The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-09-14
WOULD TAX THE TRUSTS.

In the German Wilson tariff bill, Sena-
tor Morgan secured the incorporation of
drastic antitrust legislation. 1t was al
lowed to remain a dead letter. Senator
Morgan now proposes another way to
reach the trusts. He wishes the Federal
government to tax them. He is of the
opinion that they can be taxed in a
perfectly constitutional way, and has
written the following letter on the sub
ject:
81 think it is admitted on all sides that
the power of Congress to levy taxes ex-
tends to every description of property
that is not exempted by the character OF
its ownership. If it belongs to State,
or to the Federal government, or an in
strumentality of such government, it is
exempt from taxation; but all kinds or
property not so exempted are subject to
taxation by act of Congress. If it is real
estate the taxes must be apportioned
among the States according to popula-
ton. These are the only restrictions upon
the power of Congress to tax any des-
CHIFFON of property that l need advert
"A corporation is an artificial person
whose property is as liable to taxation
as that of a natural person, and the
capital stock and all assets of corpora
ton are taxable as property.
"a great many instances of such taxa
ton, in a great variety of forms, under
State and Federal laws, can be cited to
show that corporations are liable to taxa
ton in ways that would be in restraint
of constitutional rights and privileges II
applied to natural persons For example,
their Misunderstanding their right OF
legal existence-may be lawfully taxed
while human life is not taxable. Being
| creations of the law, corporations have
no rights of exemption from taxation
that are not conferred by law.
1.-THE general welfare demands the tax
alton of corporations rather than to add
| to their special privileges by exempting
them from a Just share in the burdens OF
government, and this principle is ac-
| knowledged in many State and Federal
| laws.
"Outside the limits of express restric-
lions there is no power of taxation under
| the Constitution that is necessary ele-
ment of such power, and it relates to the
general welfare, as a special function OF
| the laws of taxation. confided to their
protection.
"This is especially eXemplified in the
| taxation of opium and intoxicating
liquors, which are taxed for the purpose
of repression, as articles of commerce
and also for the preservation of peace
and public morals.
| at is also a wholesome exercise of re-
| tributive justice that corporations created
| by law should be taxed to the full extent
| that they tax the people by the abuse
| of the powers given them through the
/ creation of monopolies and trusts, o.
which they are the principal incubators
| 'The plan 1 would suggest in addition
to the Sherman law is a graduated tai
| on all business corporations, with al
| exemption in whole, or in part, as to sucl
/ as can establish to the satisfaction o.
| the government that they are not engaged
| in any agreements or combinations tina
are intended to control the prices or thu
cost of transportation of commoditie
| that are of the description that ente
| into domestic or foreign commerce.
| 1.-The power thus exercised is simpl!
| the taxing power and is not necessaril!
| connected with the power of Congress t.
| regulate commerce between the States o.
| with foreign countries"