The St. Louis Republic., 1901-01-06
CONFUSION,

From the text Of the franchlse-tax
bills introduced In the Missouri Legis-
lature 1t is not easy TO discover n ruling
purpose. Some of the bills indicate Il
plan of producing larger revenue; others
seem to contain an expectation that the
trust evil is To be suppressed: at least
two can he explained only on the theory
that the authors regard articles Of incor-
poration as a public nuisance To he
eradicated by hostile and drastic lcgis-
lation.
Representative Blair's bill recognizes
the difference between ordinary indus
trial and commercial business on the one
side and quasi-public service with eN-
elusive privileges on the other; but he is
vague in his definitions. Does lie mean
that incOrporaticns OF a certain kind are
to be assumed 10 have exclusive priyi-
leges, or that such interpretations are
to be specially taxed when found ex
erclsing exclusive privileges: In other
words, does the particular kind Of busi-
ness constitute "a priIna facie case for the
special taxation. or must the State show
by proof the existence OF tho special
privileges which are to be subject TO the
special taxation? The Interpretation of
the language employed in this bill may
be clear TO the expert lawyer, but the
terms suggest to the layman doubts as 10
how the law would be applied.
Senator Whaley's bill is one OF the
sweeping measures which Include all
forms Of corporation I'm n system of
special taxation, regardless OF the kind
OF business and also regardless of the
danger Of double taxation. He excerpts
certain forms OF business already pay
Ing special taxes. apparently leaving all
others to be taxed indiscriminately.
The Republic hardly needs to repeat
that franchise taxation IS project
which may be relief TO the people and
a correction of abuses or a penalty up
on intelligence and an irreparable loss
to the State. There is a right way and
a wrong way OF approaching the ques-
ton. To say that one set OF men con-
Quoting a business as a partnership
shall belong to favored class, while
another set conducting a precisely SINH
lar business across the street as a cor
poration shall be penalized, is nothing
more than an effort TO destroy modern
and convenient industrial and trade
methods. 1t would be an attack on the
productive investment OF savings and an
especially disastrous attack on the op-
portunities Of women and other un-
trained possessors of small savings wao
could not afford TO take the risks Of in
vesting in partnership and individual
enterprises.
Probably the root Of whatever con-
fusion may exist in the minds of legis-
lntors Is the current use of the word
corporation" In connection with gigan-
tic trusts and other dangerous aggres-
sions Of centralized wealth. As a mat
ter OF fact, these aggressions would be
quite as notable and dangerous IL there
were no such thing as articles of incor-
poration. They use the joint stock sys-
TEN, Just as nearly every business. great
or small, uses the system, because of
obvious conveniences; just as they use
the telegraph, the typewriter and other
conveniences. But the essence of mo
nopoly Is not IN the mere convenient
process Of conducting business. 1t lies
rather, so far as the State can touch it.
in the special privileges which some &C.
tlvities enjoy and others do not. Tax
alton, to be safe and equitable, must
lucidly define what are special priyi-
leges. Special taxation must be applied
with regard to facts properly discrimi-
mated