Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1925-10-29
PAYING THE PIPER

lively big business paying for the expenses of
govermment-Federa state and local. Total railroad
taxes for single year amount to several hundred mil
lion dollars and alone OF the Standard Oil companies
paid out in taxes of all kinds in the past fveyear per-
od the sum of $114OOOOO0 The aggregate OF taxes OF
every description paid by all large corporations would
merit the adjective staggering"
Now tits not to be denied that raising from
the powerful corporate units has it's advantages well
it's disadvantages Taxation at best unpleasant
unpopular and, fear, by no means exact science.
There much be said for ndirecton indeed for no.
cuspocus in separating the citizen from his hard-earn
ed money If the corporations can be forced to hand
out large sums, the Individual is uled into false sense
that he does not have to pay and teeth rarely pulled
without at least local anaesthetic
In the long corporations do not continue in bust
unless profits earned If the state takes
undue percentage of net earnings prices are
ally raised to make up for the loss and the citizen
eventually This is not invariably, although usually the
case and occasionally business enterprises actually
taxed out of existence Or the taxes may merely reduce
what would be large profits without them.
But the railroads, telephone companies, light and
power companies and other so-caled utilities that con-
tribute such large proportion of the state and local
revenues are usually permitted to earn by law reason
able profits and if department of government takes
away their earnings in the form OF taxes, another de
partmen soemny gives permission for an Increase in
rates. Thus, whatever theorists may say, bump up
against the hard fact that to express the idea in Ian
guage that will misunderstood there is really
way to beat the game The piper must be paid It
facilitate the actual collection of taxes to throw lot of
perfume around the room, to administer little
sleeping potion but when the fumes have cleared away
the tooth is out and gone.
There time when railroads and other large
corporations hestated to talk much about their part in
meeting the expenses of Indeed they did
not always pay their fair share and if they forced
to do So their protests Of the quietly effective Sort
directed to sympathetic legislators rather than to the
general public Now the corporations talk right out in
meeting abuot their obligations citizens Unlike indi-
viduas they only too willing to tell the world what
aggregate of taxes they forced to pay 1t is
paratively Development and most wholesome
The corporations are becoming too wise, at least in
some cases. openly and publicly object to the payment
of large what they sensby desire is that the pub
lie should at least begin to understand what it all means
Nowhere has the case been more clearly stated than
n ia al no
of New Jersey 1t is pointed out that in five years net
earnings Of this company have amounted to $48OOO0,
0O0 of which $4000 600 has gone for taxes $65 O00
900 for dividends and $201 100000 for the building of
ships refneries, pipe lines tanks service stations and
the like upon all Of which increased local taxes must be
paid and increased Federal tax if additional profit
accrues from the investment.
Yet there is a feeling in quarters, it is fur
her stated that though individual is commenda
bic, corporate success is menace Fervid oratory in
Congress, state legislatures political conventions and
from soap boxes demands punitive against the
"oil trust 'beef trust steel trust Wall Street. cap
tains of industry, big business, and the like.
"And afterward the crowd chatting under the feel
ng that something ought to be done about It, to it's
home by subways built by the taxation of these corpora
tons and other business and individuals who have
achieved success evidenced by the possession of
property They walk from the subway exits side
walks built by taxes their way lighted by street lamps
paid for by taxes, their persons and vauables watched
over by buecoat whose wages are met out of taxes
Their food comes to them over good roads built by tax
Their children educated without direct cost to
1t is an old saying that he who pays the piper calls
the tune. The managers of the great taxpaying
porate organizations will deny vehementy that they
troll Federal state local government, if to a
large extent they compelled to foot the BILL Their
domination their influence is probably subject to
extreme eXaggeraton in popular estimate But substan-
tal trivial it be, there is another issue ars
ing from their tax contributions which must be faced
1t is fortunate that industrial organization in this
country has become successful. Out of it's copous
earnings shares for the general welfare in the
shape of taxes possible; disputes this fact
Taxes come before dividends. AS of the corpora
lions has said The people citizens take precedence
a part of the people who stockholders"
But the with which large thus collect
ed must not ul the citizens of state county and city in
to false sense of unlimited wealth. If it
about that public improvements made because reve-
may be squeezed out of reluctantan but undena
bly, auen taxpayers rather than because of the
sty outstanding Importance of the object ITSELF
shall be on the downward path that the end of
Rome.
Strong and solvent business structure is,
there limits to the number of golden eggs that any
goose will lay But the real harm of excessive taxation
lies in its effect upon the citizenship of the country
rather than upon few strong burden bearers
No good can possibly come if once the people lose
keen sense of the meaning of public economy Cost is
an element inherent in life. Public improvements have
obvious advantages but any system of taxation which
burs the of weighing expenses against benefits
only the deterioration of the public conscience
The costs may be worth mourning the danger of the
hour is of overlooking, in the flush of enthu-
sasms that there two sides to every ledger De-