The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-02-13
TOWNSEND MAKES STRONG
DEFENSE OF SHERMAN LAW
IN TALK MANUFACTURERS
Nothing In It of Which Any
Honest Business Man Should
Be Afraid" He Says
TAXATION is DISCUSSED
Commissioner of Corporations
Smith Tells of Systems in
Vogue in Various States


ton of the government to business
men were discussed. Monday night.
at the annual banquet OF the Mich
gan Manufacturers association, Her
bert Knox Smith, commissioner or
corporations. talking on taxation, and
Senator Charles l.. Townsend talk
ing on the Sherman Antitrust act.
Senator Townsend called for an en-
torcement OF the Sherman act
For weeks said the senator, I'VE
have been holding hearings in Wash
ington, and we have listened to the
heads Of great corporations, like
Judge Gary, professors of economies,
labor leaders. and many others, and
they have all agreed on one thing,
that something must be done. There
have been abuses in business, born or
the carelessness, possibly the Grim
!nality of some business men. 1t is
the object of government 10 preserve
the right TO do business, and to in
terfere only SO far as is necessary to
conserve the general welfare. There
are two classes of business men in
the country. one that wants reform
and another that needs it,
Some are suggesting a national
incorporation act or a federal license
fee, but this inevitably involves the
fixing Of profits by the government,
and the fixing OF profits means the
liking OF prices. This means that we
must fix all prices, including the price
81 labor and TO my mind this is but
a step toward socialism, The per.
mission OF combinations under gov
eminent control, Is a step in the same
direction.
There Is nothing in the Sherman
act OF which any honest business man
should be afraid, The men who cry
most bitterly against the law, are the
ones who have been most notoriously
violating 1t. | think II is bad policy
10 cry wolf when you are in the
sheep-stealing business.
Tho Sherman act Is one or the
most comprehensive and clearest laws
that we have ever had written It
nerer was lawful 10 restrain trade
under the common law, and the Sher-
man act merely adds a penalty to the
provisions OF the common law.
Every honest man knows when he
is using dishonest methods of compe-
tition. want the Sherman law en-
forced, and business men should In
sist upon It's enforcement
Commissioner Smith apologized for
the dryness OF his subject, but said
that II had been forced upon him. He
said in part:
The bureau OF corporations has
been gathering information on taxn.
ton, because IL is one of the factors
entering into the problems of corpora
tons. So far we have covered II
states, and have put the results into
form 30 that they can be understood
by the average man.
Michigan has reversed the usual
tendency In taxation. Most state
start out with what Is Known as Tn
general property tax, and go on TO a
n. ore complex system of taxation, TAX !
ing In gross receipts, capital stock,
franchises, etc. Michigan. however,
having tried the policy OF taxing gross
receipts. has reversed this process ami
Eased its tax policy mainly on the gen
eIal property theory. Michigan dis
tinguishes between different kinds Of
business. Railroads, telegraph, tels-
phone, express and car companies are
subject to state property tax, while
oil other corporations are subject TO
the local property tax.
Now take the 16 other, states the
bureau has examined. First there Is
a growing tendency toward special
classification. A Gross receipts tax
is assessed and collected in ten states.
This is applied TO public ervice bust
nesses. Only one of these states has
lo gross receipts tax.
"A growing tendency Is the separa-
ton OF the sources Of state and local
revenue. 1t is quite usual now for 4
state to rely on it's corporation tax FOE
a large portion es-its-reYenaes- New
Jersey gets so per cent of it's taxes
from corporations. Michigan gets 45
per cent.
The greatest inequalities in taxa
ton result from the ignoring of inter
state relations. Our present tax sys-
TEN results in double, treble, some
times quadruple taxation, due TO the In
cldence of taxation In various states
on the person himself, upon his In
come, upon his securities, upon his
capital and upon his estate after his
death. This subject in our form OF
government Is a difficult one TO handle,
but II is one that must be taken UP
ii taxation is to be justly administered
There are two types of business
men, one who increases his business
by increasing his efficiency and broad
ening the market, and the other who
succeeds by Gripping the efficiency OF
his competitor. IL is necessary TO ma
iional success that We favor the first
man. and the only way to do this is
+e,-kaep- epeA-t44 felfIrass-ef-fa4E--
business by system OF equal taxa
ton
Hal Fl. Smith. attorney for the
Michigan Manufacturers association,
made few remarks on the work that
has been accomplished by the asso
citation for the year, and called upon
the manufacturer of Michigan to take
n more lively interest In the conduct
OF the business of the state
1T should be the business OF every
manufacturer in Michigan" said Mr.
smith. TO see that the employees OF
thP state show ttIr same industry,
economy and efficiency in the con
duct Of the affairs OF the common
wealth OF Michigan that he would re-
.uulre In his own employees" -
r. T.. Maddox. the newly-elected
president of the association. called
for cooperation among the manufac.
turing interests OF the state
l.. Dallas bort. of Flint, acted as
POSTMASTER In the absence OF the re.
firing president. II. j. Gilbert. of Sag.