COMPENDIUM ! li It m ! I iilllillii''''* J!t;i{|!!il!!iijJ!i'!i!!!l!!'!nN F HISTORY OF MATION IN PENNSYLVANIA, HTliTliiiTiminmimiiiiiiiiniHliiiiniriiit™^^ ■ H nfn,.TirTTnTinnit!iiiiumirnT'iniiiimi: iii" liifiiPiiiiiiiiiiiiir iiiii^ THE GIFT OF A...7..I..0.O..O..W i.cf.Up'/.. 767.VI r DATE DUE CORNELL UNIVERSITY LIBRARY 3 1924 083 766 505 Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924083766505 COMPENDIUM BRIEF BISTORT OF TAIATION IN PENNSYLVANIA, WITH STATISTICS OF THE PUBLIC DEBT AND FINANCES; FACTS RELATING TO THE AUDITOR GENERAL'S DEPARTMENT; RECEIPTS AND DISBURSEMENTS; REFERENCES TO LAWS AND DECISIONS UNDER WHICH REVENUES ARE COLLECTED IN PENNSYLVANIA AS WELL AS IN OTHER STATES. ARRANGKU BY W. P- Snyder, Auditor General, 1906. HARRISBUEG, PA.: HARRISBURG PUBLISHING CO., STATE PRINTER, 1906. ^H3o ^. ll COOfe PEEFACE. Every Government must provide by taxation for the general ex- penses and for tlie cost of other public necessities. This burden is imposed upon the people, who are called upon to contribute a fair, just and equal amount for that purpose. Taxation is a subject, therefore, in Mhich all are interested. But few. are familiar with the laws imposing the burden, the different subjects taxed, nor the purpose for which the Eevenues are col- lected and disbursed. The purpose of the Department in preparing this volume is to pre- sent, in a general way, for the information of the public, an outline only of the system of taxation in Pennsylvania and the results of its operation, for the purpose, of comparison with the systems of other states. Inquiries are frequent from other states and from taxpayers and others in this, for information in reference to our tax system and its operation. To- write replies would be impossible; hence the publi- cation of this data. The volume contains a brief review of the history, operations and duties of the Accounting Department, and the Eevenues of the Commonwealth; certain Acts of Assembly imposing taxes upon the principal subjects of taxation, with an explanation of their pro- visions, and a limited number of citations from opinions of the courts construing them; statistics relating to taxation in this State and statements showing briefly the general laws of this and forty- five other states under which taxes arc assessed and collected, with amounts and sources from which received and the amount and pur- pose for M'hich disbursed, with other valuable information, arranged in such form as to be readily understood. It would be impossible to give all the Acts of Assembly of Pennsyl- vania and decisions of the different courts construing them, or even abstracts of all. They are so numerous as to preclude it. Instead, the most important Acts and brief citations from the opinions con- struing them are presented. A complete review of all the laws relating to the subjects mentioned, many of which alone would fill a volume, is not intended. What follows, therefore, should be treated as an outline or general review of the Eevenue System of Penn- sylvania. Many sources of revenue are not mentioned, because of the small amount received; to include them would take up more space than is warranted. (3) The tabulated statements in Parts 2, 3 and 4 have been prepared from the latest official reports available, and contain much valuable information in reference to taxation. Part 4 contains brief extracts from the laws of forty-flve states in reference to taxation, with statements showing the sources and amount of revenue in each, with the amount and purpose for which expended, and other information of interest, valuable for purposes of comparison. TABLE OF CONTENTS. PART I. CONTAINING: (1) . Information concerning the early history of the Accounting Department and other subjects relating to the Revenues, viz: Public Accounts— Set- tlement of first provided for by Act of Sept. 2, 1778, Chap. 806. (2). Methodizing the Department of Accounts (Act of April 13, 1782), and creat- ing the ofHce of Comptroller General, and appointing John Nicholson to that ofllce. (3). Creating the office of Register General (Act of March 28, 1789). (4). Creation of the office of Auditor General (Act of March, 1809, P. L. 71), which Act abolished the offices of Comptroller and Registers General. (5). Auditing and Adjustment of Public Accounts (Act of March 30, 1811, P. L. 145). (6). Statement in Reference to the Finances of Pennsylvania-from 1830 to 1845, and the Default in Payment of Interest upon Debt. (7). Sinking Fund, Establishment of. (8). Warrants— original authority to draw and its extension. (9). Comparative Statement of Receipts and Disbursements in 1880 and 1905 showing great increase. (10). Names of Comptrollers General, 1782-1794. Names of Registers General, 1789-1809. Names of Auditors General (appointed), 1809-1851. Names of Auditors General (elected), 1851-1905. Names of State Treasurers (Legislature), 1777-1874. Names of State Treasurers (elected), 1874-1905. (11). Powers and Duties of the Auditor General. (12). Adjustment and Settlement of Accounts. (13). Duties of the Auditor General as member of the — Board of Accounts, Board of Revenue Commissioners, Board of Public Grounds and Buildings, Board of Sinking Fund Commissioners, Board of Agriculture, Board of Military, Board of Trustees, Soldiers' and Sailors' Home. PART 2. Statements in a condensed form relating to the sources of revenue, receipts and expenditures of the Commonwealth, and other Information: A. Source and amount of revenue;. percentage paid by each class of taxpayers; amount and purpose of expenditure; what the individual pays to and re- ceives from the State. (5) B. Public Debt of the State, 1840-1905. C. Funded and unfunded State debt; statement of condition of Sinking Fund. D. Receipts and expenditures at the State Treasury from 1791 to November 30, 1905, showing balances in State Treasury from 1878 to November 30, 1905. E. Statement showing money paid, returned or remitted to the several counties from 1866 to 1905 both Inclusive. F. Statement of the Public Loans. G. Interest Certificates. H. Relief Notes. I. Public Debt, 1905. J. Statement showing what each county paid to the State, what each county received from the State, with balance in favor of county for 1905. K. Statement showing amount paid by the State in support of Penal Institu- tions from 1860 to 1905 Inclusive. L. Statement showing amount paid by the State in support of Charitable In- stitutions from 1860 to 1905 inclusive. M. Statement showing amount of Personal Property tax returned to the Coun- ties from 1891 to 1905 inclusive. N. Statement showing amount diverted or returned to local Treasurers by thh State on account of Liquor Licenses from 1888 to 1905 inclusive. O. Statement showing amount collected from Corporations and Associations for Bonus and Tax, from 1881 to 1905 inclusive. P. Statement showing amount paid by the State for support of Soldiers' and SailOirs' Home from 1885 to 1905 inclusive. Q. Statement showing amount paid by the State for support of Soldiers' Orphans from 1870 to 1905 Inclusive. R. Statement showing amount paid by the State to support the Judiciary from 1886 to 1905 inclusive. S. Statement showing amount paid by the State for support of Township High Schools for 1905. T. Statement showing amount paid to the several counties during 1905 on ac- count of Appropriation to Public Schools. U. Statement showing amount appropriated to Public Schools from 1835 to 190S inclusive. v. Statement showing amount appropriated to Normal Schools for maintenance, buildings and educating teachers from 1876 to 1906 inclusive. W. Statement showing amount appropriated to Township High Schools from 1901 to 1906 inclusive. X. Statement showing amount of taxes paid prior to passage of law exempting from taxation real estate, horses, cattle, trades, occupations and pro- fessions. Y. Statement showing balances in the Sinking Fund from 1849 to 1905 inclusive. Z. Table showing the principal sources of revenue and the principal items of expenditure for 1905 of New York, Pennsylvania, Ohio, Massachusetts, Missouri, Iowa and New Jersey. I PART 3. Acts of Assembly of Pennsylvania imposing taxes, with a brief explanation oC their provisions, and citations from certain opinions of the courts, construing the same. I-II. Tax on Banks, State and National. III. Tax on Net Earnings of Certain Corporations. IV. Tax on Trust Companies. V. Tax on Building and Loan Associations. VI. Interest on State Deposits. VII. Tax on Gross Premiums of Foreign Insurance Companies). VIII. Tax on Capital Stock of Corporations. IX. Tax on Loans of Private Corporations. X. Tax on Gross Receipts of Transportation, Transmission and Electric Light Companies. XI. Tax on Gross Premiums, Domestic Insurance Companies. XII. Bonus on Capital Stock of Corporations. XIII. Tax on Personal Property. XIV. Tax on Writs, Wills, Deeds, etc. XV. Tax on Collateral Inheritances. XVI. Tax on Municipal and County Loans. XVII. Sale of Pamphlet Laws. XVIII. Notary Pu'blic Commissions. XIX. LICENSES: A. Mercantile, Wholesale and Retail. B. Liquor. (1). Retail. (2). Wholesale. (3). Brewers' and Distillers'. (4). Bottlers'. (5). Hotels, Inns, Taverns, etc. (6). Eating Houses. (7). Billiard and Pool. (8). Brokers'. (9). Auctioneers'. (10). Peddlers', Soldiers', etc. (11). Theatres, Circus, etc. XX. Tax on Gross Receipts of Bankers and Brokers. XXI. Tax on Sales of Fertilizers. XXII. Fines and Penalties. XXin. Refunded Cash. XXIV. Fees of Public Office. XXV: Escheats. XXVI. Gross Receipts of Notaries. XXVII. Bonds of Allegheny Valley Railroad Company. XXVIIL Annuity for Right of Way. XXIX. Oleomargarine Licenses. XXX. Renovated Butter Licenses. XXXI. Fishing Licenses. XXXII. Hunting Licenses. XXXIII. Sales of Land. PAP.T 4. Contains extracts from the General Laws imposing taxes in 45 States named, with statements showing the Source and Amount of Revenue and the purposes for which disbursed, the debt of each, and other information upon the subject of Taxation, obtained from the most recent available reports of the different States. PART I. CONTAINING A SUMMARY OP THE EARLY HISTORY AND OPERATIONS AND ACT.=: OF ASSEMBLY RELATING TO THE AUDITOR GENERAL'S DEPARTMiJNT, SHOWING 'ORIGIN OF THE REVENUE SYSTEM— THE DEBT FROM 1826 TO DATE— FORMATION OF SINKING FUND— COM- PAR>ATIVE STATEMENT OF RECEIPTS AND EXPENDITURES IN 1880 AND 1905— NAMES OP COMPTROLLERS GENERAL, REGISTERS GENERAL, AND AUDITORS GENERAL FROM 1782 TO 1905— STATE TREASURERS SINCE 1777— POWERS AND DUTIES OP THE AUDITOR GENERAL— STATISTICS CONCERNING THE REVENUES AND EXPEN- DITURES OF THE COMMONWEALTH FROM 1826 TO 1845, AND OTHER INFORMATION, WHICH, IT IS BELIEVED, WILL PROVE TO BE IN- TERESTING TO EVERY TAXPAYER IN THIS, AND OTHER STATES, AND TO THOSE WHO ARE INTERESTED IN THE SUBJECT OP STATE TAXATION FROM AN ECONOMIC STANDPOINT. THE PACTS HERE- IN PRESENTED HAVE BEEN COLLECTED AND ARRANGED FOR THE -INFORMATION OF THE GENERAL PUBLIC, AND ARE NOT IN- TENDED TO BE A COMPLETE OR EXHAUSTIVE DISCUSSION OF THE VARIOUS SUBJECTS MENTIONED. ACCOUNTING DEPARTMENT. Public Accounts. An Act to compel the settlement of the Public Accounts was passed Sept. 2, 1778, Chap. 806, and provided, inter alia: "Whereas in the course of the present contest between the inhabitants of the United States and Great Britain, very large and great expenditures and advances of public money have been made by the good people of Pennsylvania in the common cause:" "And Whereas, Many of the persons to whom such advances of money have been made, regardless of the public welfare as well as of their own credit and character, have refused and neglected to exhibit their accounts and vouchers and to settle their accounts, after repeated calls have been made upon such defaulters * * * " "And Whereas, It is highly necessary as well for ascertaining and settling accounts of expenditures made before the Revolution and since, at the request of the Honorable Congress of the United States of America" * « * ■ , and it was enacted; "that Joseph Dean, John Purviance and Samuel Miles, of the City and County of Philadelphia, Esquires, are hereby appointed Auditors with full power to collect, audit, liquidate, adjust and settle the accounts of the late Committee of Safety and the Council of Safety of Pennsylvania, who ceased to act in March, 1877, and all others, * * * and that if it shall appear to the Supreme Executive Council of the State, to be useful for the advancement of 10 this necessary business and the ease of the persons accountable before said Auditors, who reside at a great distance from the said city, the said Council may direct the said Auditors to give their attendance at one or more places within the State on the western side of the River Susquehanna and at two or more several places other than the said City, eastward of the said river, to settle the accounts of such persons who dwell remote, « * * and that nothing herein shall prevent the settlement of the following accounts before the Com- mittee of Accounts appointed annually by the House of Assembly, to-wit; Accounts of State Treasurer, General Loan OfBce, Light House Rates, and duties on Slaves * * * ." On April 13, 1782, an Act was approved, entitled "An Act for methodizing the Department of Accounts of this Commonwealth, and for the naore effectual settlement of the same." Many of the provisions of that Act are of interest and extracts are here given : "Whereas, the methods heretofore practiced for the settlement of the accounts of the State have, by experience, been found not to answer the good purposes intended thereby. For Remedy Whereof; "Be It Enacted, by the Representatives of the Freemen of the Commonwealth of Pennsylvania in General Assembly met, and by the authority of the same; That an office shall be instituted in this Commonwealth for auditing, liquidating and adjusting all the accounts thereof, and that the same shall be established and kept at the place where the General Assembly of the State shall hold their Sessions, to be styled 'The Comptroller General's Office,' and that a. person of known integrity, diligence and capacity be appointed to execute and perform the duties of said office by the name of 'The Comptroller General.' " He was given the authority to examine all accounts, call wit- nesses, etc., to settle and collect accounts of long standing and take the most effectual steps for speedy recovery of the same, and with all dispatch, direct the Prothonotary of the County wherein the debtor abode to issue process commanding the Sheriff or Coroner to ■summon such person to appear within 3 months before the Comp- troller General; * * * and to call before him as often as necessary, by subpoena or summons, witnesses; and in case of-«r#iusal to appear, to issue a writ of attachment, and commit such delinquent to the common gaol of the county, to be holden until he comply with the Comptroller General and directions of the Act; the Act to be pub- licly read in every Court of Oyer and Terminer and of Quarter Ses- sions of the Peace between the first day of May and the first day of January next, during which all other business shall cease, * * * And that the salary of the Comptroller General shall be the sum of 500 pounds per annum, payable in quarterly paj'ments, by warrants drawn on the Treasurer by the President or Vice-President in Council, and that he give bond in the sum of five thousand pounds (125,000). The Comptroller General subscribed to the following oath: '.'1 do solmenly swear or affirm that I will fai-thfuUy execute the office of Comptroller General for the Commonwealth of Pennsylvania and 11 will do equal rights and justice to all men to the best of my judg- ment and abilities, according to law and equity." And in Sec. 22, it is provided "that John Nicholson, be and he is hereby appointed Comptroller General for the time being." This Act is recorded in L. B. No. 1, p. 5US, &c. (Acts upon the sub- ject: Sept. 20, 1782, Chap. 988; Feb.- 18, 1785, Chap, 1133'; Apr. 4, 1785, Chap. 1158; Mar. 24, 1786, Chap. 1218.) It repeals certain Acts, viz: Mar. 1, 1780, Chap. 882, and a supple- ment to that Act passed May 30, 1780, Chap. 909. In 1789, March 2Sth, an Act was passed establishing the office of Kegister General, and the Controller General M'as required to submit all adjusted accounts, before finally settling the same, * * * "to the inspection and examination of the Eegister General, and take his advice and assistance in settling accounts." Subsequently the Legislature required all public accounts to be submitted to, and in the first instance examined, liquidated, and ad- justed by the Eegister General, and such accounts were to be trans- mitted to the Controller General. Both the offices of the Register General and Controller General were abolished-by an Act of Assembly dated March 17, 1809, P. L. 71, which, inter alia, enacted: "That from and after the first of May next, there shall be ap- pointed an officer to be called the Auditor General, who shall be in- vested with all the powers now possessed by the Register General and shall perform all the duties, etc.," giving him authority to draw warrants upon the State Treasurer and imposing other duties. They were appointed until 1851. Two years after the creation of the OfSce of Auditor General, the Legislature passed an Act- in reference to the adjustment of ac- counts and other matters, and many of its provisions are in force at the present time, remarkable as it may appear. This Act was approved March 30, 1811, P. L. 143, and provided for the auditing and adjustment of Public Accounts, and required the Auditor General to first audit the Public Accounts and then transmit them to the State Treasurer, who was invested with powers similar to those vested in the Auditor General. If the accounts were approved by the State Treasurer, they were to be returned to the Auditor General. If he did not approve them, the objections with the account were to be submitted to the Governor for final decision. When the Auditor General and State Treasurer settle State taxes against a taxpayer, and the taxes assessed have been paid, the ac- count, except as to clerical mistakes, is closed after the lapse of a year from the time of such payment and can then be re-opened only 12 by an order of the Board of Accounts. This Board was created by the Act of April 8, 1869, P. L. 19, and consists of the Auditor Gen- eral, State Treasurer and Attorney General. For the purpose of information and comparison with the present condition of the finances of the State, the following brief statement is presented, showing conditions. From 1830 to 1853 was a period in the financial affairs of the Commonwealth during which it defaulted in the payment of the interest upon its debt, and was driven to the last extremity in rais- ing reyenue. In 1831 its funded debt was |12,512,520, and tlie interest amounted to 1616,850. That year the balance of the revenue, after paying the ordinary expenses of the State Government was, .$420,000, leaving a deficiency in the interest account of |191,850. Nine years after- ward, in 1839, the debt had grown to |32,077,518, most of which had been paid to the Commissioners of Public Works. ' The following year it was |3C,000,000. The resources of the Treasury were totally inadequate to meet the demands upon it, and it became necessary to dispose of the securities owned by the State, stocks in various banks and corporations and they were sold at a heavy loss. The principal operations of the State Treasury for the 18 years prior to 1844 are shown in tln' following statement, viz: Revenue for 18 Tears. Licenses, {4,078,023 Taxes 4,421,562 Premiums bank charter 3,658,193 From United States 2,867,514 Dividend on State stocks, 2,691,774 Canal and railroad tolls 9.286,644 Other revenue 2,416,188 $29,420,602 From— Loans and premiums, 43,400,781 Sale of investments, 1,395,411 $74,216,694 Expenditures for IS Years. Government State Loans paid, i. Militia and pensions, . Schools Education and charities. Penitentiaries Domestic credit Relief notes, Other expenditurfs Sub. turnpike stock Public works $4,660,393 4,010,719 1,164,227 2,620,375 647,779 819,950 1,470,826 608,000 1.415,488 $17,307,761 1,842,414 65,066,619 $74,216,694 During this period of eighteen years, 58.6 per cent, of the State's revenue was dcrixed from borrowed money and only 11.4 per cent, from taxation. Of the total rect'ipts, T(i per cent, was expended to pay for the Public Works. This was the condition of the Treasury in 1844. The next year the payment of interest was resumed upon the debt, Avhich was at that time upwards of 40,500,000. From that time to the present the State has never defaulted in the payment of any principal or interest. During tlie period referred to, certificates for the payment of in- terest on the debt had been issued in 1812, 1843 and 1844; those of 1842-3 bore G per cent, interest, and of 1844, 5 per cent. On April 16, 1845, the Governor was authorized to issue new stock, maturing in 1855, at the rate of 5 per cent, to all certificate holders who wished to exchange. The unpaid interest on the old certificates was com- puted at 4^ per cent., which was added to the principal and new stock was issued for the total amount. The old certificates to the amount of |2,481,396.77 were delivered up for exchange. Of this transaction, John M. Wallace, author of "Pennsylvania as a Bor- rower," said: "Failing to pay interest on money borrowed, she gave bonds for that interest, promising to pay the old interest at a fixed date, and to pay five or six per cent, interest on the interest already over due. She did neither. She compelled a surrender of the con- tracts and their evidences, and then forced the holders to take 4^ per cent, interest. It can never be spoken of otherwise than as an 'Act of Repudiation" by those who speak of it at all. It is a damned spot, and all the perfumes of Arabia will not sweeten the honor of this Commonwealth." The State Treasurer defended the action of the State and gave his reasons. The fact appears to have been that it was owing to bad management and a dislike on the part of the people to taxation, that the State was unable to meet its interest, except by the issue of stock and it has often been claimed, in explanation, that the is- sue of the original interest certificates was in recognition of the claims of contractors and workmen, before those of the certifi- cate holders. Up to 1849 the State debt had only been reduced $475,000; but the revenues were increasing so rapidly that by Act of 1849, P. L. 572, a Sinking Fund was established. The Commissioners of this fund were authorized to apply , certain revenues to the decrease of the State debt. The first tax devoted to this purpose, was the collateral inheritance tax, then tax on theatres and various licenses. By Act of 1858, P. L. 468, a new Sinking Fund law was passed, and the fol- lowing revenues were devoted to that fund, viz: Tax on all bank dividends and bank charters; corporations; licenses; auction com- missions and duties; wills, writs, deeds, etc.; public officers and others; foreign insurance agencies; enrollment of laws; sale of pamphlet laws; fines, forfeitures and penalties; public lands; militia tax; millers; moneys at interest; tonnage; escheats; collateral in- heritances; accrued interest; refunded cash; gifts; grants and be- quests. These included all the principal sources of revenue except tax on real and personal property, which latter was reserved to meet the current expenses of the Commonwealth. The Sinking Fund was made permanent by the Constitution of 1873, Art. IX, Sec. 2. Since that time the Sinking Fund has pro- 14 vided for the payment of the outstanding debt, until at the present time the actual debt is less than |125,000. Prior to 1829 all warrants for the payment of money by the State Treasurer were drawn and the receipts countersigned by the Auditor General, with the exception of a few signed by the Speakers of the two Houses for wages of Members and incidental expenses. From 1811 to 1829 the duties and powers of the Auditor General were unchanged, except that the Act of March 27, 1821 (8 Smith's Laws, 267) made the Auditor General, E'scheator General, with power to appoint a deputy. In 1829 the Legislature by Act, P. L. 353, gave the Governor authority to draw warrants on the Treasury to pay the salaries of the officers of the Eastern and Western Peni- tentiaries, and his authority was afterward extended to charitable institutions, hospitals. Middle Penitentiary and military expenses. This authority was subsequently limited. The encroachments upon the duties which originally and of right belonged to the Auditor General, commenced with the foregoing Act, and since have been extended so that at the present time seven per- sons exercise the right to di'aw warrants upon the Treasury, viz: Governor, Secretary of the Commonwealth, Adjutant General, Superintendent of Public Instruction, State Commissioner of High- ways, Banking Commissioner, Auditor General. The report of Auditor General Schell, for the year 1880, contained much valuable inforniation in reference to the early revenues of the Commonwealth, prepared by B. M. Nead, Esq., of Harrisburg, then connected with the Department, and from which I have obtained cer tain data, used in the preparation of this volume. A reference to the report of the Auditor General for the year 1880 shows the primitive condition of the accounting department at that period as compared with the present. As an example, this statement is shown: "The papers and records in the Department have been systematically arranged in cases, the cases have been marked, and 'an index' of the cases and contents have been prepared and transcribed into 'a book' called the 'Official Index," ;i reference to which will greatly facilitate the business of the office." At that tiine the total number of corporations reporting was about 3,000, and the number of blanks for reports and instructions sent to them about 10,000. At the present time the number of corpora- tions, with active accounts, ujion our books, exceeds 2.5,000, and it requires the mailing of upwards of 200,000 blanks each year. The accounts necessary to be kept fill some seventy-five ledgers and many other records. This statement is made without reference to the ac counts required to be kept of transactions with county officers and others, ^^•here the increase is (juite as great. IS The wonderful increase in revenue collected and disbursed in the yeai'^s 1880 and 1905 is shown by the following comparative state- ment: < From: National banks, State banks Incorp. savings institutions, Building and loan Interest on State deposits Foreign insurance company premiums Tax on capital stock, Tax on corporate loans, Tax on gross receipts Tax on gross premiums, insurance companies (domestic), Bonus on charters, '. Tax on personal property Tax on writs, wills, etc., Tax on collateral inheritances Tax on loans, county Tax on loans, municipal Pamphlet laws Notary commissions .^ Receipts from Licenses: Retail mercantile, Wholesale mercantile, Retail liquor Wholesale liquor, Brewers Distillers Bottlers Billiard Brokers Auctioneers Peddlers Theatre, Eating house Oleomargarine license Butter licenses Fishing licenses Hunting licenses Other Sources: Land office Auctioneers' commissions Dividends on stocks, ..- Tax on coal_, Tax on tonnage Tax on net earnings Escheats Office license fees Fees. State officers Annuity, right of way Miscellaneous Total revenue, 1339, S59 196,743 1,361,868 300,463 656,025 3«,861 34,6«3 423,676 104,371, 606,441 172 6,675 J970,410 2,S39 6,343 40 811,139 460.000 57, 403 2.158 3,041 10,000 340, 554 $6,720,334 $747,197 99,297 62,666 12,371 274,157 1,187,426 8,927,649 1,662,085 1,186,461 106,106 916,892 3,446,906 190,664 1,677,185 • 169,917 101,639 2Z2 43,775 $680,817 259,751 617,912 665,429 274,104 66,619 89,241 91,773 45,143 16,043 6,565 21,566 32,960 26,707 4.825 3,032 1,024 41,597 16,422 21S, S20 • 10,000 292,067 $24,269,120 16 DISBURSEMENTS. Purpose. etc., Legislative^ Judiciary, Departments, boards, Cliarities Education Military Penitentiaries, etc Pensions and gratuities Public printing, Personal property tax returned to counties, . Foreign fire insurance premiums returned, .. Purchase of lands for forestry reservations, Rebuilding county bridges, Constructing new capitol Commissions to erect hospitals, etc Miscellaneous general (39,04S 452,590 197, 101 », 202, 087 283,766 296,225 23,838 2,066,408 $6,820,119 1593,322 1,098,150 6,133,945 4,464,600 8,600,264 377,680 454,681 4,164 383,757 2,663,392 113,418 231,939 879,738 1,045,000 262, 972 376,040 $27,662,962 The Auditing Department of the Commonwealth since 1782 has been filled by the following: COMPTROLLERS GENERAL. John Nicholson 1782-1794. John Donaldson, 1794-1801. Samuel Bryan, 1801-1805. George Duffield 1805-1809. REGISTERS GENEKAL. John Donaldson 1789-1794. Jonathan B. Smith 1794-1795. Samuel Bryan 1795-1801. George Duffield 1801-1805. John Kean, 1805-1808. Richard M. Grain 1808-1809. AUDITORS GjSNBRAL. (Appointed by the Governor.) George Bryan, 1809-1821. James Duncan 1821-1824. David Mann 1824-1830. Daniel Sturgeon 1830-1836. Nathaniel P. Hobart 1836-1839. George R. Espy 1839-1842. William P. Packer 1842-1845. John N. Purviance 1845-1851. (Elected by the People.) Ephraim Banks 1851-1857. Jacob Fry, Jr., 1857-1860. Thomas E. Cochran 1860-1863. Isaac Slenker, 1863-1866. John F. Hartranft 1866-1869. John F. Hartranft (Appointed) 1869-1872. Harrison Allen, 1872-1875. 17 Justus p. Temple ., 1875-1878. "Wm. P. Schell 1878-18§1. John A. Lemon ,.1881-1884. Jerome B. Niles 1884-1887. A. Wilson Norris, 1887-1888. Thomas McCamant 1888-1892. D. McM. Gregg 1892-1895.. Amos H. Mylin 1895-1898. Levi G. McCauley 1898-1901. E. B. Hardenbergh 1901-1904. W. P. Snyder 1904-1907. And the following: STATE TREASURERS. (Elected by the Legislature.) David Rittenhouse 1777-1795. Christian Febiger 1795-1797. Peter Baynton 1797-1801. Jacob Carpenter, ., 1801-1802. Isaac Weaver, 1802-1806. Andrew Gregg, 1806-1807. William Findlay , 1807-1817. Richard M. Grain 1817-1820. John B. Trevor, 1820-1821. William Clark, 1821-1827. Alexander Mahon, 1827-1835. Joseph Lawrence , 1835-1836. Daniel Sturgeon 1836-1840. Almon H. Reed, 1840-1841. John Gilmore, 1841-1842. Job Mann 1842-1845. James Ross Snowden 1845-1847. John Banks 1847-1848. Arnold Plumer 1848-18^9. Gideon J. Ball 1849-1850. John M. Bickel, 1850-1854. Joseph Bailey 1854-1855. Eli Slifer, 1855-1856. Henry S. Magraw 1856-1859. Ell Slifer, 1859-1861. Henry D. Moore, 1861-1863. William V. McGrath 1863-1864. Henry D. Moore 1864-1865. William H. Kemble 1865-1868. W. W. Irwin 1868-1869. Robert W. Mackey 1869-1870. W. W. Irwin 1870-1871. Robert W. Mackey, 1871-1874. 2 18 Prior to the adoption of the present Constitution in 187^ the State Treasurers of the Commonwealth were chosen by the Legislature. The following State Treasurers have been elected by the people: Robert W. Mackey 1874-1876. Henry Rawle 1876-1878. Amos C. Noyes 1878-1880. Samuel Butler 1880-1882. Silas M. Bailey 1882-1884. Wm. Livsey 1884-1886. M. S. Quay 1886-1887. Wm. Livsey, 1887-1888. Wm. B. Hart 1888-1889. Wm. Livsey 1889-1890. Henry K. Boyer, ; 1890-1892. John W. Morrison 1892-1894. Sam'l M. Jackson 1894-1896. B. J. Haywood, 1896-1898. James S. Beacom, 1898-1900. James E. Barnett 1900-1902. Frank G. Harris 1902-1904. W. L. Mathues 1904-1906. W. H. Berry 1906-1908. POWEES AND DUTIES OF THE AUDITOR GENERAL. The Auditor General is elected by the people, at a general elec- tion, every third year, and serves for three years from the first Tues- day of May next succeeding his election. He gives a bond to the Commonwealth in the sum of |5,000. He appoints a deputy who performs the duties of the Auditor General during his absence or inability, or, in case of vacancy, until a successor is duly qualified. The deputy gives a bond in the sum of |10,000. The duties of the Auditor General are generally to examine and settle all accounts between the Commonwealth and any person, officer, department, association or corporation. He examines annually the condition of the State Treasury, and is required to publish in six newspapers through the State the monthly statement of the State Treasurer showing the condition of the general fund remaining in the State Treasury and the Sinking Fund. The Auditor General's powers in relation to accounts coming be- fore him are very broad. He can compel the attendance of all persons, and of such witnesses as he deems proper, and examine them under oath, and compel the production of all books, papers, etc., in order to do which he can exercise the power of attachment and imprisonment through the sheriffs and coroners of the several counties. He can procure the testimony on a commission under his hand and seal. He can commit to prison any witness. 19 He ma}- send an agent to examine the books, etc, of any corpora- tion, or company having accounts to settle refusing or neglecting to make returns within the time specified by law. In settling the accounts for incidental expenses he can disallow any excess over fair cash prices. When it appears that an account has been erroneously or illegally settled, and one year having elapsed from the date of such settle- ment the Auditor General, State Treasurer and Attorney General may revise and re-settle the same according to law. ^^■ithin thirty days after the settlement of any account on which a balance appears to be due the Commonwealth, the Auditor Gen- eral shall send a copy thereof to the person or persons indebted, from which they may appeal to the court of common pleas of Dauphin county, within sixty days after the notice of settlement. The amount found due on any account shall be a lien on all the real estate of the persons indebted, and their securities throughout the State from the date of settlement, provided, such liens are entered in the proper county, and they shall bear interest at twelve per cent, per annum from 60 days after the date of notice. Accounts examined and settled are submitted, with all the papers, to the State Treasurer for his examination and approval. If the latter disapproves he must state his reasons in writing; and if, on due consideration, they still disagree, the reasons in writing of both must be submitted, with all papers relating thereto, to the Gov- ernor for final decision. Accounts approved by the State Treasurer are returned to the Auditor General, a certified copy of each one is made and forwarded 10 the proper party, a record of the settlement is kept, and the originals are properly indorsed, numbered and filed. All debts known to be due the State, from all sources, remain- ing unpaid for ten days after the time allowed for appeals shall have expired, must be placed in the hands of the Attorney Gen- eral for collection. Certified copies of all accounts, books and documents on file in the Auditor General's ofQce, imder his hand and seal, shall be admitted in evidence in any court of law and elsewhere in the Oom- monwealth. Wherever the laws recognize a claim on the Commonwealth, and there is no money appropriated to pay it, such account must be set- tled as other accounts, and the Auditor General at once reports to the Legislature, if in session; but if not in session, then during the first week of the ensuing session. He may issue a new certificate of debt in lieu of any one lost or destroyed on satisfactory proof of its loss or destruction. He possesses all the powers and performs all the duties of Es- 20 cheator General, and, upon proper information given, appoints Deputy Escheators wliere required. He is also a member of the Military Board; the Board of Public Accounts; the Board of Sink- ing Fund Commissioners; the Board of Revenue Comitnissioners; Commissioners of Public Grounds and Buildings, Board of Agricul- ture and other Special Commissions or Boards where the money of the Commonwealth is expended. In case of the failure of the court of common pleas of any county to appoint an auditor of county accounts, at the last term preced- ing the first day of January of each year, it is the duty of the Auditor General to fill such vacancy. The act approved July 15, 1897 (P. L. 291) authorizes him to pre- scribe the form, etc., of vouchers, monthly and quarterly returns and statements of County Officers and Institutions receiving State aid; to appoint, for temporary service, from time to time expert ac- countants to examine the accounts of county officers and of institu- tions; and he is made the custodian of the title papers, insurance policies, plans of buildings and grounds, deeds and other legal evi- dences of ownership of all the institutions owned exS87, has remitted to the coun- ties the High License tax, amounting annually to upwards of .|3,500,- 000, or over 50 cents per capita. STATEMENT li. A reference to the proper table will show in detail the amount of State Debt at different periods, how and for what purpose created; but the following will show the amount outstanding at the periods named. 30 PUBLIC DEBT. (At the periods mentioned.) 1840 $36,168,528 1845 40,986,393 1850, 40,775,485 1855, 40,196,942 1860 37,968,847 1865, 37,476,258 1870, 31, HI, 661 1875 .-. 23, 233, 137 • 1880, 21,261,989 1885, 19,084,283 1890, 13,856,971 1895, 6,816,309 1900, 6, 815, 299 1905 4,131,867 For the larger part of the above period the figures represent the amount of debt, exclusive of the moneys in the Sinking Fund. STATEMENT C. STATE DEBT. FUNDED, 1905. Currency loan, 31/2 per cent t $695,450 00 Currency loan, 4 per cent., 2,785,300 00 Agricultural College scrip, 6 per cent 500,000 00 Proceeds sale experimental farms 17,000 00 $3,997,750 00 UNFUNDED. Refief notes outstanding $96,100 00 Interest on certificates not claimed 4 , 448 38 Interest on certificates outstanding 13,038 54 Chambersburg certificates, 6 per cent, unclaimed... 90 40 Domestic creditor, '. 25 00 Bonds, 5 per cent, (interest ceased), 18,414 70 Bonds, 6 per cent, (interest ceased) 2,000 00 134,117 02 State debt, Dec. 1, 1905, $4,131,867 02 SINKING FUND, 1905. Funded debt, $3,997,750 00 Unfunded debt 134,117 02- $4,131,867 02 Assets in Sinking Fund: Bonds (5) Allegheny Valley Railroad $400,000 00 Interest on same 8,333 33 Cash on hand 3,600,575 60 4,008,908 93 Net debt, Dec. 1, 1905, $122,958 09 31 The Assets in the Sinking Fund Dec. 1, 1905, amounted to |4,008, 908;93, leaving a net debt of $122,958.09, or less than two cents per individual in the State. The debt at the present time consists of certain loans, the largest item being |2,785,300 not due until 1912, and another of |500,000, due in 1922. They bear 3i, 4, 5 and 6 per cent, interest, and the holders will not dispose of them. Informa- tion as to the nature of the outstanding debt will be found in an- other table. STATEMENT D. Showing the Receipts and Expenditures -at the State Treasury, from the Tear 1791 to the 30th Day of November, 1905. 1791, 1792, 1793, 1794, 1795, 1796, 1797, 1798, 1799, ISCO, 1801, 1802, 1803, 1804, 1806, 1806, 1807, 1808, 1809, 1810, 1811, 1812, 1813, 1814. 1815, 1816, 1817, 1818, 1819. 1820, 1821, 1822. 1823, 1824. 1826, 1826, 1827, 1828. 1829. 1830, 1831, 1832. 1833. 18S4, 1835, 1836, 1837, ,1838, 1839. 1640, $352,652 8.W,497 5o5,964 932,551 254,481 295,931 203,791 169,723 233,378 272.000 245.609 250,969 299,991 366,413 215, 310 240,609 261,050 250,440 547,960 353,965 438,913 492,908 845,977 703,547 684.690 977.762 538.346 539,825 440.801 1,420.686 411,432 468,857 650,667 543,790 677,618 1,588,757 3,129,470 3.610.33S 6,331.449 3.033.978 4,594,889 4,047,050 4,876,748 3,273,563 3,804,642 6,069,276 2,769,087 8,209,301 6,567,206 $249, 638 677,888 806, 484 630,852 601,193 291,402 230,451 198,893 218,719 254,814 225,966 286, 091 303,684 263,863 229,582 309,820 240, 478 295,496 312,139 B94,389 308,960 336,187 1,156,529 660,735 487,005 962, 564 633.188 592. 2.54 453,023 954,306 571,042 742,109 684.871 502,880 690,089 1,575,881 3,107,652 3,624,777 6,357,394 3,058,926 4.602.204 3.796.794 6, 190. 079 3,131,860 3,676,638 4,173,940 4,889,863 6,971,490 7,279,120 32 STATEaiENT D— Continued. 1841, 1842, 1843, 1844, 1845, 184G, 1S47, 1S4S, 1849, 1850, 1851, 1862, 1853, 1854, 1855, 1856, 1857, 1858, 1869, 1860, 1861, 1862, 1863, 1864, 1865, 1866, 1867, 1868, 1869, 1870, 1871, 1872, 1873, 1874, 1876, 1876, 1877, 1878, 1879, 1880, 1881, 1882, 1883, 1884, 1885, 1887, 1888, 1891, 1892, 1893, 1894, 1895, 1896, 1897, 1898, 1899, 1900, 1901, 1902, 1903, 1904, 1905, 6,380,782 2,780,608 3,404,434 2,331,765 3,010,062 3,529,057 3,977,025 3,831,776 4,433,688 4,438,131 4,670,393 7,716,552 9,486,770 5,963,670 5,390,474 6,378,240 4,690,587 4,139,778 3,826,360 3,479,ffi7 6,743,525 5,211,747 4,289,451 4,733,313 6,219,989 6,829,668 28,423,330 5,216,049 5,241,711 6,336,603 7,191,945 7,148,637 7,076,723 5,871,968 6,480,099 6,078,890 14,669,502 5,513,417 7,422,369 6,720,334 7,001,7S2 16,428,650 6 775,430 6,226,959 8,179,714 7,520,711 7,646,147 S,%4,0«0 8,965,390 8,626,919 13,007,161 10,748,769 13.262,727 12,873,786 12,030,030 12,913,843 13,117,988 13,325,120 16,458,316 17,494,211 17,727,432 22,947,890 21,030,232 19,767,893 :4, 269, 120 4,895,154 3,337,311 3,499,144 1,847,385 3,289,028 3,529,264 3,680,813 3,935,876 4,084,771 4,569,06a 4,780,667 7,157,920 10,144,963 6,437,159 6,386,706 6,379,142 5,407,276 3,775,857 3,879,054 3,637,147 5,873,352 4,590,509 4,314,964 4,938,441 5,788,525 6,462,303 25,602,526 8,864,960 4,894,806 6,434,522 7,024,079 7,143,990 6,734,027 6,642,667 6,541,443 6,087,100 13,482,453 6,653,933 6,529,063 6,820,119 6,926,810 14,850,871 6,708,690 7,643,912 8,613,257 7,203,295 7,366,763 7,387,866 8,182,847 8,168,861 10,453,962 11,727,968 13,423,064 13,622,769 13,681,701 11,280,893 13,043,887 13,973,803 15,336,838 15,453,718 16,669,399 17, 787, 106 18,080,480 19,763,784 27,562,962 $1,021,631 1,914,831 1,815,046 1,890,019 3,4«7,798 3,634,638 2,117,685 1,784,041 2,101,457 2,380,841 3,687,035 3,969,587 4,426,645 6,679,854 6,000,644 6,830,308 5,014,642 3,420,654 5,662,604 5,136,700 4,488,017 4,609,495 6,649,988 7.708,022 12,868,806 16,818,569 15,822,368 12,528,526 • 33 STATEMENT E. Statement of Money Paid, Returned, or Remitted to the Several Counties of the Commonwealth, thus Aiding in Reducing Local Taxation, from 1866 to 1905 Inclusive. I. By Appropriation: a. Judicial Purposes b. Educational Purposes c. Charitable Purposes, d. Bridges and Highways (since 1902) II. By Return to the Counties: e. High License Act (since 188S) f . Personal Property (since 1890) g. Foreign Fire Insurance Premium (since 1896), III. By Repeal for State Purposes: h. Real Estate Tax (since 1866) 1. Trades and Occupations (since 1871) j. Horses and Cattle (since 1873) k. Furniture, Gold and Silv-er Watches Grand Total $708,306,153 $20, 128, 56, 339, 67, 5, 1, 321,159 387,892 163,458 002,138 400,448 890, 3as 786,859 507,612 389,167 632,223 904,884 $1,089,150 8,600,264 4,440,250 1,536,792 3,600,000 2,563,392 113,418 14,080,547 3,283,028 172,886 106,827 539,484,554 From 1866 to 1905, or 40 years Paid, Returned and Remitted to Counties, Average amount Returned per year $708,306,163 17,71X7,664 u 03 10 y ?> :^ u O rH Tt< O) la S peASi^triT iH ^ PS '"I Sf S S? d £?i?ii^'S ci *^ bit' w UJ ^if ^D u^ ^ ;3^ ^D ^^ -liHi-li-( iHrH'^rH'-t 3 3 3 p 3 3 3 a i-jHat-s l-sl-^l^l-st-s 3.M 3 t-3 O'-l iH .-( rH T-t tH r-< tH i-f i-( t-I " d^ 3 3 3 3 3 3 3 ot ^ S- d d 13 dfe 52c3E to" d d d 4-1 3

O) at O o 8^ SS? ft _Q 2 3«ooo fig S flS'sgf S" «f,-feaS ^ >J t>i H ^'u T, >> ddrzddcicd 35 s g ss 3 S s s ss; s i 00 5 S $ i i ii 00 i !- i c- m S" a s s SS S s s s § s i s ^ g 1 i 1 I— M ■* i t- 1 s fe fc IS N "^ a U ^ 0) ^5S ^ fed iSqS o ^J= 3 2 S in 3 Q S o Pid a a m'tn Is rt .2 ao 'bD 0) in 0) o ^ 0) (h P( UrO u is s >• ■ -( . OJ fTl u fe o 1-3 m ti fn Oh ft J3 'C O Tl 3 o « m oj m s (1) 3 S o (U n f> O 3 g m > ft be a Si m a a "S +J 02 Id aS m(l,M S Ksi Olfljrt ^; en «a O nS o - Co, ca,M> s&- SS O tC [•- O Cfl ID I— I- tOTHcOOlt-i-Hi-HC- S^53 M ?^ oJ 3 E I) aj g o oSSSgcto H.SS goE ■1 r. •-' uj ij ■•-" ^ 1" ■_; — H ,i« >-< ^ fH t- . — ^ ■. ■^fcS'0&i^S"''33'9Eci)it„ 57 PART III. CONTAINS STATEMENT SHOWING SOURCES OF REVENUE FOR STATS PURPOSES; CERTAIN ACTS OF ASSEMBLY OF PENNSYLVANIA IM- POSING TAXES FOR STATE AND LOCAL PURPOSES; A BRIEF EX- PLANATION OF THEIR PROVISIONS AND ORIGIN; REFERENCE TO SOME DECISIONS OF THE COURTS CONSTRUING THE VARIOUS ACTS; SUBJECTS OP TAXATION, WITH STATEMENTS SHOWING AMOUNT OP REVENUE DERIVED AND OTHER PACTS IN REFER- ENCE THERETO. The Revenues of Pennsjivania are derived, principally, from the following sources: FROM CORPORATIONS: Tax on Capital Stock: Gross Receipts of Transportation and Lighting Companies. Gross Premiums of Insurance Companies. Net Earnings of Certain Companies. Loans of Corporations, Counties and Municipalities. State Banks. Shares of National Banks. Bonus on Charters of Domestic Companies: Capital invested in Pennsylvania by Foreign Companies. Annuity for Right of Way. FROM COUNTIES (collected through): Tax on Personal Property. Writs, Wills and Deeds. Collateral Inheritances. Fees of County Officers. LICENSES OF VARIOUS KINDS. PROM MISCELLANEOUS SOURCES: Commissions and Fees of Notaries. Fees of Public Officers. Escheats. Sale of Pamphlet Laws. Fines and Penalties. The order in which the subjects appear follows that adopted by the Department in its report of the receipts of the Commonwealth. 