The times., 1898-02-05
A new PLAN OF IEXATIlN
0delI's Amendment Before the
Subcommittee on Railways.
PROVIDES A UNIFORM METHOD
The ASseS ser Is Summoned TO APP
pear and Explain Why He AS
sesscs Mr.. Dunlop's Company One
Way and Mr.. Wilson's Another
They Siye Testimony.


The Subcommittee ON Railways oi
the House District Committee held 6
meeting yesterday for the purpose oi
discussing a proposed change in the
method Of taxing the street sailways in
the District. In the course Of the pro-
ceedfngs Mr.. Dunlop, of the Capital
Tractbsn Company. and Mr.. Nathaniel
Wilson. of the Metropolitan Company
We're asked to explain how each OF
theseF roads was assessed. and the
methsEis employed were so entirely diff
ferent that the committee Will sum-
mon the assessor to appear before ii
toda N@- The Capital Traction Company.
it was. stated by Mr.. Dunlop. is as
sessed separately upon the gross re-
ceiptss of the road and the real proper
ty il owns; while Mr.. Wilson admitted
that The metropolitan road was as
sessed. only on the gross receipts, to
which was added q valuation on the
real property
The hearing developed a condition in
the method of taxing street railways
that surprised the committee and
clearly indicated that some method
might4-be selected that would place all
basis-of valuation for taxable purposes.
When the meeting was formally be-
gun, Mr.. Odeil, of New York, offered
an amendment to the laws governing
the taxation of street railways in the
District. which read as follows:
Section l. Every corporation. joint stock
company, or association Incorporated. or
"a piZed or formed under. by or pursuant 10
the laws applicable TO the District of
columbia, shall pay 10 the collector of
taxes annually for the franchises which
have heretDloTe, or which may here
after, -be granted to operate street rail
rOa ds hin the Dist riCt of Columbia. n
annual tax % be computed upon the basis
of the amo ant Of its capital stock and
upon each Collar OF such amount at the
rate OF one quarter OF mil for each l
per cent of dividends made and de-
ClareC upon its capital stock during each
year. ending with December 81, If the
oividenEls q nount to s or more than 3
per cent Dn the par value of SnCh ca pitai
StocS.+li sHcn divi1endor dividends amount
to less HHsln O. per cent on the par value
of the capital stock, the tax shall be at
the raEe Of one and one-half mills uDon
the market value OF such stock. to be
determined "a q sworn aDpralSement MADE
by the president and treasurer oi Sucn
CoFpoTaLi0n. and filed annually with the
itist rict commissioners on or belOTe the
81 day. OF December in each wear. such
appraised ya.ue, however, snail in no case
toe less thal the price received during
each year frOm the sales of the stock
where such sales are made. III such cor
pora tiun. JOINT stock company, OF aSsocia-
tion shall haze more than one Kind OF
capital stock, and upon one OF such KINDS
of stock a di -idend or dividends amountlnG
to 6. or mote fhan 8 per cent, upoh tue
mar value thereof. Ia Deen mace OF
decla red. and upon the other no diyl-
dend has been made or decafca.
or tile dfridend or dividends iDade
OF declared thereon. amount TO less thah
6 per cent upon tie par value thereof. then
the tax shalt - a the rate OF oiie-du ,et -
a i:tiIi Tor each one per cent OF uiViueuus
nadeoT declared upon the c. plta VI,
the mar Va. ip pf which the DIVIDEND OF
dfyidendS made or declared amount 70
ar more tiraa 6 ster Cent ana II anultion
thereto q taS shall be charged az thS iaa iS1e
,f .np ard ,ue-halC mills olon ever u'aiii
Of the xalia ton Rla de in accordance Will
tie proyisions o. tins act OF the ca plOai 5
- Al X UPON Which 40 dividend Wds .l l,duS
or declared, Br upon the par value OF Wiich
lilo dividend or dividends made or ue
cla red did no. Amount To . ifer cent ENch
railroad curisora tion- iolnt stoCk Co,lLh CS lar I
or aSsUciatloa orEa iIhed' '.,'nr state
ar cnun;ry stall paN a ike Tax Tor ltlS
privilege OF exercising ITS cerpof ate g .o,h
,.llsas or ca.ryIuE on It's business III H.Sn ~
coFiorate or Or26ihEeu SdbaNi'N ~
District OF Columbia .oo,,S
section =. That the said road or roaus
Slail he dee red real estate ana ulcA 70, "a
a,i,or with tho other real property "llu
H. ,,arsnnal rlrouerty OF said corporation,
So;,,t stock -c1t,tT,,auy or aSsocdlloh' s'lail
he liable to taxation as oIlel rtai @ nEstric,
and personal property IN tIle ;I Stiu ,r,,nr.
- TalnmlAa and the stock OIL saiu WI C.ei,
-, lint -tDcE company OF dssocid nun
shall be assessed in block at us u ue ~ ry
value and lhes tax thereon tolleouva ',.,,enr or
at,S ,snrt,,r., rion- Joint STOCK CouIJdLr ~
ocs0c;a tinu From it, however Sittii HS
aaou.tpu t!fn assessed NjlualioH ~, " -
Teai estate as ma be assessor aEaIi'ae; i ia;ot o
stand in the name ol sdiu 10. ~. 1,,,on the fax
stock compaay oT ASSOCIATION ul,oil '''0
ho-,l;s Of Tie District OF I IoiulIlpld' .,,,,
"a DuuIon. OF the Traction I"fiP"
- eaid mis- company paid taxes OF! leoi
md nersOnal property, and MIR w lison,
of the Metropolitan Company aonIi''eA
mat his road was taxed differently.
M. Odell said his idea was that lii
property of railroads should pe taAeu
1ba same as that Of individuals.
NJ richardson said relative to tins |
that the Government owns the streets
and the companies only obtain 1he
right of way. which might interfere
with such. proposed taxation.
Nr King of Utah said the railroads |
were simply granted an easement, ana
when the roads should be vacated. the
portions OF the streets occupied by them
would revert to the Government. Inc
,nly real property owned by the rail-
,oad companies in the District is that
used for the power house and once
buildings.
In regard TO the Belt Line. Mr.. Odell |
said il had S490. .000 of bonds besides
stock. Its most valuable asset is its
franchise with the further legislative
Congress proposes to grant
t Itpays a tax Of 4 per cent.
Mr.. king asked why franchise tax
,ould mot be treated as an income tax
md reduce the proposed tax on real es-
ate. : ~s't's a'
Mr. Dunlop said before the consolida-
ion OF the Washington and George
own railroad with the Chevy Chase
inc and the creation of the Capital
fraction Company, the company paid
AK of per cent on its gross earnings,