The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1875-01-02
Railroad Tax Due the Government,

An act of Congress passed in 1859 re-
quired that after the completion of any of
these roads tax amounting to five per
cent of the annual earnings should be paid
into the Treasury. In addition the law
provided that the companies should make
an annual report of their earnings to the
Secretary of the Interior. This was pre-
scribed in order to allow the Secretary of
the Treasury to use it as basis of compu.
tation TO ascertain the amount of tax due.
Up to the present time not only has the
law with reference to the payment of tax
been violated, but also the provision with
reference to making annual reports, none
in this specific respect ever having been
made. In January last, Congress, whose
attention had been invited to the derelic-
ton, directed the Secretary of the Treasury
to make an immediate demand for all sums
due, to date from the completion of the
respective roads up to the time of demand.
To carry out the provisions of this law,
Secretary Bristow was considerably embar-
raised. He found, first, that no reports
had been made which would enable him to
make computation of the amount due.
Subsequently he called on the companies to
make such reports, but here he was met
with second embarrassment, each in every
instance failing to respond. Accordingly,
finding that his labors were not TO be accel-
Grated by any CO operation from the rail
roads, he took the matter in his own hands
and complicated the sum due in this wise:
Procuring from the reports of the directors
made to the stockholders, he took the fig
ures representing their net earnings there
in contained, and made an aggregate of
the several amounts due. In this manner
it was found that the Central Pacific, whose
road was completed Jan. II, 1869, owed
$1.836, 635. 10; the Union Pacific, completed
Nov. 6, 1869, 81 ,040. 058 30; the Sioux City
Pacific, completed Mar. 3, 1859, $21, 1O4. AZ;
Union Pacific Central Branch) completed
Jan. 20, 1868, SAT, 1879; Kansas Pacific,
completed Nov. 2, 1869, $208, e3O15. These
several sums have been demanded by per-
sonal service in writing. Since it has been
made nearly all have been heard from,
demurring as to the amount, and request
ing to know upon what approximation of
earnings the tax was levied. What cha
grins the companies is that the reports of
the directors to the stockholders should
have been taken, inasmuch as such reports
are usually more favorable than they should
be, with view to influence the stock in
the market Three of the companies have
apprised Secretary Bristow that they will
furnish him figures with which to make a
supplementary demand. These will now
be refused, because no response came when
such request was made, and legal data not
having been reported to the Department,
the Secretary took the only available figures
from the reports above indicated. Nearly
all the demands are dated Oct. 81. Pay.
ment must be made within go days, which
will place some of the companies in default
at the end of this week. If not paid then,
the matter will be turned over to the Attor-
ney- General, who, under the law, is d.
rected to recover by prosecution.