Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-06-14
THE UNTAx ED RAILROADS.

The address which ex-Auditor General
Niles made to the State Board Of Agricul-
ture the other day, is pregnant with facts
for the consideration of the people of the
State. As general rule, some Of the fiscal
views to which the agricultural mind is
prone require modification if not correction.
The taxation of corporations engaged in
manufacturing and mining is equal to that
OF other property-owners on their property
and business To add to that tax on their
capital simply for being in the corporate
form, would be to discourage that sort of in
dustrial organization and, to the extent to
which that was carried. drive away the in
dustries which enhance agricultural pros
perity by the creation of home markets.
With regard to the taxation of mortgages
and loans, it is beginning to be plain that
whatever tax is laid on them comes from the
borrower; and whatever tax is taken of, is
lust so much of relief for the borrower.
Mr.. Miles makes this clear enough with re-
gard to the double taxation of mortgages,
and the property mortgaged, but it is no
less true of other forms OF loans.
gard to industrial and monetary corpora
tious, Mr. Miles is undoubtedly correct in
claiming that railroad corporations should
be made to bear the burdens of taxation
equal to those imposed on other industries.
Beyond that he makes strong showing to
the effect that they not only do not pay as
much in proportion as the average tax
payer, but that they do not pay as much as
the railroad corporations of other States. 1t
might be possible for the railroads to con-
fute this point by the argument that the
shippers or travellers pay the tax, and if it is
increased the burden will fall on them. But
it so happens that the railroads are debarred
from this plea by the tact that they fix their
rates with reference to what the other roads
do. The Pennsylvania railroads charge GER
tain rates because the New York roads
agree to charge the same. II, with this
compact in force, the New York roads pay
taxes four or five times what the corporations
of this State do, the exemption here is SIM
ply an addition to profits. This is part
OF the policy by which the railroads of the
country seek to impose on the public the tax
of their watered stock. When that is the
case, it is surely no more than just that they
should bear their full share Of the legitimate
burdens of taxation.
While Mr.Niles' figures are striking, there
is nothing unexpected in this state of the
case. 1t is the legitimate and almost inevi-
table result of the disproportionate influence
of the railroad corporations in our legisla-
lures. When one legislature after another
has refused to enforce the provisions of the
Constitution on the subject of corporations:
when revenue bills are left unsigned or lost
between the legislative chamber and the
committee room it is as inevitable that these
corporations should get off with about
sixth of the taxation imposed on the people,
as that any other effect should follow upon
its natural and effective cause.
The people of the manufacturing indus
tries of the State are just as much concerned
in this matter as the farmers. 1t remains to
be seen what they are going TO do about it.