The Bedford gazette. [volume] (Bedford, Pa.) 1805-current, 1860-01-13

Since July, 1898, the railroad company has
refused to pay this tax, and consequently there
is now due from said company, on that account
exclusive of interest, the sum of S350,405 90
On the 2lst OF February, 1889, an account
was settled, BY the Auditor General, against the
company, for the tax on tonnage, from the 2Ist
DAY ofJuIv 70 the 39th day of NaVenher 1888
inclusive, amounting 10 the sum OF S87 ,373 %.
From tots settlement, the company, on the 18Th
day of April, took an appeal TO the court Of
common pleas OF Dauphin county; and, in the
specifications of objections which were filed, It
was averred that the tax was unconstitutional,
aud an opinion to that effect signed by eminent
counsel, was filed in the Office OF the Auditor
General, at the time the appeal was entered
In August last, the cause was tried, and after a
fall investigation, and argument, the constitn-
lionality of the law imposing the tax was a!hr-
med by the court, and a verdict and Judge
ment rendered in favor of the Commonwealth,
for the amount claimed, with interest. The
case has since been removed, by a writ OF error,
TO the Supreme Court OF the State, and will,
probably, be heard and determined, bY that trl-
buDal. in the course OF the present winter.
Ca the 25th day of August last, another ac-
count was settled against the company, Tor the
tax on Tonnage, from the Goth day Of November,
1888, to the Goth day ofJuly, 1859, amounting
to the sum of $l59,368 50, from which an ap-
peal has also been taken b, the railroad compa-
nv, Fand which will probably be tried during
the present month.
As this question largely affects the revenues
of the Commonwealth, and as the principle in
volved is one OF the first importance, l have
deemed it a duty to lay before the General As
aembly, somewhat in detail, the history of this
tax, ana the present condition OF the legal con-
troversy growing out Of IFS imposition and en-
forcement It will be observed, that the pow
er of the State to grant chartered rights, and
corporate privileges, TO a railroad company, up
on the condition that it shall pay 10 the Com
monweaIth portion of its earnings, in the
shane OF fixed tax upon the freight carried O.
yer the road, is questioned by the company, and
that. too, after the grant has taken effect, and
while the corporation is in the fall enjoyment
Of all the benefits conferred upon It by its char
ter. The question, II is tue, Is legal one,
and its decision, therefore, rests with the JujI-
cial department of the government; but, l have
not the slightest doubt, that the decision, when
had. will entirely vindicate the right OF the
government to impose the tax, and TO compel
corporations of IFS own creation to obey the law
from which they derive their existence. When
il is remembered, that the tax was originally
imposed, in order TO indemnify the State, TO
some extent, for losses which she was sure to
sustain iron competition, which was inevta-
bic. between the railroad authorized, aad her
main line of public works; and that this compe-
teton did, not only seriously affect the reve-
nues of the Commonwealth, derived from her
public improvements, but ultimately induced
the sale Of the main line to the railroad compa-
nv itself, at a price many millions of dollars
below what i: would have produced, IN the alb
sence Of such competition, it is certainly not to
De presumed that the Commonwealth will viii
linglv Weld her demand for revenue from this
source, until she is, at least, fully lndemnlhed
for the pecuniary injury sustained in the de-
probation Other own property, by her LIBERAL
| ity extended TO the company which now denies
ber power TO enforce contract, voluntarily
entered into, upon consideration entirely ad-
equate.
In my inaugural address, as well as in ny