The Intermountain Catholic. (Salt Lake City [Utah] ;) 1899-1920, 1902-04-12
Decay of State Power.

IHE oleomargarine bill is the latest
and most odious and offensive ex-
ample of the practice of using the
national taxing power TO prohibit do
mestic industry. The taxing power has
long been used to prevent the importa
ton of the products of foreign indus
tries in order 90 give protection to the
American manufacturers or growers of
similar products. Its use to regulate
out of existence one domestic industry
for the benefit of another industry or
for the alleged protection of public
health or morals is of later origin.
There is a tax of 10 per cent on the
! circulation of state banks. That tax
was not imposed as a revenue meas
ure, but to destroy state bank notes
! and leave free field for the national
bank issues. But the practical illus
tration of the axiom that the power
to tax is the power TO destroy" has
served as a precedent for a similar use
of the taxing power where its expe-
diency may be questioned, says the
Chicago Tribune.
The war revenue act of 1898 con-
| tanned a provision for the taxation of
bucket shops which aimed at their ex-
tinction. a brief controversy between
the house and senate as to whether
that provision shall be repealed with
the war taxes or left in force has been
determined in favor of repeal. The tax
on bucket shops is to go with the other
war taxes. The bucket shop business
is Objectionable from many points of
view, 1t should be regulated, controlled
or prohibited. The bucket shop itself
is Objectionable from the point of view
OF the moralist who sees in tolerated
gambling an intolerable evil But it is
open to question whether it properly
comes within the purview of the ma
tional authority to control bucket
shops, policy shops, or any other kind
of shops which are subject TO the DO
lice powers of the several states. On
the whole, we would like to see the
bucket shop tax retained, but we can
not help seeing in this and all similar
legislation a dangerous abuse of the
true functions of the national govern
ment.
A few years ago the practice sprang
up of mixing wheat flour with corn
flour and selling the product as wheat
-four The millers took exception to
it. They appealed to congress to use
the taxing power for their protection
against new industry which they said
injured trade in many ways. Congress
granted the prayer. A special tax was
imposed on the manufacturers of
mixed flour and a tax was put on their
product. These taxes produced $500
during the last fiscal year. The tax
ing power has about destroyed the
mixed flour industry. whose product
was not an unhealthful one. Should the
power to tax in order to destroy be
used in any such case?
Sixteen years ego a small tax was
levied on oleomargarine at the instance
of the dairymen. The ostensibe OBJ
ject was to regulate" the business and
obtain revenue. The hope of the dairy
men vas that the business would be
destroyed. The hope was frustrated.
they have asked congress
for and are on the eve of obtaining
legislation which will practically put
an end to the manufacture of food
product which is not injurious to
health, which a great many Americans
have been buying because it was cheap |
and enjoying because it was an ac-
ceptable substitute for butter.
Tho OF nF
power at the instance of one domestic |
to destroy another domestic |
industry is dangerous. 1t has been
carried too far. If it Is to become a
settled rule of action that an industry
which can command the necessary I
votes in congress may use the taxing
power to crush out home rivals the
abuse of power may in time become in
tolerable. 1t is time to put a limit to
this perversion of the functions of the
national government