The San Francisco call., 1899-04-13
QUESTIONS OF TAXATION.

\ OlMIIHSIANDING the unequaled CONNER
y eal and~fpancial prosperity OF last year, if the
debit and theeredit items OF the war with Spain
finally adjusted its cost would aggregate bill
lion dollars heavy load for the people to bear.
1t is evident that there can be no immediate re-
duction OF the paid TO the Federal Government
but that on the contrary new methods OF increasing
revenue will have to be devised. The imposition of
stamp duties was originally adopted as a war meas
ure and it was natural to resort to temporary re-
Nval OF the system when extraordinary demands for
money had to be promptly met.
But stamp taxes have never been regarded as part
OF our permanent revenue system, and there is a
strong current OF public opinion throughout the ma
ton in favor OF d scientific fiscal revision Now that
peace has been declared there will be vigorous de-
mand for some less cumbersome mode OF meeting
our increased liabilities.
Questions OF taxation should never be politically
considered enter into party strategy unless as in
the case of duties upon imports, they involve prin-
cples upon which the people are divided. In order
to bring our revenue system into harmony with pub
lie necessities and with the most advanced practical
ideas commission should be formed OF thoroughly
able and competent men, to whom the problem should
be submitted and by whom it should be fully and i'm
partially considered, with reference to the delicate
and embarrassing complexities it includes.
Professor Henry c. Adams the statistcian of the
Interstate Commerce Commission, has contributed a
strong and clearly phrased paper to the discussion of
this important subject in which he vigorously ad-
vocates the Federal taxation OF the earnings OF rail-
roads. He argues that the result OF this method OF
increasing the would be the more systematic
and complete investigation OF railroad business
through central bureau, that simple basis OF
assessment would be accurately ascertained that
could be adopted by the States well by the Federal
Government and that in this way the complications
and dscordances OF the present methods OF taxation
in different States might be simped and reconcied
and uniformity, simplicity and certainty secured to an
extent that would be equally satisfactory to the rail
roads and the people.
There IS much plausibity in the proposition that
in the OF railroads the plant but the earnings
the Just basis OF taxation. But there are many
objections to the plan of Professor Adams not the
least OF which is the almost inevitable loss OF revenue
to the States that would result from its adoption.
Taking the aggregate property OF the country to rep
resent eighty billions of dollars and the aggregate
average expenditures of Government, embracing all
its forms, in times OF peace, at billion the rate
Of taxation is and quarter per cent. But the
amount annually paid by the railroad companies. as
shown by Professor Adams, approximates forty-three
Millions which, estimated on the balance sheet as
sets, shows rate of taxation of less than four mills
Upon any calculation having the elements of probabi-
ity this rate cannot be enlarged beyond six mills
1t IS clear, therefore, that railroad property as
compared with other forms OF wealth is relieved
from fully half OF its proportonate share OF the fiscal
burdens The necessity and the proprety therefore,
OF revision that would aid in removing this nequa-
ity is obvious. The revision, however, should ex-
tend to the entire Federal system exclusive of Gus
toms duties and If possible should be so directed as
at least to tend toward uniformity in the State
methods OF taxation.