The evening times., 1899-12-06

Edwin R. A. Seligman. professor of POI
litical economy and finance at Columbia
University. New York, informed the United
States Industrial Commission today OF his
views as to the imposition of taxation on
transportation. The witness began. by
saying that there exists several methods
of approaching the problem. He said that
the wealth Of corporations today consists
Of bonds. etc, and that the problem of
just taxation is therefore the problem of
corporation taxation. He believed that the
Federal Government should mot impose
taxation in the same manner as Is done
by the States. and that there should be no
federal tax on inheritances. Such tax
should be deprecated. The Federal Gov
ernment should not impose direct tax
upon corporations. and under the existing
laws of the States, il the Federal Gov
ernment should tax commerce through
transportation, ii would hamper commerce
very much.
Each State or Commonwealth has SOW
ereign power for taxation, Prof. Seligman
said. One Of the difficulties they had TO
contend with in the taxation of corpora
tions is that they may have their offices
In one State. their property in another,
and their stocks and bonds in a third State.
Prof. Seligman added that wherever States
attempted to tax corporations upon re-
ceipts they came in conflict with the Inter-
state Commerce Commission and were es-
topped.
THE Interstate Commerce Commission
stands in the way" said the witness, "of
tax levy on the franchises of a foreign
corporation Because Of these facts the
great mass of business done by corpora
tions cannot. under present laws, be taxed. -
Prof. Seligman said that another difficulty
TO contend with is that the capital stock
and bonds of n corporation may be owned
by people not residing in the State. The
courts have decided. Prof. Seligman said.
that it makes no difference where a stock
holder lives for the tax Is levied on the
capital stock.
1T is said" continued Prof. Seligman,
that it is not fair to tax corporations on
capital stock alone, for one corporation
may have no bonds and another corporation
may have large amount outstanding
which escape taxation. 1t has also been
directed that a tax upon bonds is tax
upon the bondholder. No State can reach
the bonds Of a man residing outside of it."
Owing to the multiplicity Of laws relat-
ing to taxation and their character. Prof.
StuSEidH Sdiu tuc
OF taxation is one Of chaos" He recon-
mended a uniformity Of State taxation.
mutual agreement IL possible, or II not, by
Federal intervention. This he declared
would do away with the difference that ex-
lists in the State laws. He thought also
that there ought to be an annual conven-
tion of tax officials Of the States held under
the auspices OF the Federal Government
to discuss the taxation problem.
Prof. Seligman believes that taxation by
the Federal Government might be made by
following the same principles pursued by
some States in dealing with municipalities.
which is to collect the tax and pay back
to each municipality its share. He
thought 1t possible to apply this system to
the Federal Government. The system pre-
walls to some extent in England. He be-
lieved the receipts of corporations should
be taxed. but was not in favor of taxing
net receipts unless some legislation cou.d
be enacted which would prevent corpora
tions from concealing their profits.