The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1885-01-08
THE FACTORY EXEMPTION QUESTION.

We cheerfully accord TO Mr.. Scudday
the opportunity to publish his speech in
the House of Representatives In opposi-
tion to the existing law which exenpts
manufactures from taxation for period
of ten years, but in doing so we must not
be understood as sanctioning that the
publication Of the mere fact that mem.
Der of the Legislature spoke upon any
given side of question entities him to
have that speech published in the paper
SO announcing. Mr.. Scudday's speech,
however, is thoughtful and we'll prepared,
SO that it will be doubtless interesting
aud instructive to those who read it,
though we do not think it will stand the
test of critical examination. II Is
plausible-pitched in popular strain
but we think outside of this that ii fails
TO advance any strong reason for the re.
peal he seeks. The main idea that runs
through Mr.. Scudday's speech Is, that
the exemption robs the many Cor the
benefit OF the few, and Of course IL this
is true it is grieyons crime. In practice
the sums invested in factory stocks are
raised out Of surplus money, which would
otherwise be put into pon.taxable bonds,
or in many instances fail to be returned
for taxation ou. Of capital induced to
come here from abroad, which would
otherwise not be subject to taxation here,
and also portion Of it is raised out Of
amall savings by men and ladies In limi.
ted circumstances, who invest In few
shares Of factory stock. These are the
three classes. Now let us sec what the
State gives up.
TO begin With, 1t agrees not 10 tax the
surplus money which is invested in man.
ufacturing for ten years. This may ap.
pear to be great concession, but in
reality It Is good trade for the State, for
as general thing there is very little sur
plus money returned.for taxation; aud
when men Of large means invest their
moneys they frequently manage TO place
considerable part of it in manner in
which It pays no taxes. The State,
therefore, says to the owner Of surplus
capital, if you will invest it in factory
stock, whero it can always be eeen aud
taxed, We will exempt it for ten years.
Theoretically the State may lose, but
practically we believe she makes by the
bargain, if 1t were to stop right here.
Then on the introduced capital there can
be no question that the State will ulti.
mately gain by inducing it's permanent
investment here, upon condition that
when go invested it shall be free from
taxation for ten years.
Upon the third class of investments of
small savings the State also gains, for
many of these sums would otherwise 60
to secure some temporary comfort, which
would add nothing to the wealth Of the
State, aud would not appear upon the tax
books.
In all these classes it will be seen that
1t Is atleast doubtful If the State does
not make more than she loses by Undue.
ing investment in factories, where 1t can
slways be reached for taxation. We do
not mean to deny that sometimes money
il put into factories which would otlias-
wise go upon the tax books, but we are
satisfied that great deal goes there
which would otherwise not get on the
tax books, aud then after ten years It 10
forever taxed by the State.
It is also mistake to suppose thAt
exemption from taxes is not M induce.
ment for money 10 bainyeated in manu-.
featuring. 1t is equal to one per cent.
interest, which 10 one fourth or one.third
as much as many men make on their
money in some Of the Northern States
one.third as much as the government
pays on its bonds. 81;
ftis likewise a mistake to claim that
the exemption principle Is o new one In
this State. It has run through the whole
hiatery Of Ssauth Carolina. We believe
Il tWna first begun in the shape Of boun.
Ties for the: cultivation OF indigo. We
4 behave that every railroad that wac built
in the State before the war wes exempted
from taxation, either for q period Of sfiity
4 years. o- In perpetnity. It has siRays
been, the nalioyaand the practice OF South
Carolina 20 encourage attention to infan.
tile industries which gave promise Of
i profitable Development. = y 4.
y fs:iss equally 8 mistake, we ihlnE, %
assume that we cannoE equal the New
England States in manufacturing. We
hass 1 more equitable temperature, we
haFo longer days, and we have tho cotton
&eupply sas otiEEdnofs, We nave tha midi
dle.men Id handling. cotton, and the long
freight hau1s on. the raw p1aterisl, and
the return fseights on The snaonnt Of the
manufactured goods scnEaumed here,
Beiofs the war wcawefs IAN exclusively
agricultural paople, aud car slaye system
1 was not favorable TO the development Of
aki,led indnatries. Now oil OF this has
changed, aud the sot.s OF disersifed In.
dnssfy Is stead lily deysioping, aud We
believe iha South is. destined 20 dis,ance
her Northern sis,eTa In the profitable
Industry of manufacturing. s@Ss'i :
The value of & bale OF raw cotton
averages totfs dollars, while tho aarne
cotton annfa6tnred becomes ifom three
to. perb aps len times I:as valuable. ae-
cording 60 The fneneas Of the nlanafac,
tass. II is.5 hersfose. greaiIs ID bs dss