The evening times. [volume] (Washington, D.C.) 1895-1902, 1898-02-04
Street RAILWAY All TAXES
The Problem Discussed Before a
House District Committee.
MR.. ODELL'S AMENDMENT
President Dunlop, OF the Capital
Traction Company, States How His
Corporation Is Taxed-Mr. MAJ
thanieI Wilson Makes Brief
Statement for the Metropolitan.

a meeting was helb this morning by
the subcommittee of the House Dis
trict Committee for the purpose of dis
cussing railway taxation. The ques-
ton was brought up by Mr.. Odell OF
New York, who offered an amendment
to the present law.
Mr. Dunlop, of the|Traetion COmpa-
ny, said his company paid taxes on real
and personal property. and Mr.. Watson,
of the Metropolitan Company, admitted
that his road was taxed differently
Mr.. OdelI said his idea. was that the
property of railroads SHOULD be taxed
the same as that of individuals.
Mr.. Richardson said relative to this
that the Government owns the streets
and the companies only obtain the
right of way, which might interfere
with such proposed taxation.
Mr. King of Utah said the railroads
were simply granted an easement, and
when the roads should be vacated, the
portions of the streets occupied by them
would revert to the Government. The
only real property owned by the rail-
road companies in the District Is that
buildings.
In regard TO the belt line, Mr. Odell
said it had $4,000 of bonds besides
stock Its most valuable asset is its
franchise with the further legislative
relief that Congress proposes 10 grant
IL. IL pays a tas of 4 per cent.
Mr.. King asked why a franchise tax
could not be treated as an income tax
and reduce the proposed tax on real es-
tate.
Mr.. Dunlop said before the consolida-
tion of the Washington and George
town railroad with the Chevy Chase
line and the creation of the Capital
Traction Company, the company paid a
tax of per cent on its gross earnings,
besides tax on real estate. Under the
consolidation this company pays 4 per
cent on gross earnings and 1l2 per cent
on the real estate.
In reply to questions by Mr.. Odell Mr.
Dunlop said il was true that on a cap
italiZation of $500. 900 the company had
paid a tax of S25 900, and on the pres
ent capitalization of 81. 900, 600 the COM
pany paid $40 1000. but he explained that
the company had expended millions Of
dollars in improvements, the money
for which was raised by the stockhold-
ers. He added that now the company
and the Il. per cent on the real estate.
Mr.. Odell said that as he understood
it the company paid $3.50 per $1,000,
based on the market value of the stock.
Mr.. Dunlop interposed that the com
pany paid an additional tax for keep
ing the streets in repair. and the COM
pany suffers a discount by the sale of
tickets, which is loss OF $l30,0 900 a
year.
4 I. &c -.
tickets were never returned to the com
pany Mr.. Dunlop replied that in
thirty-fiye years the amount of tickets
never used was about si5.0
Judge King asked: What could your
property be sold for? Would il bring
s.. 600 0e0?'
Il don't think it would" replied Mr..
Dunlop. He added that while the COM
pany does not pay as much tax on real
estate as the private property holder.
the company. taking all things togeth-
or. pays more, and asked how would
the Government derive any revenue
from its streets.
Mr. Nathaniel Wilson. in behalf of
the Metropolitan Company, said that
the company pays tax of per
cent on the gross earnings.
Mir King of Utah said that under
such an assessment the assessor was
clearly violating the law
Mr. Wilson explained that the assess
ment was made in a manner which af-
forded the assessor the best opportun-
ity of fixing valuation. The reason
why the Traction Company is not as
sessed like the Metropolitan is because
the law has been changed, and Con
gress has made an additional require
ment as to a tax on real estate. The
law does not apply to all companies
alike and now that Congress has the
matter in hand. ii is right that law
should be enacted which will be just
and equitable to all railroad companies
and the Government.
Mr.. Wilson will. in a day or SO, file
IN iaf