Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-03-01
spFBoH OF Hon. GROVE L. JOHNSON
Lcn.rlrrEp rnoM rIRsr PAGE. !

.o,e fine distinction between the individual
and 4 corporation, under which the corporation
sha be assessed twice, while the individual is as
sessed hut once. Take the firm of Gooda Perkins
{ Companv do not know whether they are
incorporated or not. l will assume that they are
moi Tor the purpose of argument They are engaged
In clrrying on the steamship business. They send
their steamers all up and down the coast. There is
another known rs the Pacific Mail Steamship Com
many That is an incorporated institution. Now,
III Pacific Mail Steamship Company has its articles
Of incorporation and issues its certificates of stock,
and they may own ten steam rs worth SIC, 100000.
Coo1alL Perkins Co. may own ten steamers
valued at 100000. Is it right and proper to tax
Goodoll, Perkins Co. on $4,000, coo and then tax
the Pacific Mail Steamship Company $40, 1000 ,0e0 on
lis property and $40, 900 also upon its capital
stock or certificates of stock? And yet that is what
i rTavey cintended for by the advocates Of the mi
nority report, and they have argued gravely here,
and the Senator from Solaao has said that there is
distinction between the capital stock and the shares
OF capital stock in order TO justify his course in vo
ing for double taxati submit there is nodiffer-
elcs between the two except that one Is corpora
ton ami the other is n individual.
DO NOT LIKE CORPORATIONS.
Had my way, wou abolish all laws for the
incorporation OF anything. bel eve that they have
been detrimental to the best interests OF the world
believe that the history OF our country and the his
tory Of the rid viii demonstrate that corpora ions
have been an evil greater than the good that has re
suited from them Had I my way. would strike
from the statute books every law providing for in
corporations, and would otpermit any more cor
pnratons TO be formed. But the provisions OF the
law exist Corporations here corporations have
been formed in the past under our laws corporations
can now be formed. and so long as corporations are
here so long as corporations are recognized by our
laws and our CONSTITUTE long as they have rights
for one am willing 70 vote to protect their rights
! am willing vote to project the rights OF cor
p5ration equally, as would be willing to vote TO pro
tcct the rights Of an individual. l have pro'ed
BIZ my works my faith. Two years ago | stood
oil
sQ-clled gag-law. When the Supervisors OF San
Francisco and the Mayor Of that city came TO Sac
rainento fleeing from what they SAID was the wrath
behind them when the District Attorney oil San
Francisco and the Judges and the Judiciary Com
mittee Of both houses said we must pass this law
did not believe it TO be right and proper did
not believe it to be in accordance with the
rights Of the individual the liberty OF person
and the liberty of speech, and / stood solitary
and alone against the combined power OF ooth
houses for two days in debate. 1 prophesled then
that | would live TO zee that law repsaieu, anu
have lived to see bill introduced tn repeal IL go
through both houses Of The Legislature and De
signed by the Governor, and the law stricken rom
the statute books allude to that TO show that
have proven ia public what have said IN private,
that am willing TO protect the rights OF any man
he he never so humble, AID am willing to protect
the rights Of any corporation be IL never SO great
And when Senators upon this floor seek TO dlctate
TO myself an other Senators, and divert attention
from the real questions by attack upon corpora
TONS and by denouncing corporations and de-
nouncing the fact that they employ lawyers Tor one
am not willing to allow them to think Tor a mo,
ment that such talk has any influence with me, and
l do not believe that it has any influence with any
fair minded Senator upon this floor.
Mr. WEs-I did not dcnounce them for employ
ing lawyers.
Mr. JeHNsoN-I will explain why make the re-
mark He said they had quasi-legal right to en-
ploy counsel l say that they have legal right and
a moral right, and there il no halfway measure
about it. Quasi only permits by color Of law, and
say that it is their duty to themselves and The prop
erty they own to employ lawyers or anybody else
that they think is right and legitimate to protect
their property.
NATIONAL BANK CASES.
