The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1872-05-10


also discovered that several ofthe heavi'
est carrying companies make no return
of the tonnage in dispute, so that in
case of favorable decision in the Uni
ted States Supreme Court, the amount
due the Commonwealth could not be
easily ascertained. In fact, in case ofthe
loss or abstraction of the papers of the
non-reporting companies, no settlement
could ever be reached.
In 1866 an act was also passed placing
a tax of three. .fourths of one per cent. on
the gross receipts of railroad companies,
returns of which were to be made semi
annually, and this constitutes the 9Th
section of the codifled act of $685. The
companies also resisted the payment of
this tax so far as it was laid upon the
gross receipts from business originating
outside of the State. Judge Pearson
also ruled this question in favor of the
companies and he was again reversed
by the Supreme Court of Pennsylvania.
Appeals were taken to the United
States Supreme Court, where the ques.
tion now hangs. In this as in the ton
mage reports many companies make no
return of the amount in dispute.
In 1864 another tax law was passed,
requiring the officers of railroad COM
panies and some other corporations to
retain from the interest paid its bond.
holders, or other creditors, five per
centum and return and pay the same to
the State Treasurer semi.annually.
That act constitutes section 18th of the
consolidated act Of 1868. This tax, so far
as it affected residents, was also
claimed to be unconstitutional, but
Judge Pearson, guided by a previous
ruling of the Supreme Court in the case
OF Maltby VS.. the Reading and Colum-
bia Railroad Second p. f. Smiths re-
port, held that such tax was constitu-
tional and payable out of the interest
due bondhoders or creditors. He was
sustained by the Supreme Court of
Pennsylvania on the ground that the
property of non residents was taxable
in this State and that they should pay
their quota of tax to the sovereignty
which gave the franchises from which
their profits were derived and which
protected the property taxed. Appeals
were taken from this decision to the
Supreme Court of the United States.
Again, no report is made of the float.
ing debt upon which interest is paid.
The act says: That the tax is to be re-
tanned from the interest paid bondhold-
er5 and creditors. The Committee
discovered that the Delaware, Lacka-
wanna and Western Railroad Company
returns no account of interest paid, save
to the bondholder5 land even that un-
der protest., although that paid to other
creditors is equally taxable. AT the
date of our examination the company
were paying interest to creditors other
than bondholders, on about three hun
dred and twenty thousand dollars; and
they have furnished a statement show.
ing n payment Of interest on floating
debt amounting to two hundred and
lhiitetIi tiiOuSliiu tNO HuHulSu ituIt
thirty seven dollars and eighty-nine
cents from 1866 TO 1871, both years in
elusive. The companies allege that the
department never demanded it.
In 1867 an act was also passed requir-
ing certain transportation companies
possessing the right to mine, purchase
or sell anthracite coal, to report quar-
terly the amount Of coal mined or pur-
chased by them, and.pay tax of four
cents per ton thereon. We believe the
legality of this act is not questioned
1t forms section nine of the act of 1865
If the position assumed by these com.
panies be correct, our legislation dis.
eliminates against the interests of our
own citizens. They must pay heavier
tax on tonnage than the citizens Of New
York or Baltimore, and their bonds are
subjected to tax from which non-resi-
dents would be exempt. We believe
that our laws should be so framed as to
invite foreign capital, but domestic in,
vestment and domestic consumption
should not be more heavily taxed than
the investments of non. residents, or the
consumption of our produce by citizens
Of other States.
A few Illustrations alone will show
the terrible falling Off of our revenue.
In 1866, the Delaware, LackaWanna
and Western Railroad Company paid
the State tax on capital stock of one
hundred and ninety. eight thousand nine
hundred and fifty-Oue dollars and twelve
cents; ia 1871 it only amounted TO fifty
four thousand six hundred and eighty
two dollars and eleven cents ; ia 1866 thC
tax on gross receipts amounted to three
thousand seven hundred and twenty
eight dollars and seventy-two cents; il
1871 to one thousand six hundred ant
ninety eight dollars and thirty.nint
cents. In 1867 there being no repor
for 1860 the tax On tonnage reached
eight thousand hundred and seventy
seven dollars and ninety cents; in 1877,
only one thousand six hundred anC
eighty,tive dollars and eighty fou
cents, and yet the receipts Of the com
pany in 1866 were eight million tw
hundred and flfty.two thousand fou
hundred and sixteen dollarsandseveut
three cents and in 1871 had increase,
to eleven million seven hundred ant
nine thousand one hundred and forty
six dollars and ninety seven cents. Il
word the revenue of the company wa
increased about four millions Of dollar
and that of the State from the source
named fell off about one half.
Again, the coal transportation of tn
Lehigh Valley Railroad Company 70
the last quarter was over one millio
tons, yet under their construction of tn
law, they return as subject tQ taxatio
three hundred and thirty one thousan
tons, or less than one.third.
In New YORK, as We learn by a com
munication from Governor Hoffman
the system of taxation upon railroad