New-York tribune., 1880-02-13
PlILROAD TAXATION.


VIEWS OF CHARLES FRANCIS ADAMS, JR.
, nrPoRr sUBNIlrED 10 STATE RAILROAD conf
Nl,sIo>IHs- ONLY REAL PROPERTY ASD CROSS
RECEIPTS sGOCLD BE FAXED
Mr Charlie, Frames Adams, j., has rendered On
important public service in his latest work on ihe
railroad question II is a report, apparently from
bis pen subm ited 20 "a convention Of State hnlroah
Corimis,ione., by n committee consisting of Mr.
Adams FROM Massachusetts, Mr. w. B. Williams
from Michigan and Mr. J II. Obe'ly from Illinois, on
' The Taxation of Railroads. and Railroad sccUi-
ties" The suggestions Of Mr. Adams In some other
paper, have seemed to merit criticism. HIS great
interest IN this ssubjcct, however aud his thorough
investigation of it in all It's phases, qualify hm to
treat II IN many respects more successfully than
any other writer the country. TIE report ~ re-
spcct to taxation is of unusual merit, and onghi
10 receive attention from Legislatures ln every
state.
The information given la this document Is Of
great value The committee has been able u
assemble aud condenso within the limits Of a small
pamphlet tho facts as to the taxation of railroads
and railroad securities in Great Britain and British
America France. Germany BeiNum. Holland, Aus
tria Hungary, Prussia and Switzerland, and all the
States Of this Union. The abstract of laws ~ the
different States is eyIdeatiy prepared with care. and
u as full and thorough is consistent with need
ful condensation. An examination of this plrt OF
the report will cause surprise, even 10 those who
have been most familiar with the legislation ro-
sp"ctiug railroads IN tine different states, on account
OF the extreme diversity of the methods adopted.
and the extraordinary folly OF those adopted in
many States Almost every conceivable mode Of
valuation aud taxation has heen some0 here tried.
aud the committee saws:
m orp
Systems described, aud there IL no method OF iaHao9
possible 20 devised which ir not a this tune applied
10 railroad properly part Of bl country - far
as those w"recogniled pIincp.c- "nlch eNouu "v
~ the basis 81 all systcms Of aNr'n are concerned
thev would rlle. seom TO havo been utterly *
uored.
The committee evidently has not been biased by
the local sympathics Of IT, members, for The report
criticiscs the system enforced in Massachusetts,
more severely than that OF any other State. except.
perhaps. thai of Now-York aud mentions ~ cspc-
cially commendabIe only the Systems OF Michigan
and Wisconsin, which the committee believes
"most intelligent and in conformity with correct
principles"
The conclusion at which the committee arrivcdis
that taxation should be laid Ony upon real property
exclusive OF the right of way and the supcrstruc-
ture and upon gross receipts, and that no taxation
whatever should be levied upon stoc K, bonds
other evidences of indebtedness or upon the super
structure Of the property in place of tins di-
rect tax upon the gross receipts being readily
and correctly levied. aud moro surely collected.
The real estate of the railroad companies held ior
corporate use outside of their right of way il is
held should be locally assessed exactly in the same
way as the real estate Of private persons or other
corporations adjoining Tins should he the ordinary
tax on real property. neither more nor less but be-
yond that "a certain fixed percentage established by
law and of general application to all railroads
within the State should be assessed the entire
gross earnings of the corporation, and this should
be in lieu of all forms of taxation what is known
AS personal property. The committee would not
tax, under this system, either the rolling stock of
| the corporation or its securities, directly IN the
hands of these owning them, indirectly through
the corporation. The entire burden. whatever the
| state may ft TO impose. should bc imposed in
one lump the gross receipts and levied directly.
The committee recognizes the difficulty of ap-
portioning levy gross receipts among the sew
eral States through which n single railroad may
run. The obvious method which the committee
recommends ia that when a railroad lies partly
within and partly without n State there shall bo
paid INTO the Treasury such prop Of the
taxes imposed as the length Of its operated road
within the State bears TO the whole length thereof"
One OF the greatest difficulties, all know in effect
ing any reform whatever to methods of taxation
IN this country springs from the complex system of
| government. Some serious objections would exist
| TO the system proposed if it should be adopted in
some States and not in others adjoining; but the
Importance of therefOm recommended is 80 great
that some temporary inconvenience may well be
borne either by corporations or by communities dur
| ing the period necessary for the gradual adoption
Of better system in the different States The
recommendations are altogether more practical and
intelligent than any Others yet made in respect to
the taxation of this class Of property and ought TO
receive especial attention from the Legislature of
j th;s State NOW i'm session