Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-12-05

The President recommends raising the
revenue deficiency in part by "a small
tax upon incomes derived from certain
corporate Investments" II a suitable tax
were imposed upon whisky as a hurt1ul
luxury there would be no need to seek any
other source of revenue. But If certain
corporate investments are to be taxed, the
Justice is suggested of taxing only those
eemi-public corporations whose franchises
give them certain exclusive rights in, over,
or under public property, for which they
render no adequate compensation to the
public The mere fact that owners in COM
mon of a property or business for con-
venience sSke own as stockholders in
corporation and not as members of a part
nership furnishes no equitable reason why
they should be doubly taxed-on income as
well as property-in the first case, while
they would be taxed only on property II
they had remained partners One OF the
purposes of corporate ownership Is 10 1acli-
itate the disposal CT small interests In a
manner that is practically impossible In
the case of ownership by partners. If the
rich are to be struck at, the mark would
be reached much more effectively by an
income tax upon syndicate partnerships
In which each member is personally fnan-
cially responsible for the vast enterprises
undertaken. than upon corporations, the
stock of many of which is widely scattered
among the poor and dependent, the widow,
the orphan, the investor of small savings
Then for convenience of ownership the cor
porate form prevails in respect to most of
the industries which in the wisest and most
considerate re-adjustment of duties that can
be devised will be injuriously affected by
tarif-revising legislation. II these corpora
lions are taxed. the pending revenue legis-
lation will strike them two heavy blows,
the one damaging their business by the
removal of protective duties, the other i'm
posing a fine upon them to be paid out of
their reduced incomes because they are cor
porations instead of partnerships.
The latter exaction would be unjust and
cruel AS already intimated, however.
there are certain semi-public corporations
which may rightly be called upon to pay
more into the public purse, not because
they are corporations, but because they
have received gratuitously valuable privi-
leges from the public. for which compensa-
ton can equitably be demanded. Common
carriers that are given the right to use the
public streets for their purposes. that are
permitted to exercise the publics right to
condemn and seize the property of citizens,
and that receive with their franchises a
dozen other public privileges which make
these franchises more valuable possessions
than the common carriers tangible and
visible property upon which they are taxed
such corporations may properly be called
upon in an emergency to meet the public
need. The case is the same with corpora
ytions to which the public gives the right of
tearing up the streets and occupying pub
lie property with gas pipes or water pipes
or, conduits for conducting wires of any
sort. and with corporations which are per
mitted to obstruct and disfigure the public
streets with poles and overhead wires for
lighting, telephone or telegraphic purposes.
1t Is the franchise which is justly taxed and
not the form of ownership. A partnership
syndicate granted these valuable rights by
the public should be called to account and
compelled to reimburse the people just as
quickly as a corporation.
A stiff tax upon whisky and trolley syn
-dicates, the two great life-destroyers, would
about meet the popular demand.