Los Angeles herald., 1892-05-30
TAKING nANuFAcrURrNe CORPORA


at various times about taxation, the
state of Pennsylvania has often been
cited as an example where the great
bulk of the taxes is derived from tax
upon corporations. The lightness of the
tax levied upon freeholders in the city OF
Philadelphia is ascribed to the percentage
tax raised upon the corporations. But
few years ago the result of overtaxing
manufacturing companies was mani
tested in disposition on the part of
these corporations to move over into
New Jersey, where such enterprises are
treated with greater consideration.
There is no question about the pro-
priety of levying good round tax upon
that class of corporations that are quasi
public. Steam railroads and street car
companies ought to pay into the treas
ury q liberal percentage Of their earn
ings on account of the extraordinary
privileges they enjoy. Corporations
that exercise the power of eminent do
main, and those that have the privilege
to use the public thorouRhfares Of mu-
inequalities, do not stand upon the same
footing toward the public that manu-
featuring corporations occupy. The
difference between franchise that con-
fers extraordinary public privileges and
one that merely extends the law Of the
state over a combination Of indi-
viduals to engage in manufacturing
business as corporate body, is very
marked. Every community finds posi-
tive local advantagestin the establish
ment Of manufacturer in its midst.
They give employment to its people, in
crease it's population and enrich its
merchants. To certain extent this is
also the case with quasi-public corpora
tions; but manufactures concentrate in
the communities in which they are
located all the advantages of their estab-
lishment and operation, whilst with
railroads their benefits are scattered
over many communities and are conse-
quently less directly felt in any single
locality than those of the manufacturing
corporations. Whilst discussing the
question of taxing corporations we
should bear this difference in mind.
This subject is now exercising
the legislative department of
the state of New York. A
joint committee Of the two houses of
the legislature of that state has been ap-
pointed to investigate the state system
of taxation, and to make suggestions for
such revision and modification Of the
tax laws of the state as may seem to it
necessary. The first meeting Of the
joint committee will be held at Albany
in a few weeks. The committee has
fruitful field for investigation open to it,
as regards the system OF
taxing corporations which is at present
in operation in that state It IL COM
among observing business men
that the tax laws of that state are driv-
ing business away from it every year.
This is fact which has come home
more closely to the business men OF New
York City than to those Of any other
section Of the state. e
This fact was strongly impressed upon
senate investigating committee last
year by Mr.. Coleman, the president of
the board of tax commissioners of New
York city, who estimated that in the
preceding year corporations whose cap
ital aggregated $500, 200. 900 were incor-
porated in New Jersey, and that fully 20
per cent of the amount represented the
capital of New York men who had been
forced by the excessive burden of taxa
tion to remove their business from the
state. The state Of New York, Mr..
Coleman said, imposed an excessive tax
on capital, and unless remedy should
be found the metropolis would be-
come simply city Of hotels and clubs.