HOUSE No. 50 REPORT OF THE TAX COMMISSIONER OF THE Commonwealth of massachusetts, FOR THE YEAR ENDING DECEMBER 31, 1866. BOSTON: WRIGHT & POTTER, STATE PRINTERS, No. 4 Spring Lane. 1 8 6 7. (Eommcmumiltl) of ittassadjitstfte. Treasury Office, Boston, January 15, 1867. Hon. James M. Stone, Speaker of the House of Representa- tives. Sir:—I have the honor to transmit herewith, through you, to the legislature, a Report of the doings of the Tax Commis- sioner for the year ending December 31, 1866. I am respectfully, Your obedient servant, JACOB 11. LOUD, Tax Commissioner. 4 TAX COMMISSIONER’S REPORT. [Jan. (Eommomoealtl) of ilTassacl)usctts. Treasury Office, Boston, January 15, 1867. To the Honorable Senate and House of Representatives. The undersigned presents herewith his Annual Statement of the transactions in the office of the Tax Commissioner, for the year ending December 31, 1866, as prepared by D. A. Gleason, Esq., Deputy Tax Commissioner. Respectfully submitted, JACOB H. LOUD, Tax Commissioner. 1867.] HOUSE—No. 50. 5 £ommcmu)caltl) of iflaooadjusdto. Tax Commissioner’s Office, Boston, } January 14,1867, j Hon. Jacob H. Loud, Treasurer and Tax Commissioner. The following statement gives a brief summary of the opera- tions of this bureau, considered financially, during the year ending with the thirty-first day of December, 1866 : Whole amount of taxes assessed under ch. 288, Acts 1865, General list to November 27, 1866, . $1,806,662 07 Additional taxes subsequently laid, ... 93 28 $1,306,755 35 Abatements subsequently made, . 1,488 22 $1,305,267 13 On Coal Oil , Mining ■, Quarrying and Companies One-twentieth of one per cent., — May assessment, .... $16,044 92 November assessment, . 14,791 68 Four per cent, business tax on net profits, 1,597 70 32,434 30 Aggregate of assessments, . $1,337,701 43 Taxes paid,— General list, $1,151,508 04 Under section eight, 11,862 67 - $1,163,370 71 6 TAX COMMISSIONER’S REPORT. [Jan. Taxes unpaid, January 1, 1867,— General list, .... $152,759 09 . Under section eight, . 20,371 68 Taxes of 1864, outstanding,— General list, .... 23,296 91 Taxes of 1865, outstanding,— General list, . 55,117 52 Under section eight,— One-twentieth of one per cent., . $23,349 48 Four per cent, busi- ness tax on net profits, . 14,891 81 38,241 29 Aggregate of unpaid taxes, $289,786 44 . Amount assessed on general list,’? . $1,305,267 13 Payable to cities and towns, . $990,875 50 Balance, 314,391 63 51,305,267 13 Collected from corporations,— . Under section eight, . $11,862 67 Due from such corporations, . 20,371 63 Balance of general list, . 314,391 63 Aggregate credit to the State, $346,625 93 It will be seen, by comparing this statement with last year’s, that the amount of tax assessed this year is considerably less than last year. In regard to the taxes assessed under the fifth section of the Tax Act, which constitute the bulk of taxes assessed and col- lected, this diminution is due in great part to the average lower rate of taxation throughout the Commonwealth. This rate which is obtained under the fifth section of chapter 283 of the Acts of 1865, by apportioning the aggregate tax of all the cities and towns in the State, upon the aggregate valuation, was this year, fourteen dollars and eighty-three cents ($14.83} per 1867.] HOUSE—No. 50. 7 thousand dollars of valuation, against seventeen dollars and fifty-six cents ($17.56) per thousand in 1865. , There was a considerable increase in the value of corporate stocks in general, on May first, 1866, over their value at the same time in 1865. This increase was partially offset by the increased value of real estate and machinery, subject to local taxation, this latter amount being,— In 1865, ....870,184,722 00 In 1866, .... 76,957,843 00 Excess of value of 1866 over 1865,. $6,773,121 00 The aggregate valuation of corporate stocks was,— . In 1865, . $146,790,966 74 In 1866, . 162,930,885 69 . Excess of value of 1866, over 1865, . $16,189,919 95 The aggregate excess on which a tax was laid, was,— In 1865, ....$79,941,570 77 In 1866, .... 88,015,274 91 Excess of 1866 over 1865, .... 88,073,704 14 Forty-one companies made re- turns in 1865, which do not in 1866, having a capital of $7,458,417 00 Ninety-six companies made re- turns in 1866, that did not in 1865, having a capital of 12,652,366 00 Increase of 1866, $5,193,949 00 In regard to that portion of the tax assessed under the eighth and ninth sections of the Act, the diminution has been caused in part by the removal of foreign mining companies from the operation of the law, and in part by the great reduction of nominal capital invested in mining, quarrying and oil compa- nies. It is however a well-known fact that much of this capital was purely supposititious, and it is probable that a considerably greater shrinkage than has already taken place, will ensue before the sum of the capital stocks of these corporations will represent anything like the real capital invested, still more its actual value in the form it has taken. 