The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1915-07-29
ARE CORPORATIONS DOOMED.
Oppressive Policy of State Held to Be
Menace to Investment.

The Union Times publishes the fol-
lowing as its leading editorial:
l do not feel shivers up and down
the spine because of the manifest in
justice too often done to legitimate.
invested capital; for | believe that
such injustices 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 trou-
Bile has been that for some 80 years
now, newspapers, magazines, polite
ians and would-be reformers have so
persistently cried out against cor
porations that the average man has
come to think that a corporation IS
worse than a highland moccasin, y"
and should be smitten to death. The
very word "corporation" has become
a stencil 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 al
most 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 toward the
corporation. Cases, that if brought
against an individual would be
thrown out of court, are seriously
considered when the defendant is a
corporation, and frequently the cor
poration is mercilessly bled. l am
not questioning the right to make
the corporation pay when the case is
just. But it often happens that JUS
tice is violated. l have reached the
deliberate conclusion that man is
quite much of a fool to, at this time,
invest money in corporation: and
that many others have reached the
same conclusion, is, believe, at the
bottom of the abnormal stringency in
money matters. l 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 natu-
rally 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 pos
sible 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
ject that frequently escapes notice.
Incorporated capital is open to in
spection. 1t is held to strict ac-
countability.
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 requir-
ed reports; they are taxed heavily.
So soon as the State tax commission
is created for the purpose of equaliz-
ing taxation, the commission makes
a. dive for the banks. They were al
ready required under the federal
laws to pay income tax, not only up
on net earnings, but upon every dol
lar of dividends paid to stockhold'
ers. And they are now the very
first mark of the tax commission
Not one movement to get at the man
ifest injustice in returns made by
large landed estates. Not one move
to get at the private capital often
loaned at 10 or - per cent. The
corporation, the legitimate prey Of
all reformers and of the public in
general, must needs be attacked first
thing.
may be mistaken. but | have
come to the conclusion that legiti'
mate. invested capital in this State
is we'll nigh doomed. The present op'
preston put upon honestly invested
money puts it in an impossible COM
petition with private capital. 1t ma!
not be the popular thing to write an
article like the above, but when an
editor reaches an honest conclusion
he is a coward if he does not expires:
lit. What this country needs is les: