The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1876-02-09
THE E1EnPTIoN poLICY
Manufactures. Etc, Etc.

oy Hon. >. NJ. Wesson, the pioneer man
ufacturer of the State. and large-hearted
philanthropist and sound thinker; and
the other by citizen of ability, intee-
rlty and weight of character, who has
preferred to write anonymously.
We have also published the law of
1872, for the information and convent
ence of the public who may take an in
terest in the subject The provisions Of
this act were in 1873 extended to the
Mississippi Mills and the Stonewall Fac
tory, (Which were struggling for exist
ence,) in order to encourage the invest
ment of capital in, and aid, them, in
taxing new start upon permanent
and solid basis, so as to produce the pub
ilc benefits that necessarily attend enter
Prises Of the kind, if successful.
We are not prepared to speak for the
Stonewall Factory, but can say with en-
tire confidence that the Mississippi Mills
have IN good faith conformed to the pur-
poses Of the act, The company are
vastly enlarging their machinery, build
ings and capacities for the manufacture of
cotton and wooden goods-giying employ
ment to large numbers of the poorer
classes, who stand most in need of it
and have furnished an example of what
may be done in that line of enterprise,
and a standing invitation to outside cap
italists to come into our State and invest
their means similarly. At the expiration
of the time fixed by law for the remission
of its taxes, it will be in condition to
repay an hundred fold the State, for the
liberal policy by which its infancy shall
have been developed into vigorous man
hood.
We desire it to be understood that in
advocating the policy of exemption for
limited period, we do not countenance
abuses of the law, or departure from its
strict letter and spirit. If parties are
obtaining its benefits, who are not enti
tied to them, additional safeguards should
be erected by the Legislature to prevent
them The law says that the taxes so
RENTED GO shall be set apart for and APP
piled to the payment of debts and liza
+" bilities which any of said companies
90 may have incurred III the construction
g of factories, for the purchase of machi
merry Gr 70: money borrowed by any
manufacturing company to construct
f" buildings, or to purchase machinery
for carrying on the said business. Means
not thus employed are clearly not emit
tied to the practical exemption provided
in the act, and parties guilty Of evading
it, are liable to conviction and punish
ment for fraud. If it be true, as stated
by our correspondent, that under cover
of the law, town lots, store houses,
plantations and other property, are
held from taxation, the frauds .are bare
faced, and the parties guilty of them,
urquestionably, deserve severe punish
ment. We are advocating the law IN its
letter and spirit, and with its limitations,
but this does not imply liberation of its
abuses.
So far as the Constitution is concerned,
all exemptions aHd grants for public en-
terprises, and eleemosynaFy Institutions,
ETC., are stretches of power under the
general welfare" clause, and it is ex-
ceedingly difficult to find the exact line
where public benefit and charity end and
class legislation begins. We ourselves
have never been an advocate for too lib
eraI construction of the clause; and hence
have always opposed the policy of pro-
hibitory tariffs on foreign manufactures
to create a monopoly at the expense Of
the people, devised by the advocates OF
the aiscalled american System,
clothed in the ciaP-trap ghraseology OF
'tprotection to American industry.
The exemption policy to railroads IN
this State (inaugurated long before the
carpet-bag inhietioRl has secured the
construction of several lines with their
attendant benefits. With the exception
Of the Mobile and Ohio railroad, which
claims perpetual exemption, and the road
traversing the southern extremity OF the
State. from Mobile to New Orleans, the
railroad companies are now contributing
largely IN the way of taxes to the support
of our State and county governments, as
of right they ought to do. judging the
value of their property by It's income we
doubt If it is not taxed as high as any
other values in the State. Ii is well
known that the net earnings OF eapltal
invested in railroads are less than III any
other business, On this subject the policy
of our older and more prosperous SISTER
Georgia, which is covered by net work
of railroads, has beeH most liberal. It's
| laws provide that railroads that do not
sspay dividend exceeding six per cent.
e shall only pay one and one-half of one
Z" per cent. upon the net annual income OF
- EACH"
Without The knowledge to answer IN
detail the charges of unjust discrimina-
ton and extortion brought by our
correspondent against the New Or
leans, St. Louis 81 Chicago Railroad
| Cos. nor the desire to shield 1t from
censure if deserved, We can state that
the cost of transportation isso variable IN
different localities and so dependent upon
a multitude of circumstances, that none
but persons familiar with railroadlng are
equal to the task of arranging a schedule