8 TAX COMMISSIONER’S REPORT. [Jan. In this connection it is perhaps proper to explain that a con- siderable part of the amount of the assessment of 1865 on mining companies existing under Massachusetts laws as returned in last year’s report, was based upon the certificates of such companies, filed in the secretary’s office. In many cases these taxes can never be collected of the companies them- selves, as they were at the time of assessment utterly without resources, except, perhaps, in some instances wild lands which will not be saleable at any price. The effect of a rigid enforcement of the provisions of the Tax Act for the assessment and collection of a tax, I have every reason to believe has been of great advantage to the public, apart from the consideration of the amount of revenue collected, in the discouragement of exorbitant and unreasonable inflation of the nominal capital of corporations engaging in these enter- prises. The advantages to the country at large, of a full devel- opment of its mineral resources, are obvious to every enlight- ened mind, and the advantages of the aggregation of capital contributed in moderate amounts by many individuals, seem to be absolutely necessary for the successful prosecution of this business, which is so very hazardous in its nature and unequal in its results. The reckless and even fraudulent manner in which many corporations have been originated and conducted, nominally for mining purposes, has thrown discredit upon those corporations (of which there are many upon our lists,) organ- ized honestly, and carried forward with integrity and energy though not always to a successful result. The operation of this portion of the Tax Act has been found and will be found more evidently in the future, to discourage the formation of corporations for fraudulent purposes, and thus hy protecting the public from fraud, to encourage the legitimate prosecution of the business of mining. Corporations have been chartered and organized under the general laws during the years 1865 and 1866, as follows: In 1866, by special charter, Capital (including increased capital allowed,) $28,825,000 00 Under general laws, 103, 15,801,100 00 544,626,100 00 1867.] HOUSE—No. 50. 9 lii 1865, by special charter, Capital (including increased capital allowed,) . $15,507,000 00 Under general laws, 135, . 27,149,317 00 $42,656,317 00 The nominal and paid up capital of one hundred and thirty- five corporations, organized under the general laws in 1865, amounted in the aggregate,— Oil and mining co’s, 58, cap., $16,625,000 ; p’d in, $15,358,530 Other corporations, 77, cap., 10,524,317 ; p’d in, 9,635,487 $27,149,317 $24,994,017 Of the fifty-eight mining companies certified during 1865, twenty have made returns and paid taxes, nineteen have been dissolved or are in process of dissolution. The following statement of the number of returns received from corporations, etc., may be found of some value : General List Corporations. Whole nrtmber on lists, . .919 Corporations authorized merely, or having no practical existence, ..... 101 Number required to make returns, . 818 919 Number of returns received, .... 815 Returned dead or worthless, or no capital paid in, 102 Assessed, 713 Mining or Oil Corporations. Massachusetts corporations. May returns, .... required, 129; received, 89 November returns, “ 137; “ 88 u “ . Business reports, ... 116; 62 Foreign corporations. May returns, ....required, 106 ; received, 58 November returns, “ 109; “ 59 “ “ Total number May returns, . 235; 147 Total number November returns, “ 246; “ 142 “ “ Total number business reports, . 116; 62 10 TAX COMMISSIONER’S REPORT. [Jan. Total number corporations on mining list, 343 Of which are now believed insolvent or dissolved, . 97 Of these have been dissolved by the supreme court, 12 Are now before the supreme court for dissolution, . 9 I append a list (marked A,) of corporations existing under authority of this Commonwealth, at the date of this Report, subject to taxation under the Corporation Tax Act, so called, so far as it can be prepared. It is each year approaching more nearly to accuracy, but cannot yet be considered absolutely correct. Hon. Thomas Talbot was designated by His Excellency as the member of the council who, with the treasurer and auditor, should constitute the board of appeal. The board met on the first day of March and organized by the choice of Hon.