Now the Senator from Solano called attention to
the decision Of the Supreme C0urs OF the United
States upon the proposition that stocks couiu De
taxed and that there was distinction between the
tax lton Of the capital stock aud the taxation OF
shares. Why am surprised at The Senator making
that argument allusion. for the very law Wnlcn
authorized national banks provided how they should
be taxed and the decisions that were rendered were
rendered under the law of Congress. which provided
exactly how they should be taxed The 4lst Section
of the Act which authorized the national banks reads
as follows in the proviso:
Provided that nothing in this Act shall be con-
strued 10 prevent the authorities OF any State from
taxing the shares OF capital stock oil the BANKS here
provided for, etc, etc
The Act which authorized the national banks ex-
pressly provided how they SHOULD be taxed-ex-
pressv said that the shares should be taxed to those
who held them, ana must DC bdAtu III VIC
which have suggested. Now the Senator from
Solano reads to the effect that the Supreme Court
of the United States decided that proposition 10 De
correct. 1t is true they did IL by bare majority
vote | find in the case OF Van Adam Vs. Ire
United States (3lst Waace's U. S. Reports) that by
a bare majority Of the vote Of the Sup eme Court
of the United States they decided that the shares CT
st ck could be assessed. But Chief justice Chase,
than whom no better or ADLER lawyer ever graced
the Bench OF this any other country and Associ-
ate Justices Swayne and Wayrc, making three OF the
ablest lawyers upon the Bench disSented from that
opinion and voted and gave the reasons for tne
flith That was in them that even with that
provision in the national banking law, the
shares OF stock should not be assessed
allude to this as showing tina. all the stress laid
by the gentlemen who favor the minority report
anon decisions Of the United States Courts, vanish
into THU air when confronted with the stern FAC;
upon which the decisions were rende cd -.ha'
these decisions were rendered on cases coming VI
under a statute which expressly provided the means
and manner and mode of assessing the shares. II
expressly said that the shares should be taxed, and
that is Why the Supreme Court said that they could
be taxed ana they only permitted them TO DE taxed
then by bare majority vote OF that high and august
tribunal. While upon this branch of the case per
NIT me to call attention TO the extremely lucid ex
plantations and the extremely direc: answers that
we're given by the Senator from Solano and the
Senator from Sonoma TO the question put Oy
the Senator from Santa Clara in refer
ence TO taxation in tho case he gaYS
in illustration. Neither of them would answer
claimed that it outside Of the The Senator
from Sonoma gave an evaslve answer They botf
contented themselves with answering in the style o.
Jack Bunsby, If so be as say why then so be 1t
My name is Jack Buusby and what says l stand!
to-" The question fairly put by the Senator
from Santa Clara, and neither OF them answered
At she risk OF being called mere copyst; believing
that the proposition adya ced by the Senator from
Santa Clara is unsnswerabe, with his permission
will again the illustration. If one man TO da,
has one hundred thousand dollars, and o-morrow hi
goes into business as q corporation with the SAINT
amount of capital hasany more property been created
by reason of the incorporation than there before
There is the hundred thousand dollar
there and that is all there is. And yet under thu
system argued for ty the Senator from Sonoma h
would be taxed upon tho one hundred THOUSAND
dollars and upon the capital stock. l submit tina
that is not fair; submit that 1t is not right; sub
nit also, that the whole question as to the assess
ment of the capital stock. and as to the assessment
Of shares of stock. is met by the provision ponte'
out by Senator Hittel in the ma jority bill ADM
that capital stock may have value; that corpo
ration may have property IN excess OF the value o
the tangible property of the corporation. That va
IS represented and assessed by the minority BILL b.
assessing the stock when i is above the par value
if any such time should occur The Senator from
So.ano says that that would never happen that tn
stock never rises above par. Now, have distinc
recollection that few years ago the stock Q
the Sierra Nevada mine went up TO $500, $500, $40
and $500 4 share when am Informed, the par vaiu
was SiO0. | und rstand that the stock OF the ga
CORPORATION Of san Francisco sells above par. Tn
stock of the water corporation in San Francisco ha
sold above pa but | do not know whether 1t doe
now or not. | only alude 60 them TO show tina
there have been instances where corporation coui
be assessed upon an intangible something oeyon
the mere property that it has.
INCOME TAX.
But ! also desire 10 call the attention of til
Senator from Soano 10 the proposition that all hi
objections, / understand them. can be met by
simple amendment TO both or either of the report:
by providing for an income tax upon its value.
am in favor OF an income tax believe that to be IN
rrht and proper method OF treating this question
believe it right and proper TO levy an income tax an
1 believe that it is the only way TO reach Thu
and of property-bonds. stocks, mortgages, notes
kini crS IS / advocated that proposition In tn
ioiat committee, and found but three votes for II
ard give the Senator from SoEoma the credit tina
he voted with me, and the great champion of tn
minority made eloquent speech against taxlni
incomes, and yet, as read his speech published u
the newspapers. he is very anxious to assess some
thing or somebody that he don't Ike B.
an income tax YOU might meet the very case alludet
toFy Senator est. You might reach the men VIII
h I'VE their hundreds and thousands and millions o
dollars invested in United States bonds. You woult
make them nav reasonable and rightful share o
the expenses Of the Government. An income tai
would make all these receiving large salaries
who, am informed, one great cause OF tn
trouble in mining companies pay their full sbar
10 the burdens Of Government. IL woul'
make the shares If stock pay re lsonabl
share il they were Of auy value IL mai
has sharc of stock that does not produc
any thing if il is of no value to the man, except fo
speculative PURPOSES ought he TO pay any upon 1t