Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-02-22
. rFRoM A STAFF CORRESPONDENT

this morning to labor with the Ways and
Means Committee of the House, sees politi-
cal consequences which the members of the
Legislature ought to keep before their eyes
along side the economic facts, before they
decide to follow the ideas of the State off
cials, as shown in their general revenue bill,
and impose a State tax on corporations.
This view of the question was not formally
laid before the WAYS and Means Committee
to-day by the speakers, but is undoubtedly
point they have not overlooked.
The Wavs and Means Committee meeting
was held this afternoon in the hall of the
House of Representatives. Chairman Gra-
ham sat in the chair of the Chief Clerk,
with Secretary bravo by his side. The
gentlemen who appeared on behalf of the
manufacturing interests, were Representa-
tive Bean, Cyrus Z. Elder, of the Cambria
Iron and Steel Company; H. W. Oliver,
Pittsburg; Mr.. Wilson, of Philadelphia;
Colonel l. n. Schoonmaker, of Pittsburg;
ex-Auditor General Niles, and w. c.
Quincy, of Jones & Laughlins, Pittsburg.
The fight for the particular provision of the
bill under consideration was made by Hon.
Henry Hall. of Mercer, who questioned
and. crosse questioned the speakers and made
it plain that if the m nuiacturing centerS
were against the bill, the rural population
was by no means unanimous against it.
A PROTEST FROM $4,000, 900.
Colonel Bean simply read protest from
the manufacturers of the Schuylkill valley,
representing $40, ,OO0 900 capital and 5000
employees. Their objections to the tax on
corporations are that the tax was only re-
pealed in 1885, and that SINCE that time
many companies have been induced thereby
to become corporations; that Ohio and New
Jersey, competing with Pennsylvania on
the west and east, have no such tax; that
such a tax tends to discourage cooperative
companies; that there is considerable differ
ence against the Pennsylvania manufact-
urer between the wages paid here and in
New England; that the imposition
of the tax Will tend to the lower
ing of wages and that the decrease that
might be brought about in manufacturing
would iniure agricultural interests by de-
stroying markets for agricultural products.
CyrusElder,o of the Cambria Company, Sec
retary of the Philadelphia Association of
Manufacturers, said it was an admitted fact
that the national prosperity was largely due
20 the policy of discriminating in taxation
in favor of the manufacturer He thought
it ought to be a serious question with Penn
sylvania whether she of all others should
depart from this policy. He traced the his
tory of the taxation and exemption of man
ufacturers, and stated that while the reve-
nue. from corporations was 81, ,534, no in
1884, the year before the repeal OF the tax,
it last year had increased to 81, ,S14, ,S4S from
the payment of bonuses on new charters
alone. Mr. Elder stated to Mr.. Hall that
the tax on manufacturing corporations
would really decrease the revenue, as man
ufacturers would not form new ones, and old
ones would surrender their charters.
TAX MoNoPoLIEs.
II. W. Oliver, Jr., said that from 1873 to
1884 manufacturing corporations decreased
to less than 100, and no new charters were
taken out. Allegheny county had but one
"It the bill becomes law" he said, ''it
will cost me $50, 600 where it now doesn't
cost a cent" The bill he also declared was
q direct blow at cooperation.
How will you avoid this and at the same
time create revenues" asked Representa-
tive Hall.
"Tax corporations having exclusive
rights" answered Mr.. Oliver. "Tax rail
roads, water companies, gas companies, cleo
trio light companies and such as these We
meet a bitter competition from the South
now and why aid it, and SO destroy the pro-
ducing power that makes this Common |
wealth fat field for these monopolies. |
Raise your revenue from them |
In answer to question about the extent |
of cooperation in Allegheny county. Mr..
Oliver stated he could not answer fully, but |
could say there was hardly limited COM |
pany in Pittsburg in which some working |
men have not other than a wage interest
The principal debate of the afternoon was |
between ex-AuditOr General Niles, who is |
said to represent Baltimore and New York |
capitalists, and Representative Hall. Mr..
Halls questions were direct and to the |
point on the constitutional features of the |
case, and the replies of the ex-Auditor Gen |
eral were for the most part evaslve or after |
the Yankee fashion, answering question
with question. Mr.. Niles best point on the |
constitutional argument was that the i'm
position Of tax on manufacturing corpora
tions creates an inequality in taxation Oh
subjects of the same class, something the |
Constitution forbfds.
A BLIND GIANT
He based this on the fact that an indi- |
vidual manufacturer and a manufacturing |
corporation were in all respects on the same |
footing in their business and in the markets |
where they bought and sold, and therefore |
to impose a State tax on the latter and moi |
on the former amounted to oppression. The |
ex-Auditor General characterized this class |
of legislation as unfriendly to the best in
terests of the State. He compared Penn
sylvania to a blind giant bound down by
many difficulties
"But," inquired Representative Hall. |
doesn't PENNSYLVANIA get along pretty we'll |
after all for blind MANI"
'Yes," admitted Mr.. Miles, "but your
unfriendlv legislation which forces people to
get married in New Jersey, has also sent a |
great deal of money from Philadelphia into |
the same State to be invested in manufacto-
ries."
"In other words, retorted Representative
Hall, "Pennsylvania not only does well, |
but its prosperity spreads beyond its own
berders"
Representative Hall, before leaving Che
eX-Auditor General, succeeded In showing
by hard questioning that that gentleman |
had not always thought on this tax subject |
as he does now, and that the letter which he |
wrote to Governor Pattison indorsing the
exemption of manufacturing corporations,
without which Endorsement the Governor
would not have permitted the measure to
become a law, was most unwillingty wrung
from Mr.. Niles
Mr.. B. O. Wilson, Of Philadelphia, ar
gued that the Constitution permitted the
classification of corporations, and that under
this classification manufacturing corpora
tons could be made exempt from taxation.
Mr. Hall replied that the Constitution
would permit their classification for taxa
tion, but not for the exemption of a certain /
class.
COKE MEN KICK.
Colonel Schoonmaker devoted a brief
time to the coke companies. and corpora