The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1901-02-07
JOHN BIGES
LETTER.

SOllcltOr lot Vie l., W. ~ -. N"''o 'o"N
Com 2any, the Delaware Railroad Com
pany and t. g d. M. & V. Railroad, yes
terday cent the appended letter to each
member OF the L gisature at Dover, an.
ent the proposed law to radically IN
crease the taxation on the corporations,
The question interests all ciLizens, and
Solicitor Biggs' statement DriIss eeVeial
considerations before the puo!lc thAt
have not been understood. Ills letter
follows:
Wilmington, Del, Feb. s. 1901.
To the Chairman and Members Com
mittee Private Corporations, House
of Representatives. Dover Delaware:
Gentlemen: In connection with the
bills now under consideration by
your committee which propose large
increase in the annual payments by
the Philadelphia, Wilmington K Ba!u-
more Railroad Company, the Delaware
Railroad Company. and the Delaware,
Maryland & Virginia Railroad Com
pany, respectively, in communication OF
taxes provided for by act OF August II,
1864, Imposing tax of ten cents per
tdplLd UH 6'i'( t'hA ~"
April 8, 1863 Imposing taxes on net
earnings and capital stock) | rs on
behalf of each of said companies, TO
Invite your attention TO the circum-
stances and conditions connected with
enactment of the statutes of April II,
1873, authorizing cOmmutation OF SIT
taxes by the Philadelphia, Wilmington
& Baltimore Ra lroad Company, which
statute furnishes the basis and pred
icate for the statute of April g. 1855,
and April 20, 1887, authorizing COM
mutation by the other above named
companies, respectively. Statements
and criticisms have been made respect
ing the Delaware Railroad Companys
Communication, which are apparently
referable to lack of knowledge Or i'll
formation concerning the conditions
above alluded to, and which induced
the passage of the act Of 1873.
1t must be well understood that the
whole period between May, 1855 and
May, 1897. the Philadelphia, Whining
ton d Baltimore Railroad Company
was in possession and operation Of the
Delaware Railroad Company lallroad
and property under lease proVldlnS
fixed annual rental, and that there
were frequently, during the same per-
iod both before and after 1913 years
in which the revenues derived from
the leased property were largely III
adequate to pay the operating expenses
and said fixed rental
1t will be noted that the provisions
of the act of 1864, imposing tax upon
passengers. were not limited TO pas
sengers transported wholly within the
State, but included as well passe1-
gers whose carriage involved interstate
transportation
Immediately after the enactment OF
this statute. the railroad company
was advised by counsel, that, as TO
passtngors "cntering into, departing
from. or passing through the state,
it was an attempted regulation OF in
terstate commerce, and therefore, un-
constitutional and void; and that, as
to all returns and payment Of tax that
might be made by the railroad COM
many with reference to such inter-
state passengers. they should be maze
under protest The first return ana
payment made by the railroad com.
papy was $7.Si2.S5 for the month OF
December. 1864, and like monthly re-
turns ,includ.ng as well interstate
passengers as those transported wholly
within the Statc) were thereafter reg
ularly made to and inclusive OF the
month Of October, 1865, and the taxes
paid in conformity therewith; bnl
all such payments of taxes as TO inter
state passengers we're made under pro-
test, and with the express rese!va-
ton of the railroad company So right
to demand and recover the same.
The aggregate amount
of taxes onall passengers
paid by the railroad
company during said
lasr mentioned period.
as shown by its report,
was " ............s 35S .039 40
The aggregate amount
paid on passengers car
ried wholly within the
State, ascertaincd as ac-
clirately as possible
from the Company's
records and other data
il '"',,.,..,., -. 5O,G93 70
Showing aggregate. pay
ment on account OF tax
es on interstate passen-
gers of the sum of. $3U .343 ~