xii REPORT OF THE COMPTROLLER OF THE TREASURY

annual certificate, to wit, before the first day of April in every
year, pay to the State Treasurer for the use of the State a
franchise tax for such year at the following rate—that is to say,
the sum of twenty-five dollars for every full fifty thousand
dollars of capital employed by it in this State up to five hun-
dred thousand dollars, but in no case less than twenty-five dol-
lars; if the amount of such capital is more than five hundred
thousand dollars, and not more than five million dollars, then
an additional amount equal to one-fortieth of one per cent, on
the excess; and if more than five million dollars, then an addi-
tional amount at the rate of thirty dollars for every million
dollars of such last named excess."

There is no provision, however, in said statute requiring such
corporations to file with the taxing authorities of the State,
other than the Secretary of State, the amount of capital em-
ployed in the State, nor is that officer clothed with any powers
to inquire into and demand the correctness of such report.
That the laxity of the law in this particular permits abuses
whereby the State loses its just revenue is very manifest. One
of the largest department stores in Baltimore City, operating
under a foreign charter, makes a return of only $5,000 as
the amount of capital employed within this State. No busi-
ness or corporation, foreign or domestic, should ever be
assessed beyond a fair valuation, but such gross inequalities
as above mentioned should not be permitted. The law should
be amended, in my judgment, requiring all foreign corporations
to report to the Secretary of State, as now enacted, but giving
that official sufficient authority to demand and receive a cor-
rect return, who in turn should certify the same to the Comp-
troller.

This tax. as now enacted, is levied upon "every full fifty
thousand dollars of capital employed by it in this State."
Under an opinion given this Department by Attorney-General
Isaac Lobe Straus, it was held that the above were words of
limitation. Hence a company having $99,999 of capital em-
ployed in the State would be required to pay only $25, or no
more than if $1,000 of capital were employed. Surely it
would appear that the tax should be levied upon a more equi-
table basis as to true values, having due regard to a reasonable
minimum amount.