The San Francisco call., 1908-10-13
STATE REVENUE AMENDMENT UNw1sE


leap the dark by making radical change
in the present system 1t is dangerous expert
ment be concluvely shown be OF imperative
need and undoubted eNedienc Alter carefully weighing the
arguments popounded both sides The Call compelled to the
that the proposed constitutional amendment unwse
The amendment brief raise the needed
for support of the by fixed tax on corpora
TONS calculated instances the gross
annual receipts Prot Carl l. Pehn OF the University OF Call
enia member of the commission and be regarded as
proponent argument in favor of the amendment AS
have Professor Plehn has offered hgures which
that the corporation would sufficient
expenses Indeed believe that the
sum of the corporation that the balance
be by general property Should make the change
condition would be than the first
The corporation be assessed
receipts That might be simple matter of arithmetic
Professor Pn but in fact the ntricaces OF corporation book
keeping often confusing and difficult Sometimes they
be disposition believe II such disposition exists the
poraons themselves thank They notorously and
obviously dishonest many things that they distrused all
As far the OF railroads concerned the
amendment would make change because has been
policy OF the board of equalization years past
follow the rule OF assessing the railroads fixed Of
gross receipts generally which the figure
posed by the friends OF the amendment
1t urged against the amendment and the valid,
proposed plan would relieve the corporations from all
burden for the extensive local and projects to be
carried out by the OF bonds ls very important matter
which certain make rapidly growing factor in the nstu
onal life Of the and the municipalities Great projects
hand proposed for water supply tor good roads and TOR other
forms OF public service The Call does not favor municipal
ship of public utilities general proposition except for water
supply but this amendment would practice shut off all advance
that direction The would need the money raised by
OF the companies The amendment would make per-
OF the Spring Valley company and the Contra
Costa company its SUCCESSORS
Apart from this check the for municipal
sDn1, there no GOOD reason why coDoraons as whole hod
be relieved their share of the of large public
men The future that opens up in this field makes it
certain that tax pave in cities will be compelled for manv wears
special amounting probably 20
every taxable SO0 pay the interest and principal OF bonds
The corporations ought be relieved from that burden
The method of laid down in the amendment for banks
the capital stock its par value plus the surplus
proated each share There something to be said for this
scheme difficulties The of bank
slight business Some banks have capital
purely mutual The effect of the amendment would
premium of capital and surplus
weaken the banks. Ne admit that this difficult
and that the present system satisfactory
permits complicated system of license
exc raised from the The
inclusion of this feature appears be admission that the
poraton would be insufficient the needed
purposes.
Altogether the plan proposed appears be doubtful
experiment that, while conccdng the of labor pains
intelligence given formulation The Call feels constrained
advise against its adoption