Columbia Democrat and Bloomsburg general advertiser. [volume] (Bloomsburg, Pa.) 1850-1866, 1861-03-16
THE SuNbuRY AND ERIE Bill.

road Company. When the State disposed
of the Delaware Division and North Branch
Canals to this Company in 1858, for the
sum Of 50, 500 900, she took mortgage on
the Railroad for this sum. Now the com.
pany comes and asks that the State shall
cancel this first mortage, in order that
they can borrow So 900 900, which amount
they allegc to be necessary to complet
there road. To raise and secure this sum
the Company proposes to give first NOR :
tgago on the whole road to the parties ad-
vancing the money, the State to take a
second mortgage for its s3,50o,OGO. In
other words, the State shall exchange its
first mortage for a second mortgage, and
in the event of the Company failing, the
Commonwealth will como out at the little
end of the horn; and get-nothing. Her
1880, 900 will be sunk, as we predicted
would be the case in 1858.
The Easton Sentinel Says:-The first
of these bills, the Sunbury and Erie. we
referred to somewhat at length, two weeks
since, hence it is only necessary to say
now that it is scheme to defraud the
State out of So 500 900, which this Com
J pany promised to pay the State for her
canals, which were sold to this Company
in 1857. This is to he accomplished in
this wise The bill which has just passed
the House cancels the first mortgage bonds
now held by the State on the Sunbury
and Erie Railroad, and creates in lieu
thereof new mortgage, Of So, 100000, to
be first motgage for 81 900 900, which
already binds apart of the road and fur.
ther prcfcrring Of 100000 to contractors,
the Stateis to have mortgage for her
claim, which, however, is not to bear inter.
est until 1872. When it is taken into
consideration that this Company have al.
ready used up nearly sll ,OOO,O 900, not on
the construction of the road, for the whole
length thereof from Sunbury to Erie could
have been constructed for that amount, but
foo ishly squandered large portion of it
away, you may easily conjecture how much
the State will ever realize on her invest
ment. We venture the prediction that
long before tho time arrives when the State
is to receive interest on her claim, the
road will be sold under a foreclosure of
mortgage, by the first bond holders, as
over one hundred miles of the road, (Which
will take two years to complete is yet to
be constructed. and every cent ofthc State
investment will be sunk, and the Treasury
defrauded out of just sa,5OO,OOO and in.
terest. So much for that swindln
NJ, f0ssuc Dill repeating the Tonnage
Tx on the Pennsylvania Railroad. To
properly understand this matter it may be
necessary to state that at the time the
Pennsylvania Railroad Company was
chartered they agreed to pay the State a
tax of three mills per ton, on all freight
carried over the road in consideration for
the privileges granted them. This tax,
since the Columbia Railroad and the Main
Line of the State Canals from Columbia
to Pittsburg, were sold to this Company
for mere nominal sum, which was done
in 1855, has become source of great
revenue to the State, amounting now to an
annual sum of about 100000. The Com.
pany have refused to pay this tax, since
1858. Judgment has been obtained q.
gainst them for about 500, 900, and as
the Supreme Court, to which the case was
appealed have decided against the Com
pany, this amount would have shortly to
have been paid into the State Treasury
| We should have said that clause was
attached to the bill passed in 1855, undSr
which the Main Line was sold, repcalin
this Tonnage Tax bill, but its constitutions
ality was contested by Col. HENRY S.
MORT, of Pike county, bond holder, and
the repeating clause was declared by the
oupreme court to be unconstitutional.
The bill which passed the House on Sat.
urday not only repeals the Tonnage Tax
law, SO far as it relates to the Pennsylva.
MIA Railroad, but declares that the State
shall not levy or collect tonnage tax on
any Ralroad or Canal that is no,0 b4lt
or that may hereatier be constyuctci, and
that the 800 900 now owing the State by
tho Pennsylvania Railroad Company as
tax on tonnage which they have collected
since 1858, and which they have refused
to pay over, shall not be paid to the State,
but that the said Pennsylvania Railroad
Company may invest it in the bonds of
about dozen unfinished little railroads,
which are branches of the said Company S
road.
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