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and energy will be taken from their calcula tions as to how much they dare to make, to be bestowed in making better the quality of their productions, in extending their mar kets and in holding their place in the busi ness world. Franchises, special privileges and tariff protection will not produce the valuable monopolies they are doing to-day, for then the monopoly will not be allowed to yield the large profits that are now enjoyed by the few to the exclusion of the many. If a corporation has to pay as a tax nine-tenths of each per centum of profit above eighteen per cent., it will not risk the losing of its trade for the sake of making one-tenth of a per cent, and the people will get the benefit of a cheaper price and a better article. In determining the actual net profits of a corporation the Board of Examiners should annually ascertain the fair market value of the tangible assets of the corporation, not taking into consideration the franchise, the capital stock, or its bonds. This value may be obtained by an examination of the officers and the books of the corporation, and of ex perts in the line of business investigated. The Board should deduct from the total earnings of the corporation the necessary and reason able expenses of its management, including the actual amounts spent in renewing the plant, the cost of materials purchased and

used, together with the taxes paid on its property, business or profits to all munici palities. And having obtained these amounts, it should by ordinary business methods fig ure the percentage of profits earned in rela tion to its corporate assets. Every ten years the Board of Examiners should ascertain the fixed average of profits earned by each corporation for that period. If the average of profits does not exceed six per cent, annually the State should refund to the corporation such moneys received dur ing such period as a tax on its profits above six per cent., or so much thereof as to make the average of profits untaxed equal to six per cent.; thus allowing to every corpora tion an average of six per cent, profit on its tangible assets during the period of its ex istence. A tax should be levied on all foreign cor porations doing business in the State, upon the amount of business done in the State, in the manner provided by the laws of the State of New York. A rate of taxation should be adopted, to make foreign corpora tions pay the same proportion of tax that is levied on domestic corporations, so as not to drive domestic corporations to wind up their affairs and incorporate in another State, and come back to do business in their old market.