Los Angeles herald., 1906-12-05

tion of capital like combination of Ia
Dor Is a necessary element of our pres
ent industrial system. 1t Is not posi-.
BILE completely to prevent It; and II III
we're possible, such complete preven-
ton would do damage to the body poll
tic. What we need is not vainly 10
try to prevent all combination, but 10
secure such rigorous and adequate con-
troll and supervision of the compiini,a. ma
tions as to prevent their in1urlhs tne t
public, or existing in such form as II ~
evitably to threaten injury-tor tne
mere fact that combination mas Sc
cured practically complete control on
necessary of life would under any cil
cumstances show that such col,ol'ls cos.'ls,o
tion was to be presumed TO pc slSt,,,,. uvS,ne
to the public interest. It IS u,.,9 u,iSi co.
ate that our present laws snoulu l%ol %
hid ali combinations instead OF sharp-
ly discriminating between tnose tNano I'LL
binations which do good ana uhose
combinations which do evil. hepates,
for instance, are as often uue u ~ ~ .i,,, ~
pressure of big shippers (as "ss sli1wfI sly. .h
in the investigation or tne siai'',,, - :,
OH companv and as has Deen shoWH
eince Nv the Investigation of the to-
bacco and sugar trusts as 10 the IN
itio tiye of big railroads. Often rail-
roads would like to combine for the
nIirpose of preventing pig shlpper
from maintaining improper adVantages
of
aha General public. Such combina-
tion instead of being forbidden by law,
sho,,ld he favored. In other words, 1t
should be permitted to railroads to
make agreements, provided these
agreements were sanctioned by the In
terstate commerce commission ana
were published. With these two con-
ditions complied with 1t is impossible
to see what harm such combination
could do to the public at large. 1t is
public evil to have on the statute books
n law incapable of full enforcement
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 q premium on the behavior
of the willful wrongdoers. Such re-
suit in turn tends to throw the decent
man and the willful wrongdoer into
close association, and in the end to
draw down the former to the latters
level; for the man who becomes law
breaker in one way unhappily tends to
lose all respect for law and to be
willing to break it in many ways. No
more scathing condemnation could be
visited upon a law than is contained In
the words of the interstate commerce
commission when, in commenting upon
the fact that the numerous joint traf-
the law, they say: "The decision OF
the United States supreme court In the
trans-Missouri and the Joint Traffic as
sociation case has produced no prac-
tical effect upon the railway operations
of the country. Such associations, III
fact, exist now as they did before these
decisions, and with the same general
effect. in justice to all parties, we
ought probably to add that it is diff
cult to see how our interstate railways
could be operated with due regard to
the interest of the shippers and the
railway without concerted action or the
kind afforded through these associa-
tions."
This means that the law as con-
strred by the supreme court is such
that the business of the country can
not be conducted without breaking IT.
l recommend that you give careful anu
early consideration to this subject, ana
il you find the opinion of the interstate
commerce commission Justified, that
you amend the law so as 10 opVlate lhe
evil disclosed.
a inheritance and Income Tax
The question of taxation is difficult in
any country, but 1t IS especlally oiiile Ne
cult in ours with it's federal system OF
government. Some taxes should on
every ground be levied in small dis
trict for use in that district. Thus the
taxation of real estate is peculiarly one
for the immediate locality in Whlch
the real estate is found. Again, there
Is no more legitimate tax for any state
than tax on the franchises conferred
by the state upon street railroads and
similar corporations in one and Some-
times in several municipalities or other
minor divisions of the state. But there
are many kinds of taxes which can
only be levied by the general govern
fhn
because, among other reasons, the at
tempt to impose them in one particu-
lar 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
tariff on imports and from an internal
or excise tax. In addition to these
there is every reason why, when next
our system of taxation is revised, the
national government should impose
graduated inheritance tax, and, If pos
sible, a graduated income tax. The
man of great wealth owes a peculiar
obligation to the state, because ne de-
riyes special advantages from the mere
existence of the 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 be recognized
by the way in which ne pays Ior the
protection the state gives him. On the
one hand, it is desirable that he should
assume his full and proper share Of
the burden of taxation; on the other
hand, it is quite necessary that In this
kind of taxation, where the men who
vote the tax pay but little of It, there
should be clear recognition of the dan
ger of inaugurating any such system
save in spirit of entire justice and
moderation. Whenever we, as peo-
pie, undertake to remodel our taxation
system along the lines suggested, we
must make it clear beyond peradven-
ture that our aim Is to distribute the
burden of supporting the government
more equitably than at present.; that
we intend to treat rich man and poor
man on a basis of absolute equality,
and that we regard it as equally fatal
to true democracy to do or permit in
Justice to the one as to do or permit
injustice to the other.
Burden on Swollen Fortunes
am aware that such a subject as
this needs long and careful study in
order that the people may become IA
miliar with what is proposed to be
done, may clearly see the necessity OF
proceeding with wisdom and self-re-
Straint and may make up their minds