New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-06-12
THE COMMITTEES REPORT.

| Tho committee Amounted at the last Con-
vention OF Commissioners To examine INTO ana repo,'
the methods of taxation respects railroads anu r'
road securities In in the various States OF tne
Union as well rs in foreign countries and further 10 re-
port Man for an equitable and uniform system for
such axltou at the next meeting OF tins CohVeh'o"'
| present the following rel minaIy report:
Shortly after the last Convention OF Commissioners
your committee issued circular and accompanying III
terrogatories which sent TO all the state eNec
tive, and to large number OF the leading raroau cor
porations of the country Through the courtesy OF the
Stat Department Washington the representatives, OF
the n rational Government at the principal capitals W
| Europe were also called upon for Information on the
| railway tax systems there In use. As result some
sixty answers were ALL received covering the war;
| ous States of the Unon Canada. England, Belgium,
| Holland Germany, X Issia, Switzerland ana AustrO-
Hungary An answer still to be received from France
The information contained IN thcse answers IL much OF
OF great value presenting large body o. fac's pear
ing directly a subject OF general interest Your com
mitce therefore, present merely preliminary re-
mort giving the general results of their inquiry and the
conclusions they have deduccd from them, rcseryDga
more elaborate presentation Of the subject FOR anoer
! time.
Asrespects the systems OF railroad taxation now In
use the answers received by committee snow very
concIusively that they varied than had been
anti inited would be supposed 10 be Possipe'
T. may he SAID that there is one principle iuhh'h-
through the various systems describej ana luf'h'i'
that there Is NJ method of taxltin possible to he de-
yseG which Is not this time applied to railroad prop
erty in part of this country So far rs those now
well recognized principles, which should be ut the OASIS
of all 81 stems taxation, concerned they would as
a rule seem to have utterly ignored In two All
Joining States for instance with roads belonging 10 one
company operating In BOTH will he found on one SIZE OF
the line "A system simple direct equitable, I'm, oslnS
moderate and nxed burden, from which there Is no es-
cane while on the other side Of the line the Whole sub
| I, effll ed
cicss-work for its only bsis, which marks all those
patchwork systems Of taxation which have been impro-
ysed since 1888 the growing needs OF state aud
local treasures without any regard to principle or
| study OF tie subject, the popular but
| fallacious theory That any one knows enough
ia impose taxes. In certain States the rail
| roads are apparently looked upon species OF
wiudall from which everything which can be cNacted
in the way OF taxation is much pure gain II other
States they esca ne With very slight aud wholly d5pf0-
rortonatc burdens The fran 'hse tax, the gross aud
net earnings tax. me personal trope'ly 'aN w Its
INK are all met with ndscrminatciy, applied some
tunes by oc,u Boards, sometimes ny boards or oINe
Enualtzatior but almost invariably in utter dregard
any principle. more striking, ana III some f'5pcts
an important matter of fiscal legislation couti MAJ ny D.
imagined. THIS viii more clearly appear ron tic cou-
drn,rd statement OF the several systems nov III use
which the committee propose to Incorporate III their
As respects the conclusions reached the result Of
their INVESTIGATIONS they can BE- very briefly stated
The requisites OF correct system OF railroads. as OF
other taxation is that should. in 80 Iar as 1t Is pos
,ibc. be simple fixed proPor nate, easily a5ccIltih
ABIDE and susceptible OF ready levy Very few OF the
! systems now in found 90 have any OF these
features from being liked they are most or iam
extremely arbitrary and tldctuallng Neither are tley
propOriIOuate as In some eases the measure Ot Vaua
ton tie market price 81 securities ~ others the arb
trary Of appraisers IL yet others, gross r.
