Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-03-10
THE S-MILL TAX N. G.
So Say the Local Business Men Who
Pass Upon Its Demerits.
JUDGE MELONS FORMAL PROTEST
Meets With the Approval of Hon. Il. N.
Long, W. W. Patrick and Others.
SEVERAL SIGNIFICANT SPEECHES

There was another meeting at the rooms
of the Chamber of Commerce yesterday
afternoon of representatives of several cor
porations and companies of the city, to take
action opposing the passing of the bill now
before the Legislature, placing a tax Of
mills on the gross receipts of certain
corporations and business enterprises.
Judge Mellon presided, and Mr.. Gilbert
Follansbee acted as secretary. Mr.. John
B. jackson reported that the committee
having in charge the matter of investigat-
ing the subject had held consultation, and
were inclined to act slowly in the matter, as
the subject was one of great moment, and
therefore, on account of the limited time at
their disposal, they had not prepared line
of action.
Judge Mellon stated that he had prepared
remonstrsnce on the matter, which, if the
members present thought covered the
ground, should be put on record at once at
Harrisburg. He said if they submitted to
the taxation without opposition, it would be
imposed on them, and he objected to the
tax, because it would fall directly on the
patrons of the companies taxed, and not on
the firms.
Mr.. John D. Bailey asked to have Sec
ton % of the bill read; that in relation to
brokers, bankers, etc. He said the tax here
imposed was out of all reason.
Hon. II. NJ. Long then stated that that
section would affect him directly. He said
the tax imposed, together with what is al
ready paid, would make it as much as
man now pays for his city tax, and was en-
tirely too much. He said also that there
was no provision made in the bill for losses,
and that, by reason of its being so one-sided,
was an outrage. He said the present tax
of 8 per cent was not paid, and some years
ago, when license of $50 was imposed on
brokers, together with 2 per cent tax, that
it was not paid, and the license fee was
taken of. He then stated that he had had
SOME EXPERIENCE
in the Legislature, and knew that the tax
was not necessary, as the members say it is,
to run the State. He also stated, in sar-
castle way, that he knew that the Legis-
lature had appropriated sum of money to
pay for the printing of lot of picture
books-alluding to the recent publication of
several volumes on the "Birds of Pennsyl-
vania." Mr.. Long said he supposed this
tax was to pay for getting up these books.
Mr.. w. w. Patrick said his company
the Pittsburg and Birmingham street car
line-was already paying large tax, 80
per cent of its net receipts, to the city and
State. In order to be just, taxes should be
equalized. he said, and he knew some of
them were too high for necessary expenses.
Judge Mellon asked the Secretary to read
L. 81 Il Al LII
ing to pipe line, gas, steamboat, street car,
omnibus companies, etc. he then spoke at
some length against the tax, the burden of
his argument being for the workingmen.
He said if the tax had to be paid these COM
panies would increase their rates, and the
patron, who is the workingman, would be
compelled to pay them. He agreed with
Mr.. Long in the statement that the Leg
islature could mend its ways, and for SIS a
corporation could get charter to do business
without the formality of inquiring as to
its validity, and this he defined as class
legislation, which, he said, was wrong. He
knew some bad laws could be defined as
good, and from his own personal knowledge
he knew that weak-minded persons could
be placed on the Judges bench. He said
he knew the latter from his own experience
Judge Mellon then said he wished this
organization to continue, and that meetings
gould be held often, and in time perma-
nent organization would be formed. with
branches throughout the State, for the pur-
pose of opposing class legislation.
Mr.. Feckley gave it as his opinion that
the bill could not pass, by reason of its be-
ing unconstitutional, in that it exempted
certain limited copartnerships, notably iron
and glass companies.
There were more opinions expressed of the
nd w Dot f,ia III
that the remonstrance prepared by Judge
Mellon be read.
THE PAPER SETS FORTH
that tax OF mills on gross receipts is un-
duly onerous, even on profitable or dividend
paying companies, and when added to
county, poor, school and city or borough
taxes, is disproportionate with the lighter
burdens imposed on other property. On
the non-paying companies and corporations,
such as require all their receipts and more
to pay the running expenses, such tax is ex-
orbitant and unjust.
In paying companies, two-thirds of the
gross receipts are paid away for running
expenses, and the other third to a sinking
fund for other contingencies. On non-pay-
ing companies it is an imposition on the
shareholders; a tax on future increased
profits, not yet in sight, and which may
never materialize.
Every such increase of tax is virtually an
impost on the neccessaries of life of those
dependent on such methods of transporta-
ton to and from their places of employ
ment, and it bears with undue severity on
the workingman and business men of
cities and towns where the people live
in the suburbs. Such taxes constitute
part of the expenses of the plant, and the
rates of fare and charges must In some way
be adjusted to include these, so that it is an
indirect tax on the people who have to use
the appliances in the vocations of daily life.
IL the nature OF things it cannot be other
wise, and it adds to the already heavy bur-
den of the bread winner. Companies or
corporations, to exist, must exact taxes
from their patrons
Such increased tax burdens on capital
used in the productive industries Of the
State, and the methods of conducting them,
is impolItic and contrary to the admitted
principles of economic science. A little
more economy in appropriations and ex-
penditures and somewhat less applied to
the sinking fund. would obviate all neces-
sity for it.
Eight mills on gross receipts is much
more onerous on non-proft paying concerns
than per cent on net profits, and such dis
elimination on limited partnerships or in
dividuals conducting the same line of bust
ness, is unequal. unfair and unjust.
On finishing reading the paper, some al
terations and amendments were suggested,
to make it broader in its opposition, so that
several business enterprises not mentioned
in it could be included. This was resolved
upon, and the remonstrance wiH be pre-
pared for the meeting next Saturday.
HORsFORD's ACID PHOSPHATE,
HealthfuI Tonic.
Used in place of lemons or lime Juice it will
harmoniza with auch etiuarIapto Y,aoao