The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-02-25

analysis Of industries and to set aside
for special taxation such aseare monopo-
listic in their nature and which bear a
public or quasi public character. This
corporation tax is, OF course. from no
purpose of depressing corporations or
driving them ont Of existence after hav-
ing given them being. Such an idea as
this exists only in the special pleading
Of corporation which has in all prob
ability enjoyed privileges which either
ought never to have been granted at all.
or the reason for the existence of which
has long since passed and ought not to
have weight with any one who has
studied this question and is actuated by
right motives. 1t IS in reality simply a
question respecting the proper fiscal
treatment of those industries which are
superior to the normal control Of COM
mercial forees And / believe the rep
resentativcs Of these corporations do
themselves an Injustice and / am sure
they do the State an injustice by putting
every obstacle they can in the way of the
States progress on this line.
.sOf course it must necessarily he that
among the most prominent corporate
industries selected for special taxation
is the railroad industry. The reason for
this is obvious because railroads first
showed the evils of corporate organiZa-
ton and OH this account arrested the
attention Of tax reformers. and in the
consideration of the question two things
have become very evident: First. that the
general property tax cannot secure pay
ment from the pfonrietors of railway
property; andssecond. that the industry
is of such a character as to demand con-
troll by the State. Every one knows that
he who controls the means OF commune
cation has it in his power to arbitrarily
make or destroyn the business of any
place or person and it was because the
public recognized this great power that
appeal has been made to the government
for protection of railroad commissions.
After one has become convinced OF
the propriety and justice of this special
corporation tax the question then TO be
determined is as to the proper method
or levyng the tax. In those States
where it has been tried the combined
ad valorem tax and the graduated fran
chise tax on gross receipts graduated
as to income per mile. has proven most
satisfactory. 1T is never desirable tt
tax any corporation on net receipts. as II
leads to fraud. RallrOddS III soile otates
are required by charter to lower their
charges when dividends exceed certain
per cent, but no case is on record where
this per cent has been reached. STOCK
is watered bonded debts created, com
binations made and thus apparent net
revenues KEPT down.
I'VE therefore claim that on account
of the corporate franchise from tn,
State and the permission to exercise sucf
franchises in the State they are capa
bic of realizing large emoluments whicl
they could not otherwise realize.
..This, ] claim, is only step toward
rational system of taxation which ev
cry one who investigates the subjec
must admit. we sadly need, and / assur,
the gentlemen who oppose it that al
though they may defeat the measur
now if will not down. but will continu4
70 present itself to each recurring Leg
islatnre until it. with other reform
that have been mentioned. will hecom
firmly embedded in our revenue laws.
The question may therefore be sum
med up as follows:
rs it constitutional? The gentlemaJ