The news-democrat. (Providence, R.I.) 1906-1909, 1906-12-04

20 prevent all combination, but TO secure
such rigorous and adequate control and
supervision OF the combinations as
10 prevent their injuring the pub
lie or existing In such form as
inevitably 10 threaten inJury-for the
mere fact that combination has Sc
cured practically complete control OF a
necessary OF life would under any cir
cumstances show that such combina-
ton was to be presumed 10 be adverse
TO the public interest IL is unfortunate
that our present laws should forbid all
combinations, instead OF sharply dis
eliminating between those combina-
tions which do good and those com
binations which do evil. Rebates, for
instance, are as often due to the press
ure OF big shippers Gas was shown in
the investigation OF the Standard oil
company and as has been shown since
| by the investigation Of the tobacco and
. sugar trusts) as 10 the initiative OF big
| railroads. often railroads would like
10 combine for the purpose of prevent
Ing a big shipper from maintaining i'm
proper advantages at the expense OF
small shippers and of the general pup
lie. Such a combination, instead OF
being forbidden by law, should be fav-
ored
In other words. IL should be permit
ted 20 railroads 10 make agreements,
provided these agreements are sane
toned by the Interstate commerce COM
mission ana were puDllSntu WIN lhSSN
two conditions complied with IL is I'M
| possible TO see what harm such COM
bination could do To the public at large.
| 1t is a public evil to have on the statute
books a law incapable OF full enforce
ment because both judges and Jurles
realize that it's full enforcement would
destroy the business Of the country Tor
the result is to make decent railroad
men violators OF the law against their
Will and to put a premium on the be-
haVior of the wilful wrongdoers. Such
result i'm turn tends TO throw the
decent man and the wilful wrongdoer
into close association, and in the END
10 drag down the former to the lat
ter's level; for the man who becomes
a lawbreaker in one way unhapplly
tends to lose all respect for law and
TO be willing TO break IL in many ways.
No more scathing condemnation could
be visited upon law than is contained
I'm the words of the interstate commerce
commission when, in commenting upon
the fact that the numerous joint tranlc
associations do technically violate the
law they say: THE decision or the
United states supreme court In the
trans Missouri case and the joint
Traffic association case has produced
no practical effect upon the railway
operations of the country. Such asso-
Citations, in fact, exist now as they
did before these decisions, and with
all parties, we ought probably TO add
that IL is difficult TO see how our inter-
state railways could be operated with
due regard TO the interest OF the ship
per and the railway without concerted
action OF the kind afforded thru these
associations.
This means that the law as construed
by the supreme court is such that the
business of the country cannot be con-
Quoted without breaking It, | recon-
mend that you give careful and early
consideration TO this subject, and IL you
find the opinion OF the interstate COM
merce commission justified, that you
amend the law so as TO obviate the evil
disclosed.
Inheritance md Income Tax.
The question of taxation is difficult
In any country, but IL is especially
difficult in ours with it's federal sys-
tenn OF government. Some taxes should
on every ground be levied in small
district for use in that district. Thus
the taxation OF real estate is peculiarly
one for the immediate locality in which
the real estate is found Again. there
IS no more legitimate tax for any state
than a TAX on the franchises conferred
by the state upon street railroads and
similar corporations which operate
wholly within the state boundaries,
sometimes in one and sometimes in sew
eral municipalities or other minor divt-
sioEs of the state. But there are many
kinds of taxes which can only be levied
by the general government so as to
produce the best results. because.
among other reasons, the attempt to
impose them I'm one particular state
too often results merely in driving the
corporation or individual affected to
some other locality or other state.
The national government has long
derived it's chief revenue from a tariff
tN,t. tnul
excise tax In addition 10 these there
is every reason why. when next our
system of taxation is revised. the ma
tional government should impose
graduated inheritance tax, and. If pos
sible a graduated income tax. The man
OF great wealth owes a peculiar ohliga-
ton to the state. because he derives
special advantages from the mere eX-
istance OF government. Not only should
he recognize this obligation in the way
he leads his daily life and in the way
he earns and spends his money but
it should also he recognized by the way
in which he pays for the protection the
state gives him. on the one hand. IL Is
desirable that he should assume his
full and proper share of the burden Of
taxation; on the other hand. II is quite
as necessary that In this kind Of taxa
ton, where the men who vote the tax
pay but little Of st. there should be
clear recognition OF the danger OF 'n-
augurating any such system save in
spirit of entire justice and modera-
ton.
Whenever we. rs a people. undertake
to remodel our taxation system along
the lines suggested, we must make ~
clear beyond peradventure that our
aim is to distribute the burden OF sup
porting the government more equitably
than at present that we intend 10 treat
rich man and poor man on basis Of
II as equally fatal 70 true democracy
10 do or permit injustice TO the one as
10 do or permit injustice To the other
am we'll aware that such a subject