The Wilmington Democrat. (Wilmington, Del.) 18??-19??, 1901-01-12
The State
Defrauded
of Revenue
THE PROOF IN THE CASE OF
THE PHILADELPHIA, WILL
MINGTON AND BALTIMORE
RAILROAD COMPANY.

We said last week that this railroad
ought to be paying the state $4,000,
while it only pays $40 900; making a loss
to the state each year of 5000
In 1864 the Delaware Legislature
placed capitation tax on railroads Of
ten Per cent. per passenger.
In the twelve months beginning with
December 1864 and ending November
1865, the p. w. & 5. R. R. Co. actually
paio TO the state The sum OF SIoI, 724 A.,
What would that tax produce now il
honestly collected
In 1869 it placeda tax on railroads OF
ten per cent. on their net earnings ard
one half OF one per cent. on the market
value of>their capital stock.
The United States Supreme Court up
held this law after the P. w & B. r r
Co. had fought it until the court of last
resort decided az ainst the railroad.
In 1873 this railroad jumped at the
chance, land presumably worked the
Legislature to get the chance) to COM
promise these taxes until otherwise
directed by law" for the sum Of $4 1000
per annum.
What ought this railroad to pay the
sta.e now, even on this basis OF COM
promise?
The business OF the railroad in 1871
compared with the last years furnishes
this comparison:
Passengers carried in 1871. I.ooS.o33;
in 1899. S,465 5a3 ION whole system
Tons OF freight hauled in 1871, 34S,2io;
in 1899, S,Io3 74a (on whole system)
Gross earnings in 1871, $7,o7S. .So5 CO;
in 1899. IS osq.I67.II. Net earnings, less
operating xpensesin 1871. $1,000 fes$;2 70;
in 1850. ii. .635 o7o.oS. Amount oftSPital
stock outstanding, at par 10 1871 10 997.
e,o; in 1899. sfI,SI9,35o.
If the capitation tax in 1864 was sToI,-
624.4o what would it be now
II the railroad company worked III
and jumped at chance to compromise
its taxes for $40, 900 in 1873. what ought
it to pay now!
Let's try to figure it out
The proportion OF the line of the P
w. & B. Railroad in the state of Della
ware is approximately twenty-five pei
cent. or one quarter of the whole hne.
One-iourth its net earnings were IN
1871, $a67 ,4S5; in 1890, S4cS,qS2.
One-fourth the market value of it
capital stock was in 1871, a, $50, $2 249,
AIS; ia 1899. at '$75; $4,432, ESQ.
It's capitation tax in 1864 was in roun'
figures $Ioo,oco. We can only CUES
what it would be now. Suppose we Gu
that amount down to only s6o.oo Th
railroad company cannot complain tha
is unfair treatment.
The par of the P. w. & B. R. R. Co
S ock is $50 and the market value is 81
per share, while practically ii can hardl
eyer be bought at that price, and tn
Pennsylvania Railroad Company hold
the cor troll.
This then is what the company ough
to be paying 10 the state according to
moderate calculation
1917 on x its net earnings. $40,6 ,69
Y of III on 4of the. market
value of its stock. ..... 22,16
Capitation tax only guessed at 5000
Total tax ought to pay 800. $l23.O5
Annual payment actually
made ........ tUiUU
See what the state is losing. $83,05
Now "What are you going to do abo,
it"
That's the question Boss Tweed aske,
that's the question the Railroad Boss
Delaware dares the newspapers to tai
about, and if they do so-no m,re FIRE
transportation.
Take the case of the P. w & B. R.
from another point OF view:
Put it on the same basis of taxation ;
any honest and industrious mechanic
Wilmington who owns the little house /
lives in, worth say $1,000. What ia
does he payf Why 50 cents on the SIC
to the county and SI.5o on the $Ioo to Il
city, or total of $40 per annum.
Now take the railroad. Its balant
sheet of October 3rst. 1899, showed
possessing property worth s24, 5oI 27o.8
One fourth ofthat great amount is s6.I47
SI7.72. That amount represents Il
proportion Of the railroad in Delawar
1t certainly ought TO be taxed as much