The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-01-22
lTIeRS FROM The PEOPLE

.lu WuiSh Wouio expand under the roster
ing influences Of such a law as the one
proposed would raise rent values The
uncultivated soil being held by specuIe-
tors will increase the demand for tina,
which Is open for occupancy, and the
price OF rents Will be enhanced In a cor
responding ratio. This Is but an applica-
ton Of the law Of supply and demand
Not resting al thus discouragng the
future requirement OF homes by the man
OF small capital, the commission, carrying
out, no doubt. its beloved principle OF
uniformity places a tax on mortgages,
in an effort to make the burdens uni
formly' great on the prospective home
seeker, aud those who are already SO
fortunate Tor unfortunately as 10 own
homes. Tho commission Is authority
for the statement that In 1890 the real
estate mortgages in force in Texas ag-
gresated the enormous sum OF sg3S6i,11S
1t is the poor man who mortgages his
property rich man does not go 10 the
pawn shop-and the effect Of this pro-
posed tax on mortgages would be TO add,
at an extremely conservative estimate,
$3.50 ,000,0 900 TO the taxable values OF the
less opulent classes. the people who can
least afford TO bear the expense. This
they would have to meet In the form Of
higher rates of interest, for any sane man
knows that the mortgage will add suf-
hcient to the rate of interest to equal this
additional tax. This is exemplihed by
the operation of the documentary tax i'm
posed by the late war revenue act. The
commission in supporting this feature OF
the bill unwittingly admits the propo-
sltion we lay down when II saws: This
argument will not avail In this State as
he tmeaniug the borrower) now pays all
the interest, In great majority OF in
stances. that can be collected under the
usury provision OF the constitution" This
statement is not true for today million
dollars can be borrowed In the city OF
Houston alone at per cent interest per
snnrm. Besides, II the contention of the
commission were true. should the law
anticipate that the extreme limit will al
ways prevail. and moreover, make It
necessary for the money lender to exact
the maximum rate collectible in order to
protect HIMSELF
A feature OF the bill which is especially
alarming is that 1t discourages manu-
factories and other kindred enterprises
which are absolutely essential to the de-
yelopment OF country. and which Texas.
OF all States, with its vast cotton fields
and unlimited natural resources yet I'M
developed, needs most to encourage. The
bill In question places an enormous tax
on the gross receipts Of all such enter
prises. This method of taxation is In its
very principle obnoxious and unjuH and
y.
The proposition succinctly stated is this:
Under the law suggested, II manuiactor-
les do business of any appreciable VOL
| ume, the tax will consume the profits;
If they do business of petty magnitude.
they cannot exist. AS practical example
of the manner in which the law would
operate we have but to cite one case
which has recently come under the per
sonal observation OF the writer and which
Z ~ "A A m N
corporation doing bushes in this State
and one that Is of inestimable benefit to
all classes of people and which is alb
solutely indispensable to the proper con
! duct OF business, would pay under the
/ proposed law an increase OF $4,000 over
! what 1t is now required 10 pay. AS 4
I consequence, ii has conceied all estimates
for work II had in contemplation and has
/ been forced 10 discharge number OF It's
/ employees pending the action of the legis-
| lature. The tax on corporations would
/ not only discourage the further establish
ment of manufactures but would make II
Improbable for those already in opera
ton To continue. The shutting down Of
these institutions would throw thousands
OF men out of employment, and reduce
the price of vases. Tho opportunities of
occurring employment being lesseued, the
supply of labor would be far in excess of
the calls upon It, and the law of supply
and demand would operate to reduce
wages. There Is a constant influx Of
immigration to this country which varies
but little whether wages be high sr low,
for the average immigrant comes here ut.
terly ignorant of the conditions that
await him, depending largely on Provl-
dence to direct him. This addition to our
population must be cared for in some
manner. With the avenues OF employ
ment closed, the competition among labor
will become so acute Az to reduce wages
to the starving point. II cannot be argued
that we could unload this surplus labor
on other States, for the immigrant seldom
brings with him more than enough money
to pay his passage and incidental ex-
penses expecting to secure employment as
soon as he lands The mechanic, farm
laborer. office man and railway employee,
having no land to be relieved OF taxation
would not be benefited by this law, and
its only effect upon them would be to in-
crease their living expenses and thereby
reduce their wages.
!. The bill as it stands would be seriousl,
detrimental to the honest merchant ant
place a premium upon dishonesty. Ih'
merchant who would not stoop to under
estimate the volume of his business ant
the extent of his securities could not al
ford to compete with the dishonest mor
chant who would evade the tax imposed
ing that all merchants did pay the tax
the result would be that they would OH
set the additional expense BY increasing
the cost Of their wares or reducing thel
quality, and in the end the consumer
would pay the tax. This would inc!eas
the cost of living. The poor man who !
compelled to patronize his home marke
would be most affected, because tn
wealthy class Of people can afford to i'm
port such articles as they require iron
foreign markets where the high tax doe
not prevail. In this respect a poor man
taxes would depend to great extent upoi
what he eats and wears. In Its spirit Ia
law would be sumptuary law. prlncipl
wholly antagunistic TO democracy.
The restrictive and obstructive polio.
of the new law as it relates to industria
; and productive enterprises would do NOR
, than anything else TO create trusts an
monopolies The heavy tribute exscte
from persons engaged in MANUFACTURED
and like vocations would make It unproh
table for them to be carried on save b
men or combinations oil men of immens
, capital. Leave production and exchang
free and untrammeed and competition VII
adjust prices, and trusts and monopolie
: will become ancient history.
In conclusion We beg TO say that 1t
mot the province of this article 10 discus