrets protected a as heretofore TENDENCY OF THE ACT At first sight It might be thought tha the tendency or of tide legislation would be to Increase the number o of partner partnerships ships ad private Irma yet el this Idea I is by some or of the most moat prone mont business men In the cIt city In discussing thee tho mater neatter yesterday one or of the leading or of the tho elate said The law wi will certainly havo heave n a ten tendency dency that wa say hut owing to the ad advantages vantages or of the against a partnership I do not look for tor It to change things greatly You see In nc ad greaty to the tact that a corporation dlton it Ir all the continues its even al It die when a partner dies the thc affairs ot of a partnership have to bi be a serious I In addition there serous Is the serous serious pint of cf liability A partner Is lable liable for the debts ot of ofa a firm It mu may be to the ho loss or of every everything everything 0 thing he as on eth earth except the tho lt lit the that Is b by law whereas a te o of Ii a corporation Is only only lable liable to the extent of his Investment l in that theat corporation These points wi wIll 10 doubt still make the corporation favored In spite sti mae o of the Is naton In ra favor VOl or of I I I the tho partnership Thee The law has been framed to exempt organizations for tor charitable religious tIle the tax ad and educational purposes from rom I It Is says the law that noth nothIng lag Ing In the Moton section shall apply to labor agricultural or horticultural tons or r fraternal beneficiary socie societies tes ties or orders ers or assocIations operating under thee the lodle lodge and providing for the payment or of le life sick accident oter other benefits to thee the o of such societies orders or associations and or of such members nor norto norto to building and loan associations tons organized and operated exclusively exclusively for the mutual benefit or their m nor to an any corporation or as sedation organized and amI operated cx ax elusively for tor charitable or educatIonal no part or of thee the thenet net Income or of whIch Inures to the benefit o of an any private stockholder stockholder or In ALL MUST REPORT In spite e of that clause exempting however al all such organizations wi will be expected to make the report report and the decisIon a as to their exemption Is not to be ler left to themselves but that theat theatis Is to be passed paRed on b by the commis commissioner o of Internal revenue at ton I It Is stated b by C Collector lector that al au o of the ecclesiastical wards o othe of the Church or of Jesus Christ or of Lter Latter Ua StUnts Wil Will within the law has lawand and each ot of them will 1 leave have to make mako a report or of their condItion for forthe the tho year car 1909 their exemption being afterwards decided by the Washington authorIties How the law operates and what a ato to tax of 1 per cent means to tho car cor or of Utah tuh Is shown b by the application of It merly to the dividends not the ful full earnings paid by bya bya a a few tew companies during the year Each firm Is allowed profits tree free or of tax In other words the 1 pel per cent tx tax only applies to the amount made mado over Oel and above The following dividends hoo have been paid this year b by ne five leading heading corporations or of thIs state The They have havo no doubt earned more than thease the sum sune the they have paid out In divi dividends and according to the law ln that total iv Is what they wl Idill be required to topa pee pa taxes on en LOCAL APPLICATION The dividends or of the live companies are as follows Z C M 1 I Deseret National bank Sugar Co A Amal mal Sugar Co Con Can Wagon Waon llach Mach Co Total According to tim the above aboe figures these live companies wi will heave have to pa pay to tothie the thie government thee the sum or of 1094 or 1 Jer per cent o of thee tho above amount at least and probably more moreA A moro more striking example or of thee tho revenue producing power of this theta law lawIs lawis Is seen In considering a pw ot of the mining companies ot of Uth Taking the six largest et dividend payers o of thee the year ear 1903 which paid divIdends amount lug Ing to during the year the amount ot of tx tax duo due on dividends only Is 72 This Is divided a as follows Dividends Tax Tax U S Mining S King Coal Utah Con Bing Colorado Utah Copper Sioux Con Totals GRETER GREATER R URNS Great as wi will be bc the returns to the government b by this tr tax from thee the dl dir ferent mining ad axed smelting ot of the United States they are am In point or of size when cd ad with the tho big railroad systems ot of the countr or with the tho largest commer commercial cial enterprises such as thee the Steel cor corporation whose gross earnings for tor 1908 1903 were which acer after deducting al all manufacturing and operating cx Interest taxes debts of sub and aU all other items of output loft Ion a a balance bance of for or distribution In dividends the Union Pacific Railroad company hat hail 0 a ro re reported ported net Income ot of for tor Its fiscal year ear 1909 1908 thee the Penn Railroad net for both east med and w st o of Pitta burg and ni all other s systems owned Pits op 01 crated controlled b by or affiliated ite In lie In terest with the parent was as It It is thErefore therefore unthinkable tas says the New ow York that thele these interstate wi viii sho sheow for this year er 1909 a an taxable not net Income of around und and that the fed ed oral eral government would derive It It If the tax wore to be revenue or of |
