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

the annual payment of $4,000, and it
was then well understood as contem-
plated and designed that this sum i'll
fact represented what was regarded as
q fair and just contribution from the
property of both companies; and as
the Philadelphia, Wilmington and Bal
timore Railroad Company was lessee
of the Delaware Railroad Company,
and in receipt OF all proceeds from its
operation. as well as the owner of a
large proportion of its capital stock,
the conditions We're 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-
complshed directly.
1t was, OF course, understood and
stipulated between the railroad COM
pany's representatives and the Gener-
al Assembly's committees that the
company should re.lnquish all claim
for repayment Of the above mentioned
sum of S301 945, 20, 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 $1,000, in
Communication OF its taxes. was under
cOnsidoratiOn all the circumsta stanCes and
conditions, as hereinbefore set forth,
were fully presented and made known
to the committees of the General AS
sembly having charge thereof; and 1t
was knowledge of these conditions,
and the understanding that the Della
ware Railroad Company's property
was intended indirectly to be subjected
to liability for taxes through the an
nuaI payment Of $4,000 by the Phila
delphia, Wilmington and Baltimore
Railroad Company, that induced and
warranted the General Assembly in
passing said act of 1887, provided for
acceptance from the Delaware Rail
road Company of the annual sum OF
$4,000, which, but for said conditions
and considerat IONS, might well have
been considered as inadequate, ,inequita-
BILE and discriminative; and that this
was generally so understood and ac-
cepted is evidenced by The fact that
the arrangement provided by the act of
1901 Has DttH Slltt maintained "iti-
out modification or challenge.
The fact that the act Of 1873, and the
communication thereby provided, was
the result Of an agreement between
the company and the Legislature con-
s.deratelN reached, which involved
adjustment OF "a long pending contro-
versy, and the surrender and release
by the company Of its right to rem-
bursement OF s307,345.T0 unlawtully
extracted from it and paid under pro-
test as above stated and that the faith
ful observance of its requirements by
the company has lin addition to said
sum unawfuly coliectedj produced
an aggregate revenue to the State Of
about one million one hundred thou
sand dollars ($l,l0U0O0l ought not TO
be overlooked, but should be duly
weighed in considering Wheth"r the
existing communication ought in fairness
to be disturbed,
While It may be true, as stated in
the preamble of the pending bills, that
the sum therein prescribed by way or
Communication would be less than the
amount OF taxes under the acts OF 1864
and 1869. this can have no special sig
nitiCance; because the tax at the rate
of ten t10) per centum on net earnings
(as prescribed by amendment TO act
of 1869 has never been enforced: aud
more over, in. view of the C0nCedCdly
excessive character Of this rate, and
the circumstances under which It was
enacted, it may be fairly doubted
whether its enforcement was really
Contemplated and this view is
strengthened by the enactment OF the
Communication act Of 1873 without at
3feHlnting TO enforce said tax OH net
|Yearnings.
As the railroad and properly Of the
philadelphia, Wilmington 4 Baltimore
Railroad Company is partly located
in The States OF Pennsylvania and
Maryland the amount Of like taxes paid
by it In each OF said States may well be
considered. lis railroad and mileage
in the State Of Pennsylvania is about
equivalent to that in Delaware, while
that in the State OF Maryland is much
greater than in cithe! of the other
States, ard besides, Its terminal prop
critics in the cities OF Philadelphia and
Baltimore, respectively are of much
greater value than properly of like
character In the State nj Delaware.
These taxes for tho year 1899 amounted
IN Pennsylvania to sl7,2ll.l5; and III
Maryland 10 Sll.03t.23.
Contrasting these amounts with the
aggregate Of $4,000 pad in Delaware
bv the Philadelphia, Wilmington IL
Baltimore Railroad and the Delaware
hailroad Companies, and comparing
,,,l, nv n
terminals in Pennsylvania ani Mary
land with the property of both said
companies in Delaware, Il VIII he seen
that the communication now provided by
the Delaware statute, is uGt dispTo-
pGrtonate thereto, nor fairly aSSaila-
hlp on the ground Uf inequality
Concerning the proposition to in
crease the Delaware. Maryland & viz
gina Railroad Comp2ny's annual com
mutation, ii Is pertin"E. 10 call a'ton-
ton to the fact. which is ',thrr we'll
known or can be readily verified. that
the operatiou Of this company's prop.
prty has never produced ANY Ivenuc
or return To is Stockholders. blt On
The contrary, its earnings have not
, even been sufficient TO pay the interest
| of its indebtedness to the Philadelphia,
Wilmington a BaltimCrl Railroad Com
pany, large portion whereof VIZ
Sis OU0) Is represented by payments
| made by said last mentioned company
to the State of Delaware on account
of mortgage he'd by it AGAINST the
Junction & Brcakwatcr Railroad Com
pany, one Of tho constituents Of said
Delaware Marylan! 4 Virginia Rail