The sun., 1901-02-07
|iEE RAILROAD
| TAX QUESTION
attorney for the Corporations Ez-
plains.
SOLICITOR BIaas' LETTER
q, Compares Taxes With the
Amounts Paid in Other States,
and Says Delaware Re-
csivsd s3570oo
Wrongfully.
,or1cIToR BIGGs' LETTER

Former Attorney General John Biggs,
.,.;,or for the p, w. & B. Railroad
c,n, r'n ,aoy. the Delaware Railroad Com-
Wv, and t. 9 D. NJ. & V. RAiiroad, yes.
,srd,y r sent the appended lester TO each
m.mber of the L gislature at Dover, an
,,he proposed law to radically III.
..oo,e the taxation On the corporations.
~.o o,.stion interests all ciLIzens, anu
tui.,,ur Blggs' statement brings several
s"s,d.r.tlvus bsiuie the pubic I'll u
'a,a ,,ot been understood. Ills letter
iOlo1s; -, nj 100,
To the Chairman ana Members Com-
mutee filvaIe Corporations, House
n representatives, Dover Delaware:
,,enlleInen: In connection with the
Nils now under consideration by
y,ur committee which propose large
Increase in the annual payments by
Ebe Philadelphia, Wilmington q Balti-
more kallroad Company, the Delaware
ka road Company, and the Delaware,
klaryland Il virginia Railroad Com
bany. respectively, III communication O..
axes provided tor by act OF August II
SOi Imposing tax OF ten cents PEI
apta on passengers) and act OF
kpril s. 1869 Imposing taxes on nel
Earnings and capital stock) / beg, OIL
behalf of each of said companies, u
invite your attention to the c.rcum-
tances and conditions connected witt
nactment of the statutes OF April IL
Sl3, authorizing commutation OF Statt
lxes by the Philadelphia, Wilmington
Baltimore Ra lroad Company, which
tatute furnishes the basis and pred.
rate for the statute of April 8, 1885
md April 20, 1881, authorizing com.
butation by the other above nameL
cmpanies, respectively. Statements
nd criticisms have been made respect
BIZ the Delaware Railroad Company I
bmmutation, which are apparently
Fferable to lack of knowledge or in.
brmation concerning the condition.
bove alluded to, and which induced
DO passage of the act of 1878.
1t must be well understood that the
hole period between May, 1855 ant
Jay, 1897, the Philadelphia, Whining.
Pn G. Baltimore Railroad Compan.
as In possession and operation of the
flaware Railroad Company's railroad
bd property under lease providint
fixed annual rental; and that ther,
PRE- frequently, during the same per
d, both before and after 1873 years
which the revenues derived from
e leased property were largely in
equate to pay the operating expenses
ID said fixed rental
1T will be noted that the provisions
the act of 1864, imposing tax upoI
ssengers, were not limited to pas.
ngers transported wholly within tn,
ate, but included as well passen-
rs whose carriage involved interstate
hnsportation
Immediately after the enactment OF
is statute, the railroad compan,
Ps advised by counsel, that, as tt
ssengers entering into, departint
pm, or passing through the State,
was an attempted regulation of in.
Estate commerce, and, therefore, un-
institutional and void; and that, as
all returns and payment of tax tha
sht be made by the railroad com
ny with reference to such inter.
ate passengers, they should be made
der protest The first return anG
yment made by the railroad com
my was S7,S42.S5 for the month o.
cember, 1864, and like monthly re.
rms (includ.ng as we'll interstate
SsengerS as those transported wholly
MN the State) were thereafter reg
Prly made to and inclusive of the
Pnth Of October, 1868, and the taxes
ID IN conformity Herewith; but
such payments of taxes as to inter-
le passengers were made under pro,
T. and with the express reserva
p OF the railroad companys right
demand and recover the same
aggregate amount
y taxes on all passengers
paid by the railroad
4 company during said
asst mentioned period,
5 shown by its report,
DO ...... a.............S S5o,0S9 Az
aggregate amount
aid on passengers car
e ed wholly within the
tate, ascertained as ac-
K urately as possible
Fl rom the Company's
fcords and other data
Is ............... 50,693 &c
wing aggregate pay
lent on account of tax
3 on Interstate passen-
RS of the sum of. .... S307,345 &c
tier the month of October, 1868, the
road company declined to make
Urn OF Interstate passengers, and
feafter suit was incepted against
railroad company by the State
surer, by case stated, in the Super.
Court of New Castle county, which
pplication Of both parties, was or
"a to be heard in the Court of Err
and Appeals; and having been sc
a, 1t was unanimously held and
ded by said Court that the statute
far as it operates upon persons en-.
lg into, departing from, or passing
ugh the State - is inopera,
and invalid" under the CONNER.
clause of the Federal Constitution
4 Houston PIP 1S9-199). This
ment fully susta med the conten
OF the railroad company, ant
effectiveness of its protest as t.
on interstate passengers, and as 4
result thereof the company became
tably entitled to demand and re
the said sum of S307 ,345.70, pay
whereof had been unlawfully ex
under color of said statute by thu
authorities, but made under pro
as aforesaid.
Panwhile the act of 1869 having
passed, it Immediately became
subject of litigation in the United
s Circuit Court, and was finall!
ed upon by the Supreme Court il
Der, 1873.
hding the litigation, however, thu
'e matter of State taxes, unde