The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-10-19
MAXEY ATTACKS
WALT0N'S BONUS
Amendment Legally, Eco
nomically Wrong Says
Former Speaker
FOR A PROPER BONUS
But Measure Now Up 10 Vo-
ters Fraught With Danger
10 state, He Thinks

That tho proposed toiiior bonus
bul proposed by J g. W1uOu
damooraUH nominee f1r governor
g. legally and economically uuapuud
and frnurht with great danger to
tho economic Eysfom of fHIH atpte
is tho opinion OF 1 ll Ntycv or
tho lrgIl Department fu the Mag
nulin Petroleum company in o.
lonFthv mo exhaustive luEHi oDiu.
ION which no has Just concluded.
Massey. ono ~ the s'utoa lo0diaE
lcsa! f;EuIos - . former tuopter
Of The house in the state legislature.
~ am not opposed 10 the ptin-
cipla uf paying n bonus 10 hOge
citiyens ~ state who rendered sery
icu TO tho nation In the lnte war"
no concludes his statement "On
tho contrary ! favor H reasonable
bonus worked ont upon sound cco-
nomical principles, but the measure
ns proposed ~ frnught with great
danger 90 our economic system. II
tA not prepared along tho lines Of
any known business or government
nl policy. ~ is adroltly drawn with
tho idc1 of RrrHylng one class OF
our Citi2cns against another In an
ottwnpt TO appeal to tho vote of a
state who would not bo taxed 20 pay
such bonus ana by geographical
discrimination arousiuE prejudice
sufficient to carry such measure ~
tile polls. ana 90 promote tho polite
Cal ambition Of some OF those who
have espoustd tho same. The pro-
posed measure ls legally ana oCo-
nomlcnily unEound ana should be
given serious confederation by the
voters OF the state before Il Is
adopted"
Gross Tax Illegal.
In section % OF the bin u is pro-
poacd 10 provide a fund To pay tho
interest ana Crolle sinking fund
60 retire tho $GO.OOO.00 principal
OF the bonds 10y the levy ana col
lection OF a direct annual tax upon
tho gross earnings OF an public serv-
ice Corporations. banks. loans and
trust companies and foreign corpor-
atoms but tax on foreign corpora
tlons to be. limited TO business done
by such corporations within the
state, and direct annual tax on the
gross earnings OF all individuals.
partnerships and corporations en-
gagged In the mining or production
of coal. lead, Zinc portland cement.
Kymbum cement ana nll other min
oral resources or tho stnto.
"A state In without power To tax
n national bank, except nB permitted
by the laws OF the United Statoe.'
biaxey says. and continues. this
proposition was first announced by
tho supreme court OF tho United
States in the celebrated case OF Nc
Cullough against Maryland, where
~ vus held In effect that the bank
having been incorporated under the
authority OF tho United Statea was
a federal instrumontality 20 which
tho owner OF taxation by state OF
theiHnion did not extend. This at
tempt to levy and collect tax upon
the gross earnings of a national
bank IN entirely beyond the power
OF the state aud IN therefore void"
Burden on State Banks.
A big burden would therefore fall
on hhe state hanks. MnXey points
out, and II Ia well known that the
state banks have in the past few
years carried an exceedingly heavy
buHden In tho bank guaranty law
and that n this system Is to bo made
"a auccesB no further burden can ! @
imposed. 'In addition" Maxey
auys, ut would be an unjust, un-
reasonable and inequitable discrim-
ination against those of our citizens
engaged in the state banking busl-
ncss."
Under the terms of the proposed
act foreign corporations would be
taxed while domestic corporations
wotfid be exempted While thore Is
no constitutional objection to the
tadng OF foreign corporation, MnNcy
points out that the time has long
passed whore state limos ana separ-
ato state sovcroigntles should Offer
any lmpedlmcnt to commerce. For
.a.fsfI I..g D. IA "A EhnIIlA a
required to conform TO such laws
and To bear such burdons GA domes-
tlof corporations conform 10 and
bear. but no more.
But tho big proposition here,
MNNoy declares Is that many OF tho
fureigu corporations doing business
in the state would Immediately up
on the passage OF the act organize
under tho laws OF oklahoma and
thereby escape payment OF the tax,
The bill provides for the taxing
OF public service companies, II IL
pointed out In the opiuiOn thut
these companies arc merely UBents
FOR tho collection Of toll and that
II their burden OF taxation is In
creased. they In turn have n right
under the constitution TO add such
burden to the toll which they col
Isct $50 the result OF this would
necessarily 10 that the tax collected
from public service companies
Woull fan upon tho public"
1910 Tax knocked out.
~ IL further pointed out that the
STATE legislature IN 1910 passed an
act providing for a gross revenue
tlN from public service companies
and that the supreme court IN tho
case OF Meyer against the Wells
FurgO company, held that insofar
na the act attempted 20 lmpUro n
L. nAnn. ~ nnAnnLLn Lnr-.-DL ...t -.