The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-05-09

1t seems that the Populsts have control
of the Senate finance committee now that
the House tax and bond bill has reached
that body The tax provisions of the House
bill are expected to yield $780, 900 900 of reve-
nue.. The majority of the Senate committee
desires to double the amount in order to es-
cape an issue of bonds This would be we'll
if the internal revenue tax proposed could
promptly fill the treasury, but it cannot
Indeed, months will be needed to derive the
revenues proposed. In that event, the gov
eminent will be embarrassed to an extent
that the large current demands cannot be
paid as promptly as they should.
The opponents of the House bill in the
Senate finance committee desire to levy
tax of 2 per cent. on the gross receipts of
all corporations. 1t is probable that this
proposition has special reference to the
railroads, which are the objects of the spe-
cial enmity of Popocratic statesmen, who
seem to believe that the embarrassment of
the railroad system of the country would
be a great boon to the people. If all the
railroads should, by agreement, stop opera
might discover that a general paralysis
would fall upon the business of the country
which could only be compared to a suspen-
sion of the functions of the circulating sys-
tenn of the human body.
According to the report of the Interstate
commerce Commission. the total amount of
capital invested in railroad stocks is s., 226,-
IN nf
not dollar of dividend was paid during
the year covered by the report. A dividend
of from l to per cent. was paid on 17.43
per cent. of the whole, while only 1.3 per
cent of the total paid dividend of 10 per
cent During the year in question the total
amount paid as dividends railroad stock
was $S1, 600. The gross receipts of the
re ads the same year were s., 125, 632, OPS A
gross tax of per cent on this amount
would give $22,O00,OOO or more than one
fourth of the amount paid as dividends.
The extensive. systems of railways in the
new West and Southwest are barely able
to pay running expenses at the present
time, so that per cent. tax on gross re-
ceipts would cripple many roads which are
giving the country through which they run
a fair service, without which all values in
property would shrink and the volume of
industry would be diminished to a large
extent.
The railroads would not be the only suf-
ferers. Every group of men doing business
as a stock company would be affected by
the tax. Such companies employ the
greater part of the labor of the country.
The gross receipts of such companies are
practically a tax upon all the labor and
materials which produce the goods sold. If
it were q tax on the net receipts of manu-
featuring companies and corporations, it
would be a very light one, but it is practi-
cally a tax upon the amount of money paid
for labor forfmaterials which are furnished
by other companies which have already
been taxed and the money paid for all ex-
penditures necessary to put merchandise
upon the market. This would be a tax
upon what company has paid out, or, in
effect upon it's liabilities. 1t is a tax which
would eventually reach the labor employed
in the production of the goods. There is no
call to tax the industries of the country