El Paso daily herald. (El Paso, Tex.) 1881-1901, 1900-01-26

ing car companies are TO pay Two Hnu
half. fire insurance companies one,
railroads one, street car, gas, electric
light, and water companies one half OF
one per cent, and special car companies
one.
As already said. this form of tax is
one of the fairest that could be de-
vised. 1t Is infinitely more rational
and lust than a specific tax, which
takes no account Of the value OF the
business or franchises of corporate
in different cities, but taxes them all
alike. In addition to its other advau-
tages the tax on gross receipts estab-
fishes more firmly principle which 's
very salutary-tbat of the public own
ership of franchises granted to corpora
tions, aud the right Of the public to
participate in the fruits of the use OF
such rights and privileges as are grant
ed to corporations or individuals In
trust. The "tax on gross receipts ia
in fact rather q payment for q privi-
lege than a "tax." And it is only
right that the state, which grants and
conserves such privileges, should get
some return.
But 1t fs precisely because of this
view that the HERALD holds it
to be wrong for the state to
tax the gross receipts OF
street car, gas, electric light. water,
and local telephone companies. The
limited to those corporations that are
engaged in occupations that affect the
people of the state at large. In other
cases than those just enumerated, the
state actually grants certain privileges
in the way of franchise to do business
that are valuable and that demand
some return. It Is true that in the
case of these purely local institutions
the state grants the corporate charter,
but the municipality grants the fran
chise, and ought to have the psy. The
state gets money in other ways from
the corporations it charters, as will be
hereafter shown, but the city is cut off
from all or nearly all these sources OF
revenue.
1t Is the city that has the franchise
to sell. The concerns named are pure
ly local in their activities. They re-
cefve valuable grant from the city
and they ought to pay for 1t. Most
emphatically, they ought to pay for it.
The HERALD believes that the prin-
ciple of pay for public franchises ought
to be established 10 all municipalities
at once. The amount of the "tsx"
need be only nominal, just enough to
conserve the right of the community |
aud the principle Of the public owner
ship of public franchises. But the tax
on gross receipts of such corporations,
however small or however large, ought
to go into the treasury of the city, |
whose franchise grant alone, not the
states corporate charts makes the
profitable operation Of the business |
possible.
1t is by the new so called 'privilege |
tax" that the state designs to reach each |
and every corporation chartered by !
the state or doing business in the state |
under an alien charter. "Each aud |
every private corporation says the
bill, shall pay not only its charter fee
but also an annual privilege tax. I'm
der the present law each corporation,
domestic AMI foreign, is taxed ten dol.
lars as "franchise,tax'. Under the |
new bill there is sliding scale, based |
scale provides that corporations hsv-
ing an authorized capital stock up to
fifty thousand dollars shall pay an an
nual "privilege tax" of twenty dollars;
up to one hundred thousand, thirty l
pillars; up to two hundred thousand, |
forty dollars; over two hundred thou
sand, fifty dollars and one dollar for |
five hundred thousand. The privilege |
tax on foreign corporations authorized |
to do business in this state is some
what higher, being twenty-five dollars
on twenty five Thousand or less, one |
hundred dollars up to a hundred |
thousand, and 30 on. The bill |
provides that foreign corporations |
cannot sue unless this tax was paid at |
the time the demand sued on was |
made; domesticcorporations must show |
that the privilege tax has been paid |
before suit can be maintained.
This is the return that was spoken of
above as being full return to the state
for the privileges conferred by the
corporate charter on ordinary private
corporations. In this aspect the cleo
trio light. street car, and such compa-
MES owe no more to the state than does