The commonwealth. (Greenwood, Miss.) 1896-1923, 1906-12-07

bination, good or bad. Is noSious where
Il is not ineffective. Combination of
capital like combination OF labor Is a
necessary element of our present INDUS
trial system. II IL not possible completely
to prevent It; n IL II were. possible,
such complete prevention would do dam
age to the body polite. What we need
is not vainly to prevent all combination
TO secure such rigorous and adequate
control and supervision OF the eombina-
as TO prevent their injuring. the
public. or existing In such form as inev-
itably TO threaten injury-for the mere
fact that a combination has secured
practically complete control OF q neces-
sary OF life would under any circum-
stances show that such combination was
to be presumed to be adverse TO the pub
lie interest. II is nnfortunate that our
lions, instead of sharply discriminating
between those combinations which do
evil. Rebates, for instance, are as often
due to the pressure OF biz Shippers sas
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 to the initi-
alive OF big railroads. oiten railroads
preventing a big shipper from maintain
Ing improper advantages at the expense
of small shippers and of the general pub
lie. Such a combination, instead OF eeins
forbidden by law, should be favored. In
other words, it should be permitted to
railroads to make agreements, provided
these agreements were sanctioned by the
Interstate commerce commission ana
were published. With these two condi-
tions complied with 1t Is impossible to
see what harm such a combination could
do to the public at large. IT Is a public
evil to have on the statute books a law
incapable of full enforcement because
both Judges and juries realize that its
full enforcement would destroy the bust
ness of the country. for the result Is TO
make decent railroad men ~Nloiators or
the law against their Will, and to put a
premium on the behavior of the wilful
wrongdoers. Such a result In turn tends
to throw the decent man and the wilful
wrongdoer into close association, and in
the end to drag down the former to the
iatter's level; for the mar who becomes
a lawbreaker In one way unhappily tends
to lose all respect for law n to be
willing to break 1t in many ways. No
more %scathing condemnation could pc
the words of the interstate commerce
commission when, In commenting upon
the fact that the numerous joint traffic
associations do technically violate the
United States supreme court In the
Transmississippi case and the Joint
Traffic association case has produced no
practical effect upon the railway opera
tlbllo VI Aiio : etSH
in fact, exist now as they did before
these decisions, and with the came gem
eral effect. In Justice to all parties, we
ought probably to add that u Is difficult
to see how our interstate railways could
be operated with due regard to the inter
est of the shipper and the railway
without concerted action Of the kind af-
forded thru these associations"
This means that the law ms construed
by the supreme court Is such that the
business OF the country cannot be con-
Quoted without breaking II. recommend
that you give careful and early consider
alton to this subject, n II you ftnd the
opinion of the Interstate com
mission justified, hat you amend the
law so as to obviate the evil disclosed.
Inheritance and Income Tax.
1t was expected that the president
would refer In some way to his belief
In the necessity for the curbing of enor-
recommending legislation for both in
come and an Inheritance tax. He be-
lieyes the government should impose a
graduated inheritance tax, and. If posi-
BILE, a graduated income tax. He says:
II am well aware that such a subject
as this needs long and careful study In
order that the people may become famll-
lar with what Is proposed to be done,
may clearly see the necessity of proceed
ing with wisdom and self-restraint, and
may make up their minds just how far
they are willing to go in the matter;
while only trained legislators. can work
| feel that in the near future our nation
al legislators should enact a law provld-
ing for a graduated Inheritance tax by
which O steadily increasing rate OF duty
.valuables coming by gift. bequest,, or
devise to any individual or corporation.
1t may be well to make the tax heavy
in proportion as the individual benefited
T. remote Of kin, n n event, IN nv
increase very heavily with the increase
of the amount left to any one individuai
after a certain point has been reached:
1t is most desirable to encourage thrift
thrift and ambition is the desire on the
part OF the breadwinner to leave his chill
dren well Off. h object can be attained
by making the tax very small on moder-
ate mounts OF property left; because
the prime object should be to put q con-
ftartly increasing burden on the inner
~itance Of those swollen fortunes which
it Is certainly of no benefit to this coun-
try to perpetuate.
There can be no question OF the eth-
ical propriety of the government thus de-
termining the conditions upon which any
gift or inheritance should be received.
Exactly how far the inheritance tax
would, as an incident, nave the effect Of
limiting the transmission by devise or
gift OF the enormous fortunes In question
It Is not necessary at present to discuss.
II is wise that progress In THIS airecuot
national inheritance tax. while u might
be more substantial than any such tax
has hitherto been, need not approximate,
either in amount or IN the exsent OF inc
Increase by graduation, to what such u
tax should ultimately be.
Inheritance Tax Constitutional.
"This species of tax has again and again
been Imposed, altho only temporarily, by
the national government. 1t was first
imposed by the act OF July Q, 1877, when
the makers OF the Constitution were
a graduated tax; tho small In amount,
the rate was increased with the amount
left to any individual. exceptions being
made in the case of certain close kin. A
similar tax was again imposed by the
act of July 1, 1852; a minimum sum OF
81 900 In personal property being excepted
from taxation, the tax then becoming
progressive according to the remoteness
1898, provided for ar inheritance tax on
any sum exceeding the value of $4,000,
the rate of tax increasing both In accord
ance with the amounts left and in ac-
c%ordance with the legatee's remoteness
Of kin. The supreme court has held that
the succession tax imposed at the time
OF the civil war was not q direct tax but
an Impose of excise which was both con-
SutUJlOudl dHu NhlIu. luOTv TcCtIlliy tlo
court, in an opinion delivered by Mr..
Justice White, which contained an ex-
ceedingly able and elaborate discussion
OF the covers of the congress to impose
death duties, sustained the constitution
atty of the inheritance tax feature of the
war-reyenue act of 1898.
10 Income Tax Constitutional?
"In its Incidents, and apart from tho
main purpose raising revenue, an
income tar stands on an entirely differ
ent footing from an Inheritance tax, be-
cause It Involves no question of the per-
petuation OF fortunes swollen TO an un-
healthy size. The question Is In it,
essence a question of the proper ADJUST
ment OF burdens to benefits. As the
law now stands 1t IL undoubtedly DIM
cult to devise a national income tax
which shall be constitutional. But
whether II Is absolutely impossible Is an
other question: and Il possible II Ia most
certainly desirable. The first purely In
nxr ta~ fou vyQ1 mat Nv the pnnUvaaa