Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1880-12-20
1ancaster flltfikse1lrer.
MONDAY EVENING. DEC. 20. 1890.
Two Subjects OF Taxation.

MONDAY EVENING, DEC. 20. 1880.
Two Subjects OF Taxation.
We cannot agree with the Chickies
iron company, whose memorial we print
elsewhere, that the tax upon the divi-
dends or capital of manufacturing cor
porations is unjust or unwise. On the
contrary we think it both just and wise.
It is just, because it is charge for the
corporate privilege; and it is wise, be-
cause it is a tax which is readily COL |
lected and which cannot be escaped by
any member of the class upon which it
is laid-the class of corporations. We
can hardly imagine why the Chickies
iron company or any manufacturing
company should object to pay the state
for the privilege of incorporation which
they ask from it. To be sure their labor
is beneficial to the state but so it would
be if they conducted it rs partners.
1t is true, no doubt, that it is to the
interest of the state to encourage capt.
tai to embark in manufacturing indus
try and the state recognizes this by au-
thOrizing the formation of corporations
for the purpose. But the state has like
wise duty to perform to those who pre-
fer to engage individually in manufac-
turing. 1t is more to her interest that
manufactures should be by individuals
than by corporations. The latter are
very Objectionable, in some of their fea-
lures. to the public interest. 1t is
only because of the fact that
large amounts of capital cannot
well he got to work together, but under
corporate privileges, that corporatiOnsa are
created. Small works with small cap
ital, and many of them, are, we certain
" believe, more advantageous to the
state than great ones. Such can best Ike
conducted by individuals, both for their
own and the public interest. 1t would
he very wrong therefore for the state to
put companies Of men. having valuable
corporate privileges rs L gift from her,
on a footing with companies Of individ-
ualS without such privileges and risking
all their substance in their business
Such legislation would give us nothing
hut corporations and we have them. as
if is. al nunScdm.
They ought in justice to pay for theil
privileges handsomely. and we consider
the.tax upon their dividends or capital
one of the most beneiicent imposed 10y
the state. And it is furthermore to be
noted that they all can escape from il
who are willing to associate themselves
under the limited partnership act. The
state, in its exceeding benevolence t.
manufacturers in 1874 passed very lib
eral law enabling them to associate to-
gether in business under {; liability lim'
tied to otheir..capital, imposing upon them
as.a chief restraint, the necessity of put
ting the word limited after their title
on all occasions, SO that no one dealing
with them should I've deceived rs to theiI
responsibility. We know of no good rca
son why men, who proffer their creditors
a limited liability, should object to pro.
claiming it; and any corporation of man
ufacturers, who think they pay too dea'
for their privileges in the cOrporati2l
tax eXacted of them, can successfully
glide away from it by reorganiZins
under the limited liability act; we rec
Ommend them to do it, and to leave th'
company of the bigger craft of corpora
tions who find themselves amply repait
for the tax they pay by the opportunitie:
they acquire to Swil.lle the people.
With the other position taken in thu
petition of the ChickieS iron company
that no tax on mortgages should Ike laid
we are in hearty sympathy; and for the
reason that in our judgment it is neither
just nor wise. 1t is not just, because th'
land is already taxed rs real estate, ant
a tax on the debts which are a lien upOl
the land, puts double tax upon TIN
land. Furthermore, it is Objectionable
as Il tax upon 4 debt, which the debtO
has to pay directly or indirectly !; and ;
debtor is III unfair Inject for taxation
And 1t is not a wise tax, because it Cal
not be equally collected from all in tin
class subject to it. At least it is not
Tie difficulties seem to l'a too much fo
the average assessor, for it is notorious
that very small sum. indeed, of tin
total amount OF judgments and mort
cages is ever returned for taxation. Ye
rs the liability exists, the debtor is Otter
required to assume the burthen of TIN
tax in the contract of loan, it being gen
orally, however, stipulated that it vii
not Ike collected unless il is collected from
the lender. Sharp business people dealin;
with each other, thus guard themselves
in relation to this tax :; and the weight
of it does not often fall upon them. Il
is the simple man, and the widow, an(
those in moderate circumstances, wht
have Il little money ut interest that theil
neighbOrs all know about it and that
they do not conceal from the tax -gatherer
who bear the chief burthen of the tax on
judgments and mortgages. And they
are Just the ones who should not bear it
Taxation should fall most heavily upoI
the rich, who are best fitted to sustain
it and who reap the chief advantages OF
the protection afforded by the taxin!
government. And wise legislation il
directed thus to impose it, though tht
work is undoubtedly one of great diff
Guilty.