The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1874-04-02
mANUFACrORIES.

MANUFACTURERS.
A substitute to bill, entitled an act to
encourage manufacturing establishments,
and TO exempt the structures, machinery
and mechanical appliances thereof from
taxation for ten years, was introduced into
the House yesterday, and gave rise to con-
siderable discussion, some of the opponents
taking the ground that it was uneoustitu-
tlonal But we think that those who take
this position are not sustained by the Con
stltution. II is true that section second Of
the bill Of rights is as follows: ''Ail free
men, when they form a social compact have
equal rights; and no man, or set of men,
| is entitled TO exclusive separate public
emoluments or privileges" Now if there
was no other clause or section in
the Constitution, then it might be
well said that the bill was contrary to the
organic law. Bat there is another section
which makes the point perfectly plain.
Section nineteen of article twelve, is as fol-
lows: Taxation shall be equal and uniform
throughout the State All property in the
State shall be taxed in proportion to its
value, TO be ascertained as directed by law,
ezcept such property as tirO-thirds Of both
houses Of the Legislature may tkiak proper 10
exempt from taration.' Can any proposition
be clearer9 1t absolutely and positively set
ties the question, as to the power of the
Legislature to.exempt property from taxa
ton. AS to the propriety of exemp-
ting the structures, machinery and
mechanical appliances, we will next con-
slider. 1t is admitted by all who have
examined into the benefits resulting to
State from the production of the varied
fabrics and machinery, etc., that manufae-
tories are very desirable and profitable; and
that it is an act of wisdom to encourage
them; that it is sound political economy to
build up every material pursuit by which
wealth and power are increased in the State;
that in proportion to the increased taxable
property, by the same ratio the taxes are
decreased to each member of the common
wealth. Consequently every law which
encourages capitalists to bring their means
into the State for permanent investment is
blessing to the people. But those who
oppose the law take the position that the
exemption from taxation prevents the
increase of revenue, and confers unequal
privileges, which are antagonistic to the
well being of the citizen and prosperity of
the State-contrary to sound Democratic
principles and subversive of the rights of
all. The conclusion would be logical and
unansYerable, if the exemption were per-
manent. But it is only for a period of ten
years. It takes time for large manufacturing
establishments to get under full working
order, and to begin to get back some of the
money expended in fitting up suitable
structures and machinery At first the in
come is not equal to the expenditures.
Large sums are locked up, as it were, in the
buildings, looms, boilers, etc., in such fac
tories as produce cotton and woollen fabrics;
and in quantity of tools, machinery, etc., in
those which produce all kinds OF vehicles,
furniture, etc.
If then they are compelled to- pay taxes on
all of these, before there is any assurance
that the dividends win pay, it would in new
States like Texas, amount almost to prohi-
bition. For it is well known that capital
is sensitive, easily alarmed, easily driven
off. When, however, spirit of iberality
is manifested, and capitalists are thus in
vited to come in among us and build fac
tories of all kinds, they are induced to
take hold, feeling that they can manage
their business without loss, even if the en-
terprise should not prove a success. After
they get into successful operation, then the
tax gatherer collects an amount annually
which adds largely and permanently to the
revenues of the State. And not only are
manufactures built up, but large amount
of money is expended in our midst.
We append the following figures which
the Atlanta Constitution vouches for as hav-
ing come from source perfectly reliable:
One hundred and fifty thousand dollars
viii build and furnish factory of two |
hundred and fifty looms. Such factory
would weave S0O,0 900 yards "A sheeting
week. At twelve and a half cents yard, |
this amounts to $4,000.
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