Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1857-02-26
THE TONNAGE TAX.

sion gong OH TeiaLi'e W the Iepeal Vi tue
tonnage tax on the Pennsylvania Railroad.
This, as our readers are aware, has been a
prolific theme, pro and con, for several years,
but thus far productive of no change in leg
islatiOn further than it's repeal as to lumber and
coal. When this tax was imposed the gener-
al impression prevailed that the railroad
would materially reduce the revenue OF the
public works, but as time has demonstrated
that although the construction of the railroad
made Il considerable change in freights, by
which business was more or less affected at
local points, yet the aggregate was not only
| not diminished but actually Increased, this Is
| no longer an argument either fer or against
the measure. Of late years, since the COM
pletion Of rival lines TO the west, the officers
of the company have repeatedly drawn atten-
ton to the fact that with this tax they cannot
compete with those lines in trade, and as
travel generally follows in the wake of trade,
some danger is apprehended that instead OF
being first class line. the Pennsylvania
Railroad must become a second OF third rate
one At first sight this would appear to be
matter Of little Importance to the interior,
but if the theery be admitted that the trade
and prosperity of our metropolitan cities are
intimately connected with the trade and pros
perty of the interior, then it is a matter
affecting Philadelphia and Pittsburgh
directly and the interior Indirectly. The first
point that presents itself in this view of the
subject, is the inquiry What is the tonnage
ta1?" 1t is q tax of mills per ton upon
every thing carried over the road, which is
paid into the State Treasury, and as stated
above was imposed under an apprehension
that the construction Of the road would ma
terally injure the public works. This tax is
Of course paid by the transporter, and as the
aggregate of leca! freights is greater than the
through, it follows that the whelc thing is
but another name for an additional State tax,
which, like the tax on stocks, is paid as
whole 10y the railroad company, but at the
expense Of every producer who uses the road.
We next come TO the question whether lis re-
peal is demanded, not alone by the interests
Of the railroad, fer that would be but second
ary consideration, but by those Of the public?
If the whole interest centres IN the railroad
company, as alleged by many Of the oppo-
nents Of repeal, the company will have 70
make the best Of bad bargain, " but herein
the officers anu their friends contend that it
is as much the interest of the people Of Penn
continued it viii drive bUth trade and travel
that has heretofore sought cur improvements
into other channels, thus Iesseuing, in place
of increasing, the business Of our cities. and
ultimately producing the very effect at first
anticipated, to wit, injuring the revenue Of
the public works. Again, if this tax is not
repealed and the officers of the company are
driven into competition with ether lines not
encumberei with such 4 tax, and carry freight
at little or no profit, or at loss, the conse-
quence viii be that the local Jieights would
probably bo increased from their present
rates-which, by the by, are high enough
already-and thus the local transporters
would not only have to pay their share Of the
tax, but in reality also the three mills levied
on the through fright. One great objection
we have often heard is that the company
would not agree TO reduce the rates in pro-
portion. On all things they probably would
not but there arc many kinds of freight car
ried at but little risk on which a reduction
could, and we have no doubt would at once
be made, and where heavy interests are con
cerncd additional facilities afforded FOR send.
ing produce Of all kinds to market. Such
arc the arguments on both sides Of this 9ues-
tioa, an important one financially both to the
State aud company. In considering it, the
people ought t. divest themselves Of all par
tizanship on the subject, and treat 1t as they
would any other important matter, for nj
though as general thing corporations may
be "soulless," yet if it can be shown that by
the relinquishment Of a certain righ; or claim
both parties may Le benefited, il would be
right and proper to DO so. The past season
has shown considerable decrease in the
tonnage Of the Pennsylvania road and a
large increase on the Baltimore and Ohio.
proving the main position Of the officers of
the road to be correct, namely, that with this
tax they cannot compete with that line. If
the coming season should show a similar re-
suit, and be followed by decrease in the tax
as well rs canal receipts, the question may
then we'll be agitated whether PENNSYLVANIA
has not reached the height Of her trade, and
this too while the almost boundless west is
increasing her products by the hundred fold?
While it might not be sound policy for the
State at once to reIinquish all interest in this
tax, it seems to Us that some legislation on