58 I-[I— TAX ON BANKS— STATE AND NATIONAL. The first tax on Banks was imposed upon dividends by the Act of May 21, 1814, P. L. 169, and the taxation of these institutions has been a source of large revenue to the State ever since. The tax on dividends continued down to 1867, when the shares of stock of banks became the subject of tax. No subject of State taxation has had so many changes in the rate and method of assessment and collection. The Act of April 1, 1835, P. L. 99, increased the rate of lax imposed by the Act of 1814. By the Act of June 11, 1840, P. L. 612, and of April 29, 1844, P. L. 486, Banks were made subject to a tax on Capital Stock, in addi- tion to the tax above referred to, on dividends, as appears from the Act of April 16, 1845, P. L. 507, which provided that the Act of 1844 should not be construed to release Banks, etc., from tax on dividends, imposed by prior Acts. The rate of tax on dividends was increased by the Act of March 15, 1849, P. L. 158. Banks and Savings Institutions were included with other corporations and made subject by it to a tax on Capital Stock by Act of April 12, 1859, P. L. 529. They were made subject to tax upon Capital Stock alone by Act of March 20, 1860, P. L. 250, at the same rate as other cor- porations subject to that tax. Again in 1866, by Act of February 23d, P. L. 82, the method of taxation was changed. By the latter Act, Banks were exempted from capital stock tax, and in lieu imposed a tax of one per cent, upon the par value of the stock, and the cashier was to collect it from the shareholders and pay the amount into the State Treasury, beginning with July 1, 1866. This Act was practically re-enacted by that of July 19, 1866, P. L. (1867) 1363. In 1867 the Legislature passed an Act approved April 12, P. L. 74, which repealed the Act of February 23, 1866, and imposed a\ tax upon the shares of stock of National banks. Other Acts were passed from time to time with reference to the taxation of banks, etc., as follows: Act of April 2, 1868, P. L. 55, refers to the method of appraising shares of National bank stock. Act of December 22, 1869, P. L. (1870) 1373, placed State banks and savings institutions in the same class with National banks, in- cluding the option of paying a tax of one per cent, on the par value of all their shares, and thus receive , the benefit of the ex- emption provided by Acts of 1867 and 1868. The Act of March 31, 1870, P. L. 42, provided for the return of all taxes paid on shares of banks which had paid a tax of one per cent. 59 on the par value of their shares, and also provided that National banks should be liable for county, school, municipal and all other local taxes at the same rate as other moneyed capital owned by in- dividuals. The Act of June 10, 18S1, 1*. L. 99, abolished the system of assess- ment by examiners, as provided by the Act of 1867, and required reports to be made to the Auditor General, and extended the privi- lege to all banks to elect to collect from stockholders, a tax of six mills upon the par value of their shares; said banks were then ex- empt from further tax upon their shares, and so much of their capital and profits as was not invested in real estate. Upon failure to so elect, the Auditor General, upon the report made to him, was required to settle an accdunt against the individual shareholders and transmit the list to the Commissioners of the proper cities and counties, to be used by them in assessing taxes against the said share- holders. The Act of June 30, 1885, P. L. 193, included Trust, Safe Deposit, Guarantee, Surety and Real Estate Insurance or Trust companies, with banks, with regard to the option to pay six mills upon the par A^alue of their shares. The Act of June 1, 1889, P. L. 420, took away the option granted by the Act of 1885. This Act was substantially re-enacted by the Act of June 8, 1891, P. L. 239, which latter Act limited the optional payment of eight mills, above referred to, to National Banks, State banks and savings institutions with capital stock. Upon failure to elect to pay the optional tax of ten mills, a tax of four mills was im- posed upon the actual value of the capital stock, ascertained by ad- ding together the capital stock, surplus and undivided profits. National banks are now taxed on the same basis as State banks. The present taxing act was passed July 15, 1897, P. L. 292; it sub- stantially re-enacts the Act of 1891. CITATIONS FROM OPINIONS. National banks cannot be taxed by a State, but the shares of the bank may be taxed in the hands of the holder, as other personal property. The following is a copy of the Revised Statutes of the United States, bearing upon the subject of the taxation of National banks: Section 5219. "Nothing herein (National Banking Act) shall prevent all the shares in any Association from being included in the valuation of the personal property of the owner or holder of such shares, in assessing taxes imposed by authority of the State within which such association is located; but the Legis- lature of each State may determine and direct the manner and place of taxing all the shares of National Banking Associations located within the State, sub- ject only to two restrictions: That the tax shall not be at a greater ^rate than is assessed upon other moneyed capital in the hands of the individual citizens of 60 such State, and that the shares of any National Banking Association owned by non-residents of any State shall be taxed in the city or county where the bank is located and not elsewhere. Nothing herein shall be construed to exempt the real property of associations from either State, County or Municipal taxes, to the same extent, according to its value, as other reaf property is taxed." Shares of National Banks cannot be taxed in the hands of the holders, the tax being collected and paid by the bank direct to the State Treasurer. Boyer v. Boyer, 113 U. S. 689. Investment of Capital Stock in United States Bonds does not exempt the shares from tax in the hands of the shareholder. Bank v. Kentucky, 9 Wall, 353. The Capital Stock itself, when invested in Federal securities, can- not be taxed. Van Allen v. Assessor, 9 Wall, 353. The holders of shares of National Banks of other States are ex- empt from tax. Tappan v. Bank, 22 Wall, 490. As to the taxation of State Banks and Savings Institutions, see — Wilkes-Barre v. Wilkes-Barre, 148 P. S. 601; Gourley v. Bowlby, 8 Pa. C. C. 17; Oil City V. Trust Company, 157 P. S. 458. The revenue from the taxation of National and State banks for the last three years has been: 1903. 1904. 1905. National $659,041 $707,913 $747,197 State, 93,738 100,822 99,297 Total $752,780 $818,735 $846,494 III— TAX ON NET EARNINGS OR INCOME OF CERTAIN COR- PORATIONS. This tax was first imposed by the Act of April 30, 1864. Under the provisions of Section 27, of the Act of June 1, 1889, P. L. 420, all corporations and limited partnerships, foreign or domestic, which have no capital stock, or which do not pay a tax on capital stock, are required to pay a tax of three per centum upon their annual net earnings or income, in addition to any taxes on personal prop- erty to which they might be subject under the first section of above act. This act did not apply to companies chartered or organized for manufacturing purposes. 61 CITATIONS FROM OPINIONS. Net Earnings are the product of the business, deducting the ex- penses only. Com. V. Pa. Gas Coal Co., 62 Pa. 241. Com. V. Penn Mut. Ins., 1 Dauphin Co. Rep. 233. Company applied earnings to the payment of its Capital Stock and reported no net earnings; held that the net earnings taxable was the income after deducting expenses only. Com. V. Ocean Oil Co. ,.59 Pa. 61. Losses on securities not to be deducted. Phila. V. Com. 98 Pa. 48. Net Earnings are the excess of gross earnings over the expendi- tures defrayed in producing them. Com. V. Phila. & Erie R. R. 164 Pa. 260. The revenue from tax on net earnings of corporations for the last three years has been as follows: 1903 , $48 , 767 1904, 54,066 1905, ; 51 , 000 IV— TAX OX TRUST COMrAXIEvS. The taxes upon Trust Companies, Safe Deposit and Insurance Com- panies, are the same as imposed upon Transportation, Electric, Water andotlrer Companies having capital stock. See Act of June 1, 1889, P. L. 420. The rate is five mills on the actual value in cash of the capital stock. The revenue from tax on capital stock of Trust companies, etc., for the last three years is as follows: 1903 $692,378 1904, 817,403 1905, 1, 045 , 532 V— TAX ON STOCK OF BUILDING AND LOAN ASSOCIATIONS. Under the provisions of the Act of June 22, 1897, P. L. 178, a tax of four mills is imposed on all full paid, prepaid, and fully matured or partly matured stock in all building and loan associations, incor- porated under the laws of this State. They are required to make annual reports to the Auditor Greneral's Department the same as other corporations. The revenue from this source is small and hardly pays for the time, trouble and expense of collection. Less than 100 associations 62 pay regularly. For llie past Ihice years tbe revenue lias been as follows: 1903 $13,320 1904 13 , 187 1905, , -, . 12,371 VI— INTEREST ON STATE DEPOSITS. This source of revenue is comparatively new. Prior to 1897 the State Treasurer was personally liable for all moneys received by him as Treasurer, and he was required to give a bond to the Common- wealth in the sum of |oOO,000 for the faithful performance of his duties. He selected the depositories of the revenues of the State. The Act of June 15, 1897, P. L. 157, made it the duty of the State Treasurer to select the Banks, Trust Companies, etc., in which State funds were to be deposited, with the approval of the Board of Revenue Commissioners, but he was not held personally liable for any moneys lost by reason of failures or insolvency of the deposi- tories selected as provided by law. The Board of Revenue Commis- sioners was composed of the State Treasurer, Auditor General, and Secretary of the Commonwealth. Under the present Act, bearing date February 17, 1906, P. L. 45, the Banking Commissioner is made a member of the Board of Revenue Commissioners with equal powers. The Act provides that no bank, trust company, etc., shall receive a deposit of State moneys in excess of twenty-five per centum of its paid in capital and surplus, and no institution shall be allowed a deposit in excess of $300,000, except those known as active depositories. The active banks are required to make all collections for the Commonwealth, without compensation, and the deposits in active banks shall not exceed five millions at any one time. Tlie rate of interest is two per cent, on daily balances by all institutions. It is a remarkable fact that since 1871, when the first State Treas- urer Avas elected by the people, Robert W. Mackey, down to the passage of the Act of 1897, relieving the Treasurer from x>ersonal liability, the receipts of the State Treasury have been upward of $250,000,000, and the receipt and disbursement of this amount was attended to without the loss of a single dollar to the State, through or by reason of any default of a State Treasurer. There was one loss of less than |10,000 by reason of the failure of a banlc in which a deposit had been made in pursuance of an Act of Assembly, and for which the Treasurer was not responsible. The revenue from interest on State deposits for the last three years has been as follows: 1903 $271 , 364 1904 311,905 1905 ,,,,.,:,...,, 274,157 (]3 VII— TAX ON GROSS PREMIUMS OF FOREIGN INSURANCE COMPANIES. This tax was first imposed by the Act of xVpril 4, 1873, and the rate was three per cent, upon all premiums received from business transacted within the State. The rate was subsequently reduced to two per cent, by the Act of June 28, 189.5, P. L. 409. The tax is collected by the Insurance Department. Under the provisions of the Act of 1895, the State Treasurer is required to pay to the several cities and boroughs one-half of the net amount received from the two per cent, tax, based upon the premiums received in such cities and boroughs, as shown by the In- surance Commissioner's report. For the past three years, the amount so paid out by the State has been as follows: 1903 105, 271 1904 113,770 1905 113,418 The revenue received by the State from Foreign Insurance Com- panies for the past three years is as follows: 1903 $1 ,001,154 1904, 1,109,145 1905, 1,187,425 VIII— TAX ON CAPITAL STOCK OF CORPORATIONS, LIMITED PARTNERSHIPS AND JOINT STOCK ASSOCIATIONS. This tax was first imposed by Act of June 11, 1840, P. L. 612, and has ever since been the largest source of revenue. By reason of it the Commonwealth was enabled to release real estate from taxa- tion for State purposes and allow increased appropriations to pub- lic schools, charities, etc. Various acts have been passed, extend- ing and changing the provisions of the original act, too numerous to quote or refer to in this connection, but inasmuch as the revenue from (:his source is very large, and many corporate taxpayers are interested, a brief, reference to some of the more important Acts of Assembly ought to be made. Under the provisions of the Act of 1840, the rate of tax was fixed at one-half mill on every dollar of the dividends made or declared, and this rate was continued by the following Acts : March 21, 1843, P. L. 121; April 29, 1844, P. L. 486; April 21, 18.58, P. L. 419; April 12, 1859, P. L. 529; May 1, 1868. P. L. 108; April 24, 1874, P. L. 68; March 20, 1877, P. L. 6; June 7, 1879, P. L. 112; June 1, 1889, P. L. 420. The last mentioned Act Avas the most complete of any passed by the Legislature, and most of its provisions are still in force. r ■ C4 Section 4 of the Act of June 8, 1891, P. L. 229, which amended Sec- tion 20 of the Act of June 1, 1889, provides as follows: Section 4. That hereafter, except in the case of Banks, Savings Institutions and Foreign Insurance Companies, it shall be the duty of the president, chair- man or treasurer of every corporation having capital stock, every joint-stock association and limited partnership whatsoever, now or hereafter organized or incorporated by or under any law of this Oommonwealth, and of every corpora- tion, joint-stock association and limited partnership whatsoever now or here- after incorporated or organized by or under the laws of any other state or ter- ritory of the United States, or by the United States, or by any foreign govern- ment and doing business in and liable to taxation within this Commonwealth, or having capital or property employed or used in this Commonwealth, by or in the name of any limited partnership, joint-stock association, company or cor- poration whatsoever, association or associations, co-partnership or co-part- ships, person or persons, or in any other manner, to make a report in writing to the Auditor General in the month of November, one thousand eight hundred and ninety-two, and annually thereafter, stating specifically. First. Total authorized capital stock. Second. Total authorized number of shares. Third. Number of shares of stock issued. Fourth. Par value of each share. Fifth. Amount paid into the treasury on each share. Sixth. Amount of capital paid in. Seventh. Amount of capital on which dividend was declared. Eighth. Date of each dividend declared during said year ended with the first Monday of November. Ninth. Rate per centum of each dividend declared. Tenth. Amount of each dividend during the year ended with the first Monday in said month. Eleventh. Gross earnings during the year. Twelfth. Net earnings during said year. Thirteenth. Amount of surplus. Fourteenth. Amount of profit added to sinking fund diiring said year. Fifteenth. Highest price of sales of stock between the first and fifteenth days of November aforesaid. Sixteenth. Highest price of sales of stock during the year aforesaid. Seventeenth. Average price of sales o£ stock during the year; and in every case any two of the following named officers of such corporation, limited part- nership or joint-stock association, namely: The president, chairman, secretary and treasurer, after being duly sworn or affirmed to do and perform the same with fidelity and according to the best df their knowledge and belief, shall, between the first and 'fifteenth day of November of each year, estimate and appraise the capital stock of the said company at its actual value in cash, not less however than the average price which said stock sold for during said year, and not less than the price or value indicated or measured by net earnings or by the amount of profit made and either declared in dividends or carried into surplus or sinking fund, and when the same shall have been so truly estimated and appraised they shall forthwith forward to the Auditor General a certificate thereof accompanied with a copy of the said oath or affirmation, signed by them and attested by a magistrate or other persons duly qualified to administer the same; Provided, That if the Auditor General and State Treasurer, or either of them, is not satisfied with the appraisement and valuation so made and re- turned, they are hereby authorized and empowered to iriaK? a valuation thereof 65 based upon the facts contained in tlie report herein required, or upon any in- formation within their possession or that shall come into their possession, and to settle an account on the valuation so made hy them for the taxes, penalties and interest due the Commonwealth thereon with a right to the company dis- satisfied with any settlement so made against it to appeal therefrom in the manner now provided by law; and in the event of the neglect or refusal of the officer of any corporation, company, joint-stock association or limited partner- ship, for a period of sixty days to make the report and appraisement to tht Auditor General as herein provided, it shall be the duty of the Auditor General and State Treasurer to estimate a valuation of the capital stock of such de- faulting corporation, company, joint-stock association or limited partnership, and settle an account for taxes, penalties and interest thereon, from which settlement there shall be no right of appeal. Section 21 of the A*t of June 1, 188U, P. L. was amended by the Aft of June 8, 1893, P. L. 353, and reads as follows: Section 21. That every corporation, joint-stock association, limited partner- ship and company whatsoever from which a report is required under the twen- tieth section hereof, shall be subject to and pay into the treasury of the Com- monwealth annually a tax at the rate of five mills upon each dollar of the actual value of its whole capital stock gf all kinds, including common, special and preferred, as ascertained in the manner presciibed in said twentieth section, and it shall be the duty of the treasurer or other officer having charge of any such corporation, joint-stock association or limited partnership upon which a tax is imposed by this section to transmit the amount of said tax to the treasury of the Commonwealth within thirty days from the date of settlement of the ac- count by the Auditor General and State Treasurer: Provided, That for the purposes of this act interests in limited partnerships or joint-stock associations shall be deemed to be capital stock and taxable accordingly: Provided also. That corporations, limited partnerships and joint-stock associations liable to tax on capital stock under this section shall not be required to make any report or pay any further tax on the mortgages, bonds and other securities owned by them in their own right, but corporations, limited partnerships and joint-stock associations holding such securities as trustees, executors, administrators, guardians or in any other manner shall return and pay the tax imposed by this act upon all securities so held by them as in the case of individuals; And pro- vided further, That the provisions of this section shall not apply to the taxation of so much of the Capital Stock of corporations, limited partnerships or joint- stock associations organized for manufacturing purposes, which is invested in and actually and exclusively employed in carrying on manufacturing within the State, except companies engaged in the brewing or distilling of spirits or malt liquors and such as enjoy and exercise the right of eminent domain, but every manufacturing corporation, limited partnership or joint-stock association shall pay the State tax of five mills herein provided upon such proportion of its capital stock, if any, as may be invested in any property or business not strictly incident or appurtenant to its manufacturing business in addition to the local taxes assessed upon its property in the districts where located, it being the the object of this proviso to relieve from State taxation only so much of the capital stock as is invested purely in the manufacturing plant and business: Provided further. In case of Fire or IMarine Insurance Companies, the tax im- posed by this section shall be at the rate of three mills on each dollar of the actual value of the whole capital stock. 5 66 The above Acts, now in force, are those under which the State col- lects a large portion of its revenue. The tax on the capital stock of a corporation is a tax on its prop- erty and assets and franchises. The corporation is simply a trus- tee for its stockholders, and they are the real owners of the prop- erty, and whether the property is taxed in the name of the cor- poration or in the name of the shareholders, the ultimate burden falls on the same persons. The fact that the tax is called a tax on Capital Stock is, therefore, not of the essence of the matter; what- ever it is called, it is a tax on the property and assets of the share- holders for whom the corporation is simply trustee. The tax is a tax on its property and assets, including its franchise, and the ques- tion of the actual value in cash is a question of fact which must be determined by considering the value of its tangible property and as- sets of every kind, including its bonds, mortgages and moneys at interest, and its franchises and privileges; and the amount of the en- cumbrances on its property and franchises is also a relevant fact to be considered, but it is not to be specifically deducted from the valuation so ascertained and determined, and the Supreme Court has held, in the case of Commonwealth v. N. Y., P. & O. E. E., 188 Pa. State, 169, that it would be a manifest error to hold that the debt should be deducted from the aggregate value of the property, and thereby withdraw tangible property to that extent from taxa- tion. The shares themselves which represent the owners' interests, less debts, have so little to do with the subject of taxation, the capi- tal stock, that it is immaterial where they are held or who holds them, the property and assets, the capital stock, being in this State, that alone is ^^'ithin the reach of the taxing power. That the owner subjects it to a bad debt in no way changes the relation of the Com- monwealth to it as a subject of taxation; it constitutes the same capital stock as before; his relation to his own property has been some^\'hat changed, for by tlie mortgage debt he has admitted others to a shai-(' of the income, and has given them a lien for their debt; his title, however, remains just the same as if the owner of the legal title to laud had placed a mortgage upon it. All the indications of ownership, the possession of the deed and domain over the property continue, as if no debt had been created. The ascertainment of the actual value of the capital stock of solvent and well managed cor- porations is clearly provided for and readily ascertained; but the act of 1891 was prepared with a view of reaching the property of corporations, where the mortgage indebtedness is equal to or far in excess of the actual value of the property, and which may have the same mileage, traffic, and the same privilege as a solvent one. As the same rule for a fair estimate of the actual value of the stock cannot be adopted, as in the case of a solvent corporation, the Com- I 67 monwealth's officers proceed under the authority expressly given to make an appraisement. The actual value is a pure question of fact, and is settled and adjusted by the Auditor General and State Treas- urer based upon the facts set forth in the report made annually by the officers of the Company, and in case they are dissatisfied with such valuation, they are authorized to make a valuation upon the facts in the report and other information within their possession. The Constitution and Acts of Assembly require that taxes shall be uniform upon the same class, of subjects. The acts imposing a tax ■on capital stock of corporations provide for the assessment and collection of a tax of "five mills upon each dollar of the actual value of its whole capital stock of all kinds," ***** the principal ob- ject being to reach actual value. It would be almost impossible to apply the same rule or method of arriving at the actual value of the capital stock of a railroad company as to that of an electric light, water, land, natural gas, mining, brewing, trust or insurance com- pany. In view of the impossibility of adopting a uniform or single method of arriving at a valuation and assessment of all corpora- tions, many years experience in the assessment and collection of the State's revenues has resulted in the adoption of what might be called a sub-classification of the different subjects the desire be- ing to secure uniformity of valuation and assessment upon the same class of corporation taxables. A different form of blank is prepared for each class, calling for certain information, under oath, for facts and conditions differ in each class of corporations. After the passage of the Act' of 1891, settlements were made against many corporations, with a view of having the courts con- strue its provisions. A number of the opinions are referred to be- low, the lack of space preventing a general discussion. CITATIONS PROM OPINIONS. The leading case is that of the Commonwealth vs. New York, Penna. and Ohio E. K. Co., found in 188 Pa., 169, commonly known as the Nypano case. This was an appeal from a settlement made June 30, 1896, by the Auditor General and State Treasurer, against the defendant corporation, for tax on capital stock for the tax-year 1895. The case was tried without a jury, in the Court of Common Pleas of Dauphin County, Pennsylvania, before Hon. John W. Simon- ton, P. J. In an opinion of great length, Judge Simonton goes very fully into the history of the revenue legislation, and decisions leading up to the passage of the Act of June 8, 1891, under which the settlement was made. His conclusions of laAv were as follows: "A tax on the capital stock of a corporation is a tax on its property and assets, •including its franchises. The question of the actual value in cash of the capit:il 68 stock is a question of fact which must be determined by considering the valui; of the defendant's tangible property and assets of every kind, including ita bonds, mortgages and money at interest, and its franchises and privileges; and the amount of incumbrances on its property and franchises, is also a relevant fact to be considered, but it is not to be specifically deducted from the valuation so ascertained and determined." Upon appeal, the Supreme Court, in an opinion by Mr. Justice Dean, attirmed the judgment of the Court below. Many authorities are cited in these opinions, to which the reader is referred, it not being the purpose to enter into minute details. This practically settled the question raised as to the character of the capital stock tax, and the intent and purpose of the Act of 1891. As the provisions of the Act of June 8. 