New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1897-02-10
ion Telegraph company Withdrew its app
peal in similar case, the United States

peal In a similar case, the United states
supreme court has decided the case Of
the express companies versus the State
Of Ohio il favor of the state. By this
decision the court upholds the right of
any state to tax not only the visible as
sets within its borders, and the earnings
within those borders, of any interstate
corporations doug business there, but
also its right to tax the pro rata share
within the state Of the entire capital
stock Of such corporations as deter
mined by the length Of lines O. ;erated in
the state-this total being divided
among the counties in proportion to the
track mileage in each county.
The decision is tar reaching in its con-
sequences and can hardly fail 20 be
boon to all the states of the Union. The
comp aint that numerous great corpora
tions, covering in their operations the en-
tire length and breadth of the country and
representing billions OF capital, have not
contributed their just. proportion to the
revenues of the states has been general
and in many instances well-founded.
The visible assets of such companies in
the several states often represent but a
small fraction of their interests there.
The equitable taxation Of their earnings
meets all the obstacles, in concealment,
perjury and fraud, which do so much to
make any other form of income tax i'm
practicable. Their capital stock is usu-
ally represented as held in New York or
some other Eastern city; and there it is
claimed to he exempt because the "prop-
erty" of the corporation is taxed in the
states where it is located. and because to
tax the capital stock would be so-called
"double taxation" Thus, in point of
fact, corporations han dling many mil
lions of dollars per annum, and yielding
immense dividends, sometimes get of
with the pay nent of almost no taxes ex-
cept upon few chairs, counters and
other items of office furniture.
All this is now to be changed, and the
capital of all the great interstate, rail-
road corporations, express companies,
telegraph and telephone lines, insurance
and trust companies, collection agencies
and manufacturing corporations, main
tanning agencies in different states, would
seem to be brought within the scope of
state taxation. No national enterprise
can hereafter be exploited with the ex-
pectation of dodging jast contribution
to the revenues of the states within
whose limits it is carried on.
A population of 7O,Ooo,Oeo Of PEG.
pie, accessible in every corner of the
land through an unrivaled system of rail
and water commit nication, affords such
a field for business genius as the world
never before knew. That we have per-
mitted such field to be "worked" by
corporations ana individuals without
exacting just recompense accounts for
the growth of the immense multi MILL
onaire fortunes, in which not few econ
omists discern grave peril to our instl-
tutions. The tribute levied, without re.
compense, on the whole land by those
who have done the "working," has helped
much to promote the growth of crazy
Populism, seeking a remedy in quack
political nostrums. 1t is fortunate that
the supreme court now steps in, and in
the decision just rendered points out a
rational remedy for the evil through the
processes Of state taxation.
The peril lies in the that
state legislatures and boards of assess
ment and equalization, seeing their OPP
portunity, may overdo tile business and
seek to levy such taxes as may have
tendency to cripple legitimate enterpris-
es and drive them out of business. This
should by all means be avoi led. twill
not do to kill the goose which lays the
golden egg. ..>~- .,-... .5.. :.
The magnitude of the difference which
the decision will make in the taxable re-
sources of the states is shown by the
fact that in the case just decided the as
sessment of the express companies in
Ohio. had for three years been raised
from $2s9,S62 to the striking figure of
$4,249,7O2. It was this last thrice.re-
peated assessment against which the es-
press companies appealed: and appealed
in VAIN. Surprising the assessments of
other interstate corporations in Ohio
are proportionally raised, it will readily
be seen to what an extent the revenues
of the state may be enriched. St. Paul
Pioneer Press.
st. Cloud Journal Press A bill has