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stances these experiments have surpass
ed in their results the expectations of
proposers. Large revenue has been obtained
without provoking even a murmur
of disapproval from the voting
classes. In Vermont for example, no direct
tax was levied in 1883 and 1884, the
receipts under the corporation tax law
paying the expenses of the State government.
The Comptroller of New York received
$9,569,161.35 in 1884 of which
$1,908,612.75 were paid by corporations.
Last year 1884, although the Wisconsin
Legislature authorized a levy of $240,
000, the State Treasurer was not obliged
to collect any direct tax, as the license
tax from railroads, insurance, telegraph,
and telephone companies was sufficient
to meet the current expenses. The
Treasurer of Minnesota states that the
revenue from the corporation tax is
steadily increasing, and if it should continue
to increase, and the probabilities
are that it will as it has done for the
last four years, it bids fair to pay all the
expenses of the State government. In
New Jersey there is no regular tax except
for schools, as the new railroad and
canal tax law and the tax on miscellaneous
corporations maintain the government.
These are striking illustrations of the
workings of a new system of imposing
special tax on special classes of property,
which was only first tried about ten
years ago. The idea of treating rail
roads and corporations generally in a
different manner in the tax levies from
other kinds of property was a development,
perhaps, of the granger and anti
monopoly movements. It is founded on
the theory that parties enjoying special
privileges from the State should share
with the State, to some extent, the profits
of their enterprises. If the government
gives certain individuals peculiar
advantages and protection in the inauguration
and prosecution of their
schemes and business, it is held that
they should make a return for the favors
granted in proportion to the success of
their undertaking. In every State
where the plan has been tried it has
worked admirably. After a slight resistance
on the part of the corporations,
resulting in a judicial interpretation of
all the provisions of the statute, the execution
of the new law goes on smoothly
in each State. The largest corporations
naturally fight every encroachment on
their sources of income, but when the
law is once in full operation they submit
gracefully. The various Legislatures
adopting the system have endeavored
not to make the tax too heavy. If
the rate is moderate it inflicts no serious
burden on the corporations, and yet
brings a handsome sum into the public
treasury. The benefits of this new plan
have so far, been appreciated only in
the New England, Middle and Northwestern
States. Twelve states now impose
special taxes on railroads and other
corporations. An examination of the

tax laws of eight of the thirty-eight
Commonwealths indicates, however, a
steady development of the idea of taxation
without lamentation. The attack
is not confined to corporations. There
is a reaching out in every direction for
special subjects for taxation. If one
State finds an object that can pay special
rates without suffering materially, and
without raising a popular outcry, other
States follow in the line of discovery.
A glance at the laws of a few States
which have secured the most notable re
sults in the direction of special taxation
will show the scope and bearing of the
movement. Pennsylvania may, perhaps,
be called the pioneer. It has tried more
experiments and probably reaches more
special classes than any other state.
The tax on the capital stock of all corporations,
which yielded to the State
$1,535,727.56 in 1884, is one half mill for
each one per centum of dividend declared
provided the annual dividend
amounts to six per centum; if the dividends
are less than 6 per cent, or if
there are no dividends, the tax is three
mills upon each dollar of the appraised
valuation, or market value of the stock.
A further tax of eight-tenths of one per
centum is imposed on the gro s earnings
of transportation and telegraph companies.
This brought in last year $787,
929.20. Insurance companies are assessed
eight-tenths of 1 per centum on gross
premiums and bank stocks, mortgages,
and loans of different kinds pay four
per centum on every dollar of the value
thereof. These special classes paid
$664,843.50 in 1884. Collateral inheritances
of over $250 are taxed three mills
on every dollar. From this source $461,
465.43 were derived. Tavern-licenses
amounted to $426,429.19 and retailers'
licenses to $301,393.42. Nothing illustrates
better how effectively this system
of special taxation can oe applied than
the fact that while the total receipts of
the Pennsylvania State Treasury in 1884
were $6,226,930.38, only $602,025.45 were
raised by a direct general tax. In Wisconsin
where special taxes have also
worked well, the plan is somewhat different.
The license tax, as it is called
there, applies to railroads, insurance,
telegraph and telephone companies.
Railroads are taxed from five dollars per
mile of operated road to four per centum
of gross earnings, as follows: If the road
earns less than $1500 per mile, it is taxed
five dollars per mile; on those earning
more than $1500 and less than $3,000 per
mile, the tax is five dollars per mile and
two per centum on the excess over $1500
per mile; on those earning $3,000 or more
per mile the tax is four per centum on
the gross earnings. Telegraph companies
pay one dollar per mile for the first
wire, 50 cents per mile for the second,
twenty-five cents per mile for the third,
and twenty cents per mile for the fourth
and all additional. Telephone companies
pay one per centum on gross receipts,
and insurance companies two per
centum on gross earnings. This tax or