Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-02-24
rFRoM A STAFF CORRESPONDENT ]


before the present session of the Legisla-
ture Between the equities of the case and
the constitutional requirements the men,
bers are all at sea. They prefer not to lay
this additional burden on a certain class Of
manufacturing institutions, but they want
to frame bill that will pass the ordeal OF
the Supreme Courts penetrating wisdom,
should it ever get that far. Besides they
realize that there are political consequences
in State like Pennsylvania that may be
very unpleasant for aspiring gentlemen, am
bilious to linger long in the public arena as
politicians and statesmen.
The manufacturers who were here the
other day did not forget to mention this
feature of the case to the members they
came in contact with, and made it apparent
that the trainers of the bill were not left out
of their thoughts in the same connection.
The ethics Of such arguments may readily
be called in question, but it is an undoubt-
ed fact that their practical effect is likely to
be greater than the other arguments that
may be brought forward.
THE MANUFACTURER's FRIEND.
OF course no one anticipates that in the
event of the Legislature deciding to tax
manuIaCyuIlUS
throw the State into the hands of the
Democracy. That might be very heroic
course but it would be impolitic and direct
ly in the line of a suicidal policy. The
Republican party has been the especial
friend and champion of the manu-
facturer, and he has never been permitted to
forget the fact when sinews of war have been
needed Neither has he, as whole, neg
lected on very many occasions to make it
understood that he is the friend Of the Re-
publican party. Each knows that it would
be entirely too bad for friends to fall out
over this matter, and SO the manufacturer
on his side probably intends to be under
stood as merely having knife up his sleeve
for the individual who deserts him in this
extreme.
There are good arguments to be used on
either side of the question. The gentlemen
interested in manufacturing corporations
say that a tax levied on them, and not on
the individual manufacturer, handicaps
them, and is in the line OF direct bonus to
hi,h, giving him a distinct and decided ad-
vantage over them. This is the disadvant-
age it places him under in his own State,
and it also handicaps him in competition
with the manufacturers of Ohio and New
Jersey.
MEETS WITH FAVOR.
Mr.. divers arguments, that the whole
State tax should be levied on corpora
tions having exclusive rights, is one
that meets with much favor here, but
even some of these are now striving
in the courts to be recognized as manu-
featuring corporations. And the State
officers say that the term, manufacturing
corporations may be made to cover so much
ground that sit is difficult matter to tell
now where the limit may be placed. A gas
corporation manufactures gas, an electric
light company manufactures electricity, If
the parties financially interested are per-
mitted to decide the matter, and a fruit pre-
serving and picking company, holding
charter, wants it understood that it, too, is
engaged in manufacturing. The dividing
line is becoming as indistinct and far away,
say the State officials, that the only thing
we can do is to wipe it out altogether and =,
tax the stock of all corporations if we de-
sire stability of the State revenues. The
amount of revenue the State will gain now
by taxing the stock Of manufacturing cor
porations is $500, 900 and it is needed badly.
Unless we get it from this source we must
get it from some other"
NEED MONEY.
Ex-Speaker Graham, Chairman of the
Ways and Means Committee, said to your
correspondent recently: tit is true that the
State needs the money that will come from
this tax. and if the State does not get it
from this source it will be necessary to find
some new subject of taxation or increase the
tax on some subject already taxed. 1t is a
very grave question in my mind, however,
whether the State would not lose vastly
more than it would gain by levying the tax
proposed. We see little towns everywhere
paying bonus OF 81, 900, SO, 900 or 1000
to manufacturers to have them locate their
works or factories in those especial locali-
ties, and it seems to me that what is good
thing ior one OF those towns must be a
good thing for the State. In Western
Pennsylvania we see towns over the line in
the Ohio natural gas territory offering our
own manufacturers great inducements in
addition to the exemption from this tax.
Wouldn't the imposition of the tax be
likely, then, to drive them over the line?
Conditions very similar exist on the eastern
border"
Hon. Henry Hall, of Mercer, who ably
represented the rural sentiment Of his Sec
ton on the subject, thinks $500, 900 year
very small sum for the manufacturing
corporations 10 pay to the State. His col |
league, Hon. James Fruit, of Sharon. who |
represents manufacturing constituency,
takes the opposite side of the question and |
ably champions the right of the manufac-
turing corporations to exemption.
UNCONSTITUTIONAL TAXATION.
The taxation of one manufacturer and the |
exemption of another he considers species |
of legislation that certainly comes under the |
constitutional prohibition of inequality in |
taxation. Mr.. Fruit does not think the fact !
that one is chartered cnncern and the |
other not chartered should enter into |
of the subject at all. The
corporation, he says, cannot buv more
cheaply or sell its products for more money
than can the private manufacturer, and |
therefore it is particularly unjust to place
an especial weight upon its productive Ell
forts. He doesn't think the Constitution
contemplated anything so unjust.
The Allegheny county delegation will |
stand firmly against the tax, according to
reports. All the members of it, however,
have not been here this week to express
Senator Rutan, who keeps close watch |
on the sentiment of both branches of the
Legislature, said to-day that if a vote were
taken now on the exemption of manufactur-
ing corporations from the capital tax, it
would be carried by large majority. Just
to what extent sentiment may change is
matter on which the Senator does not like
to hazard an opinion.
"One powerful lever that will move the
to vote for the tax, he said, sis
the statement reported from the Governor
that if the manufacturers are exempted the
charitable institutions Of the State must
suffer. have not talked with Governor