ccpts and IN others, local ases m n IGat the TAX
shoald be possible ofascegaiHmen under these
cifcumstar stoGs 't hetu 20 % sih.' As |" pelIE
susceptible OF ready levy, TAX assessed on aud PAID
apfcar that Largo portion OF the taxes levied
must either De evade or else are IL the nature or a
| Con It..E ffIaat nisn nrr
~ ~ the of the oygner Local taxes paid
by the corporation IN one state do not affect these Sc
irct 10 an addtiona levy. tie amount OF
| the holder 81 propcrty or The asiuiclcSs OF
m,tee arrived that all the requisites OF sound sys
tom were found IN taNcs on req popcf ana on gross
receipts, AMI IN no oth"rs-'n tact that these were
! properly imposed no other taxes wonld be neces-
fary as nothing could escape untaNad Under this
ten the rcai estate oi the rHrOal corporations hed loI
CORPORATE uses outside Of their right OF way would
be locally assumed exactly in the way ~ the real
estate of private persons or oi Other cofpoa9n9 a2h
! Ing was assessed. There would be no distinction
made regard to It, 1t Is the odnary tax GA real prop
cry. Beyond mat acerialn nNed percentages eslab-
,hcd by law and uf general application should be as
aud this should be in lieu OF all fOrms Of taxation on
! what Il known personal property. Under this sys-
tcfn the rolling stock OF the corporation would not be
ass"ssble It's hands nor it, securities. whether
Stock or bonds either lndiiecy through me corpora
nsd IN the corporton N nd eyIca DIRECTLY
II need 10 be pointed out that this system
perfectly simple; that uuderit taxation Il fixed ny
general law and not by local valuations; that II is thor
Oughly prOpOrtOuatc, inasmuch the amount levied
depends the amount OF gross receipts; finally u ctn
be ascerained by any one and 1t can by no possibility
| be evadcd.
The apportonment of a levy on gross receipts among
! the several states through which a single railroad
run is III this country, undoubtedly attended with
much difficulty ana tue committee pave gwen careful
| they nave arrived IS mat 1t should he made matter
| OF mutual understanding among the states, and that,
as the lcyes mad to be independent, they should be a-
portcued according to mileage That L. the real prop
the terminal grounds NcwYolk and Chicago those
POINTS the basis OF valuation there use, and
whether business agricultural of those lOcdtiOAsthe
realty being thus disposed Of the entire earnings
each state through which ITS road mght run In the
ts whole number of miles The percentage OF the levy
would then be smaller according the law
OF the state, but the proportion OF the Whole amount
upon which the levy To be made would be fixed and
| always easy OF ascertaumGnt,
The disposition to be made o. the tax thus levied when
paid into the hands OF the state whether IL
should be retained in the State Treasury distributed
might those IN which the holders of its securities
resdei-woud be matter for adjustment BY legislation
| The disposition to be made OF tax IN way affects
The question Of the proper mode Of levyng IT, In their
methods now in this subject and offer some sug
geslions as 10 any improvements which might be made
Finally, tho committee viii say that of all the systems
OF taxation examined by them those England,
! among the countries OF Europe, in Michigan and
Wisconsin, among the States the Union them
most intelligent in conformity with correct princi-
pies. The Michigan Wisconsin systems would seem
| TO be especially cOmmendaDle. The systems use In
many the older states, the contrary, and notably
| in the States OF Massachusetts, NewIOrk, Pennsylvania
and ONO. very cumbersome and present hardly any
features worthy Of study or imitation. The subject is
which evidently has Ia this country received very
| little mature consideration. II also which, IN
OF the influence and direct interest OF the railroad
corporations ought not to be difficult of adjustment
correct principles. To such adjustment COM
have hopes that the elaborate report they
have In preparation, and Of which the points only
here submitted, VIII materially contribute. They
would therefore, ask that tnecOuclusOns thus generally
stated may accepted by the convention and that per
| mission be given them TO report hereafter more at
| length ana In print
| CHARLES L. ADAMS jr., OF Massachusetts.
". ID. WILLIAMS of Michigan.
I.INI nm IL