Theory of Fees . 
59 
increased business; because the customers of all those who were 
compelled to close their doors, will virtually be transferred by the 
high license to the surviving retailers. Under this assumption, 
it may thus happen that many of the high liquor licenses are 
not taxes at all, but fees; because they are payments for what 
may be termed partial monopoly privileges. This conclusion is 
amply illustrated by the fact that many of the owners of the 
large saloons in some of the great cities openly favor high li¬ 
censes in preference to low charges. This conclusion cannot be 
carried too far, however; other elements must be taken into 
consideration. If the charge is made high enough, it is very 
likely to result in an increased price and, in that way, to be 
shifted to the consumer. It then has all the characteristics of 
an indirect tax. But this throws no light on the question as to 
whether the charge is a fee or a tax. It may be a tax on the 
dealer, even if the consumer goes free. If the charge is in¬ 
creased indefinitely, it will ultimately become a tax either on 
the one or the other. When, then, the increase in the amount 
of the charge fails to drive any dealers out of the business; in 
other words, when it ceases to turn over to those paying the 
charge enough customers to counter-balance the payment, then 
the point is reached where the payment ceases to be a fee. The 
transition, therefore, of fees into taxes is brought about by the 
loss of the idea of service, or by the charge being made so 
great as to exceed the benefit conferred. 
D. LICENSE FEES DISTINGUISHED FROM SPECIAL TAXES. 
In special taxes the government attempts to do some special 
thing for the community, but the individual bearing the tax is 
not necessarily guaranteed a share in it. A property owner 
pays a special school tax, whether he makes use of the schools 
or not. Although there is some benefit derived from the special 
tax, provided he makes use of the schools, still that is not the 
reason or justification for its collection; while in license fees 
there is always a special benefit, the value of which the fee 
does not exceed. If the charge is greater than the benefit, then 
it becomes to that extent a license tax. When a charge is im- 
