Daily capital journal. (Salem, Oregon) 1903-1919, 1906-12-13
Laws, Hut no Laws.

No more scathing condemnation
could be visited upon a law than Is
contained in the words of the inter-
state commerce coz, mission when, in
commenting upon the fact that the
numerous Joint traffic associations
do technically violate the law, they
say: "The decision of the United SUI
preme court in the Trans-Missouri
case and the Joint Association case
has produced no practical effect upon
the railway operations of the coun-
try. Such associations, in fact, exist
now as they did before these de-
clslons. and with the same general
effect In Justice to all parties, we
ought probably to add that II is dim
cult 10 see how our interstate rail-
ways could be operated with due re-
gard 20 the interest of the shipper
and the railway without concerted
action of the kind afforded through
these associations.
This means that the law. as con-
strued by the supreme court is such
that tho business OF the country cap
not be conducted without breaking
Il. | recommend that you give care
ful and early consideration to this
subject. and n you find the opinion
OF the interstate commerce commits
sion Justified. that you amend the
law 80 as 20 obviate the evil dis
closed"
Referring TO inheritance and In
come tax the President says; "The
question OF taxation ls difficult I'm
any country, but It Is especially dith-
cult In ours with It's federal system of
government. Some taxes should on
every ground be levied In a small dis
trlot for use In that district Thus
the taxation OF real estate IL pecu-
llarly one for the immediate locality
in which the real estate Is found
Again. there is no more legitimate
tax for any state than tax on the
franchises conferred by that state
upon street railroads and similar
corporations which operate wholly
within the state boundaries. some
times In one and sometimes In sever
al municipalities or other minor dl-
visions OF the state, but there are
many kinds of taxes which can only
be levied by the general government
80 as TO produce the best results, be-
cause among other reasons, the at
tempt TO impose them In one partIeu-
lar state too often results merely In
driving the corporation or Individual
affected 20 some other locality or
state. The national government has
long derived it's chief revenue from
tarlf on imports aud from an in
ternal or excise tax. In addition 90
these there Is every reason why,
when next our system of taxation is
revised. the national government
should impose a graduated Inherit
ance tax. and. II possible, a gradu-
ated income tax. The man OF great
wealth owes peculiar obligation TO
the state. because no derives especial
advantages from the mere existence
of government Not only should he
recognize this obligation In the way
he leads his daily life and In the way
he earns aud spends his money, but
Il should also be recognized by the
way In which he pays for the protec-
tlon the states give him. ON the one
hand. Il Is desirable that he should
assume his fun and proper share OF
the burden OF taNationi on the other
hand. Il Is quite as necessary that IN
this kind OF taxation. who're the men
who vote the tax pay but little OF Il,
there should be clear recognition ot
the danger OF inaugurating any such
system. save In spirit OF entire JUS
tice aud moderation. Whenever we.
as people. undertake TO remodel
our taxation system along the lines
suggested. We must make Il clear be-
yond peradvent0re that our aim Is TO
distribute the burden OF supporting
the government more eQultably than
at present; that We intend 10 treat
rich men aud poor men on a basis OF
absolute equality, and that We re-
gard Il as equally fatal 10 true de-
moeraey 70 permit injustice TO the
one as TO do or permit Injustice 20
the other
Il am well aware that such sub
iect a. th's seeds long and eaistul