The ABC of taxation

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Monograph

Identifikator:: 1010741608

URN:: urn:nbn:de:zbw-retromon-21094

Document type:: Monograph

Author:: Fillebrown, Charles Bowdoin

Title:: The ABC of taxation

Edition:: Fourth edition specially revised

Place of publication:: Garden City, New York

Publisher:: Doubleday, Page & Company

Year of publication:: 1916

Scope:: 1 Online-Ressource (236 Seiten)

Digitisation:: 2018

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

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Document type:: Monograph

Structure type:: Chapter

Title:: Part III. Other essays and addresses

Collection:: Economics Books

REGULATION OF PUBLIC UTILITIES 145 The problem of government regulation will be to harmonise the three interests of capital, management, and the public; a fair profit to capital; fair rewards for skill and enterprise in management; a fair return to the public for franchise privileges. Capital: A fair rate of return to capital invested in railways is the market rate of interest upon invest ments of equal security, as fixed in competitive indus tries, and this is al*l that capital (minus speculation) demands. When the public thus asserts its rights and enforces them, it must, of course, first guarantee dividends to the stockholders, whose property rights would other wise be imperilled. Capital does not run the road, and hence it is not entitled to unusual profits due to the risks of an established business. Reduction of rates and taxation of franchise will have squeezed the water from the stock, and actual capital, as determined by the com mission valuation, will get its “fair profit” in dividends, and profits will go to skill and enterprise, where they properly belong. The claim that a higher rate of dividend should be paid to capital on account of skill and enterprise in management is a vicious one, arising from the attribution to one factor of what clearly belongs to an entirely distinct one. Management; The administration of the business of the public service corporation would be, as now, in the hands of agents, superintendents, and managing directors, who would profit by salaries in proportion to their skill and brains, from |i ,000 to $50,000, a year. It is these men who run the road now, and it is their concern to deserve profits by so doing. “Traffic men,

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