The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-05-26
q. o. p. TO THE RESCUE

The corporation tax feature of the war
revenue measure has aroused the antag-
onism of the administration leaders in the
senate, as perhaps nothing else short of
free coinage bill could. 1t is intended to
force the great corporations Of the coun-
try to bear reasonable proportion of the
burdens of the war, by the imposition of
an infinitesimal tax upon their gross in
comes. The proposed tax is really 50
small that it is matter for surprise that
the corporations having it to pay should
not prefer quietly to submit to the ex-
action rather than to have their patriot
ism" exploited on the floor of the senate,
rather than to have their proverbial sell
fishness and greed confirmed and empha-
sized in so conspicuous a manner, rather
than that popular feeling against them
should be encouraged.
The tax proposed is about equivalent
to the current rate of exchange between
the different money centers of the coun-
try. From the great protected monopo-
lies of the country 1t will in the aggre-
gate, take a considerable sum of money,
but 1t will cripple none, and only serve
slightly to reduce the annual dividends
paid to stockholders. A single one of
these great corporations, the Pullman
Palace Car company, last year earned
nine million dollars above all expenses
The reduction of this enormous profit
by one-fourth Of one per cent would not
bankrupt the company, reduce the eff
fectiveness of its service, or break down
it's stock on the exchanges. 1t is repre-
sentative of the corporations that are
making the fight upon the proposed tax.
1t Is Of course not mentioned on the floor
of the senate. There solicitation is only
felt for the Small corporations" and
great emphasis is placed upon the dec
will infiict upon poor women and orphan
children whose dependence for food Is
upon stock dividends.
Senator Frye opposes the tax on the
ground that 1t will close up all of the
mills in New Engiand--the same mills
we have heard so much about, period
ically during the past thirty years,
whenever tariff schedules have been I'M
der consideration-and he only yesterday
declared that not less than a million Of
laborers would be thrown out of employ
ment il this outrageous assessment OF
one-fourth of one per cent were insisted
upon. He feared If the corporation tax
were adopted it would drive everybody in
his section into the army.
Senator Plat believes the tax unconsti-
| tutional, and he rather broadly intimated
that the corporations would, in the event
of the adoption of the clause, appeal to
the courts to have it so declared.
And while this fight against just tax
is being bitterly waged in the senate, two
Of the largest and finest auxiliary YES
sells of the navy are patrolling tha New
England coast, protecting from an invis-
ible foe the very property which Senator
Frye SO vehemently declares cannot sur
vive tax of one-fourth Of one per cent
for the conduct of the war.
The senate debate is full of instructive
lessons that we hope will not be lost
upon the country. 1t shows up the Repub-
lican party in its traditional role of pro-
tecting the trusts. While the New Eng
land mills are engaged in the manufac-
ture of shoddy for the army, they must
'Ibe protected at the expense Of the sea