I regret that you will not be able to accompany me to Norfolk to inspect the Battleship North Carolins.

I beg to acknowedge receipt of your communication in regard to taxation of all the property owned by a corporation, and also the taxation of the shares that represent that property. With the utmost deference and kindness permit me to say that I find myself in total disagreement with you on the fundamental principles involved. The system of taxation advocated by you would completely paralyze the business life of North Carolina, and would permanently halt the progress of the State.

Take this illustration: You and your two sons form a co-partnership for the purpose of cultivating lands in Halifax County. You invest $10,000.00 each, in lands and equipment, making a total of $30,000.00 invested in the partnership. One day you meet and determine that, owing to the uncertainty of life, it would be wise to convert this partnership into a corporation. You do so, and call it The Walter Clark Corporation. Not an additional dollar is invested in the business. You simply change the methods of carrying on the business that you already own. To say that thereupon you would have to pay taxes on $60,000.00 instead of $30,000.00 is a proposition so atrociously unjust as to shock the conscience of every fair thinking man.