1891, p. 22!), and its sup- plements, apply (except in the case of banks, savings institutions and foreign insurance companies), to every corporation, joint stock association and limited iiarlnership, foreign and domestic, many questions regarding the proper construction of the Act in its appli- cation to the different classes of corporations have been passed upon by the courts, as will appear from the following references: VALUE OF SHARES: The Acts of 1891 and 1893 impose the tax upon the "whole capital stock" at its "actual value in cash." It may have a market value fixed by sales of shares in the open market — a value fixed by specu- lation based upon the future, and an actual value. The minimum value fixed by those Acts is that it "shall not be less than the aver- age price which the said stock sold for during the tax year." "There was but one question in this case. Settlement under Act of June 7, 1879; dividend less than six per cent.; appraisement to be made — company paid on average value for year. The Court held that if the stock was lower when the appraisement was made in November than it was during the previous year, it should be ap- praised at not less than the aveiagc selling price for the year. On the other hand, if it wei-e higher in Xoveraber, it may be appraised at its increased value. The object of the Act was to raise revenue and it appears to have been drawn with care." The opinion of the (Jourt below was affirmed: Com. v. Penna. R. R., 94 Pa. 474. Where the capital stock is to be appraised at its actual value in cash, "Ts'ot less, however, than the avei-age price which said stock sold for during said yea)-." the price ascertained by multiplying tht' numbei- of shares sold at each s.ale by the prici' paid iver share, adding together the amounts paid at all sales, and dividing this sum G9 by the number of shares sold, was held not to be an enoneous method of ascertaining the avei-age pnee for the year. Com. V. People's Traction Company, 183 Pa. 405. Shares of stock distributed to shareholders during the tax year at less than their actual value in cash must be apijraised, not at the price at which they were distributed, but at their actual value as- certained as above stated, and must be taxed for the proportion of the tax year remaining at the date of distribution. lb. >\ MOUNT PAID ON SHARES: A corporation is liable for tax on capital stoclc at its appraised value, ascertained in the manner provided by law, notwithstanding the fact that such valuation is greater than the amount actually paid in on each share. Com. V. Traction Co., 1 Dau. Co. R., p. 178. There having been no sales during tlie year of certain shares on whicli only part of the par value had been paid in, and no evidence as to their value, it is equitable to appraise them at the amount paid in. Com. V. People's Traction Co., 183 Pa., 405. NET EARNINGS: Money expended in enlarging and extending Avorks cannot be de- ducted from gros.s earnings: It is an investment of capital and not payment of expense. Com. V. Minersville Water Co., 4 D. Co. R., 170. (See Tax on Net Earnings.) PROPERTY OUTSIDE OF STATE: "A corporation is not liable to taxation in this State upon so much of its capital stock as is represented by real estate situated, or by personal property of a corporeal nature ordinarily kept, in another State. Com. V. American Dredging Co., 122 Pa., 386. The rule, however, as to vessels engaged in foreign or inter-state commerce, is that their situs for the purpose of taxation is their home port of registration. lb. But, its unregistered vessels, not permanently located, in one 70 place to-day and in another to-morrow, have their situs for taxa- tion in tliis State, tlie domicile of the owner. lb. In all cases where the capital stock represents property in this and other States, the proportion representing that outside is not taxed, the power to tax being limited to persons and property within the State. In the case of railroads extending into another State, they are taxable in Pennsylvania on a mileage basis. MINING LEASES— COAL, COMPANIES: Coal companies owning leases only, no land, some expiring soon — no certainty of renewal — earned 16 per cent. — no sales of stock — as- sessed at five-sixth of par value — held that proper allowance had been made for possible failure to renew. Assessment sustained. Commonwealth v. West End Coal, 182 Pa., 353. DEBTS— DEDUCTION— FRANCHISE: In ascertaining the value of the capital stock for State taxation under the Act of June 8, 1891, the indebtedness of the company cannot be deducted from the value of the property and assets other- wise ascertained, but it may be considered as one of the relevant facts bearing upon the value of the stock. The value of the fran- chise may be taken into consideration also. ***** Com. V. Ontario, Carbondale & Scranton Ry. , 188 Pa. 205. FIRE AND MARINE INSURANCE: The proviso to Section 1 of the Act of 1893 imposes a tax of three mills on capital stock of all companies of this State. (Life and other State companies pay a 5-mill tax.) LIIMITED PARTNERSHIP COMPANY: "W Organized under Act of May 9, 1899, P. L., p. 161, and amendment of May 8, 1901, P. L., p. 149, are liable to bonus and tax on capital stock. Opinion of Attorney General Carson, October 30, 1903. LIMITED PARTNERSHIP INTERESTS: The actual ca.sh value of the stock or interests of a limited part- nership for the purpose of taxation is determined by considering the value of the partnership's tangible property, the amount of its business, the rate of dividend declared and the extent and value of its good will and franchises. Com. V. J. W. Haney Co., 1 Dauphin Co. R., p. 184. 71 MANUFACTURING COMPANIES: The capital stock of a corporation, uo( imested in its manufactur- ing plant and not actually and exclusivel}' employed in manufactur- ing within the State, is not exempt from taxation by the Act of June 8, 1893, P. L., 355, but it is taxable upon that part of its capital stock invested in the shares of stock of a foreign corporation, and that in- vested in bonds and mortgages. Commonwealth v. Cambria Iron, 5 Dau. Co. R., 101. FOREIGN CORPORATIONS— MANUFACTURING : So much of the capital stock of companies, incorporated by other States, organized for manufacturing purposes, as is invested in and actually and exclusively employed in carrying on manufacturing within the State is exempted from taxation by the proviso to Sec- tion 21 of the Act of June 8th, 1891, as amended by Section 1 of the Act of June 8, 1893, P. L. 355. Commonwealth v. American Car & Foundry Company, 5 Dauphin County Reports, 111. COKE COMPANIES: A manufacturing corporation organized under the Act of 1874, employing a portion of its capital so as to supply itself with the raw material of manufacture, that fact does not strip it of its char- acter as a manufacturing company, but for such portion of its capi- tal so invested, it is not entitled to exemption from taxation. Com. V. Juniata Coke Co., 157 Pa., 507. A corporation organized under the Act of April 29, 1874, P. L., 73, for the purpose of "carrying on the business of mining coal and the manufacture of coke therefrom," which invests a portion of its capital in mining coal to supply its coke ovens, is liable to taxation on such portion of its capital so invested. lb. OIL REFINING COMPANIES: A limited partnership association organized for the purpose of manufacturing refined oils from crude petroleum, and for the ac- quisition of necessary lands, leases, rights, tanks, etc., is subject to taxation on the portion of its capital invested in the business of min- ing and transportation of crude petroleum. Com. V. National Oil Company, 157 Pa., 576. BREWING COMPANIES: The exception of brewing companies, from exemption from capi- tal stock tax granted corporations engaged exclusively in manu- 72 facturiug is not a violation of Sections 1, 2, Aiticle 9, of the Con- stitution providing for the uniformity of taxation. Com. V. Germania Brewing Company, 145 Pa., 83. DISTILLING COMPANIES: Companies organized to distil liquors and sell the same at whole- sale are required to pay a tax of ten mills on 'each dollar of the actual value in cash of their whole capital stock. Act approved July 15, 1897, P. L. 294. BRICK AND CLAY COMPANIES: Owning or leasing land from which clay is mined and used in the manufacture of fire brick, tiles and other articles from fire clay; the portion of its capital so invested is subject to taxation. Com. V. Savage Fire Brick Co., 157 Pa., 572. SLATE COMPANIES: A corporation organized for the purpose of "Mining, quarrying, manufacturing and selling slate and slate products," which invests a portion of its capital in mining slate for its own use from its own land, is subject to taxation on such portion of its capital so in- vested. Com. V. East Bangor Slate Company, 162 Pa., 599. DWELLING HOUSES: Investment of a manufacturing company's capital in dwelling houses for its employes does not differ from any other investment that might be made outside of its business as a manufacturing company and the portion of the capital thus invested is not exempt from State tax. Com. V. Mahoning RoUing Mill Co., 129 Pa., 360. PATENTS: Where stock is issued by a corporation in payment for a right to use patented articles, neither the patent nor an interest therein be- ing assigned to the company, the stock so issued is not exempt from taxation as being an investment in a patent right. Com. v. Central District & P. T. Co., 145 Pa., 121. Capital stock issued by a coiporation in consideration of the ex- clusive right to use a patented appliance within certain territory, the patentee retaining exclusive ownership of the patent, and ab- solute control over the manufacture, use and disposition of the in- struments to be used by the licensee is not an investment in patented rights, and is therefore taxable, lb. 73 ELECTRIC COMPANIES: A corporation engaged in producini?- electricity and selling it to customers for the generation of light, heat or power, is not a manu- facturing corporation, within the meaning of Section 20, Act of June 30, 1885, P. L., 199, exempting from taxation the capital stock of manufacturing corporations. Com. V. Northern Electric L. & P. Co., 145 Pa., 105. PULLMAN COMPANY; An appeal from a settlement for tax on capital stock. Upon ap- peal from the judgment of the court below, the Supreme Court of the United States affirmed the court below, which held "that the mode adopted by Pennsylvania to ascertain the proportion of the company's property taxable in that State, by taking as a basis of assessment such proportion of the capital stock of the company as the number of miles over which it ran cars within the State bore to the whole number of miles, in that and other States, over which its cars were run, was a just and equitable method of assess- ment; and, if it were adopted by all the States through which these cars ran, the company would be assessed upon the whole value of its capital stock, and no more." Pullman v. Penna., 141 U. S. 18. The revenue from tax on Capital Stock for the last three years has been: 1903, $6,848,735 1904 5,449.251 1905, 8,927,649 IX— TAX ON LOAXS OF PEH ATE CORPORATIONS. (See also Tax on Personal Property and Tax on Municipal and County Loans.) This method of collecting the Personal Property Tax upon the Bonds, Mortgages or other evidences of indebtedness of private cor- porations was' introduced in 1864, April 30, P. L. 218. This Act was followed by the Act of May 1, 1868, P. L. 108. This last men- tioned Act attempted to tax such securities as were held by non- residents, and it was declared to be unconstitutional, as was a sub- sequent Act approved June 10, 1881, P. L. 99. It was not until the passage of the Act of June 30, 1885, P. L. 194, that the necessary machinery for the collection of the tax was provided. The tax is at the present time collected in pursuance to the provisions of that Act and its supplements. The Act of 1885, of course, withdrew this class of corporate securities, or evidences 74 ' of indebtedness, from the general class of personal property to be assessed by the local authorities. In other words, the Bonds, Mort- gages, Notes or other evidences of indebtedness of Pennsylvania cor- porations bearing interest, held by individual residents (and certain companies) are not to be included in their return of personal prop- erty to the local assessor, for the reason that the law requires the treasurer of the corporation, issuing such bonds, mortgages, etc., to deduct the A-mill tax from the interest when paid by him to the holder. The treasurer of the corporation is the agent of the State for the collection of this tax, and is entitled to deduct from the gross amount of tax assessed his compensation as follows: Five per cent, on the first |1,000 of tax. One per cent, on the second |1,000 of tax. One-half of one per cent, on the balance of tax. The Act of Assembly under which this class of personal property is taxed, was approved June 30, 1885, P. L. 194, and is as follows: Section 4. "That hereafter it shall be the duty of the treasurer of each private corporation incorporated by or under the laws of this Commonwealth, or tWi laws' of any other State or of the United States, and doing business in this Com- monwealth, upon the payment of any interest on any scrip, bond gr certififlcate of indebtedness issued by said corporation to residents of this Commonwealth, and held by them, to assess the tax imposed and provided for State purposes upon the nominal value of each and every said evidence of debt, and to report on oath annually on the first Monday of Noveinber to the Auditor General the amount of indebtedness of the corporation owned by residents of this Common- Vi'ealth, as nearly as the same can be ascertained, and it shall be his further duty to deduct three mills on every dollar of the interest paid as aforesaid, and return the same into the State Treasury within fifteen days after the 31st of December in each year, and his compensation for his service shall be the same that city and borough treasurers receive for similar services; and for every failure to assess and pay said tax and make report as aforesaid, the Auditor General shall add ten per centum as a penalty to the amount of the tax; on payment of said tax by a, corporation the bonds, certificates, or other evidences of indebtedness issued hy it shall be exempt from all taxation in the hands of the holders of the same." Approved June 30, 1885, P. L. 194. An Act approved June 8, 1891, P. L. 229, increased the rate of tax on personal property from three (3) to four (4) mills, and ex- tended the provisions of the Act of June 30, 1885, as will appear by reference thereto. The Act of 1885 applies to corporations of this State, viz: Rail- roads, railways, traction, motor, transportation, telegraph, telephone, electric light, water, gas, mining, coal, oil, manufacturing companies, and all other companies having a bonded, funded, mortgage or other outstanding indebtedness bearing interest, and they are re- 75 quired to report annually to the Auditor General, whether they have any such loans or not. Many difficulties were encountered by the Department in enforc- ing the provisions of the Acts taxing loans of corporations. The Act of 1885 was first attacked upon the ground that it was unconstitutional, as the prior Acts of 1868 and 1881 had been de- clared to be. Then again, upon the ground that the tax was three mills on each dollar of the interest paid, and not three mills upon the full or par value of the loan upon which interest had been paid. In addition, there were many other objections resulting practically in stopping the State's revenue from this source for several years. In no sense is this a tax upon the corporation or its property, but it is a tax upon the personal property of the individual citizen own- ing the bonds, mortgages or other evidences of indebtedness of a Pennsylvania corporation, assessed and collected by the treasurer of the corporation as the agent of the State for that purpose. It is a fact to be noted in this connection that upwards of seventy-five per cent, of the mortgages made to secure the payment of corporate bonds or other indebtedness contain a covenant providing that the interest or coupon shall be paid to the owner or holder "free and clear of all State taxes," the company thus assuming to pay the debt or liability of the holders of the obligations. This assumption, in a measure, defeats the very purpose of the law, which was intended to tax all personal property. CITATIONS FROM OPINIONS. The following quotations from certain opinions of the various courts explain many of the provisions and purposes of the Act. The duty imposed upon the Treasurer of a corporation to ascer- tain the location of its bonds and other interest bearing indebted- ness has been the subject of frequent construction by the Courts. In one case the Supreme Court held "that the duty of the company is to use due diligence to ascertain the residence of its bond holders, and whether it has or has not done so, is a question of fact, in each case, to be determined by the circumstances and the evidence." Com. V. Lehigh Valley R. R. Co., 186 Pa.' 235. In another, it was held that "When the return of a corporation of its corporate indebtedness, for taxation under Section 4, Act of June 30', 1885, P. L. 194, fails to show, and on appeal from the offi- cial settlement, the company does not prove what part thereof is held by non-residents, it is liable to taxation upon the whole amount." Com. V. Penna. Salt Mfg. Co., 145 Pa., 53. Com. V. City of Chester, 123 Pa., 626. 76 Again, "It is the duty of the Treasurer of a corporation * * * * to show affirmatively that he has used the utmost diligence in en- deavoring to ascertain the residence of the holders of the obligations or loans, and if he fails to do so and returns a large number as being held by peisous whose residence is unltnown, the corporation will be liable for his negligence and will be charged with a tax on al) its loans.'' Com. V. People's Pass. Ry., 183 Pa., 353. In another cas'' it was held by the Supreme Court that " it must be assumed that the obligations of Pennsylvania corporations are held by residents in the absence of proof to the contrary." Com. V. Lehigh VaUey R. R., 129 Pa., 430. Com. V. Northern Central Ry. , 2 Dauphin Co. Rep., 67. The tax on corporate bonds or loans, imposed by the .Vet of June 30, 1885, is not a tax laid on the company, nor on the bondholders as a body, but upon each resident bondholder as an individual. Com. V. Phila. & Reading R. R. Co., 150 Pa., 312. It was made the duty of tlie Treasurer of a corporation, by the fourth section of the Act of 1885, to assess and retain and pay over to the State the tax imposed by the first section of the Act of June 8, 1891, on so much of its indebtedness as was held and owned by residents of Pennsylvania, and if he fails to do so the corporation is liable. Com. V. Wilkes-Barre and Scranton Ry. , 162 Pa., 614. A\'here an act is required to be done annually, and no day is desig- nated either in express words or by implication, for the beginning of the yeni", it will ordinarily be presumed that the calendar j'ear was intended. Com. V. Lehigh Valley R. R. Co., 129 Pa., 429. Under Section 4, of the Act of June 30, 18S5, bonds issued by a corporation of this State, doing business therein, and held by other corporations of the State in trust for persons "whose residence is unknown," are subject to tho State tax of four mills imposed by said section, lb. And in a case where a corporation has wholly disregarded its duty and neglected to assess and collect the tax on such bonds, as required by Section 4 of said Act, and especially in the absence of any proof to the contrary, the bonds must be presumed to be owned by residents of Pennsylvania, lb. Due diligence must be exeiciM d to ascertain the location of ob- ligations: Bonds located by the Auditor General are taxable. Com. V. Northern Central Ry. Co., 2 Dau. Co. Rep., 67. Bonds or other obligations held in trust for individuals whose residence is unknown are taxable. Com. V. North Pa. R. R., 129 Pa., 460. Bonds or other obligations of corporations of municipalities, or counties, held and owned by non-residents, are not taxable in Penn- sylvania. Tax on foreign-held bonds, 15 Wallace, 300. Notwithstanding the many objections and difficulties encountered, the collection of the tax on corporate indebtedness has been re- markable successful in Pennsylvania in taxing a class of securities difficult to reach through the local assessor. The revenue collected by the Department from tax on corporate loans for the last three years has been as follo-ws: 1903 $1,435,950 1904, .' 1, 177 , 174 1905, 1, 66S , 085 X— TAX OX GROSS RECEIPTS OF TRAXSPO'RTATIOX, TRAXS MISSION AND ELECTRIC LIGHT COMPANIES. This tax «-as first Imposed by the Act of February 2'^, 1806, P. L. 82, and the rate was three-foiu-ths of one per cent, upon the gross receipts of every railroad, canal and transportation company. The Act of March 20, 1877, P. L. C, changed the rate to eight mills and included some classes of companies not named by the previous Act. Tliis was followed by the Act of June 7, 1S7!J, 1'. L. 112, which was substantially re-enacted by the Act of June 1, 1889, Sec. 2:^, P. L. 420. By virtue of its provisions all transportation and transmission companies of every description are subject to a tax of eight mills on the dollar of their gross receipts derived from passenger and freight traffic transported wholly within the State, and from telegraph, tele- phone and express business done wholly within the State, and all electric light companies are subject to a like tax upon their gross receipts derived "from business of electric light companies.'' The tax has been declared to be a franchise tax and constitutional, when imposed, in case of railroads and other transportation com- panies upon the receipts derived from freight and passenger traffic, transported wholly within the State, and in the case of telegraph and telephone companies, upon receipts from business done wholly within the State, and ui)od the business of electric light companies. 