Theory of Fees. 
65 
ernment telegraph, or railroads are supposed to be excluded 
from the category called fees. From what has already been 
said, it is perfectly evident that no hard and fast line can be 
drawn between essential state institutions and others. The in¬ 
stitutions which may be regarded as absolutely essential at one 
time, may not be so regarded at another; because the public in¬ 
terest or public purpose in the institution may be strong at one 
time and then gradually disappear. 
Thus Wagner has formulated his theory in such a way as to 
include under this heading, not only payments for services of 
institutions which are maintained for the realization of essen¬ 
tial state purposes, but also of institutions for the promotion of 
civilization and general public welfare. He sees fit, however, 
to exclude state railroads and other similar activities from this 
class; and designates the government receipts from these sources 
as income from industrial pursuits . 1 He thus tries to find a line 
of cleavage between public business and industrial undertakings, 
a line which it is impossible to draw; because the relation of 
the state to the various institutions is constantly changing. 
“ The real consideration in the classification of public revenues, 
is not so much conditions affecting the action of the government 
or the kinds of business conducted by the government, as the 
economic relations existing between the individual and the gov¬ 
ernment. ” 2 It is the relation of the special benefit which the 
public service yields, to the price paid for such benefit, which 
determines whether the amount paid is a fee, a price, or a tax. 
G. METHOD OF COLLECTING FEES. 
Fees may be collected either directly or indirectly. They are 
collected directly by officials appointed for the purpose. Very 
often the officials receive the fees as salary or remuneration of 
office, after the manner of most of the court fees in the United 
States. On other occasions they are collected directly by offi¬ 
cials and turned into the treasury from which again they draw 
a fixed salary. In some European countries the official is al- 
1 Finanzwissenschaft , II, 41. 
2 Seligman, Essays in Taxation , p. 293. 
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