The sun., 1901-02-07

the sum OF $40,O00, the amount agreed
on, was passed accordingly.
The charter Of the Delaware Rail-
road Company exempted its property
from all taxes for a period of fifty
years, which expired with the year
| 1886.
Although in the discussion and nego-
| ttation between the Representatives of
the railroad company and the com
| mittee of the General Assembly, which
resulted in the agreement and adjust
| ment evidenced by the act of 1873, IL
was we'll understood that, because OF
| Is charter exemption, the Delaware
Railroad Company's property could
not be directly taxed under either act;
| this was, nevertheless, taken into con.
sideration in fixing and prescribing
the annual payment Of $4,000, and il
was then well understood as contem-
plated and designed that this sum in
| fact represented what was regarded as
| a fair and just contribution from the
property of both companies; and as
the Philadelphia, Wilmington and Bal
tlmore Railroad Company was lessee
Of the Delaware Railroad Company,
and in rece.p Of all proceeds from It's
operation, as well as the owner of
large proportion Of its capital stock,
The conditions were such as to render
The property of the Delaware Railroad
| Company liable to contribute to such
| payment, and thereby accomplish in
| directly that which could not be ac-
complished directly.
1T was, OF course, understood and
| stipulated between the railroad COM
| panys representatives and the Gener-
al Assembly's committees that the
company should relinquish all claim
| lor repayment of the above mentiuneu ii
sum OF $3U7 ,345.70, and this constituted
an important feature and element In
producing the agreement and adjust
| ment which prescribed $4,000 as the
amount OF the annual payment.
When the act OF 1887, authorizing
payment by Delaware Railroad Com
pany OF the annual sum OF $4,000, iii
Communication OF its taxes, was under
consideration, all the circumstances and
| oondltions, as hereIaDelore set Iorln,
were fully presented and made known
| 20 the committees of the General AS
5embly having charge thereof; and Ii
was knowledge of these conditions,
and the Understanding that the Della
ware Railroad Companys property
vas intended indirectly to be subjected
20 liability 1or taxes through the an
nual payment OF $4,000 by the Phiia
delphia, Wilmington and Baltimore
aaliroad Company, that induced ana
warranted the General Assembly ii.
Jassing said act OF 1887, provided fol
| acceptance from the Delaware Rail
oad Company OF the annual sum O.
| S5,OOO, which, but tor said condition.
and considerations, might we'll hav.
Jeen considered as inadequate, ,inequita-
ole ana discrlmlnat.ve; and that Inls
vas generally SO understood and ac.
| .epted is evidenced by the fact tina,
~he arrangement provided by the act o.
1857 has been since ma ntained with
out modification or challenge
The fact that the act OF 1873, and the
tommutatlon thereby provided, Wa.
The result OF an agreement between
the company and the Legislature con-
,.delateiy reached, wnIch involves
adjustment of long pending contro-
sersy, and the surrender and releas,
| oy the company of its right to reim-
| Jursement or $3Ul ,34o.iU unlawtuii5
extracted from it and paid unaer pro-
| lest as above stated anu that the faith
.ul observance OF It's requirements by
The company has lin addition to said
| sum unlaWIully coilecued) produceu
an aggregate revenue To- the State Oh
| about one million one hundred thou
sand dollars ($l,100,0O0) ought not t.
We overlooked, but should be duly
weighed in considering whether til,
| EXISTING Communication ought in fairness
| 10 be disturbed.
While it may be true, as stated il
| The preamble OF the pending bills, THAI
~he sum therein prescribed by way o.
Communication would be less than the
| amount OF taxes under the acts of 1865
and 1863, this can have no special sig
| Llllcance; because the tax at the rate
Jf ten (l0) per centum on net earnings
las prescribed by amendment to ac.
| JI 1869 has never been enforced ant
| moreover, in view of the concededly
| excessive character of this rate, anu
.he circumstances under which it wa.
enacted, it may be fairly doubted
| whether its enforcement was really
contemplated, and this view il
strengthened by the enactment of the
communication act OF 1873 without at
| tempting to enforce said tax on nei,
| earnings.
As the railroad and property of the
Philadelphia, Wilmington G Baltimor,
Railroad Company is partly located
n the States of Pennsylvania ana
Maryland, the amount of like taxes paid
by it in each of said States may we'll be
considered. Its railroad and mileag,
n the State Of Pennsylvania Is about
equivalent to that in Delaware, whnt
that in the State of Maryland is much
| greater than in either of the othel
5tates and besides, it's terminal prop
arties in the cities of Philadelphia and
Baltimore, respectively, are of much
greater value than property of like
character in the State of Delaware.
These taxes for the year 1899 amounted
in Pennsylvania to $17,241.15; and in
| Maryland to SAL ,036.23.
| Contrasting these amounts with the
aggregate of $4,000 paid in Delaware
by the Philadelphia, Wilmington &
Baltimore Railroad and the Delaware
i.ailroad Companies, and comparing
| the value of railroad property and
terminals in Pennsylvania and Mary
land with the property of both said
companies in Delaware, it will be seen
! that the communication now provided by
| The Delaware statutes Is net dispro-
portionate thereto, nor fairly assaila-
Dle on the ground of inequality
Concerning the proposition to in
crease the Delaware, Maryland & Vir-
ginia Railroad Company's annual COM
| mutation, it is pertinent to call atten-
"a. II. aAf l,t N, tft neH hlnf i.