Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1898-07-20
EXPRESS TAX.
WHO PAYS 1T; COMPANY OR
SHIPPER ?
An EXPRESS COMPANY OFFICIALS
VIEW OF A QUESTION WHICH Is
AGrTATING THE PUBLIC.


which have repeatedly shown their warm
are not trying to impose upon the public
in their administration OF the new war
| taxes, but as there have been various mis-
| understandings in the matter, and as
these have found expression in various
newspapers Of Maine, the Commercial, on
Saturday, sent reporter to the offices of
the American express company, to ques-
ton one of the high officials there. As a
result of this interview, the most lucid
and interesting information was obtained.
The remarks below will thus be read with
unusual care by citizens generally.
"First," said the official, "you say that
the public generally is of the opinion that
the law requires the express companies,
and not the shippers or consgnees, to
pay the tax. Now Senator Weleott, of
Colorado, in his remarks against the bill
in the Senate of the United States, said
"'As no laws general in their application
work without specific injury to certain in
dustries and to certain interests. have to say
that think the committee have made ono -cri
| Gus mistake i'll the imposition of the heavy tax
upon express companies a. included IN the
general section of the bill, for, curiously
enough, an accurate statement of the packages
carried by express companies shows that the
packages carried 10y the four leading express
companies of the United States Are over 100
00e geo, and taking the railroads which carry
their own express matter, and there are several
such railroads, the express packages carried
upon the express lines of this country aggre-
gate $50 00O,O0O
a. tax, therefore, upon the express com
panie7 to the extent of cent upon each package
would collect from these express companies
SlSeo,Ooo from the four principal express
companies of the country 100000. They are
already taxed, and taxed heavily often upon
gross earnings in the different states of the
Union. 1t Is needless to say that the express
companies cannot pay and continue their bust
ness without raising their prices.
Zone might say that they could add the penny
to the cost of the package. They cannot, be
cause the contracts of most express companies
with railroads call for 40 per cent of the gross
receipts. and If the express companies should
add l cent for the purpose of covering the
stamp, they would have to pay half of it to
the railroads with which they transact business
at is evident that the Senate concurred
and was convinced that this tax should
not be made a burden upon the express
companies, as the law subsequently passed
made it The duty of the express company
to issue to the party from whom any
goods are accepted bill of lading, etc.
"Please note the word accepted This
word evidently was used to give the ex-
press companies the right to make such
rates as they saw fit before they accepted
the goods, and this is just what has been
! done, viz: The rates hRye been amended
so that they are the old rates, plus one
cent.
again, you Will observe that the law
reads: There shall be duly attached and
| cancelled stamp to the value of one
cent This does not say that the express
/ company shall attach the stamp, but on
/ the contrary it leaves it open SO that the
/ express company can require the stamp
to be affixed before, or at the time, it
signs The receipt. If it had been the in
tentlon to impose the tax upon the eX-
press companies, The law doubtless would
have read: Tie express company shall
attach, etc.
TWO DO rLARs V, y CENT.
"Some say that rs the railroad eompan-
les pay the tax upon their bills OF lading
shippers think the express companies
should do the same. The tax is paid by
TIC railroad companies, not in our opinion
because they are required to do SO by law,
bat because, com paratively, it amounts to
but little to them. Senator Woicott, in
his address mentioned, stated that the
average shipment upon each line Of rail-
road FOR which Il separate bill OF lading or
receipt is given is about four tons in
weight 1t is our experience that express
shipments average forty pounds. 1t fol-
lows that tonnage that would cost the
express companies II the neighborhood
of two dollars would cost the railroads
but one cent.
people have said that the local ex-
presses have decided to pay the war tax
themselves, claiming that it will be easier
to get five cents additional charge than
to make the consignor pay the tax. AT
New York, June 20, it was decided that
local expresses shall be required to col
lect revenue tax Of shippers on all goods
accepted in transfer. The proposition
OF local express companies to raise theil
rates five cents to cover this tax is
burden upon the public generally, and one
which the regular express companies dc
not endorse.
at is said that the position taken By
he leading express companies is exceed
ingly unpopular, that the public say we
are trying to avoid paying the tax anc
that the express companies should assume
the burden themselves.
at is evident that the public does not
fully understand this matter. The tax
equals 3 per cent. Of the gross capital oil
the express companies. Surely with this
and other information given herein il
will be conceded that If the express com
panies paid the tax, it would be neces-