The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-01-06
THE EXTINCTION OF THE STATE

Newlands, of Nevada, for the purpose
Of placing the railroad systems of the
country under a uniform control and
creating national commission to take
charge of them is Of great value be-
cause it presents squarely to the pub
lie mind one condition of this change
that has hitherto been evaded or ig-
nored. The recommendation of Com
missioner Garfield that corporations
engaged in interstate business be
obliged to take out federal license and
practically incorporate under federal
law did not disclose as clearly the in
evitable result of such tremendous
change in our system.
The bill of Mr.. Newlands is more
illuminating in this respect. 1t involves
of the states of the American Union as
independent political entities. Given
the adoption of this idea, no matter
whether it is advanced by MIR. Garfield
or Mr.. Newlands or Mr.. Roosevelt or
any other man, and we approach by
inevitable steps the assumption by the
federal government of all the powers
and duties of the several common
wealths, and their submergence and
complete disappearance in absorption
by the central power.
The crucial point is the question Of
taxation The act provides that there
shall be imposed a percentage tax on
the gross receipts of all such corpora
tions in lieu of all other taxes. It is
further provided that the property of
such railroads and their bonds and
stock are to be entirely exempt from
state and local taxation. This must be
a part Of any scheme of national con-
troll. The regulation Of rates, as that
power has been hitherto exercised, is
a mere supervisory matter. Where the
states charter corporations and these
corporations are subject to their crea-
can derive revenue from the property
located and the business carried on
within it. When this power is turned
over to the federal government the
right Of taxation goes with It, The
gross earnings and other taxes now
collected by state authorities, the taxes
levied on terminal and other property,
would all go by the board. They would
be swept into the federal treasury and
go to swell the enormous total of fed
eral revenues.
Meantime, what Of the state? The
revenue question lies at the base of the
existence of every political entity. No
public body like a city, a county or a
state can maintain its existence with
out funds. The power to tax is the
vital organ, without which no blood
can circulate through Its veins. Take
away from the state the power to col
lect taxes from corporations in this age,
when so large a share Of all property
exists in corporate shape, and what re-
mains? We should go back to the
land tax and the personal property tax,
while large share Of the taxable
property under these two classified
tons would be exempt because appro-
priated by corporations.
The state would be left with but a
beggar's- pittance. 1t would be poor,
weak, shriveled concern. Its citizens
would have no money wherewith to
carry on their government and main
tain their public Institutions Let any
citizen Of Minnesota figure it out for
himself subtracting from the public
revenue today and abandoning forever
all taxes contributed by corporations
doing an interstate business, under the
wide Interpretation which that phrase
now carries, and see what would be
left.
The proposal is but step in the
constant scheme for changing the gov
eminent of the United States to great
centralized system of power. The fight
of our earlier years for state rights as
opposed to central dictation has de-
scended upon us again in infinitely
more dangerous form. The older gen.
Grafton feared that state sovereignty
would transform the states into abso-
sslutely independent bodies and the
eUnfon into a rope of sand. Today the
danger is that our love of the strong
arm and our own panic madness for
big things shall erect a great central
government, modelled on the autocra-
cies of all ages. upon the ruins of
starveling states This is no fictitious
threat. The bill introduced by Mr..
Newlands carries in plain words the
necessary implication. Deprive the