Evening star., 1898-02-26
TAXING LOCAL RAILWAYS
Report Prepared by Chairman Baboock on
the House Bill.
Inequalities fn the Present System
Advantages Claimed for tho
Proposed Method.

ways upon new plan mas Deen CraWn Dy
Chairman Babcock of the House District
committee. 1t is as follows:
The committee On the District of Co
lumbia have examined very closely the
present system of taxation of street rail-
road corporations within the District, and
find the following inequalities:
THE Anacostfa and Potomac River Rail-
way Company is assessed upon it's real
estate the same as all other real property
in the District, ana two per centum on the
gross earnings as personal tax. This COM
pany. however, mas not been paying this
two per centum assessment for the past
eight ten years, and at the present time
owes the District in unpaid taxes and ac-
crued interest about 5000 and the case Is
now pending in the courts. Your commit
tee understand that their refusal to pay
this two per centum assessment Is based
upon the following provision in their char
ter:
And said company shall pay to the District of
Columbia in lieu of taxes upon personal property,
next ensuing year, two per centum per annum for
the frat ten years after completion and Thereafter
traffic for the preceding year as shown by said
verified statement,
for the reason that they have never com
pleted tneir road, as specified In their
original charter, which this company
claims eXenptS them from the payment OF
the tax upon the gross earnings. The re-
ported bill will settle this matter so far as
future assessments ana payments oi ,aAGS
on gross earnings are Sohc ei.u ~
make this company hapie hereaIter ior inc
payment of two per centum upon gross
earnings.
Ihe Belt RallWay Company, t.e Soiui oittn
bia Railway COMPANY anu .ue ~ ~ oa.
Railway company are taxed uhaer .ne ae'
of March H. 1877, section IL, as follows:
That the capital stock of all corporations in
said District rot herein exempted shall be np-
praised in bulk by the assessor, and the corpora
tion issuing the same sGa 1e soe 10, bares IN
.hereom M Sam ot ns assessed against the indi-
Id,ai nrneIs thereof: hut from the appraised val
ne of the stock shall be first deducted the value
any real estate Of said corporation in said District
which sail be separately taxed against sald eorpo-
ration,
there being In their charters no provisions
the method Of assessment. Under this sec
tion the assessor of the District of Column
bia has been taxing these three corpora
.ions on their capital stock based upon the
ceICulaiioo of four per centum on gross
earnings from which amount he has de-
ductod the assessment on real estate, which
dedrction Is provided for by this section.
r.,rba Pripbtwood Railway Company, the
r.nitaI Traction Company. the lexington
~ nd Soldiers Home Railroad Company, the
Ceorpetown and TenleytoWn Railroad Com
many and the Washington and Great Falls
IrIac+ri, Railroad Comnany are assessed as
nrovide that they paw as a personal tax,
in Iiet, of taxes upon personal property,
including cars tracks and motive power,
4 per cer,um on their gross earnings. In
n a1dition to this ,hey are taxed on their
real estate the same as other real prop
erty in the District
.;Cne Washington Alexandria and Mount
yernon Railroad Company is taxed in the
sam, method as the above mentioned COM
panies: that is. per cent per annum on
the gross earnings. in lieu Of personal tax
Your Committee understands that this COM
many Is also liable to a tax upon its real
estate the same as other real property in
the District but that at the present time
there is mo real estate assessed to them
unnn the hooks of the assessor. This COM
naSv has but a small amount of trackage In
The District and as they rent their ticket
oftice ,,j terminal STATEN. no real estate
is assessed arajns- them at the present
time
.-The term gross earnings has been ap-
nlied nv the assessor upon consultation
and advice with the attorney tor the Dis
trict OF Colurbia to mean tie receipts CT
these various compa MES for the carving
of passengers, aid not lc mean their entire
gross recsints from, All sources Your com
mittee Understands that some of these
street railroad companies own property In
the District such as buildings which they
rent, and upon which, OF course, they ray
a tax the same as paid by other owners Of
real estate in the District If the tax upon
their gross earnings were considered to
apply to their entire gross receipts. II ia
manifest that there would he an Injustice
as the companics would he com,elIed to
nav a tax upon the same ,rop ,rty twice
I'm yiey of the above mcntioned intnuali
ties in the present system of assessment
and taxation of the street railroad corpora
tions in the District of So,.,r,h;, vaur COM
mittee felt that thew ware called ,non to
enact new legislation which would Simplify
the existing laws and raeulations i,Don
which the assessor of the District Of Co.
lumbia is compelled to base the assess-
ments of these corporations. and to equal
ize and adjust the inequalities now existing