The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-03-12
CORPORATION TAX
STIRRING UP STRIFE
Representatives. of Combines
Make Vigorous Attack on
Administration Measure.
ALLEGE INVASION or
SACRED STATE RIGHTS
Charge That Measure Was
Rushed Through, With Only
Superficial Consideration.

WASHINGTON. March IL" For talk
Ing away our charters was one OF the
grievances OF the American colonies
against tho king of Great Britain. At
The time the declaration containing
these very words) was written the peo-
pie OF Vermont had already rendered
conspicuous service in the war OF inde-
pendence. 1t would be an astonishing
result IT, years after that Independence
had been won. 1t should nc found that
The government established by the CO.
lonials themselves had become an in
strnment Tor taking away our char
That ls the climax in the brief Of
Maxwell Everett and Henry IS. W9rdner,
counsel for Stella T, Flint OF Windsor
VI. tlcd today in the supreme court In
opposition To the constitutionaity of the
corporation tax.
Raises Old Question.
Their main point Is that the law. as
Tar as IL affects the Stone Tracy COM
pany Is unconstitutional because il In
Nades the sovereignty OF the state OF
Vermont. II is also claimed that the
company would be deprived OF it's prop
crty Tor public use without just com
pensdtion. and that the tax is a direct
one OH the franchise. and. therefore. un-
constitutional because not apportoned.
Mr. Everett started the litigation over
the constitutiondlity of the tax, and he
|
Views OF the corporations TO the court
IN the oral arguments OF the $50 cases
next week.
The invasion of state sovereignty
through the corporation tax is actual and
real says the brief. mo person of
the slightest business experience can
doubt that the imposition Of the tax
and ths forced publicity OF corporate af-
Iars as distinguished from the privacy
oi inc affairs OF partnerships and indi-
viduals and their exemption from a like
.1TI l. -fr i
ant corporation and all similar small cor
porations which compete with partner
ships and individuals.
1T may not seriously affect the larger
and strong corporations. All the reserve
! power of the state to create these small
corporations would he rendered as use
/ less IS IL il never had existed
The court is told that TO declare the
law unconstitutional involved no dimipu-
i ton OF the potential resources of the ua =
] uonal government as was urged would
! De The case In the income cases.
Distinction Is Drawn
"rhe taxing power OF the federal gov
eminent. say the attorneys. may reach
the business of the defendant corpora
lions for two per cent. for ten per cent.
for ffty percent il necessary. II It VIII
same business and not attempt TO tax
! the corporate franchise, II is that at
tempt TO tax u franchise created by the
state and not the general power TO tax
! that makes this argument"
The brief claims that the law WAS only
superficially considered In congress
We assert that no novel revenue
measure ever passed through congress
with less scrutiny ON its constitutional
| ity.' II is said IN the brief Not a
single demonstration Of its validity as
attempted. by any senator Senator
Roots paragraph skins lightly over the
I thiunest Ice. He mentions Neazie Bank
versus Fenno and offers no reason, Sen
ator Rayner. misled against his instinct
and better judgment, by a hasty read J.
| ing OF the case. conceded without ar
gument the vital points
Charge Too Much Haste.
Senator Brandegee and Senator over
man doubted, and again and again
pleaded for light and reason. No light
was shed. No reason was given, except
for Senator Bristow's short speech. Sen
ator Cummins alone vigorously attacked
the measure as unconstitutional upon the
grounds we now urge, but his argument
was UNDECIDED. unanswered. and perhaps
unheard. That there was no answer is
not remarkable
The novel spectacle of corporation
pleading with the supreme court OF the
United States 20 be allowed TO be taxed
was presented today when counsel for
the Concy Island & Brooklyn Railroad
company asked the court TO uphold the
consttutionHlity of the tax,
So far this corporation is the only one
Of the fifteen organizations that has pre-
scented n brief In favor Of tho law.