The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1868-12-08
RAILROAD TAXATION.
Debate i'm the House OF
Delegates.
by BIessrs. Fursus8n,
Welch and Steere.

Mr.. FURGUSON, of Cabell, said: Th
question of taxing railroads is a vexet
question, and one thatrequires calm ant
cautious consideration, and one that i
not to be settled the hue and cry o
newspapers. But it is to be settled un
der the responsibility that we owe t,
our constituents and State.
Mr.. FURGUSON here read the 67tl
section, and drew attention to the par
proposed to be struck out, as follows
"Evsry such company shall, on tn
same day, pay into the State treasury ;
tax for county purposes of the sam,
amount assessed against it for State ant
school purposes, as aforesaid, which sun
shall be distributed by the Auditor
among the several counties of the STATE
through which such road or its branches
pass, in proportion to the number o
miles thereof in each county," &c.
There has been persistent effort ia
raise false issue over this question
We are now legislating for principle
to effect all railroads already built, as
we'll as those that are to be built. W.
are charged, by people in this city aud
elsewhere, as legislating exclusively
for the Baltimore IL Ohio railroad, but
| tell you that this road is not men
toned in the Code. l am not opposed
to taxing this road, and the Baltimore
& Ohio Railroad Company are opposed
to this Chapter; they say that S35, ,0OG
per mile is too much. But all roads
must be taxed alike-the "MonOnga'
hela Valley" chesapeake & Ohio,
"Hempfeld, ,""Panhandle," and all. Il is
true, We have no line in successful ope,
ration but the Baltimore and Ohio at
this lime; but the Chesapeake and OHIO
Company has just been organized to
build two hundred miles of road, to do
which it is necessary to borrow ten
millions of dollars. Aud now shall a
policy be pursued to encourage capital
lists, or shall we pursue one that will
drive capitalists away. The Monon-
gahela Valley, and all the other proposed
roads of the States, are depending on
the success Of the Chesapeake and Ohio,
and shall we pursue a course that will
defeat all these roads 7 Now, l say,
whatever tax railroad pays, let
it be paid 20 the State
FIR State purposes, and not to the cOun-
ty and township. am against any
local taxation whatever. Have we a
right under the Constitution to require
a railroad company TO pay State taxes,
and not require them to pay county and
township taxes' | say that we have,
and if | am right in this, then we can
build railroads in this State; If am
wrong, we can build none. | propose
to show that we have that power. He
then read an article from the Cnnstitu-
tion of the old State, showing that that
Constitution required all taxation to be
equal and uniform throughout the State
and according TO value to be ascertained
as directed by law. He then read from
the Constitution of West Virginia,
nearly the same, with this addition :
"No one species of property from which
a tax shall be collected, shall be taxed
higher than another species of property
of equal value"
He then read from the code of Vir-
ginia chapter prescribing how rail
roads should be taxed on their passen-
gers and freight, and that they should
pay no other tax on capital stock, de-
pots, engines, cars or cost of road; and
argued that the chapter from which he
read was passed By legislature com
posed of many of the ablest members OF
the convention that had made that con-
sttutiondl provision, and was their
commentary on, and Interpretation of,
the constitutional restraint claimed by
those against him. That under con-
stitutional provision precisely like ours,
the old legislature, composed in great
part of members of the convention that
made that article of the Constitution
had Disseminated in taxation, and ex.
empted certain property.
But he knew that some would claim
| that there was a power to exempt in
! the Constitution of the old State. Now,
let us see. Article 4th of the old State
Constitution provides that slaves under
twelve, and such other property as a
majority of the whole Legislature shall
say, shall be exempt from taxation; and
page l94 of the Code of 1860 shows what
was exempt under this provision, to
wit: Real estate used. for divine wor'
ship, burying ground, school house
ground, ground for fire engines and fire
companies, and ground used for chari'
table purposes. There was no railroad
exempted under that provision; but
under the clause "to be ascertained by
law" the old Legislature adopted the
taxing of railroads on their freight
and passengers. But the difficulty IL
our adopting this plan of taxing
| freight and passengers arises from the
fact that the Baltimore and Ohio road
runs out of our State, lodges back into
| it, and then out again, and II would
cost great trouble and much money Il
keep the account; the committee there
fore thought it best to adopt the so
mach-per-mile system. Now there are
| 343 miles of this road in the State, tC
pay taxes, az S35, 900 per mile; but thai
is not all-the company has to report
the value of its stock on the first o.
April of each year, and if their stock il
~ per cent above par, you add that pei
cent to the $4,000 per mile and it may
be $40, 900 or So, 900 per mile, according
to the value of the scock. OF course
Iif below par, it Is ther
less than S35, 900 per mile; but this re
port, whatever it may be, is the Audit
or's basis of taxation for the road
Now the Chesapeake and Ohio Co. have
2OO miles of road TO be completed; this
would be for State purposes, at 4Oc. oil
the hundred dollars, SIS, 900 q year
Put it on for county purposes, and th'
tax would be $50, 900; and put it on fol
townships. and it altogether viii
amount 10 100000 a year on that road
Now 1 ask you, who is coming from
New York and Massachusetts, with cap
ital to invest where such a ruinous pol
icy is pursued. Such policy may sui
where roads are already built aud can
help themselves; but | want them t
bear in mind, that while they are i'm
posing on this road, they are killing
our road, that is not yet built. Now, i
the principle contended for, of taxing
for county and township purposes, il
good, then county may tax one rail
road to build another to run in compe
tition with itself.
We want TO satisfy the public mind
outside of the Legislature, but l dom
think the papers of this place will Civ,
them mSch of it. If they do, it will
not be what say.
Again, let US look at the Constitution
of West Virginia on taxation, and Sc,
if our Legislature has stuck to the prin
ciple you now claim-turn to the act
of 1868, page l54. The assessor is her
directed to assess toll bridges, not oil