Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1890-06-20
Niles on Taxation.

dollar Of every other man. IL that dollar
is invested in Government bonds or in
mortgages it is no more secure than the
dollar that lies in farming land. Both
dollars should be under the same subiec-
tions, but such has been the machinery of
legislation in Pennsylvania for the last 80
years that the dollar of the farmer does not
pay per cent interest and is made to pay
five times more taxes than the dollar in
moneyed interests pay
IF I only have 5000 saved lie con
tinued, "and want to buy a farm worth
10000, 90 to a neighbor and borrow the
5000, giving him mortgage Then we
are both Just as rich as we were before, and
why should be made to pay all the taxes
on this farm when he practically owns half
oft?
The capital tax in Pennsy yania is a
cheat and trick" declared the ex-Auditor-
General because it does not measure the
true value of corporate capital. \ certain
railroad in this part of the State cost
81, 200 900 to build This is covered by
mortgage Indebtedness of $3, 900,05O and
the capital stock is put at 81, 600, 00O only.
On this the railroad pays the miserable pit
tance of 1900 to the State as tax Why.
here in Wellsboro, a single little bank pays
5000 of capital stock tax, and there are
vastly more paid in local taxes here in
Tioga than this railroad, with its per
cent dividends, is made to pay
To-day corporate and personal property
in Pennsylvania is earning twice the
amount of money real estate is earning
and yet is not paying one-half the tax.
The railroad, covered with a mortgage in
debtedness, is allowed to subtract the
amount of the mort gage from the value of
the property, and pays Tor the difference
or the capital stock tax | cannot do that
on my farm, but must pay 20 mills on the
whole valuation of SO. 600, while the man
who holds a mortgage on my property
only pays mills tax under the act of 1850.
SO, you see the State is getting tax twice
over on my farm, while the railroad prop
erty goes scot free"
Mr.. Niles explained the opposition of
corporate wealth to the act of 1885, impos-
ing a tax on mortgages and said that he
believed that if the law of lS69--an eXten-
sion Of the other act--is enforced, it will
bring more than three hundred additional
millions of capital under the 3-mill tax,
which capital has never yet been taxed,
"and that will help build your county
a.. ba
see to it in your election OF Legislators that
| it is done.
But you must go further to get sub
stantial relief" resumed the speaker
make the railroad corporations pay the
same share of taxation as the iarmers-no
less, no more BY The report Of the Sec
retary of Internal fairs for 1855 it ap-
pears that the railroads in Pennsylvania
have a mileage of Is, S02 miles and cost
81, ,O6S, 900, 900. When the present tax laws
were made there was not 100000, 600 of
capital invested in railroads, so we are
to-day living in children's clothes.
THE average rate of taxatian on real
estate in Pennsylvania is l5 mills, and that
property was assessed at that rate it would
bring You 100000 for macadamizing
your public highways, or, even suppose
these corporations were assessed at three
fourths of the full value of the property, as
real estate is often assessed. Even then
the State would be l0,000, 900 richer.
"But all these railroads il Pennsylvania
paid into the State Treasury last year was
81 ,230, 500, OF a hltle more than l 2.l0
mills on the value Of their property. This
railroad running north and south across
Tioga county, connecting New York towns
with Williamsport, Pa, cost So, G,27o 600 to
build. 1t pays to the State $ll, l2s-less
than > mills on the road S cost-and any of
you farmers would be glad to have your
farms assessed at only two mills.
This railroad company has the right to
do its legal business in this County Court
House and send its pauper laborers to your
poor house, and don't pay cent of local
taxes. You farmers do all that, for its
benefit. This applies to every county of
the State, from Lake Erie to the Delaware.
Now, if this railroad passing out Of Tioga
county were ASSESSED 10 mills, like your
selves, instead Of paying $ll ,12S taxes it
would pay the State 0,O0O, of which
amount the State would willingly make
Tioga county the present of $50 600 to i'm
prove her county roads, and then the farms
in this county will only be paying $50, 900
taxes instead of $1,000 for agricultural
property would be assessed at two thirds
Of the value of railroad property.
Last year the entire taxes received by
the State authorities from all sources was
81, 4S9 000 and that sum, coming from the
merchandise in thousands of stores and
factories as well as railroads, is only equal
to mills in the value of railroad properly
in the State. Why, sir il the railroads in
the State were made to pay what they pay
in New York State, there would be enough
money to repair every single county road
in Pennsylvania, for it would be equivalent
then to 10 mills or more than ~ 900, 0O0,
900 of capital What / have been telling
you is law in other States. The moment
the railroad crosses the imaginary line that
divides Pennsylvania and New York, just
north of this town a few miles it has TO
pay taxes like the farms it passes over.
This Fall Brook Railroad, which crosses
Tioga county, pays more local taxes in
one township of Steuben county, New
York-our adjoining county on the north
than its pays altogether to the State Treas
ury of Pennsylvania for its hundred miles
of rails within our borders How would il
be among you Pennsylvania farmers if the
taxes ON railroads averaged $4,000 per
miller Why, your county road problem
would bc solved"
General Niles closed bis address by
citing the tax law of Illinois Ohio and
other States to show that they all bring
the corporations up nearer to the same
mark as real estate Several papers were
read on technical subjects, and at g p. IN.
the board adjourned until fall.
Production OF Heat in Living