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Newspaper Page Text
WESTERN ELECTRIC TRIES TO
ESCAPE ILLINOIS TAX LAWS
Why did the Western Electric Co.
reduce its capitalization from $25,
000,000 to $10,000 last week and re
incorporate in New York?
In the Tribune Former Judge Chas.
Cutting of the electric company's
counsel is quoted as saying that the
change took place because the Illi
nois tax laws were to severe, that
they starved the big corporations out
A Day Book reporter asked Judge
Cutting if the Illinois anti-trust laws
had anything to do with the change.
The judge said "No."
Each year Illinois compels the cor
porations to make affidavit that they
are not connected with any trust
Ninety-five per cent of the stock of
the Western Electric is being held by
the American Telephone & Telegraph
Co. It makes everything the A. T.
& T. needs, and the A. T. & T. has
often been called the telephone trust.
But this law also included foreign
corporations doing business in the
state, so the Western Electric still
has to file affidavit. Certain corpora
tions hesitate to do this and this year
State's Att'y Hoyne prosecuted a
large number for violating the law
and compelled them to pay the fine
of $50 a day, which the law says shall
be imposed if any corporations try to
evade it Hoyne is the first state's
attorney to institute proceedings of
this kind. Before he got the office
the corporations forgot this bother
Ass't State's Att'y Henry A. Berger
does not agree with Judge Cutting.
He says that up to a short time ago
corporations were getting off easy in
the payment of their taxes.
"It isn't because of the irrational
tax laws, for the trouble has not been
with the laws so much as it has been
"getting the taxing officials to enforce
the laws," he said.
"Another reason might be the fact
'that the company might be tired of
being obliged to tell each year just
what that $25,000,000 stood for to the
taxing bodies in getting reductions,"
said Ass't State's Att'y Bell "They
might have found this a hard thing to
Possibily the big corporations are
afraid of the vote of the people when
they decide by referendum next fall
whether or not the revenue amend
ment, which they lobbied for in
Springfield, will be made a law.
"This law was passed in the face .$
of the opposition of this office, the
Chicago Teachers' Federation and.
other citizen's bodies," said Berger.
"It is just what the millionaires and
the corporations want It means that
personal property can be classified "
for taxing purposes. It means that
the legislature can raise or lower the
tax on the species of property which,
is owned chiefly by the wealthy. It
is an amendment backed by taxdodg
ing corporations and individuals as a
means of balking State's Att'y Hoyne
in his efforts to get them to pay their
taxes. It was backed by a powerful
PEACE TRIP COSTS A MILLION
Stockholm, Dec. 30. Henry Ford's
peace expedition may cost him more
than $1,000,000 if conference at The
Hague is long drawn out. Business
Manager Gaston Plantiff made this
estimate before the delegates left for
About $35,000 of Ford's money was
spent here. It was reported before
sailing that the Ford managers were
considering giving $10,000 to the
poor of Stockholm.
Pilgrimage will be continued re
gardless of developments in Austro
TALK SCHOOL ARMY TRAINING
The school management commit
tee of the board of education will
discuss a resolution brought before
the board yesterday calling for a re
port on a form of military training
of boys in high and manual training
schools. It was introduced by Ed,