78 The provisions of the above Act arc so well understood that only a few citations for the different classes of companies need be given. RAILROADS— RAILWAYS— CANAL : The state looks first to the lessee for the tax. Com. V. U. S. Express Company, 157 Pa., 579. A Eailroad corporation is liable to taxation by the State upon its receipts, for the mileage within the State, from transportation by continuous carriage from a point in the State to another point in the State, but over a line which, in its course between those points passes out of the State into another State and back again into the State. Lehigh VaUey R. R. Co., v. Com., 145 U. S., 200. In the carriage of freight and passengers between two points in one State, the mere passage OA'er soil of another state, does not render that business foreign, which is otherwise domestic. lb The Act is valid as to all receipts derived from commerce, which is wholly confined within the limits of the State, although the company doing the business is a foreign corporation. If such cor- poration comes into Pennsylvania and carries on here the business of internal commerce, its receipts therefrom may be taxed precisely as if it were a domestic corporation. Com. V. Del. & Hud. C. Co., 21 W. N. C, 406. Receipts from transportation by continuous carriage between points both of which are in Pennsylvania are subject to taxation by said State, although while in transit the freight and passengers were carried out of the State and in again. Com. V. N. Y., L. E. and W. R. R. Co., 21 W. N. 410. Receipts from transportation of United States mail are not tax- able. Com. V. D., L. & W. R. R. Co., 21 W. N. C, 412. ELECTRIC LIGHT COMPANIES: The Edison Electric Light Company of Philadelphia appealed from a settlement made for tax on gross receipts, claiming that in addi- tion to the electric light business, it supplied power by means of electricity to manufacturing corporations, firms and individuals, for which power they received a very large sum. By its charter it was authorized to sell "Electric light, heat and power." It admitted its liability as to the gross receipts derived from the supply of light, 79 but claimed exemption from taxation upoo tlie revenue derived from the supply of power, and from sales of electric supplies, such as lamps, drop lights, fans, etc. Judj^c \^'eiss in deciding the case in the Court of Common Pleas of Dauphin County, said: "AVe regard the opinion sound, which holds a corporation liable to a tax on the fruits resulting from the exercise of a corporate privilege akin to and identical with another in point of subject matter and employ- ment of agency, and different only in the method of application of the agency and name of the product, respecting which other privilege there is not only no dispute, but admitted liability. This is the manifest intention of the Legislature, expressed in clear and unmis- takable language in the taxing Act. "The conclusion of law is, that the defendant companies are each liable to taxation upon the gross receipts derived from the sale or supply of electrical power, in the amount returned by them, respec- tively, to the Auditor General, for the tax period embraced in the settlements made against them by the Commonwealth. '■>Ve are further of the opinion that the items designated, variously 'sale of steam' 'sale of electric supplies, such as lamps, drop lights,' etc., etc., 'sales of scrap and other material,' should be added to the gross receipts from light and power. ''They are the proceeds of sales of articles used in lighting, or in the conduct of the business of the electric light companies, as here- inbefore defined, and should be added to the other taxable items and taxed as gross receipts. "The other items returned under the heading 'from all other sources' or otherwise, not the result of sales of the product of the business of the company engaged in electric lighting, are not tax- able." " -.*.** Com. V. Edison Electric Light Co., 5 Dau. C. R., 89. The Supreme Court in affirming the lower Court, said, inter alia, "The tax is not to be paid upon the gross receipts from electric lighting, but upon the gross receipts of the business of the company. For the purpose of enlarging and swelling the volume of its busi- ness, it furnishes not only electric light, but electric power to manu- facturers and sells electric supplies. Having so extended its busi- ness beyond the mere furnishing of light by electricity, the com- pany *lias largely increased its revenues, and it would be a strained construction of the words of the statute if the gross receipts from its business should be interpreted as meaning only its gross re- ceipts from electric lighting, simply because it is called an electric light company. It is taxed on vrluit it does. The statute imposes the tax not upon a portion of its receipts — those derived from a par- ticular commodity it supplies to the public — but upon all its re- 80 ceipts from its general business conducted under its franchises. Having, under what it regards as its franchises, not questioned by the Commonwealth, enlarged its business by extending the same be- yond the mere furnishing of light, and having realized largely in- creased revenue from so doing, its plea for abatement of the tax claimed by the State is ungracious, and cannot avail it in the face of the statute declaring what it shall pay. This, in a very clear opinion, to wtich nothing can be profitably added, was the view of the learned judge below, and the judgment is affirmed." Com. V. Edison Electric Light Co., 204 Pa., 252. EXPRESS COMPANIES; The gross receipts received from tratflc within the State are taxed by the same Act as the gross receipts of railroads, etc. The tax upon the whole of the gross receipts of an express company is not illegal double taxation, although the amounts paid by the express com- pany to railroad companies for transportation arc included in the gross receipts of railroad companies and taxed as such. Com. V. U. S. Express Co., 157 Pa., 579. TELEGRAPH AND TELEPHONE COMPANIES: It was held that a telephone company incorporated under the Acts of 1874 and 1876 (P. L. 71 and P. L. 9(1), for "the construction and maintenance of a telegraph line," was subject to a gross receipt tax imposed by the revenue Act of June 7, 1879 (P. L. 116), upon those derived by "every telegraph company" from "telegraph busi- ness." It is the different appliances through, or by means of which, different effects are produced. The medium or agency is the same. For the like reason that a telephone company is a telegraph com- pany for taxable purposes; a company sujiplying electric power is ihe same as an electric light company, for a similar purpose. The same subtile fluid produces different effects according to the method used, or mechanism employed to apply it to intended results, Cora. V. Penna. Telephone Co., 2 Dauphin Co. Rep., 57. The Commonwealth of Pennsylvania is not entitled to recover of a telegraph (;ompany taxes on telegraphic messages sent, except in reference to messages transmitted wholly within the State. Western Union Tel. Co. v. Com., 128 U. S., 39. The revenue from tax on gross receipts of the various classes of companies for the past three years has been as follows: 1903 $1 ,095, 351 1904 1,207,753 1905 1,186,461 81 XI— TAX ON (JROSS PREMIUMS OF DOMESTIC INSURANCE COMPANIES. ■ The tax on gross premiums of insurance companies in Pennsyl- vania was first imposed by Act of March 20, 1877, P. L. 102. The jtresent Act bears date June 28, 1895, P. L. 409, and is as follows: "Section 1. That hereafter it shall be the duty of the president, secretary or other proper officer of each and every insurance company or association incor- porated by or under any law of this Commonwealth, except companies doing business upon the purely mutual plan without any capital stock or accumu- lated reserve, and purely mutual beneficial associations Avhose funds for the benefit of members, their families or heirs are made up entirely of the weekly nv monthly contributions of their m.embers and the accumulated interest thereon, to make report in writing to the Auditor General semi-annually upon the first •days of July and January in each year, setting forth the entire amount of pre- mJums and assessments received by such company or association during the preceding six months, whether the said premiums and assessments were receivtd in money or in the form of notes, credits or any other substitutes for money; and every such company or association shall pay into the State Treasury semi- annually on the last days of January and July, in addition to any other taxes to which it may be liable under the first and under the twenty-flrst sections of this act, a tax of eight mills upon the dollar upon the gross amount of said premiums and assessments received from business transacted within this Com- monwealth: Provided, That said report shall be made under oath or affirmation, and that it shall be the duty of the accounting officers of the Commonwealth to add ten per centum to the account of any company or association whose officers shall neglect or refuse for a period of thirty days to make the said report or to pay into the State Treasury the tax imposed by this section." The revenue from tax on gross premiums for the past three years has been as follows: 1903 $83,636 1904 92,311 1905 106,106 XII— BONUS ON CAl'ITAL STOCK OF CORPORATIONS. Bonus is not, strictly speaking, a tax, but it is the price or con- sideration paid for the charter privileges granted by the Common- wealth, and the amount thereof is paid directly to the State Treas- urer. Special Acts of Assembly, passed prior to the adoption of the con- stitution of 1874, provided for the payment of a bonus, but it was not until the passage of the Act of May 1, 1868, P. L. 113, that a bonus was imposed generally upon corporations. The rate was one- fourth of one per cent, upon the amount of authorized capital, or upon any subsequent increase thereof. The act did not apply to G 82 railroad, canal, turnpike, bridge or cemetery companies, and com- panies''iucorporated for literary, charitable or religious purposes. Later Acts were April 18, 1874, P. L. 62; April 29, 1874, P. L. 107; May 22, 1878, P. L. 97; May 7, 1889, P. L. 115; June 15, 1897, P. L. 156; May 3, 1899, P. L. 189; February 9, 1901, P. L. 3. The Act of 1897 changed the rate to one-third of one per cent., and the Act of 1899 required the payment of bonus by all classes of corporations of the second class, except building and loan associations. The Act of 1901 required the payment of bonus on the actual increase instead of the authorized and provided a penalty for failure to file a return, in the sum of |5,000. Prior to the passage of the Act of May 8, 1901, P. L. 149, limited partnerships were not required to pay a bonus on their capital paid in. That Act called for the payment at the same rate as corpora- tions were required to pay, one-third of one per cent, on the amount, of capital stock, and a like bonus on any subsequent increase. The receipt of the State Treasurer for the payment must be recorded in the county where the partnership transacts business at the same time the articles of association are. Under the provisions of the Act of May 8, 1901, P. L. ISO, foreign corporations were, for the first time in the history of the State, required to pay a bonus for the privilege of doing business in Penn- sylvania. This was fixed at the rate of one-third of one per cent, on the amount of capital employed wholly within the State, and a like bonus on any subsequent increase. Foreign corporations must file a bonus report annually not later than November 30, showing such increase, if there be any. Other Acts referring to bonus im- posed on special classes of corporations arc as follows: April 7, 1849; April 20, 1853; May 29, ISS.-i; March 22, 1887; June 25, 1895. CITATIONS. The most important decision under the foreign bonus act of May 8, 1901, was given in the case of Cora. v. Danville Bessemer Co., 6 Dauphin Co. R., p. 65. Briefly, it was held by the Court that the act could not be held to apply to the capital of those foreign cor- porations that were never doing business in this State prior to the passage of the Act of May 8, 1901, and had complied with the laws then in force and affecting foreign corporations. The Supreme Court affirmed the judgment of the lower Court, in an opinion filed January 4, 1904. A corporation created by special Act of Assembly in 1865, in which the payment of bonus is not mentioned, there being no general aci. imposing a bonus prior to that date, is not required to pay a bonus upon an increase of its capital stock; to require such payment A\-ould be to impair the obligations of a contract: Com. V. E. & W. Transportation Co., 107 Pa., 112. S3 The above ruling applies only to corporations which were created or chartered prior to the general bonus Act of May 1, 1868. Those created or chartered by special or general Acts since that date are liable, unless in the classes specifically exempted. . See also Com. v. Warren Savings Bank, C. P. Dau. 376, J. T. 93; Com. v. Alliance Coal Co., 13 W. N. C. , 324; Com. v. International Navigation Co., Dau. Co. Reports, 146. The revenue from bonus for the past three years has been as fol- lows: 1903 $1,215,670 1904, 508,084 1905, ' 915,892 XIII— TAX OX I'EKSOXAL PROPERTY. Personal property subject to taxation for State purposes is as- sessed and collected under the provisions of the following acts: Act of June 1, 1889, 1'. L. p. 420, being a supjilement to the Act of June- 7, 1879, and the Act of June 8, 1901, P. L. p. 229. Section 1 of the latter act provides, inter alia, as follows; "That from and after the passage of this act, all personal property of the classes hereinafter enumerated, owned, held or possessed hy any person, per- sons, co-partnership or unincorporated association or company, resident, located or liable to taxation \Yithin this Commonwealth, or by any joint-stock company or association, limited partnership, bank or corporation whatsoever, formed, erected or incorporated by, under or in pursuance of, any laws of this Common- wealth or of the United States, or of any other state or government, and liable to taxation within this Commonwealth, whether such personal property be owned, held or possessed by such person or persons, copartnerships, unincor- porated association, company, joint-stock company or association, limited part- nership, bank or corporation, in his, her, their or its own right, or as active trustee, agent, attorney-in-fact or in any other capacity for the use, benefit or advantage of any other person, persons, co-partnerships, unincorporated asso- ciation, company, joint-stock company, or association, limited partnership, bank or corporation is hereby made taxable annually for State purposes at the rate of four mills on each dollar of the value thereof, and no failure to assess or return the same shall discharge such owner or holder thereof from liability therefore to the Commonwealth, that is to say: "All mortgages, all moneys owing by solvent debtors, whether by promissory note or penal or single bill, bond or judgment, all articles of agreement and ac- counts bearing interest; all public loans whatsoever, except those issued by this Commonwealth or the United States, all loans issued by or shares of stock in any bank, corporation, association, company or limited partnership, created or formed under the laws of this Commonwealth or of the United States or of any other state or government, including car trust securities and loans secured by bonds or any other form of certificate or evidence of indebtedness, whether the interest be included in the principal of the obligation or payable by the terms thereof, except shares of stock in any corporation or limited partnership liable to the capital stock tax imposed by the twenty-first section of this act, or re- 84 lieved from the payment of tax on capital stock by said section; all moneys loaned or invested in other states, territories, the district of Columbia or foreign countries; all other moneyed capital in the hands of individual citizens of the State: Provided, That this section shall not apply to bank notes, or notes, dis- counted or negotiated by any bank or banking institution, savings institution or trust company: And provided. That the provisions of this act shall not apply to building and loan associations." Section 3, of the above .ict, provides, inter alia, as follows: "That three-fourths of the net amount of tax based on the return of property subject to taxation for State purposes required to be made to and accepted by the State board of revenue commissioners, annually, by county commissioners and the board of revision of taxes in cities co-extensive with counties, that is collected and paid into the State Treasury by a county, or city co-extensive with a county, shall be returned by the State Treasurer to such county or city co- extensive with a county for its own use in payment of the expenses incurred by it in the assessment and collection of the- said tax: Provided, That in considera- tion of the return to counties, and ■cities co-extensive with counties, of the tax as aforesaid, no claim shall be made upon or allowed by the Commonwealth for abatements, tax collectors' commissions, extraordinary expenses, uncoilectible taxes or for keeping a record of judgments and mortgages." The State tax on personal property is assessed by the County Commissioners and local assessors, or by the Board of Eevision of Taxes where such exists. The tax is paid to the County Ti-eas- urer and by him paid into the State Treasury. The commission of county treasurers for the payment of the State tax on personal property is fixed by the following Acts. Acts of March 25, 1831, F. L. p. 208; Act of June 11, 1840, 1'. L. p. 614. The Courts have fre- quently passed upon the commission allowed to city and county treasurers: See case of Philadelpliia v. Martin, 125 Pa., p. 583; also the case of Philadelphia v. McMichael, 208 Pa., page 207. In the hitter case the Supreme Court held that in counties, having over one hundred and fifty thousand inhabitants the county treasurer is not entitled to commissions on personal property tax or tax on municipal loans collected by him and paid into the State Treasury, while the case of Philadelphia v. Martin above referred to is explained and distinguished, The Act of May 24, 1878, P. L. p. 12G, provides that personal prop- erty subject to taxation for State purposes shall be returned by the Commissioni'is of the several cotuities and the Board of Kevi- sion of Taxes, where such exists to the Board of Revenue Commis- sioners. The Auditor (Seneral, State Treasurer and Secretary of the Commonwealth constitute said Board of Eevenue Commis- sioners. It is their duty to ascertain and determine the fair and just value of personal property of said cities and counties of this Commonwealth made taxable by law, adjusting and equalizing the same as far as possible, * * '■ * * to make a statement of J:3 85 the same, assigning to each city or county the value of taxable per- sonal property therein, and the quota of tax to be raised therefrom. On the filing of such statement in the office of the State Treasurer, the State Treasurer is then authorized by the Board of Revenue Commissioners to issue the annual precept or demand for the pay- ment of State tax on personal property in each of the counties of this (-'ommonwealth. All revenue blanks needed for making the assessment of personal property subject to taxation for State purposes are required to be prepared and supplied by the Auditor (ieneral. The revenues de- rived by the (Jommonwealth from State tax on personal property for the past three years were as follows: 1903 $3, 176, 403 27 1904 3,228,297 33 1905 3,446, 906 04 Of this amount there was returned to the several counties of the Commonwealth during the same period, thus aiding in reducing the burden of local taxation, the following amounts: 1903, $2 , 056, 656 39 1904 ■ , 2,900,572 84 1905 2,553,392 OO XIV— TAX ON >YRITS, WILLS, DEEDS, ETC. This tax is collecte'd as provided for in the Act of April 6, 1830, P. L. p. 274. The tax on writs, \yills, deeds, etc., is collected by the Prothonotary, Register of Wills and Recorder of Deeds in each of the several counties. The Act of April 6, 1830, provides, inter alia, as follows: "Section 3. * * * That the prothonotaries of the courts of common pleas a.nd of the district courts( * * * ) and the court of nisi prius of this Com- monwealth, shall demand and receive on every original writ issued out of said courts (except the writ of habeas corpus), and on the entry of every amicable action, the sum of fifty cents; on every writ of certiorari issued to remove the proceedings of a justice or justices of the peace or alderman, the sum of fifty cents; on every entry of a judgment by confession or otherwise, where suit has not been previously commenced, the sum of fifty cents; and on every transcript of a judgment of a justice of the peace or alderman, the sum of twenty-five cents. "Section 4. And be it further enacted by the authority aforesaid. That the several recorders of deeds shall demand and receive for every deed, and for very mortgage or other instrument in writing, offered to be recorded, fifty cents. "Section 5. And be it further enacted by the authority aforesaid. That the several registers of wills shall demand and receive for the probate of a will and letters testamentary thereon, the sum of fifty cents, and for granting letters of administration, the sum of fifty cents. 