The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-04-14
The Legislative AttacS on the In-
dustrios of the State.
The Democratic Party Must DO
Saved From Foolish Leaders.
An Appeal to the Next Dem ocratic
State Convention Proposed.
1t is TO be Asked to DeAae Its Pc.
sition With Regard to Indus
trial Investments In Tom
nessoe.
nessoe.


icisln Of public men and their official acts
is the right OF the private citizen. Ma
licious criticism is grave oaense, but u
truthful and respectful analysis Of the acts
and even the motives OF public men is tho
courageous discharge OF duty.
The action OF the House OF Representa-
tiyes in the session OF the Tennessee Leg
islature which has just adjourned, on the
question OF taxing the property OF corpora.
tions, demands at the hands OF the whole
people, but especially those who have
ventured to invest money In private cor
porations, a careful reckoning.
Shortly before the meeting Of the Icgis-
lature the Supreme Court had made de-
cision which alarmed the industrial inter.
ests OF the State greatly, and from all the
now enterprises in every part Of the State
there came petitions TO the Legislature for
relief from the unequal and excessive tax.
alton which the Supreme Courts decision
imposed under former legislation.
The result was, after most fearful strug.
gle, that conservative spirit in the Sem
ate--in opposition to what seemed deadly
hostility in the llouse-bg the nnrrowest
margin saved the new Industries OF the
Slate-all the industries where capital is
continuation destruction.
The narrow escape Of all our miningand
manufacturing industries by legislative &C.
ton demands, absolutely demands, that
every possible prccaution shall be taken
to prevent future disasters,
The motive which prompted the action
OF the House commitecs-+Grst, the Com
mittee on Ways aud Means, and second.
the part Of the Conferences Committee ap.
pointed by the House, AMI whose several
steps the House followed, need not be in.
quircd into: In fact, Il Ia due the gentle.
men composing these committees 20 say
that the motive was not vicious, but an
honest and conscientious belief that the
interest OF the state would be- promoted
by Gripping instead OF fostering these new
industries, and this comSs, Il IN well to
say, from hundred years OF training in
school whose teaching was There is
honor only in agriculture and the learned
professions.
Having said this much, Il Is due these
committees and the members OF the House
that | shall state with accuracy the issue
between the House aud the Senate.
The House abandoned the theory OF
double taxation, growing out OF former
legislation, ~ construed by the Supreme
Court, but substituted ~ a rule for all cor.
porations, that the tax on the capital
stock Of the company should In no case be
less than tho aggregate market value OF
the bonds aud stocks, and that the assess.
mont should be made where the principal
office was situated, and that Il should take
into consideration the corporate property,
the franchise, the easements etc.
The attention OF the committee was
called 10 the facts that the bonds were
taxed In the hands Of the owners. and that
many OF our corporations owned property
real csiate-in several counticy. and that
under the Constitution aud the decisions
OF the Supreme Court, the real estate Of
corporations had 10 be taxed la the coun-
ties where II lay. This was finally con-
ccled to be the law, but the committee ~.
jrcted an amendment 10 give credit, when
the assessment was made nj the principal
Office, for tho taxes assessed On tho real
estate In other counties.
II was shown tie committee that IN
many instances but small part Of the
property was in the county oi tho princi-
pal office. while the bonds aud stocks
we're based on the entire property, aud
their valued were made up mainly from
the properly already taxed IN the other
counties.
When the bill In this shape went to the
lac Hl..s.fH
that body struck out the arbitrary taxaliOn
based on the aggregate market value Of
bonds and stock, and amended by making
u the duty OF the assessor 10 look ~ ovi.
dcncc TO the bonds and stock ~ we'll ~
the property and the income, aud 10 thus
assess the property at he lnil value includ'
ing franchise, easements. etc, giving
credit Tor property already taxed ia other
counties
The House promptly refused 70 concur
in this amendment, AMI ms lnI 10 con.
ference committee. when The House com
mittce members reluctantly cDnscntcd 10
give credit for properly already taxed, and
reluctantly substituted actual Tor mar
kot" value, but rciu 81 10 abandon the
arbitrary fixing Of the value by the aggfo.
gate Of bonds aud stock
~ ~ Nu' 70 iuAn ~ HANf NNIAlNNlf AlNA
alter the bill was reported N the House by
the Ways aud Means Committee loaded
down as Il was with hostility % all cor
poraic intcrests-the HOUSE, by q decided
majority. voted down all amendments Of
importance, and especially thc amend
menis looking 10 equalization with other
property In the mode NJ taxation. Among
other things the lloua., upon a PLAIN
simple proposition. lclustd 10 allow credit
at the principal Office, where the .ass'sl'
ment ON the aggregate " bonds and stock
is made, for property taxed ~ other
counties.
All this alarmed people who have money
invested In corporation, lld the moro 40
because the action was defended ns sound
Democratic doctrine, anl was especially
pressed by the leaders Of the Democratic
party In the House.
The narrow escape from q bill which, In
all Its features, was h0Eilo to every inter
est connected with copifi1on', nni the
lact that the conservative members on the
Conference COMMITTEE. anil the senate ~
q body, were compelled At last raihcr
Than do nothing. 10 abandon the wise aud
fair proposition for taxing corporations IN
individuals are taxed -lhal u, on all ihclr
property; the value to b. asccftained by