The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-12-06

a BTedl pilFheSc. II eidDicS d wealthy
man to create second self. He may
own the majority of the stock-may be
practically the corporation-and yet the
corporation is in law a separate existence
not bound by his contracts nor liable for
his actions. The utmost that can be
done is to seize his stock. 1t is COM
mon thing to find corporations organ
lied solely to escape individual respon-
sibility, cover up individual property or
promote individual operations
For these rights and privileges cor
porations pay practically nothing. The
wave of fiscal reform that has been
passing over the country has indeed re-
suited in some compensation for them in
some places, but these are not adequate
and they apply only to new corporations.
Indiana has a requirement for license
fees for new corporations which brings
in some revenue, but the enormous mass
of existing corporate capital escapes this.
Indianapolis has inaugurated the sys-
tenn of requiring compensation for pub
lie franchises, but this does not cover the
franchise of Incorporation. Moreover
there are a large number of the most
important corporations of the country
that are largely protected from local
taxation by the interstate commerce law.
the national bank law and other leSisla-
ton that brings them national guardian
ship. There ought TO be some method
by which the people could obtain COM
pensation for the rights and privileges
donated to these corporations, and no
better method could be suggested than
a tax on their incomes. 1t should be re-
membered also that in corporations the
risk to individual stockholders is less
than in private business, for the liability
is usually limited to the amount of stock
held.
There is another advantage in this
proposition. 1t avoids the charge of in
quisitorial investigation into private af-
fairs, which has been made the chief
objection to q general income tax. One
can easily see how it might be a serious
injury To- a business man to have his
affairs made public. or even subjected to
official examination for mere tax pur-
poses, but no such objection applies to
corporations In fact it is almost es-
sential to the proper protection which
the government owes to stockholders
that there should be a public statement
of the profits of corporations and an
official ascertainment of the correctness
of the statement. OF course, there will
be a tremendous howl raised by the
plutocracy which keeps its possessions
in corporate form. but that will be no
answer to the proposition. nor any criti-
cism of its justice. 1t should be men
toned also that as the proposal is to
tax net earnings it will be fair as be-
tween corporations. The representatives
of corporations in Indiana have been in
sisting for some time that tax on net
earnings is the only fair method of tax
ing corporations.
The succession or legacy tax is i'm
posed only on money and personal prop
erty. and is also a form Of taxation
which the most advanced science holds
to be just and fair. Extremists contend
that man should have no power what
ever to control property after his death,
but that it should be taken by the state
This, however, is recognized to be con-
trary to the duty of every parent to pro-
vide for those whom he has brought into
the world, but there may reasonably be
a charge made by the state for super
vising and protecting this transfer of
property. Several states have already
adopted such laws, and they are work
ing satisfactorily. New York furnishes
a good illustration of the success of the
system. We believe that both forms of
taxation will prove popular and satisfac-
tory.