The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1898-06-02
SHALL CORPORATIONS BE TAXED9

SHALL CORPORATIONS BE TAXED?
Is pending question in the Senate
The revenue bill as it came from Reeds
house did not propose such tax, but the
Senate committee proposes it and there
is opposition there. The House bad
proposed additional taxes to raise 800
100000, about enough to meet ihe
Dingley deficit, and then issue $780,
100000 of bonds. The additional taxes
proposed by the Senate on legaCies, cor.
porations, banks, insurance companies,
transportation corporations, telephones
and telegraphs will aggregate about
s75, 200, OOO. This, it is srgded. with the
coinage of the seigniorage and the issue
Of greenbacks, will give in the neigh
borhood of 5000 600, 900, and thus obvi.
ate the necessity of issuing bonds at this
time.
The corporation tax, so vigorously op.
posed by Republican senators, was de.
tended on the ground that it was tax
on the exercise of corporate franchises.
Senator Daniel, of Virginia, one of the
ablest lawyers of the Senate, stated the
reasons for taxing corporations rather
than individuals engaged in the same
business in very plain and common.
sense way. He said:
Mr.. President, there is a great deal of
difference between a corporation exer-
csng its franchise in q certain business
and citizen exercising his natural right
to pursue the same business. The right
of the corporation is srtihcially created
and legally conferred. It's personality
is fiction of law, its conferred right or
privilege is called franchise. The citi-
zen's personality is God.given, and he
has a natural, inherent right to pursue
his happiness in any way that does not
iDjure another.
Corporations may aggregate the
wealth of many under their name and
franchise, as individuals, in the nature
of things, cannot do. Corporation share
holders may shelter themselves from
personal liability beyond their stock, a.
individuals and ordinary co.partners
cannot do
By the use of the corporate franchise
individuals can share in its possession
and get an artificial immortality con.
ferred upon their arrangement and have
perpetual succession and a common
seal. If every one of them dies the
corporation still goes on. If the indi-
vidusl dies his estate goes to an execu-
tor or an administrator and the business
stops, but the corporation goes on in
continuity. If member of firm dies
the firm dissolves go Instant. The busi-
ness can only be wound up by the sur
viving partner or continued only for
self defensive purposes. No matter
who dies the corporation goes on. 1t is
only the corporation that can sing the
song OF the brook in Tennyson:
Men may come and men may co.
But go on forever.
Mr.. President there is another advan-
| tage of a corporation. 1t conceals indi.
vidual identity. The corporate name
| and privilege are given by law and do
not arise from inherent quality or from
any self achieved acquisition. Law, and
law alone, gives it "a local habitation
and a name" In that name ii transacts
business and shelters, hides and con.
|
| possessors.
In the next place, a corporate fran.
chise Affects residence The member
who own the corporate stock may re-
side in Kamshatka or in Europe. The
corporation resides where the law fixes
it. That may be place where none OF
its members reside. The corporation
charter changes the aspect of the estate
held and enables it to be transferred as
pers 1nalty, whether it be real estate or
no. The man who has tenth, fourth
or half OF the corporate stock may
pass ii away by the st oke of a pen,
without recording deed or assignment,
although the estate represented in that
stock may be- altogether realty.
1t some cases, and especially in the
case of railroads and other public corpo-
rations, they receive gifts of portion OF
the sovereignty of the state They be.
come the deputy sovereigns in a limited
| degree, and may exercise eminent do.
main, and in their deputed sovereignty
may take the land away from its posses
sor by rendering to him "due compen
sation."
Even with these advantages Senator
Daniel would not have corporations
treated unjustly. He recognizes then
as great and benefcent agencies, but
claimed they should pay just proper
ton of the public burdens at this time
as a just return for the special privileges
granted.
He maintained these corporations
would receive great advantages from the
war in contracts for supplies and trans
portation OF troops. "None of then
are called on to render military service
No corporation dedicates its son to the
god OF battles and suffers that agony fol
those beloved which no money or reward
can ever solace." 1t is important to
equalze these burdens as near as may
be, and to see that the rights of the
citizens are looked after. The discussion
in the Senate is bringing up questions
Involving fundamental p rinciples Q
government, as win be seen by careful
reading ex-senator Daniels able remarks,