The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-02-24

A CORPORATION VICTORY
Second Amendment To tho Constitution
Pss.ed by the House. Defeated N the senatr-
While the Deery bill was under discus
sion the hour OF IL O'clock arrived, and ths
further consideration of that measure gave
place to the constitutional amendments,
which had been made a special order
for that hour. 1t will be remem bered thau
these amendments were prepared and
passed by both houses without party divis.
ion at the session of 1891. They were con.
adhered in the House at this session, and
the two of them were agreed TO. The
amendment which contemplated an exc
tension of the term of the Legislature from
sixty-one days TO one hundred days was
agreed to in the Senate without serious op-
position. but when amendment No. was
reached party lines were drawn and the
discussion became animated. The amend.
ment provided that corporations might 10
taxed upon their gross or net earnings.
The corporation lobby worked like Turks
TO defeat the bill applying every known
and unknown argument The bill was
for the purpose of reaching telephone, tel.
egraph. express and sleeping-car com.
panies. The main argument was that such
o law would interiors with the present tax
law, and by this subtle speech the wool
was'pulled over many Democratic eye.
Senator Kern, who Is O promising cor
porstion lawyer. led of in Q speech In op-
position. saying that TO pass the amend.
ment would be TO dIscredit the tax law OF
1891. he thought that che increase or
taxes under that law was quite enough TO
Justify the law without further modihca-
ton. Senator M8gee took % position c0n-
sistent with his former course at the time
that the question OF submitting amend.
ments TO 3 vote OF the people was en- issue
in the campaign of 1882 He said that he
believed the people were entitled TO vote
ha "
favor it's PASSAGE.
Senator Loveland agreed, in part, with
Senator MaRee. he said that when qucs.
tion entirely new was brought before tho
Legislature In this way it was right and
proper for the members TO exercise their
discretion aud vote their individual sentl-
ments. but that this was matter that bad
been discussed In the press of the State and
Nation; that political parties had m ade 10
an issue in their campaigns. and that peos
pie all over the State now felt an Intelli-
gent interest In the question and are pre-.
pared TO decide, and that. under these cirs
cumstances, they were entitled 10 have the
matter su omitted TO them. He added THAI
under the laws of other States, prao.
tically the entire revenues for state
purposes were derived from such taxation
as this amendment would permit. lt had
long been the policy In this State 10 en-.
courage the development of railroad and
other corporate interests as an ian portano
element in the wealth and prosperity Of tho
State. but that now these interests had
passed out of their infancy and should be-
gin to bear their just proportions OF the
burdens of government THE franchises
of these corporations" he saId, ARE IN
themselves worth waists sums of moneys
but being intangible it is dttfcult to reach
them in the assessment" He pointed
out that the proposed amendment did
not IN any degree abridge the existing
powers of the Legislature. but granted adj
ditional powers by which property hith-
ertO sequestered could be reached and taxed.
Senator Sellers was afraid that the railroad
companies would be able to buy NJ thu
Legislatures If the amendment was ADOPT
ed, and was seemingly oblivious to the fact
that that LOBBY has been working In sea-
son and out Of season, at this session. 70
defeat the very amendment under which
he thought they might secure such I'M.
p0rtant advantages. Senator Wishsrd
ssld:
lam In favor of submitting this amendment TO
popular vote OF the people OF the state OF Indi'
ana The conditions and times demand that q
very large part OF our business DO conducted
through the medium Of corporations. Better re-
by the operation OF large interests through the
medium OF corporations than by indiyid.
ual or partnership proprietorship- In most
instances q large part or the value and profit
derived by corporations comes from the
franchise. rather than from the amount OF
apparent; it has fixed existence. aud there can
be no coneealment or the value that should be
placed upon IL for purposes OF taxation. The
and the profits accruing through the medium OF
corporations ought not TO be denied. Corpora
tons, IN their existence, are naturally public
property, and ought not to enjoy any
greater rights or privileges than individual
property Intrinsic value Is one fair rule in or
der TO fix the rate Of taxation yet the product
i've value ought also TO be another rule by which
the proportion OF taxation should be fixed. Cor
porations are enabled by their accommodations OF
capital 10 attain greater results and realize
larger profits than accrue from the same
amount of money employed by differens
business. Az they are the creatures OF the Law
and rightfully to he regulated 10y
Law. and as they can, through the
cd by law. be enabled to make
larger profits than individuals. they ought 10 be
taxed not only upon the amount invested, bur
upon the yalue OF their franchise. No Inenber
OF the majority IN this Senate can now. in good
grace, deny the people OF the state OF Indiana
the right tax the net earnings OF corporations.
The roll being called on concurrence in
| the amendment the vote was as follows
Republicans In italics:
Yeas-BaLeT, Barnes, Boyd, Crd1t0r, Clifford,
GiiBlGf, Ho6sOn, LoreLafld. Magee. neCHtctcol,
| Iclfanus, Neirby, Thayer, Val, Wtshdrd and
| YGyyan-16.
Nays-Aiken, Beck Bingham Baird. Boord,
| Chandler. Ellison. French, Fulk, Griffith, Hols
| aid, McGregor, McHugh or Marion, McHugh Of
Tippecanoc, McEelvey. Mclean, Moore, Nor
gan, Seller, smith, Sweeney. Thompson, Wigs,
Wray-30. The amendment failed.
The resolutions which failed in the House.
| amending the Constitution so as 10 extend
the terms of Office of State and county
officers were tabled yesterday afternoon.
| Senator Griffith moved 10 recall the amend-
| ment which passed the Senate before dim
ner extending the session of the Legisla-
ture to one hundred days The motion
| prevailed.