86 "Section 6. And be it further enacted by the authority aforesaid, That in lieu of the fees now receivable by the Secretary of the Commonwealth, for the use of the Commonwealth, there shall be demanded by and paid to the recorders of deeds within the city of Philadelphia and of the respective counties, upon the several commissions hereafter named, at or before the delivery thereof, to the several officers commissioned, viz; On the commission of * * * health ofRcers, lazaretto physician and port physician, * * * on the commis- sion of a, prothonotary, clerk of oyer and terminer, of quarter sessions, of orphans' court « * * register of wills, recorder of deeds, * * inter- preter of foreign language, sheriff of a county, each the sum of ten dollars." The commission allowed Prothonotaries, Registers of Wills and Recorders of Deeds in the several counties for the collection and payment of tax on writs, wills, deeds, etc., is fixed by the Act of April 6, 1830, Section 7, P. L. p. 274. The revenues derived by the Commonwealth from tax on writs, wills, deeds, etc., during the past three years, were as follows: 1903 $181,732 10 1904 180, 142 40 1905 190,653 69 XV— TAX ON COLLATERAL INHERITANCES. The Act of May 6, 1887, P. L. p. 79, is a codification and re-enact- ment of all prior provisions relative to the tax on collateral inherit- ances. The first section provides, inter alia, as follows: "That all estates, real, personal and mixed, of every kind whatsoever, sit- uated within this State, whether the person or persons dying seized thereof be domiciled within or out of this State, and all such estates situated in another State, Territory or country, when the person, or persons, dying seized thereof, shall have their domicil within this Commonwealth, passing from any person, who may die seized or possessed of such estates, either by will, or under the intestate laws of this State, or any part of such estate, or estates, or interest therein, transferred by deed, grant, bargain, or sale, made or intended to take effect, in possession or enjoyment after the death of the grantor, or bargainer to any person or persons, or to bodies corporate or politic, in trust or otherwise, other than to or for the use of father, mother, husband, wife, children and lineal descendents born in lawful wedlock, or the wife, or widow of the son of the per- son dying seized or possessed thereof, shall be and they are hereby made sub- ject to a tax of five dollars on every hundred dollars of the clear value of such estate or estates, * * « Provided, That no estate which may be valued at a less sum than two hundred and fifty dollars shall be subject to the duty or tax." Other Acts relative to collateral inheritance tax are as follows: Act of March 5, 1903, P. L. p. 12, exempting bequests and devises in trust for the care and preservation of burial lots; and the Act of April 22, 1905, P. L. p. 258, being an Act to amend Section 1 of an Act, entitled "An Act to provide for the better collection of col- 87 lateral inheritance taxes, approved May 6, A. D. 1887," so as to in- clude among the persons taking an estate or any part thereof, to whom the Act does not apply, the children of a former husband or wife. Collateral Inheritance Taxes are collected in this Commonwealth by the Register of Wills of each county. The rate of commission allowed Eegisters for collecting and paying over collateral inherit- ance tax is fixed by the Act of May 14, 1891, P. L. p. 59, except in cities of the first class, where the compensation or commissions of county oflflcers acting as agents of the Commonwealth for the collec- tion of moneys shall not exceed the sum of |5,000' during any one year, and any compensation or commission in excess of that sum which he might otherwise be entitled to receive or retain, shall be- long to the Commonwealth and shall be returned to the State Treasurer. See Act of July 10, 1901, P. L. p. 630. The fee of the appraisers of collateral inheritance tax is fixed by the Act of June 26, 1895, P. L. p. 325. The decisions of the Court relative to the as- sessment and collection of collateral inheritance tax are so numerous that we deem it best not to cons-ider them in this statement. The revenues derived by the Commonwealth from the payment of collateral inheritance tax during the past three years were as fol- lows : 1903 $1,300,834 76 1904 1 ,080, 578 08 1905, 1,677,185 48 XVI— TAX ON MUNICIPAL AND COUNTY LOANS. The tax on municipal and county loans is identical with that of corporate loans and are both in character the same as tax on per- sonal property, but assessed and collected in a difi'erent manner. This tax is assessed and collected in pursuance of the following Acts: Act of April 29, 1844, P. L. p. 486, and Act of April 30, P. L. p. 219. See also Act of June 1, 1889, P. L. p. 420, and the Act of June 8, 1891, P. L. p. 229. The Act of April 30, 1864, P. L. p. 219, provides, inter alia, as follows: "Section 4. That the treasurer of each county and city, the burgess or other chief officer, of each incorporated district, or borough of this Commonwealth, within ninety days after the passage of this act, shall make return, under oath, or affirmation, to the Auditor General, of the amount of scrip, bonds or certificates of indebtedness, outstanding by said county, city, district, borough, or incorporation, as the same existed on the first day of January, one thousand eight hundred and sixty-four, and of each succeeding year thereafter, together with the rates of interest thereon, at each of those periods, under the penalty of five thousand dollars, the amount to be settled by the Auditor General, and the amount thereof sued for, and collected, as debts due by defaulting public officers are collected; Provided, That on tfie receipt of said returns, the Auditor General shall proceed to settle the accounts of each county, city and boraugh with the Commonwealth, fix the State tax due, and unpaid, and transmit notice of the amount, by mail, to officers making sa,id returns; and that if the amount, so found due, shall not be paid within sixty days, the Attorney General shall sue and collect the same, with interest, from the' date of such settlement; and hereafter, it shall be the duty of the treasurer, of every county, city, borough, and incorporated district, in this Commonwealth to deduct the said State tax, on payment of any interest, or dividend, on debts due the county, city, borough, or incorporated district, and pay the same over to the State Treasurer, within thirty days after the said interest, or dividend, has fallen due." The present rate of taxation on county and municipal loans is four mills upon the nominal or par value thereof. This tax is col- lected by the city and county treasurers and by them paid into the State Treasury, for which they are allowed the same commission as allowed for the payment of mercantile and other licenses, viz: Five per cent, on the first |1,0(J0 of tax ; one per cent, on the second |1,000 of tax, and one-half of one per cent, on all amounts above §2,000 of tax. The revenues received by the Commonwealth from tax on mu nicipal and county loans during the past three years were as follows: 1903 $272 , 326 81 1904' 279, 734 81 1905 271,556 30 XVII— HALE OF PAJII'HLET LAWS.- In 1827 the Legislature passed an Act directing County Treasurers to sell copies of the pamphlet laws for fifty cents each. In 1867 the Secretary of the Commonwealth was authorized to sell them for 11.00 per volume. The Act of May 1«, 1878, P. L. 54, graded the price according, to the number of pages. The revenue is very small: 1903 $363 00 1904, 123 00 1905 222 00 XVIII— NOTAEY PUBLIC COMMISSIONS. By the provisions of the Act of Feb. 1!), 1873, I' L. IW, the Gov- ernor is authorized to appoint as many notaries public as in his judgment the interests of the public may require. Each appointee is required to pay |25.00 into the State Treasury before a commis- sion can issue. 89 Receipts from this soni'ce for the past three years have been as follows: 1903 $36,200 00 1904 9,225 00 1905, 43,775 00 XIX.— IJCENSES. MERCANTILE LICENSES. (Wholesale and Retail.) The first Section of the Act of May 2, 1899, P. L. p. 184, provides, inter alia, as follows: "Each retail vender of or retail dealer in goods, wares and merchandise shall pay an annual mercantile license tax ot two dollars, and all persons so engaged shall pay one mill additional on each dollar of the whole volume, gross, of busi- ness transacted annualy. Each wholesale vender or wholesale dealer in goods, wares and merchandise shall pay an annual mercantile license tax of three dol- lars, and all persons so engaged shall pay one-half mill additional on each dollar of the whole volume, gross, of business transacted annually. Each dealer in or vender of goods, wares or merchandise at any exchange or board of trade shall pay a mercantile license tax of twenty-flve cents on each thousand dollars worth gross^ of goods so sold." Except in Philadelphia City and County, the County Treasurer is required to add to the license fee the fee of the Mercantile Ap- praiser and the County Treasurer, which fees are to be collected from the dealers themselves, as provided for in the Act of 1830, P. L. p. 391, and the Act of 18(!.j, P. ].. p. 4. There are other special acts relating to Allegheny, Luzerne and Philadelphia counties. The Act of May 2, 1899, provides as follows : "That all persons who shall sell to dealers in or venders of goods, wares and merchandise, and to no other person or persons, shall be taken under the pro- visions of this act to be wholesalers; and all other venders of or dealers in goods, wares and merchandise shall be retailers, and shall pay an annual license tax as provided in this act for retailers." The Act of 1899 provides for the appointment of a Mercantile Ap- praiser by the County Commissioners on or before the 30th day of each year, except in cities of the first class, when the Auditor Gen- eral and treasurer of the city are authorized and required to ap- point five suitable qualified persons, all of whom shall not be of the same political party and the term of office of said appraisers shall be for three years. Section 10 of the Act of May 2, 1899, provides that "the rate of commission allowed county or city treasurers, the fees collected for the county or city treasurers and mercantile appraisers, also the 90 rate per mile paid mercantile appraisers, and all provisions of law with reference to the advertising of said lists, shall be and remain the same as now fixed by existing law; and after such publication of advertisement shall have been properly made, it shall be the duty of the constable of his respective ward, district or township to com- pare the list, and report to the county or city treasurer all omissions found, and for such service the constable shall receive a fee of fifty cents for each and every omission so reported." The rate of commission allowed County or City Treasurers is fixed by the Act of April 15, 1834, P. L. p. 544. The fees collected for the County or City Treasurers and IMercantile Appraisers are fixed b,y the following Acts : First: Fee for issuing licenses in all counties, except Allegheny, Philadelphia and Luzerne counties. Section 9, Ad of April 7, 1830, P. L. p. 391. Second: Fee for issuing a license in Allegheny County. Act of March 24, 1869, P. L. p. 509. Third: Fee for issuing license in Philadelphia City and County. Section 2, Act of April 13, 186C, P. L. p. 104. Fourth: Fee for issuing a license in Luzerne County. Section 3, Act of April 11, 1866, P. L. p. 711. Fifth: The fees of the Mercantile Appraisers for appraising, in all counties except Philadelphia, are fixed by Section 1, Act of Feb- ruary 27, 1865, P. L. p. 4. (Note: — The provisions of the Act of February 27, 18G5, were extended to Allegheny County. See Act of March 16, 1867, P. L. p. 482.) Sixth: In Philadelphia City and County the appraiser's fees is 62 1-2 cents: See Section 2, Act of April 13, 1866, P. L. p. 104; also section 3, Act of May 24, 1871, P. L. p (Note:— The fees of the Mer- cantile Appraisers, except Philadelphia City and County, are added to the cost of the license and collected by the County Treasurer and by him paid to the Appraiser. See Section 8, Act of April 16, 1845, P. L. p. 534.) The mileage of the Mercantile Appraiser is paid by the State Treasurer on warrant drawn by the Auditor General: Act of 1862, P. L. p. 493. The Act of April 20, 1887, P. L. p. 60, authorizes the publication of the mercantile list. Besides the above acts, there are many special acts relating to localities too numerous to specify in a statement of this kind. The Act of May 2, 1899, in the main, carries machinery for the assess- ment and collection of retail and wholesale mercantile licenses. The revenues received by the Commonwealth for the past three years from mercantile licenses were as follows: 91 Retail Mercantile Licenses. 1903 , $646,991 88 1904 677,382 28 1905 680,816 84 Wholesale Mercantile Licenses. 1903 $250,295 27 1904, 255,275 05 1905 259,731 02 RETAIL, LIQUOR LICENSES. Licenses for- the sale of spirituous, malt or brewed liquors at retail, in quantities not exceeding one quart, are rated under the Act of June 9, 189i, P. L. p. 248, as follows : In cities of the First and Second Class, |1,000; in cities of the Third Class, |500; in all other cities,, |300; in boroughs, |150; in townships, $75. From the time of the passage of the Act of June 9, 1891, up until the time of the passage of the Act of July 30, 1897, P. L. p. 464, all the retail liquor licenses were collected for the use of localities only, the Commonwealth receiving no part of the same. The distribution under the Act of 1891 was as follows: The entire amount of all licenses in cities of the first class, for the use of the city. Nine-tenths of licenses in cities of the second class, for the use of the city. One-tenth of licenses in cities of the second class, for the use of the county. Four-fifths of licenses in cities of the third class, for the use of cities. One-fifth of licenses in cities of the third class, for use of county. Two-thirds of licenses in all other cities, for use of cities. One-third of licenses in other cities, for use of county. Four-fifths of licenses in boroughs, for use of borough. One-fifth of licenses in boroughs, for use of county. Four-fifths of licenses in townships for use of township. One-fifth of licenses in townships for use of county. An approximate estimate of the amount received by local com- munities from Retail Liquor Licenses amounts to more than |3,500,- 000 annually, thus relieving the burdens of local taxation by that amount. The Act of July 30, 1897, P. L. p. 464, provided that an additional license fee, for the use of the Commonwealth, be paid by all retail liquor dealers as follows: ft2 Cities of the First and Second Class, flOO; cities of the Third Class, |50; all other cities, |50; boroughs, |50; townships, 125. The amount received by the Commonwealth from retail liquor dealers under the Act of 1897 was as follows for the past three years: For the year 1903, |598,546.74; for the year 1904, |605,504.99; for the year 1905, |617,912.22. As a matter of reference, the following acts can be consulted in reference to the retail and wholesail liquor licenses issued in this Commonwealth: Acts of March 11, 1834, P. L. p. 120; May 8, 1854. P. L. p. 663; March 31, 1856, 1*. L. p. 200; March 20, 1858, P. L. p. 365; April 14, 1S59, P L. p. 653; May 7, 1864, P. L. p. 898; March 22, 1S67, P. L. p. 40; April 17, 1867, P. L. p. 88; April 12, 1875, P. L. p. 40, and May 13, 1887, P. L. p. 1(18. wholbsai!b liquor licenses. Each wholesale dealer in vinous, spirituous, malt or brewed liquors, or any admixture thereof, whether rectifier, compounder, storekeeper or agent, who has a store, offlce or place of business in this Commonwealth, shall pay, for the use of the Commonwealth, an annual license fee as follows: In cities of the First and Second Class, |1,000; in cities of the Third Class and other cities, |50'0; in boroughs, |200; in townships, $100. The above wholesale liquor licenses are issued under the Act of July 30, lSit7, P. L. p. 464. The other cities referred to in the Act of 1897 are Parker City, Lock Haven and Monongahela City. (See opinion of Attorney (General, March 1, 1889.) All of the license fees heretofore fixed and regulated- shall be col- lected by the treasurer of the proper county for the use of the Com- monwealth and shall be paid by the County Treasurer to the State Treasurer witliin ninety days from the date of receipt thereof, ex- cept in the case of brewers' licenses issued by the State Treasurer as provided for in Section 1 of the Act of July 30, 1897. Both retail and wholesale liquor licenses are issued by tlie Court of Quarter Sessions of each county, as provided for in the several acts. See Acts of May 24, 1SS7, P. L. p. 194, and Act of June 9, 1891, P. L. p. 257. . The revenues derived by the Commonwealth from the whole- sale liquor licenses for the past three years were as follows: i903 $510,129 31 1904, 513,306 99 1905 665,429 35 93 BREWERS AND DISTILLERS. (See also Liquor Licenses.) The Act of July 30, 1897, P. L. 404, provides that all » * * * * brewers, distillers, * * * * * having stores or offices within this Commonwealth, dealiag in intoxicating liquors, either spiritu- ous, vinous, malt or brewed, shall pay for the use of the Common- wealth, for each separate store, brewery or distillery ***** an annual license fee. This is regulated according to the produc- tion in barrels for the previous year, varying from |250 to .|6,000 for brewers, and from |100 to |2,(J00 for distillers. New breweries and distillers pay a license fee of |1,()(I0 for the first year. The amount received during the past three years from the above sources is as follows: Breweries. 1903, $261,514 00 1904 288 , 003 00 1905 274,104 OO Distillers. 1903 $43 , 501 00 1904 51 , 506 OO 1905, 55,619 00 BOTTLERS' LICENSES. (See Liquor Licenses.) Section 1 of the Act of July 30, 1897, V. L. 101, provides that each bottler or bottling establishment shall pay an anuual license fee, graded according to location in a city, borough or township, pay- able as follows: Class 1, in First Class city, |500; class 2, in Second Class cities, $500; class 3, all other cities, |350; class 1, in boroughs, |2o0; class 5, in townships, 112:"). Kevenue from this source for the past three years. 1903 $157,226 00 1904 158,990 00 1905 89,241 00 BILLIARD, POOL TABLE, OR NINE OR TEN PIN LICENSES. The following are the principal acts regulating the payment of a license fee for keeijing an establishment where billiards, pool, nine or ten pins are played: May 15, 1850, V. L. 772; April 11, 1851, P. L. 570. There are also a number of special aits limited to certain local- ities. The fee is usually regulated by the number of tables or alleys, 94 at the rate of |30 for the first table or alleys and $10 for each ad- ditional, though in some localities it is fixed at a certain sum per month. For the past three years the revenue has been as follows: 1903, . . . : $64, 853 00 1904 77,761 00 1905 91,773 00 BROKERS' LICENSES. Section 7 of the Act of June 7, 1901, P. L. 534, amending the Act of May 15, 1850, P. L. 773, provides that merchandise brokers and real estate brokers shall be required to pay an annual license fee of three per centum upon their annual receipts for the use of the Com- monwealth. This is assessed by the appraiser of mercantile taxes. The provisions of the Act of April 14, 1905, P. L. 161, makes all merchandise brokers and real estate brokers liable for the license tax, whether persons, firms, or corporations. Th revenue from brokers' licenses for the past three years has been: 1903, , $36,261 00 1904 38,207 OO 1905 45,143 00 AUCTIONEERS' LICENSES. The Act of June 26, 1873, P. L. 1874, P. 332, directed that auc- tioneers shall be rated with merchandise brokers, and pay a license tax similar to that paid by said brokers, and no other. The Act provided that the license fee for Philadelphia should not be less than 1500. The Act of June 7, 1901, P. L. 534, amending the Act of May 15, 1850, provided that merchandise brokers pay a license fee for the use of the Commonwealth, at the rate of three i)er centum upon their annual receipts. The provisions of the Act of April 14, 1905, P. L. 161, make all merchandise brokers and real estate brokers liable for the license tax, whether persons, firms, or corporations. For the past three years the State has received from this source: 1903 $16,232 00 1904 14,531 00 1905 15,043 OO PEDDLERS' AND HAWKERS' LICENSE. The Treasurers are authorized to issue licenses to peddlers and hawkers, wholesale and retail. Th original act was passed on April 95 2, 1830, P. L. U7, for retailers, and April 16, 18-10, for wholesalers. There are so many special acts, applying to certain localities, that they cannot be enumerated here. The general act now in force is that of June 14, 1901, P. L. 563, to which reference is made. The revenue for three years past has been as follows: 1903 $4,899 00 1904 5,111 00 1905 6,565 00 SOLDIERS' LICENSE TO HAWK AND PEDDLE. The Act of June 9, 1891, P. L. 250, amending the Act of April 8, J 867, P. L. 50, provides the method of obtaining a soldiers' license. The requirements are as follows: Must be a resident of the State. Must be suffering from disability, the result of wounds or disease contracted while in the military or naval service of the United States, and unable to procure a livelihood by manual labor. Certificate from an examining surgeon of the United States (see Section 2), or pension certificate. Certificate from the Prothonotary of any county in the State that he has filed in said oilice, an aflidavit that he is the owner of the goods, etc., he intends to sell. That the aforesaid certificates with his discharge from military service, shall be conclusive evidence of his rights to the benefits of the above Act. Obviously, there is no revenue from this. LICENSES FOR THEATRE, CIRCUS, MUSEUMS, ETC. Licenses for theatres, circuses, museums, etc., were first provided for by the Act of April 16, 1845, 1'. L. 533. This was amended by the Act of May 15, 1850, P. L. 773, while the Act of April 14, 1851, P. L. 586, made provisions for the payment of an annual license fee of |1,000 for the whole State. The Act in force at present is that of June 24, 1895, P. L. 249. From this source the revenue has been as follows: 1903 $16 , S77 00 1904, 16,743 00 1905 21 , 556 00 EATING HOUSE LICENSE. Under the Act of April 10, 184!), P. L. 574, eating houses, restau- rants and oyster cellars must be licensed by the County Treasurer, the keepers to pay for the license according to the sales. The fee varies from |5.00 to |200.00. 9C In pursuance of an opinion of tlie Attoiiicy General, mercantile appraisers are instructed hereafter to ascertain and assess all own* IS of eating houses, restaurants, oyster saloons, etc., not selling spirituous, vinous, malt or brewed liquors, under the heading "Eat- ing Houses, etc., Licenses," according to the requirements of sections 20-23 of the above named Act. For the past three years the revenue from this source has been: 1903 ^ $31,923 00 1904 30,628 00 1905, 32,960 00 XX— TAX OX GKOSS KECEIl'TW OF JJANKEKS AND BROKEES. The Act of June 27, 1895, P. L. 396, requires every stockbroker, bill broker, exchange broker and private banker to make report to the Auditor General, giving certain information and prescribing a penalty of $1,000 for failure to comply with the Act. This Act was amended by the Act of June 13, 1901, P. L. .559, requiring the filing of an annual report by every stock, bill, (exchange and merchandise broker, and private banker, and the payment of one per centum of the aggregate amount of gross receipts, for the use of the Common- wealth. • For the past three years the revenue has been as follows: 1903 $58,383 00 1904 39,352 00 1905 41,597 00 XXI— TAX OX SCALES OF FERTILIZEKS. This tax was first imposed by Section 2 of the Act of June 28, 1879, P. L. 180, and \\as paid to the Sccrc^tary of the ("onimonwealth. By him it was paid into the State Tieasuiy and from there it \\as paid to the ►Secretary of .Vgriculture. The present Act was passed March 25, 1901, P. L. 57, and fixes the tax on the amount of fertilizer sold within the State for the previous year. If no sales were made, the tax is fifteen dollars. The revenue from sales of fertilizers for the past three years has been: 1903 $19,015 00 1904 19,020 00 1905 19,640 00 97 XXII— FINES AND PENALTIES. Acts imposing fines and penalties are so numerous and the amount of revenue received comparatively small, that it is deemed inexpedient to enumerate them. The revenue from this source for the last three years has been: 1903. ,WOi. 190.n. Fines $42,580 $78,052 $50,040 I'enalties, 45 188 Total $42,625 $78,240 $50,040 XXIII— REFUNDED CASH. Act of the Legislature appropriating money for any purpose, gen- eral or special, designate a specific amount, "or so much thereof as may be necessary." Any unexpended balance must be returned to the State Treasury. Should an appropriation remain two years withoht having any part of it drawn, it is regarded as having merged into the State Treasury. The revenue from this source for the last three years has been: 1903 $524,813 00 1904 20 , 493 00 1905 33,175 00 XXIV— FEES OF PUBLIC OFFICERS. The first Act of Assembly upon the subject of fees of officers and others was that of March 10, 1810, P. L. 79, which provided that certain officers, naming them, shouW keep an accurate account of all fees received, and "whenever the amount of any of said accounts shall exceed the sum of |1,500, the Auditor General shall charge the said officers respectively with fifty per cent, on the amount of such excess, which sum, so charged, shall be paid by them into the State Treasury for the use of the Commonwealth." The Act of April 2, 1868, P. L. 11, amending said Act made certain provisions regarding the payment of excess fees into the -State Treasury. Numerous questions arose regarding fees and who were entitled to retain them, and an opinion was rendered by the At- torney General's Department on April 5, 1893, which cleared up some of the difficult points. Some of the acts referring to fees arc as follows: April 5, 1842, P. L. 236; April 21, 1846, P. L. 415; April 2, 1868, P. L. 11; April 6, 7 98 1871, P. L. 476; May 6, 1874, P. L. 125; March 31, 1876, P. L. 13; June 12, '1878, P. L. 187; March 6, 1892, P. L. 208. During recent years the receipts from fees of oflBce were largely, if not altogether, received from the following officials : Secretary of State, Insurance Commissioner, Attorney General, Auditor General, Secretary of Internal Affairs and Health Officer of Philadelphia. Since 1901, county officers have not been required to pay excess fees into the State Treasury. The Act of June 3, 1885, P. L. 60, provided for the payment of moneys into the State Treasury by State officers, agents and em- ployes receiving fees, etc., distinguishing between those collected for their own use and those collected for the use of the Common- wealth. Under the Acts of 1905 and 1906, all State officials are re- quired to pay into the State Treasury all fees, percentages and com- missions, so that the income from this source will be materially reduced. For the past three years the receipts from fees of office have been as follows: 1903, $251 , 738 00 1904, , 218 , 826 OO 1905, 177 , 284 00 XXV— ESCHEATS. The first Act providing for the escheat of property in Pennsyl- vania was approved September 29, 1787, 2d Smith's Laws, 425. The second section of that Act provided that if any person, who at the time of his or her death was seized or possessed of any real or personal estate within this Commonwealth, die intestate, without heirs or known kindred, such estate shall escheat to the Common- wealth, subject to all legal demands on the same; and the same Act in Sections 4 and 5 provide for the disposal of the property so es- cheated. The Act also provides for the escheat upon forfeiture upon attaint. The Act of March 27, 1821, 8 Smith's Laws 267, makes the Auditor General, Escheator General and authorizes him to appoint a deputy. See also the following acts: xipril 6, 1833, P. L. 167; April 26, 1855, P. L. 328; June 27, 1864, P. L. 951; April 17, 1869, P. L. 71. Also act of May 29, 1889, P. L. 395. The act in force at the present time is too voluminous to present in this volume. It was approved May 2, 1889, P. L. 66. For information as to the escheating of unclaimed dividends, profits, deposits, etc., in banks, savings institutions, etc., reference ^ -M +j +j O S o CJ O a o o > o (M 0) T-H tH J3 +j •1-i ^ -H +j e> o O o o O (J <4-l o So§ U f-l ^ t- tH +j -M -•-* O o a o O O o [A • O o a> ^3° t. u ' U (h u +j 0) OJ 01 dj a> rt rt m ^^ o P. ft ft ft ft • 6 c; o +J«H -4-J +j +-»' +j oi On Excess Af Deduction o Exemption from $25,000 CJ X ^ o a a ft ft ft 0) ft ft < tH iH CO "

