The herald., 1898-09-13
VALENTINE EXPLAINS
WELLs-FARoo's POSITION ON
THE WAR TAX
Informal Meeting Of the Merchants
and Manufacturers Association
to Discuss the Situation

There were thirteen members present at
The informal meeting of the Merchants
and Manufacturers association yesterday
Afternoon to hear John J. Valentines de-
tense or explanation of the position Of the
Wells, Fargo Express company on the war
tax. The members present were General
Forman, H. Jevne, Max Meyberg, F. L.
Baker, 8. H. Marshutz, A. B. Gardner, ].
n. Schneider. II. w. Frank. 8. b. Lewis.
r. H. Heron, A. b. Cass, c. G. Wright
and George Montgomery.
F. L. Baker, president Of the iaflon,
palled the meeting to order. stating Its pur-
pose, and introduced Mr.. Valentine. The
speaker said his real object In requesting
the meeting was to make the acquaintance
Of the association, not that he had any
thing to add to what had already been said
And published by the company.
I'VE have always prided ourselves" con-
tinued Mr.. Valentine, ION the close rela-
iion that the Wells. Fargo company holds
10 It's customers. We have been less wor-
eied by the war tax than any other corpo-
rate body in the country. No blemish has
ever been connected with the Wells, Fargo
company by charges Of influencing legisla-
tion. We claim that our relation to the
clean as sheet OF paper as regards inter-
ference with legislation or any public SER
vant.
ut Is assumed by people not infrequently
that a corporation should be subject to
burdens which individuals escape. A cor
poration is only an association OF individ-
uals, and the Wells Fargo company is
merely an association OF q. 900 stockholders
with an average holding OF thirty-eight
shares to the person. When the law passed.
express companies were confronted with
the choice Of increasing rates to cover the
tax or let the sender pay IT.
The latter course was decided upon. and
In that decision the speaker asked no credit
for anything but enlightened selnshness,
though he believed 1t would have created
much less discomfort and irritation, had
X been put in the tariff.
The stockholders include many women,
children and estates. and II was the speak
sr's duty to protect their interests. He be-
lieved the company was no more obligated
10 furnish the stamps than a notary is OBJ
llged to provide the stamp for an acknowi-
edgement free OF charge.
"All students Of taxation" he continued,
conclude that not only documentary stamp
taxes always fall upon the beneficiary or
consumer, to use technical term but all
other taxes. with the single exception Of
state or Inheritance taxes; and there Is no
more reason why the express company
should pay the tax on shipment than that
the merchant should pay the tax on a box
Of cigars, wine, proprietary medicine or
other article on which the merca ntile world
has already included tax in the selling
price,"
Mr.. Valentine went on to explain the DIFF
ference in the methods Of carrying on ex-
press business now and those of ten years
ago. 1t was done formerly with the rail-
road companies by contract for the car
whether there was much or little business,
atterly the system has changed anu the
railroads demand a percentage OF the
business. To the Southern Pacific system
the express company pays from 50 to 50 per
cent; to he Santa Fe, IS per cent. Had
the company decided to put the tax in the
tariff the prices would have had to be
raised three per cent, and after the divi-
dends had been made would have had left
but eight-tenths OF cent to pay one cent,
Had not Wells Fargo been the exclusive
express company in this state, in the
epe"ASA oPihAOhs tHelc WUuIu uOL nave
been nearly so much irritation and dissat-
lsfaction. In all the cities Of the Union,
the speaker asserted, there had not been
one in which there had been invidious COM
ment against the company except in Cali
fornia.
Mr.. Valentine, in concluding, volunteered
10 answer any question that might be put.
and lively though perfectly good-natured
ratech!sm followed. To the incisive ques-
tioning Of the attorneys, he declined to
answer the legal bearings OF the case, and
read the ruling Of the attorney general on
the section, which General Forman pointed
out, decided nothing. and left 1t wholly to
the company and the sender to settle.
The railroads, Mr.. Valentine contended.
pay the tax because their shipments are