The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1861-04-04
commntation of the Tonnage Tax.

ate, by the Hon. A. X. Mcclure, on the
Act for the commutation, or redemption
Of the tonnage dsties upon the internal
improvements Of the State. Il is well
worthy of a careful reading and study
1t is in reply to Mott and others who op'
posed this measure.
It will be remembered that the Penn.
sylvapis Railroad was built by the side
of or parallel With the Pennsylvania Canal,
which was owned By the State, and which
necessarily brought the Railroad Compa.
ny in competition with the State works.
To offset this, the State levied a tax at
first of Eve mills per ton per mile. but
which was soon lowered to three mills per
ton per mile, on all things loaded at Har.
risburg and Pittsburg and intervening
points and carried over the Compapy's
railroad, but the State subsequently re-
pesled ell tax Oh coal and lumber, yet
lett this tax on wheat, rye, corn, as we'll
as on every kind Of merchandise.
The Main Line, or Public Works, we're
sold in pursuance of Act of the 2lst oi
April, 1858. to the Sunbury and Erie
Railroad Company, which Immediately
re sold them to the Pepusylvsnia Railroad
Co., for seven millions and Eve hundred
thousand dollars. When this sale was
perfected. all competition between the
Railroad Co. and State ceased. The
Railroad Co. owned all the works, and
mas N uch as the Co. did not pay this tax
out OF their profits and that it all came
out OF those who freighted their goods,
wares and merchandise over the Railroad,
the Legislature last Winter, took liber'
al and enlig ghtened view Of the matter and
came to the conclusion that il was to the
interest of the State aud all concerned to
CON ute this tax. and accordingly did it,
and thereby put the Pennsylvania Rail
road Co. aud oil those frsightiDg over it,
on perfect equality with all other rail
roads in the State, and persons doing bus
mess With them or through them.
Where is the propriety of taxing one
Railroad Co. and through them taxing
those who freight over that road, and let
ting the rest 60 freel If one set ought
to be taxed to raise State revenue, then
all ought to be taxed for the same pur
pose.
When the Company bought the Main
Line, it was agreed that they should be
relieved OF this tax; and had it not been
for this, they, 10 all probability, would
not have bid for the Main Line; and thus
We might still have those Works on our
haods and be losing annually thereby
nearly two millions of dollars, instead Of
as it now is, decreasing our State debt
from one to two millions a year. The
Company to this time has never paid any
tax on their vast real estate, but this they
will hereafter be compelled to pay, which
will amount for State purposes, to near
one hundred and twenty thousand dollars
annually.
The Company is compelled to lower
their rates of freight or transportation e.
quail to the amount of the tonnage tax
and in this way greatly beneftiDg all who
freigb over this line.
This Act also provides that the debt
due for the Main Line shall much sooner
be paid, than the old act provided for
The whole debt of the Conn opwealtb.
which together with the interest is Sl3,-
SO 900, will By the present Act, be paid
within taee'aty nine years, whereas at the
end of that time under the original act
there would of this amount be due the
State but s4,9OO,O 900. Thus providing
for the payment of the State debt at a
much earlier day.
About 100000 of the tonnage tax is
unpaid spd in course of litigation; and to
settle this, the Legislature and Company
entered into sort Of compromise. which
is, for the Company to increase their half
yesrly payments SO as to make them a.
mount to the sum of $4,000 annually,
which together with the tax for State pur
poses, will amount to near 5000, 0,000.-
Besides this the Railroad Company is to
appropriate $3.50, 600 towards the con-
struetion Of several lateral or branch rail
roads of the Coupauy's line, the object
of which is to open the resources of the
State. So it will be seen that the Rail
road Company is not freed or exempted
from any tonnage tax, but that it is com.
pelled to render large equivalent for the
whole of it.