o So c o o c M 1" ►^^ a c o m c 3 C Oj u O ^ o • o op per cent, upon the gross earnings of all telephone companies; a tax of 2 -per cent, upon the gross premiums collected by all insurance companies; a tax of 6 per cent, upon the gross earnings of express companies, allowing these companies to deduct the amount paid to the railroad companies for transportation; a tax of 3 per cent, upon the gross earnings of sleeping car companies; a tax of 3 cents per net ton on vessels operating in international waters and enrolled in the State; also, a tax upon telegraph companies upon the value of their property and franchises as fixed by the State Board of Equalization. The following property is exempt from taxation for State pur- poses 1. All public school houses, academies, colleges, universities and seminaries of learning, with their contents. 2. All houses used exclusively for public worship. 3. All lands used exclusively for public burying grounds or ceme- teries. 4. All public property used exclusively for any public purpose. 5. All buildings belonging to institutions of purely public charity, including orphan asylums, homes for the indigent, and public hos- pitals, together with the land actually occupied. 6. All fire engines and other implements used for extinguishment of fires, with the buildings used for the safe-keeping thereof. 7. All public libraries and libraries used by corporations other than those for pecuniary purposes. 8. All armories, drill halls, and other buildings used exclusively for the benefit of any Company, regiment or incorporated military organization. 9. All property belonging to camp or grove meeting associations, Sunday school assemblies, etc. 10. All property belonging to and used exclusively for the pur- pose of any State, district or county agricultural society. 122 11. All buildings and other property used exclusively by bene- ficiary associations or fraternal beneficiary associations in carrying on their business, and all dues, assessments and other payments and the accumulations thereof, and the reserve, emergency and other mortuary funds of such associations. 12. All uniforms, arms and equipments, and, in addition thereto, other personal property of each member of the National Gruard, to an amount not exceeding Two Hundred Dollars. 13. All personal property of each individual liable to assessment or taxation under the provisions of this chapter, to an amount not exceeding One Hundred Dollars in value. The amount of State tax collected for the year ending July 31, 1903, for revenue purposes was $1,217,099.00; for State schools and universities, |1,001,256.35. The State debt July 1, 1900 was |700,000. MISSISSIPPI. CONSTITUTIONAL PROVISIONS. Uniform tax on property, railroads and other corporations: Taxa- tion shall be uniform on all property. But the Legislature may provide for a special mode of assessment for railroads and for other corporate property not situated wholly in one county. (Sec. 112.) The property of corporations shall be taxed in the same way and to the same extent as the property of individuals. Sec. 181. STATUTE PROVISIONS. Railroad Companies: (Annotated Code of Mississippi, sees. 3875- 3876.) Listing, valuation, etc.: Eailroad companies are required to make annual reports to the State Railroad Commission, setting forth their property, taxable and non-taxable, their capital stock and receipts for the year and the values of their respective franchises. The Rail- road Commission then assesses the property of these companies, taking into consideration the value of the franchise and of the cap- ital stock engaged in business in the State. This valuation is ap- portioned among the counties for the computation and collection of the tax. Privilege tax : (Laws of 1890, p. 44.) Railroads also pay the State an annual privilege tax. For this purpose they are divided into four classes, according to their gross earnings per mile for the year. The taxes levied on each class are as follows: First class, |20i per mile; second class, |15 per mile; third class, |10 per mile; narrow- guage class, |2 per mile. Local taxation: Eailroad real estate not directly employed for 123 traffic operations is locally assessed and taxed. There is also a local tax on the values apportioned by the State. MISSOURI. STATE REVENUE FUND. The receipts into this fund are derived from the foUovping sources, viz.: First— Tax of 15 cents on the flOO valuation on real and per- sonal property; property and assets of corporate companies; stock and undivided profits of banks and local insurance companies; largest amount of goods, wares and merchandise of merchants and the raw material, finished products, with tools, machinery and ap- pliances of manufacturers, on hand at any one time between the first Monday in March and the first Monday in June; railroad, bridge, telegraph and telephone property; steamboats and other vessels, and liquors purchased by dramshop-keepers. Second — Tax of 1 1-4 per cent, on gross receipts for business done in this State by express companies. Third — One-half of the tax of 2 per cent, on the gross premiums collected in this State by insurance companies not organized under the laws of this State. Fourth — License tax on auctioneers, brokers and exchange deal- ers, dramshops, peddlers,. ferries and billiards and other tables. Fifth — Tax of 1 1-2 per cent, on sales of dutiable goods by auc- tioneers. Sixth — Fees paid by corporations, when articles of incorporation are issued, under section 21, article 10 of the Constitution. Seventh — Interest on moneys in State depositories. Eighth— Fees for services of Secretary of State, issuing commis- sions, etc., and of State Auditor, registering municipal bonds. Ninth — Fees for commissions of notaries public. Tenth — Receipts from sales of Statutes and Session Acts. Eleventh — Receipts from fees for the inspection of beer. Twelfth — Receipts from fines of packing house companies, etc. Thirteenth — Sixty per cent, of fees collected by Excise Commis- sioner. The classes of property exempt from taxes in this State will be found enumerated in Section 6, Article 10, of the Constitution, which are as follows: The property. Real and Personal, of the State, Counties and other Municipal Corporations, and Cemeteries, shall be exempt, from taxa- tion. Lots in incorporated cities or towns, or within one mile of the limits of any such city or town, to the extent of one acre, with the 124 buildings thereon, may be exempt from taxation, when the' same are used exclusively for religious worship, or schools, or for purposes purely charitable; also such property, Real and Personal, as may be used exclusively for agricultural or horticultural societies. The total amount of State Tax, raised during the last fiscal year (1905) was 13,476,222.45. The amount of State debt, at the close of the last fiscal year (1905), was 14,398,839.42. This debt consists of what the State Constitu- tion, under a recent amendment, terms Certificates of Indebtedness, which are in the nature of due bills and held by the State Treasurer in trust for Common Schools and Seminary Funds, the State having spent money for State purposes from these funds and under the recent amendment of the Constitution this debt is made perpetual and draws 5 and 6 per cent, interest. In 1904 there was paid to the Counties for support of Public Schools the sum of |1,285,530.07. MONTANA. CONSTITTJTIONAI. PROVISIONS. Exemption of stoclis: Stocks in any company shall not be taxed when the property represented by such stocks is taxed. (Article XII, sec. 17.) Uniform tax on property — license taxes: Taxes shall be uniform upon the same class of subjects in the same jurisdiction. (Article XII, sec. 11.) The Legislature shall levy a uniform rate of assess- ment. All property shall be taxed at its just value. The Legisla- ture may also impose a license tax on persons and corporations. (Article XII, sec. 1.) Railroads: The franchise, roadway, roadbed, rails and rolling stock of all railroads operating in more than one county shall be as- sessed by the State Board of Equalization, and the valuation appor- tioned among the local districts on a pro rata mileage basis. (Article XII, sec. 16.) STATUTE PROVISIONS. Railroad Companies: (Booth's Montana Code, sees. 3996, 3737-3743.) Listing, valuation, etc.: Railroad companies are required to make to the State full annual statements of their property of operation, capital stock, earnings and indebtedness. On the basis of these re- turns, the State Board of Equalization assesses franchise, roadbed, rails and rolling stock (whether owned, hired or leased.) The valu- ation thus determined is apportioned among the counties on a mile- age basis for the computation and collection of the tax. Local taxation: Railroad real estate not in the right of way, in- cluding stations and depots, is locally assessed. There' is also a 125 local tax on the values apportioned by the State. Railroads operat- ing in a single county are locally assessed and taxed on their prop- erty and franchises. (Booth's Montana Code, sec. 3719.) NEBRASKA. The total receipts of the General Fund from Dee. 1902 to Nov. 30, 1904, were |7,306,194, wliich was raised by general taxation, oflace fees, interest on deposits, U. S. Government, etc. In 1903 and 1904, the assessed valuation of property under the new revenue law for taxation purposes was as follows: Real estate, $184,348,142 Personal property 110,373,246 Railroads, 46,084,852 Telegraph and telephone 260,536 Pullman company, 94,710 Private car companies 106,221 All other property, 1,034,019 STATE DEBT. Statement showing the Bonded Indebtedness of Nebraska by Pre- cincts and Counties, 1904. Counties: Bonds. Amount unpaid $1,076,800 Precincts: Bonds. Amount unpaid 4,020,437 Floating Debt of State: Amount bearing interest, ', 2,253,368 Property and franchise taxes are taxed according to their value in such manner as the Legislature shall direct. Railroad Companies are required to make annual reports of their property and its value to the State. On the basis of these Reports the 'State Board of Equalization assesses all x>roperty of operation, and apportions the valuation thus determined among the Counties, where the tax is computed and collected. Real and personal property of railroads, not in the right of way, is locally assessed and taxed. There is also a local tax on the values apportioned by the State. NEVADA. CONSTITUTIONAL PROVISIONS. Uniform tax on property: There shall be a uniform and equal rate of assessments and taxation on all property. (Article X, sec. 1.) 126 Corporations: All corporate property shall be subject to taxation the same as the property of individuals. (Article VIII, sec. 2.) STATUTE PROVISIONS. Railroad Companies: (Cutting's Compiled Laws of Nevada, 1861- 1900, sees. 1236-1239.) Listing, valuation, etc.: Eailroad companies make annual returns of property, which is assessed by the State Board of Assessment and Equalization. The valuation determined by that Board is ap- portioned among the counties for the computation and collection of the tax. In fixing values, statute provision requires that the rail- road property shall not be treated as so much "land covered by right of way" nor "as so much iron," but as a complete operated line of road. Eolling stock is valued and apportioned on a pro rata mile- age basis. Local taxation: All railroad property is locally taxed. NEW HAMPSHIEE. The revenues for State purposes are derived from the following sources : State Tax, Railroad Tax, Insurance, License fees. Telegraph and Telephone Tax, fees (Secretary of State), Fines and Forfeitures, etc. For the fiscal year ending May 31, 1905, there was collected for ■State purposes the sum of |581,707.75. The rate of taxation varies from year to year and different counties pay different rates ranging from f 1.63 to $2.20 on each f 100 valuation. State debt, June 1, 1905, was |788,960.28. Railroads are exempted from taxation for a period of ten years after their construction. The State Board of Equalisation assesses all railroad property. The tax is levied on the value of road, rolling stock and equipment, and is in lieu of all taxes on stocks. Real Estate not in the right of way is locally assessed and taxed. The total receipts for the year ending May 31. 1905, were |1,3.53,- 900.05, of which amount |386,141.40 was paid by Railroad Corpora- tions and $398,325.67 by Savings Banks. NEW JERSEY. The sources of Revenue of this State for State purposes are taxes from Railroad Corporations, Miscellaneous Corporations, Fees from Secretary of State, Interest on Civil War Bonds, Collateral Inherit- ance Tax, Commissioner of Banking and Jjisuffiiice, etc. 127 The rate of taxation varies on the different subjects or classes for taxation. The State Scliool Tax Fund Is raised by direct taxation. The School Tax of 1905 was levied at a sum equal to two and three- fourths mills on each dollar of valuation of the taxable, Real and Personal property in the State as exhibited by the last abstract of ratables from the several Counties made out by the several Boards of Assessors and filed" in the State Comptroller's office. For the fiscal year ending Oct. 31, 1905, the Gross Receipts of the State Fund were |4,598,075.75, and of the State School Fund, |1,- 801,911.92. The State Debt is |116,000. Railroad Companies make annual returns of property^ stock and indebtedness, upon the basis of which, in addition to Corporation books, etc., the State Board of Assessors set a valuation upon all railroad property and franchises. A tax of one half of one per cent, is levied on this valuation for State purposes. In addition to the State Tax, the State collects a tax at the local rate upon rail- road real estate in each tax district, the proceeds of which are ap- portioned among the tax districts in which such property is situated. Other local railroad property not used for purposes of operation is locally assessed and taxed. The amount of State Taxes collected from Railroad and Canal Cor- porations for the year ending Oct. 31, 1905, was 11,083,745.41. NEW MEXICO. STATUTE PROVISIONS. Railroad Companies: Exemption: Railroads are exempt fj-om taxation for a period of six years after their completion. (Complied Laws of New Mexico, 1897, sees. 3880-3881.) Taxation: Railroad prox>erty is assessed and taxed like the prop- erty of individuals. (Compiled Laws of New Mexico, 1897, sec. 4025.) NEW YORK. The sources from which the State of New York derives her rev- enues for State purposes are as follows: Direct State Taxes, including special taxes for judges, stenog- raphers, &c., tax on corporations, transfers of decedents' estates, transfers of stocks, trafficking in liquors, racing associations, lands of non-resident owners, sales of lands, State institutions (sales, private patients, &c.), fees of public officers (including fines and penalties), fees of notaries, interest on treasury deposits, insurance 128 department, bank department, railroad commission, U. S. Govern- ment for 'Soldiers' and Sailors' homes, principal and interest on bonds for Canal Debt 'Sinking Fund and interest on deposits for same. Proceeds of Sale of Barge Canal bonds, trust funds including principal and interest on bonds and miscellaneous sources. The rate of taxation for State purposes is fixed by the State Board of Equalization and said rate varies from year to year. Special exemption from taxation by Statutes is condemned in theory by Legislators, but adopted in practice by successive enact- ments of the Legislature. The exemptions are mainly for religious, educational, charitable and like beneficent purposes. The aggregate valuation of all classes of exempt property was in 1904, |1,327,- 914,982, of which the State itself was the owner of |69,502,912. State property is made subject to taxation for local purposes in the Adirondack region and in many municipalities, and for aid to dis- trict schools in several instances to a limited degree. Exclusive of the public property held in the State of New York by Federal, State, County and City Governr^ents, and the public schools, every dollar of assessed property, except about $470,000,000, is taxed, by some method of taxation, for State purposes. In 1905, all expenditures for educational purposes amounted to 15,866,593.60, of which amount |4,017,818.64 went to the support of the common schools. On the 30th of September, 190.5, the total debt of the State was 111,155,660. Total receipts from the foregoing sources for the year ending Sep- tember 30, 1905, 129,195,569.89, of which amount |6,974,811.49 was collected from Corporations, NORTH CAROLINA. CONSTITUTIONAL PROVISIONS. Uniform tax on property; franchise and income taxes: Taxation shall be by uniform rule on all property. The General Assembly may also lay taxes on franchises and income, provided the property from which income is derived is not taxed. (Article V, sec. 3.) STATUTE PROVISIONS. Railroad Companies: (La;ivs of 1899, Chapter 15 and Laws of 1900, p. 64.) Listing, valuation, etc. : Railroad companies annually report their property of operation to the State Corporation Commission. The Commission determines the value of this property as if it were the property of individuals. Rollinj.; stock is valued on a pi*o rata mile- age basis. The final valuation is apportioped ^niong the counties 129 for the computation of the tax. The tax for State purposes is paid directly into the State treasury. The Commission is empowered to examine books, papers, etc., in determining valuations. Local taxation: Railroad property other than that of operation is locally assessed and taxed. There is also a local tax on the values apportioned by the State. NORTH DAKOTA. CONSTITUTIONAL, PROVISIONS. Uniform tax on property: All property shall be taxed by a uni- form rule according to its true value. (Sec. 176.) Railroads: The franchises, roadway, roadbed, rails and rolling stock of railroads shall be assessed by the State Board of Equaliza- tion at its actual value, and such assessed valuation shall be appor- tioned among the local taxing districts on a pro rata mileage basis. (Sec. 179.) The Legislature may provide for the payment of a per- centage of railway gross earnings in lieu of the above taxes on prop- erty, except the local taxes on property not in the right of way. (Sec. 176.) Reports by railroad companies: Railroads shall make annual re- ports to the State as prescribed by law. (Sec. 140.) STATUTE PROVISIONS. Railroad Companies: (Revised Code of North Dakota, 1895, sees. 1331-1333.) Listing, valuation, etc.: Railroad companies make annual returns of their property to the State Board of Equalization. On the basis of these returns, franchise, roadbed, roadway, rails and rolling stock used in the State are assessed at their actual" value. Corpora- tion books and papers, as well as witnesses, may be summoned to as- sist in determining valuations. The valuations are apportioned among the counties for the computation and collection of the tax. Local taxation: Property other than that of operation is locally assessed and taxed. There is also a tax on the values apportioned by the State. OHIO. The receipts of the General Revenue Fund come entirely from excise and other sources of direct taxation, there being a property tax levied for State purposes of 1-35-100 mills which is levied on the grand duplicate of the State for the following purposes: Sinking Fund, 13-100 of a mill, the University Fund 22-100 and the State Com- mon School Fund one mill. 130 The sources from which the General Kevenue Fund derives its receipts are Excise Taxes, being 1 per cent, upon the gross receipts of all public service Corporations^ Direct Inheritance Tax, being 2 per cent, upon the net inheritance, the Corporation Tax, being one- tenth of 1 per cent, upon the issued stock of all Corporations except- ing those that pay under the excise tax laws, the Insurance Tax, the Liquor Traffic Tax, Show Licenses, Auction Duties, Cigarette and Collateral Inheritance Tax. There is no particular class of property exempt from taxation for State purposes. During the year ending November 15, 1905, there was collected the following: General fund $6,307,271 31 • Sinking fund 398,245 35 Common school fund, 2,125,189 55 University fund 467,470 45 There is practically no State debt. There are |1,665 of Bonds long since due and not bearing interest since due, that have never been presented for payment, which are supposed to be lost or destroyed. The Constitution requires that all Property shall be taxed accord- ing to a uniform rate, and at its true cash value, and that all Cor- porate Property shall forever be taxed like that of individuals. A Board of Appraisers, consisting of the Auditors of the different Counties Appraise Railroad Property. Annual Reports are made by all Companies. Based upon the facts contained therein all Property of Operation, Moneys and Credits, are assessed upon a pro rata mile- age basis. This valuation is apportioned among the Counties for computation and collection of the tax. Railroads pay the State an Excise Tax of one-half of 1 per cent, an- nually, on the Gross Earnings from business done in the State, and upon inter-state Receipts upon a mileage proportion. The values apportioned by the State are subject to a local tax, also the Real Estate of Railroad Companies not in the right of way. The total amount of Excise Taxes assessed on the Railroad, Street Railway, Pullman, Freight, Electric Light, Artificial and Natural Gas, Telegraph and Telephone, Water, Express, Messenger and Pipe Line Corporations for the year 1905, was |1,813,669.45. OKLAHOMA. STATUTE PROVISIONS. Railroad Companies: (Laws of 1895, pp. 224-229; see also Laws of 1889, p. 219.) 