The Washington herald., 1909-06-24
THURSDAY. JUNE "A. 1909.
No Peril in Corporation Tax.

Nobody doubts President Tafts con-
servatisrn. His judicial temperament Is
unquestioned. There is nothing OF the
radical in his makeup His record is
universally appraised as that OF a con-
structive statesman.
In view OF these facts. scant success,
we fancy. viii attend the efforts OF those
selfish interests now so industriousIy at
tempting TO cry down the proposed cor
poration tax. and lead the country 10 be
nsve that its adoption would spell busi-
ness troubles.
II President Tafts advocacy Of the meas
ure were not in itself sufficient proof OF
It's safety. its support by the conserva-
tive school Of statesmen or the Senate
and House-typihed by such men as Sen
ator Aldrieh and Speaker Cannon-fur-
nishes abundant guarantee that it is void
Of dangerous possibilities.
As we have observed before. this pro-
posed tax does not appeal strongly to US
as a revenue-prOducing measure merely.
We believe that a tariff law equitabIy
framed would more readily yield the
$25,O0O.oOO or S8O.O0aOO0. and at the same
time be conducive to public interests as a
whole. We believe. too. that such a tariff
law would strengthen the protection prin-
ciple. whereas the pending legislation. by
its obvious disregard Of the consumer
can only weaken and inperI that prin-
ciple.
But, quite apart from tariff schedules,
there IS a fundamental idea behind this
proposed corporation tax that is bound
to commend itself 10 the country at. large
once II IS generally understood. That
fundamental idea embraces supervisory
control OF corporations and publicity" 3"
and President Taft pointed this out IN
his message
This is an era Of centralization-centra
ization n business and IN government.
Great trusts and corporations are an In
evitable part OF our twentieth century life
A condition confronts us-not a theory
and 1t is a wholesome sign Of the times
when our conservative statesmen. aban-
doning their stand-pat position for the
nonce. prepare 10 meet a twentieth century
condition. That President Taft looks upon
this proposed enactment as one involving
an important governmental policy. and
not a mere makeshift for revenue-raising
purposes. IS shown by his fnsistence that
no limit be put upon f.
II is easy enough 70 conjure up posi-
bic evasions OF such a law; 10 see the tax
shifted upon the consumer by the manip-
ulation OF prices. and corporations dis
solved 10 give place 10 individual part
nerships, but these apprehensions are
largely imaginary. There are honest
corporations the country over. lust as
there are honest individuals. and il IS
characteristic Of the American spirit 10
meet Just taxation readily and uncom-
plainingly. Tax evasion is not a trait OF
our business world.
There is a growing demand for pub
ncity Corporations realize II, and are
hearkening 70 II. Investors want TO know.
They have the right 20 know. And If
this corporation tax plan. embodied in the
tariff. really means a step toward super
visory control and publicity, then, in our
opinion, corporations. great and small
Will themselves profit by II enormously.
Money for investment will be in evidence
as it has never been in evidence since
trusts and corporations began TO grow.
Business men OF Washington and else
where viii do well 70 give a sober second
thought TO this taxation plan before con-
demning it. AS now outlined It will as
suredly do much TO take the curse OF a
more or less iniquitous tariff and greatly
strengthen its author. President Taft