The Union times. [volume] (Union, S.C.) 1894-1918, 1915-07-02
FRIDAY JULY 2, 1915.
ARE CORPORATIONS DOOMED?

I do not feel shivers up and down
the spine because of the manifest in
justice too often done to legitimate,
invested capital; for l believe that
such injujstices will prove their own
folly, and thus work out better con-
dition. / feel sure that the great
majority of the people need but to
understand the facts, and understand
ing them will deal fairly. The trouble
has been that for some thirty years
now, newspapers, magazines, politi-
clans and would-be reformers have so
persistently cried out against corpo-
rations that the average man has
come to think that corporation is
worse than "highland mocassin," :"
very word corporation" has become
"stench in the nostrils" of the vast
majority of our people. This hatred
is manifested at every political gath
ering; it is most clearly shown in
almost every court.
The corporation has become the
easy mark of the damage suit" law
yer. One has but to attend civil
court anywhere in the State to be
convinced of this attitude towards
the corporation. Cases, that if
brought against an individual would
be thrown out of court, are seriously
l,a L.
corporation, and frequently the cor
poration is merciessly bled | am
not questioning the right to make
the corporation pay when the case is
just. But it often happens that JUS
tice is violated. have reached the
deliberate conclusion that a man is
quite much of fool to, at this time.
invest money in corporations; and
that many others have reached the
same conclusion. is. | believe. at the
bottom of the abnormal stringencv in
money matters. | believe this atti-
tude of the public mind has more to
do with hard times" than does the
low price of cotton. Men are becom-
ing more and more afraid to invest
in incorporated enterprises. This
naturally causes tight money" We
have few individuals who have capi-
tai sufficient to launch an enterprise.
TO have many individuals put their
money together is often the only
possible way to launch an enterprise.
When such an enterprise is started
it is too often mercileSsly bled. That
is the reason that the "small man."
the man with limited capital, has
come to be slow to invest. | do not
blame him.
There is another phase of this sub
icct that frequently escapes notice
'u"orpo-ated capital is ONO, - :"
spection. 1t is held to strict account
ability.
Laws have multiplied regulating
invested capital. 1t cannot escape
taxation. 1t has come to be fact
that such working capital, capital in
volved in carrying on the industries
of the country, comes in for a larger
share Of taxes than is just. Take
our banks for an illustration. They
are constantly held to strict account
ability by State and Federal govern
ments. They are harassed by re-
quired reports they are taxed heavi-
iy So soon as the State Tax Com
mission is created for the purpose of |
equalizing taxation, the Commission |
makes dive for the banks. They |
were already required under the fed
eral laws to pay income tax, not
only upon net earnings, but upon
every dollar of dividends paid to
stockholders. And they are now the
very first mark of the tax commits
sion. Not one movement to get at
the manifest injustice in returns
made by large landed estates. Not