131 Listing, valuation, etc. : Railroad companies are required to make annual reports to the Territory. All property of operation, moneys and credits are assessed at their actual cash value by the Board of Railroad Assessors, who are empowered also to examine corpora- tion books and records, and to summon witnesses, etc. The valua- tion determined upon, is apportioned among the counties for the com- putation and collection of the tax. Cars used by a railroad, but not owned by it, are listed against the company to which they belong. Local taxation: Real estate not in the right of way is locally as- sessed and taxed. There is also a local tax on the values ap- portioned by the State. OREGON. CONSTITUTIONAL, PROVISIONS. Uniform tax on property: There shall be a uniform rate of assess- ment and taxation. All property shall be taxed at its just value. (Article IX, sec. 7.) STATUTE] PROVISIONS. Transportation Companies: (Hill's Annotated Laws of Oregon, 1892, pp. 1281-1284.) Transportation companies generally are assessed and taxed on their property in the same manner as individuals. Railroad rolling stock, including all cars hired or leased, is an- nually reported by the managing officers of railroads at their places of business, and is apportioned among the counties on a pro rata mileage basis. Rolling stock engaged in inter-state business is assessed on a pro rata mileage portion. RHODE ISLAND. CONSTITUTIONAL PROVISIONS. Taxation : The general assembly shall provide for the assessment of taxes as it may think best. STATUTE PROVISIONS. Railroad Companies : Railroad companies are taxed on their property in the same man- ner as individuals. No express provision is made for railroad taxa- tion in the law of the State. SOUTH CAROLINA. CONSTITUTIONAL, PROVISIONS. Uniform tax on property: There shall be a uniform and equal rate of assessment and taxation. All property shall be taxed at its just value. (Art. IX, sec. 1.) 132 Corporations: The property of corporations shall be subject to taxation. (Art. XII, sec. 1.) STATUTE PROVISIONS. Railroad Companies : (Revised Statutes of South Carolina, 1893, pp. 96-97.) Listing, valuation, etc. : Railroad companies are required annually to list vsrith the Comptroller-General of the State their entire prop- erty of operation, moneys, credits, etc. Annual reports are made ' also to the county auditors of property within the various counties. The Comptroller-General is empowered to examine corporation books, papers, etc. A valuation is set upon the property as listed by the State Board of Assessors, and the valuation thus determined is apportioned among the counties for the computation and collec- tion of the tax. Local taxation: Railroad real estate not in the right of way is locally assessed and taxed. There is also a local tax on the values apportioned by the State. SOUTH DAKOTA. CONSTITUTIONAL, PROVISIONS. Uniform tax on property; Corporations: All taxes shall be uni- form on all property. Corporate property shall be assessed and taxed as near as may be like individual property. (Art. XI, sec. 2.) Railroad reports: Railroad companies shall make annual reports to the State, as by law prescribed. (Art. XVII, sec. 12.) STATUTE PROVISIONS. Railroad Companies: Listing, valuation, etc.: Railroad companies make annual reports to the State Board of Assessment and Equalization of their earn- ings and property of operation. On the basis of these returns a valuation is reached, taking into consideration gross and net earn- ings, and is apportioned among the counties for the computation and collection of the tax. Local taxation: All railroad property other than that of operation is locally assessed and taxed. There is also a local tax on the values apportioned by the State. TENNESSEE. CONSTITUTIONAL PROVISIONS. Uniform tax on property: All property shall be taxed uniformly according to its value, as the Legislature shall direct. (Art. II, sec. 28.) 133 Eailroad Companies: (Laws of 1897, Chap. 5.) Listing, valuation, etc. : Eailroad companies file annual schedules of property, stock, indebtedness and earnings with the State Eail- road Commission, by whom a valuation is set upon railroad property, with due regard for franchises, stock, bonds and earnings. The val- uation thus determined is examined by the State Board of Equaliza- tion and certified to the State Comptroller. These taxes are paid into the State treasury. In reaching a valuation the Eailroad Commission has power to examine corporation books and papers. Eailroad property having actual situs is known as localized property, and that, having nft actual situs, is known as distributable property, and is valued on a pro rata mileage basis. Eailroad companies not paying the State ad valorem tax pay an annual tax,' as follows: Companies controlling or operating 400 miles or more of road pay |10,000 for business done in the State; from 100 to 400 miles, $5,000; from 25 to 100 miles, |1,0'00'; less than 25 miles, flOO. (Laws of 1897, pp. 74-77.) Local taxation: Eailroad real estate and personalty (having actual situs) are locally assessed and taxed. Each county through which a railroad runs its lines may levy a tax of foOO against such company, and each incorporated town a tax of $25. (Laws of 1897, chap. 5.) Eailroad terminal companies, in counties of 90,000 inhabitants or over, pay a tax of |500; in counties of 70,000 to 90,000 inhabitants, 1400, and in counties of 50,000 to 70,000, |300. (Laws of 1897, pp. 74-77.) TEXAS. CONSTITUTIONAL, PROVISIONS. Taxation shall be equal and uniform. All property in the State shall be taxed. The Legislature may also impose license and in- come taxes. All railroad property shall be assessed in the several Counties. Soiling stock may be assessed in gross in the County where a Com- pany's principal office is located, the resulting tax to be apportioned by the Comptroller among the Counties on a pro rata mileage basis. All railroad property shall bear its proportional share of municipal taxation. STATUTORY PROVISIONS. Eailroad Companies pay ad A'alorem taxes on their franchises and upon all property owned by them in the State, each County through which a road runs assessing and collecting the State and County Taxes on the number of miles of line and superstructure within its 134 limits. Railroad Companies also pay to the State an occupation tax of 1 per cent, on gross receipts from passenger travel. The tax is paid quarterly to the Comptroller on a sworn statement by author- ized officers of the various Companies. Steamboat and Stage Com- panies pay the same tax. The sources from which revenues are derived in the State of Texas are as follows: Collection from Tax Rolls (ad valorem taxes on all property sub- ject to taxation), Collections from State Departments, such as oflSce fees, charter fees, franchise Taxes, Gross Receipts or Income Taxes, Occupation and Poll Taxes. Rate of Taxation: State ad valorem 20 cents on the $100' valua- tion; State School 18 cents on the |100 valuation. Revenues collected for the year 1905, State Revenue, $3,450,967.08; School, 14,116,772.55. Bonded debt, |3,989,400. UTAH. CONSTITUTIONAL PROVISIONS. Uniform tax on property : There shall be a uniform and equal rate of assessment and taxation on all property in the State. Every person and corporation shall be taxed in proportion to value of prop- erty. (Article XIII, sec. 3.) All persons and corporations doing business in the State shall be subject to taxation for State and local purposes on all their prop- erty. (Article XIV, sec. 10.) Rolling stock shall be considered and taxed as personalty. (Article XII, sec. 14.) STATUTE PROVISIONS. Railroad Companies; (Laws of 1899, pp. 102-103.) Listing, valuation, etc.: The officials of railroads operating in more than one county are required to make annual reports to the State, setting forth all their property and its value. On the basis of these reports the various companies are assessed by the State Board of Equalization on their property and franchises. Rolling stock is valued on a pro rata mileage basis. The total valuation is appor- tioned among the counties for the computation and collection of the tax. Local' taxation : Railroad lands not employed for operating pur- poses are locally assessed and taxed. There is also a local tax on the values apportioned by the State. 135 VERMONT. STATUTORY PROVISIONS. Railroad Companies are required to make full returns, not more frequently than biennially, to the Commissioner of State Taxes, who appraises the value of the railroad property, including the Corporate franchise. In the case of inter-state roads, the valuation is deter- mined on a pro rata mileage basis. The rate of the tax is seven- tenths of 1 per cent. Railroad Companies may pay in lieu of the tax on property and franchise a tax of 2 1-2 per cent, on gross earnings from business done in the State, including a pro rata mileage portion of the inter-state earnings. LOCAL, TAXATION. The real and personal estate of all transportation companies not used for operating purposes is appraised by the listers of the towns like the property of individuals. VIRGINIA. CONSTITUTIONAL PROVISIONS. Uniform tax on property: Taxes shall be uniform. All property shall be taxed according to its value. (Article X, sec. 1.) STATUTE PROVISIONS. Railroad Companies: (Laws of 1897, 1898, pp. 70-80; also Code of 1887, sec. 1312.) Listing, valuation, etc. : Railroad companies are required to make annual returns to the auditor of public accounts, setting forth their entire property and their gross receipts and net earnings from operation. The auditor is empowered to examine corporation books and papers. The board of public works appraises all railroad prop- erty. The taxes on this appraisement are paid into the State treas- ury. Gross receipt taxes : Railroad companies also pay a tax on gross receipts to pay the expenses of the railroad commission. Local taxation: Railroad real estate not in the right of way, in- cluding depots and other buildings, is locally assessed and taxed. Canal Companies: These companies are assessed and taxed on their property like rail- roads. WASHINGTON. CONSTITUTIONAL PROVISIONS. Uniform tax on property: There shall be a uniform and equal rate of assessment and taxation of all property in the State. (Article VII, sec. 2.) 136 Corporations : Corporate property shall be taxed as nearly as may be by the same methods as are followed in taxing individual prop- erty. (Article VII, sec. 3.) Rolling stock: shall be considered and taxed as personal property. (Article XII, sec. 17.) STATUTE PROVISIONS. Railroad Companies: (Laws of 1897, pp. 149-153.) Listing, valuation, etc.: Railroad companies are required to re- turn to the State auditor schedules of their entire property of opera- tion, capital stock, earnings, expenses, and indebtedness. The prop- erty is then assessed for State taxes by the State Board of Equaliza- tion. Local taxation: Railroads are locally assessed and taxed on all their property, on the basis of annual lists which they are required to make in each county. Rolling stock is valued on a pro rata mile- age basis. Express, Transportation and Stage Companies: (Laws of 1897, p. 142.) These companies are taxed on their personalty in the counties where it is kept. WEST VIRGINIA. The State Fund raised, amounts to about $2,000,000, per annum. In this State the following Classes of Personal Property are sub- ject to taxation: Horses, Mules, Cattle, Sheep, Hogs, Agricultural Products, Car- riages, Watches and Clocks, Pianos, Household Goods, etc. Taxa- tion is uniform and equal, on all Property throughout the State. Railroad Companies are required to make detailed annual Reports to the State Auditor, setting forth property of operation, capital stock, Bonded debt, Earnings and Expenditures. On the basis of these returns, after approval by the Board of Public Works, who have access to the corporation books and papers and may examine corporation witnesses, the State Auditor sets a valuation upon rail- road property and apportions the same among the local tax dis- tricts, where the tax is computed at the usual rate and certified to the State Auditor. The total taxes are then paid into the State treasury. Railroad Real Estate not employed for purposes of operation is locally assessed and taxed. Each local district also receives its share of the taxes paid into the State treasury. 137 WISCONSIN. GENERAL FUND. This Fund embraces all the Revenues of the State applicable to the payment of the ordinary expenses of the State Government. The sources from which it is derived are, a General Fund Tax, a Tax on civil actions, a Tax on legacies, license of Railroad Com- panies, Log Driving and Booming Companies, Telegraph and Tele- phone Companies, Street Railway and Electric Light Companies, Insurance Companies and Hawkers and Peddlers ; fees received from Notaries Public, from various State ofQces and from the sale of books and reports. The expenditures therefrom are authorized by permanent and tem- porary appropriations, and by the several laws requiring the Secre- tary of State to audit accounts. The total receipts of the General Fund for the fiscal year ending June 30, 1904, were $3,227,631.18, out of which was disbursed to the Common Schools |110,687.86; to the State University |486,836.25; to Normal Schools $273,103.80; to Free High Schools $97,437.95. To the total receipt of the General Fund for the year 1904 there was paid as a License Tax by Railroad Companies, $1,913,396.28; Street Railway and Electric Light Companies, $12,671.35; Telegraph Companies, $13,067.46; Telephone Companies, $44,398.22;- Fire In- surance Companies, $157,799.83; Life Insurance Companies, $330,- 464.41; Loan and Trust Companies, $3,090.43. There is no special exemption from taxation for State purposes in the State of Wisconsin. STATE DEBT. The distribution of debt June 30, 1904, was as follows : Certificates of Indebtedness: School fund $1 , 563 , 700 Normal School fund 515,700 University fund 111,000 Agricultural College fund, 60,600 Total $2,251,000 CONSTITUTIONAL, PROVISIONS. Taxes are uniform, and upon such Property as the Legislature may from time to time prescribe. STATUTORY PROVISIONS. Railroad Companies make Returns to the State Treasurer of Gross Earnings, specifying them per mile of line. License Fees are then levied as follows: 138 ' Four per cent, or 40 mills on total gross earnings of |3,0O0 or more per mile; 3 1-2 per cent, or 35 mills on total gross earnings between $2,500 and |3,000 per mile ; 3 per cent, or 30 mills on total gross earn- ings between |2,000 and $2,500 per mile; 2 1-2 per cent, or 25 mills on the excess above |1,500 per mile; plus |5.00 per mile when gross earnings are between |1,500 and $2,000 per mile; and $5.00 per mile when less than $1,500 per mile. Railroads built on pile or pontoon bridges pay at the special rate of 2 per cent, or 20 mills on their Gross Earnings. There is no Local Tax on Railroads, except that Lands owned by them, not used for Railroad purposes, are assessed and taxed like property of individuals. WYOMING. CONSTITUTIONAL, PROVISIONS. Uniform taxation, listing, etc.: All taxation shall be equal and uniform. (Article I, sec. 28.) All lands and improvements thereon shall be listed and assessed separately. (Article XV, sec. 1.) Railroads: There shall be a State Board, consisting of the Audi- tor, Treasurer and Secretary of State, which shall assess at their actual value the franchises, roadway, roadbed, rails and rolling stock of all railroads and other common carriers. This valuation shall be apportioned among the counties as the basis of taxation. (Article XV, sec. 10.) Reports of railroad companies: All railroads operating in the State must make annual reports of their business, as the Legislature may prescribe. (Article X, sec. 3.) STATUTE PROVISIONS. Railroad Companies: (Revised Statutes of Wyoming, 1899, sees. 1794-1797.) Listing, valuation, etc. : Railroad Companies are required to make annual reports to the State Board of Equalization, setting forth all property of operation. On the basis of these reports a valuation is determined, covering property and franchises, and is apportioned among the local districts for the computation and collection of the tax. Local taxation : Railroad real estate not employed for purposes of operation is locally assessed and taxed. There is also a local tax on the values apportioned by the State. INDEX. Arizona., tax laws Arkansas, tax laws Auctioneers' license, Page. Accounting Department Accounts, Board of ..[.......... a 25 103 99 100 49 Agriculture, Board of, Alabama, tax laws, Allegheny- Valley Railroad Company, " bond's. Annuity for Right of Way Approipriation to Public Schools, 1835-19'o'6, ' . . . Appropriations to Township High Schools, 1901-1906 • si 104 104 94 Auditor General, act creating office of 11 Auditor General, powers and duties, 18 Auditors, act creating, "" g Auditors General , : .y.... ... .\ .[............. ..\... 16 Balances in State Treasury, 32 Banks , tax on ........[[.[............... 58 Banks that, issued relief notes, 38 Bankers and Brokers, tax on gross receipts, 96 Billiard license 93 Board of Accounts [.[............... 9 Agriculture ; 25 Public Accounts, 23 Piiblie Grounds and Buildings .- 25 Revenuei Comimissioners 23 Sinking Fund Commissioners 25 State Military, 25 Trustees Soldiers' and Sailors' Homy 26 Bonds oi Allegheny Valley Railroad Company, 99 Bonus and Corporation Tax paid ' 44 Bonus on capital stock 81 Bottlers' license , 93 Brewers and Distillers 93 Brokers and Bankers, tax on gross receipts, 96 Brokers' license 94 Building and Loan Associations, tax on, 61 California, tax laws 106 Capital Stock, tax on 63 Cattle, taxes paid on 52-53 Certificates outstanding 37. Charttable Institu'tions, amount paid to support, 42 Collateral Inheritance, tax on, 86 Colorado , tax laws 108 Commissions, Notary Public, 88 Comparative receipts and expenses, Pennsylvania and other States, .. 56 Comptroller General 10 Comptrollers General 16 Oonneoticut , tax laws , 109 Corporate net earnings, tax on, 60 Corporation Loans, tax on 73 Corporation tax and bonus paid 44 Corporations, tax on capital stock, 63 Corporations — See also for Value of Shares.— Paid in Value. — Net Earn- ings. — Exemption. — Debts. — Paterits.— Dwelling Houses, etc 63 Counties, personal property tax returned to, 43 Counties, what each paid to, and received from the State, 40 County Loans, tax on 87 Debt of Pennsylvania " 12-13 Debt, State 30 Debt, statement of 39 Deeds, tax on , 85 Delaware, tax laws 109 Dis'lftirs&ments and Receipts, comparison of, 15 Distillers and Brewers 93 Eating House license : , 95 Escheats -■ 98 Expenditures and Receipts, 1791-1906, , 31 Fees of Public Officers , ,, 97 Pertillzers, tax on sale of, , , . , 96 (139) 140 Page. Fines and Penalties, 97 Fisliing Licenses, 101 Florida, tax laws 110 Furniture, carriages and watches, tax abolished 53 Georgia, tax laws, 110 Gross Premium's Domestic Insurance Companies, tax on, 81 Foreign Insurance Companies, tax on, 63 Gross Receipts o£ Bankers and Brokers, tax on, 96 Corporations, tax on, 77 Notaries Public, tax on, 99 Horses, taxes paid on 52-53 Hunting Licenses, 101 Idaho, tax laws HI Illinois, tax laws, Ill Indiana, tax laws 113 Individual Share in State's Receipits 29 Individuals, tax paid by 28 Insurance Conipariiies, Domestic, tax on gross premiums, 81 Foreign, tax on gross premiums, 63 Interest Certificates 36 on State Deposits, 62 Iowa, tax laws 113 Joint Stock Associaltions, tax on capital stock, 63 Judiciary, amount paid in support of 45 Kansas, tax laws, 114 Kentucky, tax laws 114 Lands , sale oif , 102 License, Auctioneers' 94 Billiard 93 Bottlers' , 93 Brewers' and Distillers' '. 93 Brokers' , 94 Eating- House 95 Fishing 101 Hunting 101 Liquor 91-92 Liquor, amiount returned to local treasurers 43 Mercantile '. ; 89 Oleomarga.rine, 100 Peddlers' and Hawkers', 94 Pool Table, etc 93 Reno.vated Butter, 101 Soldiers', 95 Theatre, Circus, etc 95 Limited Partnerships . tax on capital stock 63 •Liquor Licenses 91-92 Liquor Licenses, amount returned to local treasurers 43 Loans corporation, tax on, 73 county and municipal, tax on 87 public 34 Local Taxation, State aid in reducing 33 Louisiana, tax laws 115 Maine , tax laws 115 Maryland, tax laws 116 Massachusetts, tax laws 116 Mercantile Licenses 89 Michigan, tax laws 120 Minnesota,, tax laws 121 Miississippi , tax la \\-s 122 Missouri, tax laws, 123 Montana . tax laws 124 Municipal Loans, tax on 87 National Banks , tax on 58 Nebraska , tax laws 125 Ndt Earnings, tax on 60 Nevada, tax laws, 125 New Hampshire , tax laws , 1 26 New Jersey, tax laws , 126 New Mexico, tax laws 127 New T'Oi'k, tax laws, 127 Normal Sichools, appropriation to, 1876-1906 50 North Carolina, tax laws, 128 North Dakota , tax laws 1.29 Notaries Public, tax on gross receipts 99 Notary Public Commissions 88 Ohio, tax laws 129 141 Page. Oklahoma, tax laws 130 Oleomargarine Licenses 100 Oregon, tax laws .'!..!!!!! 131 Pamphlet Laws gg Peddlers' and Hawkers' License 94 Penal Institutions, amount paid to support .".].. 41 Personal Property tax 83 Personal Property Tax Returned, to Counties 43 Pool Table, &c., License, 93 Public Accounts, Board of ' 23 Debt • 30 Debt, statement ot, 39 Grounds and Buildings, Board of, 25 Loans of State 34 Officers, fees of, 97 Schools, amount paid for support of, 1905, 47 Schools, appropriation tc>, 1835-1906, 47 Real Estate, taxes paid on 52-53 Receipts and Disbursements, comparison of 15 Receipts and Expenditures, 1791-1905, 31 Receipts and Expenses, Pennsylvania, compared with oither States,... 56 Refunded Cash, 97 Register General, act creating office of 11 Registers General, 16 Relief Notes 38 Renovated Butter Licenses, 101 Revenue CommisBioners, Board of 23 Rhode Island, tax laws 131 Schools, appropriation to public, 1835-1906 47 Public, amount paid for support of, 1905 47 State Normal, appropriation to, 1876-1906 50 Township High, amount paid for support of, 1905, 45 Township High, appropriation to, 1901-1906 51 Sinking Poind 13 Sinking- Fund, balances, ; 53 Sinking Fund Commissioners, Board of, 25 Soldiers' License, 95 Soldiers' Orphans, amount paid for support of 45 Soldiers' and Sailors' Home, amaimt paid for support of 44 Snldiers' and Sailors' Home, Board 'Trustees, ' 26 South Carolina, tax laws 131 South Dakota, tax laws 132 State, what it paid to. and received from, the counties ." 40 Banks, tax on, 58 DeTat 30 Deposits, interest on '. 62 Military Board, 25 Normal Schools, appropriation to, 1876-1906 50 Treasurers 17-18 Treasury, balances in 32 Tax paid by individuals 28 Taxation Local, State aid in reducing 33 Tennessee, tax laws 132 Texas, tax laws 133 Theatre, Circus, &c.. License 95 Township High Schools, amount paid for support of, 1905 46 Township High Schools, appropriation to, 1901-1906 51 Trades and Occuipations, taxes paid on 52-53 Tiust Companies, tax on 61 Utah, tax laws 134 Vermont, tax laws 135 A''irg-inia,, tax laws, 135 Warrants 14 "Washington, tax laws 135 West Virginia, tax laws, 136 Wills, Writs, Deeds, tax on 85 Wisconsin, tax laws 13'?' Writs, Wills, Deeds, tax on : S5 Wyoming, tax laws, 138