Evening star., 1898-02-04
STREET RAILWAY TAX
Discussing the Proposed Plan Of
Representative 0dell.
EFFORT TO SECURE MORE REVENUE
Representatives of Local Corpora.
tons Testify.
HOUSE COMMITTEE MEETS

The House District committee today en-
tered upon the consideration OF a subject
which is deemed to be of considerable i'm
portance by some of the members. 1t is q
proposition to change the method of taxing
street railway corporations in the District,
with view to increasing the tax.
Representative Odell of New York, a
member of the committee, is the author OF
the proposed plan. He advanced it today
at meeting of the subcommittee on rail-
ways, called for the purpose of taking up
the matter
Mr.. Odell's proposition, in brief involves
two ideas:
First. To assess the real estate of street
railways upon the same basis that other
property in the District is taxed
Second. To levy graded tax upon the
stock OF the corporation, in addition to the
realty tax. based upon the earning capacity
of the roads.
Mr.. Odell contends that the railroads do
not pay their fair share of taxes in pro-
portion to the benefits they enjoy, and that
In this respect there is discrimination in
their favor as against the people and other
corporations.
claimed any intention of aiming his pro-
posed reform at the Capital Traction Com
.pany alone. although he had addressed
some OF MS criticism to that company in
the past Mr.. Odell then offered his bill
amending the law which will be introduced
In the House. 1t was as follows:
Mr.. OdeIrs Bill.
Section 1. Every corporation, joint stock
company or association incorporated, or
ganized or formed under, by or pursuant
to the laws applicable to the District of
Columbia, shall pay to the collector of
taxes annually for the franchises which
have heretofore or which may hereafter
be granted to operate street railroads
within the District of Columbia, an annual
tax to be computed upon the basis of the
amount OF its capital stock and upon each
dollar Of such amount at the rate of one
quarter of mill for each one per centum
OF dividends made and declared upon its
capital stock during each year ending with
the 3lst day of December, If the dividends
amount to q or more than per centum on
tne par value of such capital stock.
III such dividend or dividends amount to
less than 6 per centum on the par value
the capital stock, the tax shall be at the
rate Of one and one-half mills UPON the mar
ket value OF such stock, to be determined
oy sworn appraisement made by the
president and treasurer of such corpora
ton and filed annually with the District
Commissioners on or before the 1st day
of December in each year.
Such appraised value, however shall in
no case be less than the price received dur
ing each year from the sales Of the stock
where such sales are made. If such cor
pcration, joint stock company or associa-
ton shall have more than one kind Of cap
ftai stock. and upon one of such kinds of
stock a dividend or dividends amounting
to or more than per centum upon the
par value thereof has been made or de-
clared, and upon the other no dividend has
been made or declared or the dividend or
dividends made or declared thereon amount
to less than rer centum upon the par
value thereof, the n the tax shall be at the
rate OF Y Of a mill for each 1 per centum
Of dividends made or declared upon the
capital stock upon the par value of which
the dividend or dividends made or declared
amount to or more than 6 per centum
and in addition thereto a tax shall be
charged at the rate Of IL mills upon every
dollar Of the valuation made in accordance
with the provisions of this act of the cap
ital stock upon which no dividend was
made or eclared, or upon the par value of
which tie dividend or dividends made or
declared did not amount to per centum
Every railroad corporation, joint stock
company or association organized incor-
pcrated or formed under the laws of any
other state or country shall pay like tax
for the privilege of exercising its corporate
franchises or carrying on it's business in
such corporate or organized capacity in the
District of Columbia.
Section 2. That the said road or roads
shall be deemed real estate, and they, to-
gether with the other real property and the
personal property of said corporation, Joint
stock company or association, shall be LA
BILE to taxation as other real estate and per
sonal property in the said District of CO.
lmbia and the stock Of said corporation
joint stock company or association shall be
assessed in block at its true market value
and the tax thereupon collected from said
corporation, joint stock company or asso-
ciation. From it. however, shall be de-
Quoted the assessed valuation of such real
estate as may be assessed against or stand
in the name of said corporation, joint stock
company or association upon the tax books
of the District of Columbia.
section 8 All acts or parts of acts incon-
sistent with this act are hereby repealed.
Effect of the Bill.
Mr.. Odell said the effect of the bill would
be that the roads would pay their proper
tfon Of real estate taxes and would pay
tax on the assessed value of stock.
Mr.. Babcock asked what would be the
effect in the case of some roads in this
city whose stock is of nominal value and
the roads bonded to the full extent.
Mr.. Odell said there is no stock of live
corporation which is absolutely valueless.
He held that the conditions existing here
are not different from those in New York
state, and this bill is copied after the New
York law, which had brought millions of
dollars to the treasury of New York. The
railroads of this city, he said, pay tax
of one-third the amount paid by Baltimore
roads.
Mr.. Richardson suggested that the Balti-
more roads charge a straight fare of 5
cents, while Washington roads give six
tickets for 25 cents.
Mr. King of Utah said the New York law
applied to steam railroads, and he sug-
gested there was difference between the
conditions. In the first case. the roads own
ed right Of way. usually 100 feet wide,
through the state; owned depots, ground
and other property. In Washington the
streets belong to the United States. and
the railways merely have an easement for
their tracks.
Doubt was exp1 essed by Mr.. Richardson
whether the proposed graded tax on stock
valuation would produce as much revenue
to the city as the present per cent tax on
gross receipts.
President DunlOp's Statement.
President Dunlop of the Capital Traction
Company said that the old Washington