The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1900-01-16
THE GRANGE AND TRUSTS.

ne SN 2N ~ NJ
The National G .ange has spoken on
the subject Of trusts, and we give
briefly the remedies which it sug-
gests:
i OH 3iaI inspection Of all corpor
ati0ns as 10 the Case OF national banks
No corporation should be tolerated
whose books cannot bear inspection.
2. Prohibition of ell rebates or dis
elimination by public carriers.
81. Taxa ion of all capital stock.
4 ali capital stock should be paid
up in full.
= Severe penalties for violation Of
law"
With the exception Of the third,
these are substantially the same RENE
dies that have been advocated in Wal
lacss' Farmer and In Jul book on
Trusts: And How to d al With
Them" recently published. Instead Of
taxation Of the capital stock Of trusts
ana ell corporations, we urge the tex
alton of the franchises separate from
and IN addition to either the capital
stock or the property. For either gov
eminent or state to tax the capital
STOCK Of corporations and at the same
time tax the properly represent ted by
the capital stock would be most w
just. The taxation Of the capital stock
and the exemption of the property
WCuid b5 much nor Just and be more
likely 10 prevent over capitalization
The essential right and justice in the
matter, as we see it, is to JEx the fran
Caises Of corporations, because this is
a gift from the state for which the
corporation renters no equivalent and
can render n me except by tee taxation
Of Ene franchises. Il Ia a kind Of Civ
ing TO the rich which IN Solomon's
opinion was about as bad as roobing
tas poor. Ia bestoWing a franchise on
any corporation, the government gives
1t an advantage in business thai IN
R3les it to crush OUT individuals and
partnerships. Il is absolutely essen
JIal to the conduct Of our business to
have corporations, aud these corpora
tons should be required to pay to the
government in taxation a full equiva
lens for the gift bestowed upon them.
D4e OF the features Of the financial
legislation that has been int oduced in
to Congress this year pyescribes in
lieu Of the present taxation on circu-
laIlOu q tai on the franchises of ma
tlonai banks. Il is quite likely that
this Law will be enacted and thus dis
tlnc5ly a5opt the suggestion for which
we have been conEending during the
summer. There is no reason why the
ILsd States should not tax the fran
chise9 OF all corporations the opera
tlJn5 OF WnIcl ex5sad through several
states, nor Is there any reason whv the
STATES should not tax the franchises
OIL corporations operating solely in the
ssaEe Eaat Is, there is no reason WHY
the Unit3d States should not tax the
OF railroads operating in
Two or more states, or the trusts which
nave plants IL q IF rent states. while
Tue states should Gax the franchises of
'+1'e sA71aS5 banks, aad Of ell other
p''a-l % Operating solely in the
save. VITA the taxation of franchises.
tI9 forfeiture Of the fraoc4I5a IN caze |
~ o'7'-eapitalization, that is lying
60 ''e properly OF the corporation,
WIN scale and governmental inspection
9nu P00''city, and with such an
a"eH0'leot to cur interstate commerce
ID" as viii prevent special rates to
persons or places, there is little to be
cared from the trusts, and their evils
%"llargely r thems Ives. Without
;HsSe essential regulations, the trust
.s d very serious menace to industrial
development and even to civil liberty
ana political freedom.-Wallaces Far