Marietta daily leader. (Marietta, Ohio) 1895-1906, 1901-09-04

Taxes Paid by Corporations In the
State of Ohio.
Cropping about wildly after an issue
like Diogenes with his lantern, seek
ing an honest man--the Democrats OF
Ohio have fixed upon the subject of
taxation of corporate franchises as an
appropriate vehicle for the attainment
of their purposes which are: the cap
ture of important state offices. Taxa
ton Is therefore, an emergency issue,
pure and simple. 1t indicates an utter
absence of other rational issues.
Taxation as an issue must be fought
upon its merits. This issue calls for a
distinct reform in the apportionment
of the public burdens. What are the
merits of this issue? What are the
evils alleged to exist in the system of
taxation in Ohio? What is the remedy
which the Democrats propose to ad-
minister? Divested of political feat
ures, the subject is one of pure busi-
ness ethics. Let us look at it as such
as man would look at any bust.
ness proposition--in calm and dis
passionate spirit.
The taxation of franchises was reg
ulated by the organic law of the state
the constitution, ordained in 1852.
To understand that instrument. we
written. and gather the intention of
the trainers, from an examination of
the attending circumstances. Fifty
years ago, things were far different
from the present time. In 1852 we had
the canals and stage coaches, and
other primitive modes of communica-
ton To-day, we have the railway,
the telegraph and the telephone. For
merly, we had the simple partnership;
now we have the corporation. Things
| which were OF little or no commercial
value in 1852, have to-day, through the
progress OF events, acquired great
value. In 1852, franchises were of but
comparatively little Importance; to-
day they have acquired great value.
The trainers of the constitution in
| 1852 did not dream of the present sta
| tus of public franchises; they looked
at matters in the light of the then ex.
| listing eyents--in a plain, sensible,
business-like manner. They took up
things as they actually were, not as
they might be half a century ahead.
Wisely, therefore, the trainers of the
constitution of 1852 decided to frame
| q system of taxation in accordance
with the existing order of things, with
| i'm uGtipn. nnt1ftv Thnr -
instrument which was rational and
effective, and which, for the then ex-
listing state of public affairs, was high
ly practicable. just and equitable.
Such has been the experience of time
and practice.
But We must remember that times
have changed rapidly since 1852; yet
our state constitution. like laws of
the Medes and Persians, has altered
not" That the constitution ought to
be changed in material respects can
not be doubted. Numerous efforts
have been made to change it, but the
people have voted them down. We
must look at the existing constitution
as binding legal instrument, which
can be changed only by the sovereign
will of the people of Ohio
The constitution is the organic law
of the state; from it the legislature
derives all it's powers to make laws
And TO that instrument all laws must
strictly conform. The supreme court
of the state regulates all it's decisions
by that instrument-just as closely as
the devout Mohammedan regulates
his conduct by the Koran. The con.
stitution gives no power to tax public
franchises; and the supreme court
has held that attempts to effect such
taxation are in contravention of the
constitution, and therefore, void and
illegal. Hence, under the present
constitution, public franchises cannot
be taxed. And it follows that if the
people wish to tax such franchises
they must do so through the regular
mode of procedure-by an amendment
to the constitution. That is the only
proper and possible mode.
The public burdens of the state
have been apportioned in strict ac.
cordance with laws passed under the
constitutional grant of authority. This
fact cannot be successfully contro.
verted. If the corporations of the
state have escaped a just share of
taxation, the fault is net with the off.
GERS Of the law, the tax gatherers, but
with the, constitution. which ties the
hands of the tax collectors We should
understand these facts clearly at the
very outset
The power to tax is power to de-
stroy." Such arc the words of that
eminent jurist, Chief Justice John
Marshall. The Democrats contend
that the system Of taxation of the
state should bet radically changed.
They would exert power which
might injure or destroy all of the cor.
porations Of the state. Taxation is
their chief issue in the campaign-the
chief issue upon which they expect to
gain control of the state government.
They Will attempt to redeem the
pledges made by them in respect to
taxation, IL entrusted with power, by a
vigorous use of the power to tax, and
therefore, to destroy, the corporations
of the state The duestion is than