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

lDltOOh w "A llOlii oiD
committee appointed by the Judiciary
Committee to investigate certain re-
turns made by the railroads to the
Auditor General, under House resolu-
ton of January II, 1872, made report,
which was read as follows:
The original resolution under which
the sub committee acted read as fol-
lows:
ReSOlred, That the General judiciary
Committee of this House be instructed
to inquire if any railroads chartered by
this Commonwealth, and now owning
coal lands or operating collieries in this
State, have made false or incorrect re.
turns to the Legislature or to the Aud
itor General as to the amount of their
capital stock dividends, real estate,
tonnage or gross receipts, or have with
held from the Commonwealth any
taxes upon the same, with power to
| send for persons and papers upon reas-
enable cause for investigation being
shown.
For the purpose of the investigation
contemplated by this resolution, a sub
committee was appointed, with author
ity to examine-.frst, return, &C., Of
the Delaware, Lackawanna and Wes
tern railroad company. BY invitation
of the company the committee proceed
ed to New York and took mass of tes.
timony, which is herewith submitted.
On the nth March. by instruction of
the General Judiciary Committee, the
following additional resolution was
offered and passed:
ReSolred, That the powers of the sub
committee appointed by the General
judiciary Committee under the resolu-
tion of January II, 1872, relative to in
vestgating the returns, &C., of certain
raiM oads, be extended to such canals and
railroad companies chartered by the
Legislature as the committee have rea.
son TO believe have made improper re.
turns, withheld taxes due the Common.
wealth, or otherwise violated their
charters.
The subcommittee were also instruct
ed to prepare bill to cover any defects
that might exist under our present laws,
and which might make our system of
taxes upon corporations uniform, equal,
just and Ineligible. Since the passage
Of the last resolution, the sub-com4nit-
tee have been able t. accomplish but
little, not only because of the shortness
of the time until the close of the session
Int because several important witnesses
| egaded the service of the subpoena or
failel to attend when subpmlaed. a
uumbG" of important facts, however,
have been elected, and they demon
strate the necessity for an immediate
and comprehensive change in our tax
laws, so far as relates to railroad and
raNal companieS-a revision which,
| while not too burdensome upon such
corporations, shall lie equal in its oper-
ations, constitutional in its provisions,
and not subject either the companies or
| the Commonwealth to tedious and eX-
pensivo litigation, nor leave the officers
what is required at their hands. Our
| tax laws, as they now stand, are hope
| less jumbo, impossible to execute, and
l two-thirds Of the taxes imposed by
Lheia are not paid.
In The first place, there is tax on
e apitai stock of one half Il mill for each
auuusi per cent. of dividend, imposed
or iginally,We believe, in 1914 and mod
flied fn 1863, and which is now collected
unt Ter The fourth section of the act o
May 4st, 1868 This tax, we believe, !,
not a subject Of litigation, aud is re
porte and paid annually, for the yea
endin.c with the flast Monday in No
vember.,
In April ,lSGl,e tonnage taXwas also pu
upon car. ,ying companies, which seems
| to have bceu re.enacted substantially
| in August Of the same year. This ton
mage was divided into threc classes, tn
tax upon Wn.ctl was fixed ut two, thre
and five couts per ton, according to tn
classification. This tax now constitute
the seventh section Of the act Of 1865
returns Of the tonnage nnd payment 0
the tax thercou being required quarter
ly. Appeals were taken by several com
pauies from the imposition of this ia,
on the ground that ii was unconstitu
tional, so far ~ related TO through Stat
tonnage; and Judge Pearson sustaine,
the companies. No writ Of error wa
taken from the decision.
The next question raised was whethe
TIE tax could be imposed upon tonnag'
taken up without and laid down within
the State, or taken up within aud laiC
down without? Judge Pearson ais,
decided that unconstitutional; but hi
decision was reversed by the Suprem
Cou.t Of Pennsylvania and the cas-
taken to the United States Suprem
Court, where it is now pending. Ii
the meantime the companies are pay
| ino. thn Innnann taN mt annnrlini