Evening journal., 1901-02-06
Letter From John BiggS Re-
CeiVed by Members
TEXT OF THE COMMUNICATION
Representative Monaghan Adds Fuel
10 Flame by Giving Notice Of Bill
to Tax Railroad Beds
STAN Correspondence Evening Journal.

Stan Correspondence Evening Journal.
Dover. Feb 6-Each member of the
Legislature to-day received from For
mer Attorney General John Biggs, ct-
torney for the p, w. & B. Railroad
Company, this letter bearing on the
railroad tax war now in progress in
the State House:
Wilmington, Del, Feb. 5, 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 & Balti-
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 IL,
1864, imposing tax of ten cents per
capita on passengers) and act Of
April 8, 1869 Imposing taxes on net
earnings and capital stock l beg, on
behalf OF each of said companies, to
Invite your attention to the c.rcum-
bNNhNN1 anu NoAA4lAAOlAo NUAnENlEu VIII
enactment of the statutes of April II
1873, authorizing ccmmutation Of State
taxes by the Philadelphia, Wilmington
g. Baltimore Railroad Company, which
statute furnishes the basis and pred
icate for the statute Of April 8, 1885,
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 COmpany's
Communication, which are apparently
referable to lack of knowledge or in
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 & Baltimore Railroad Company
was in possession and operation Of the
Delaware Railroad Companys railroad
and property under a lease providing
a fixed annual rental and that there
We're frequently, during the same per-
iod, both before and after 1878 years
in which the revenues derived from
the leased property were largely in
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 passen-
gers whose carriage involved interstate
transportation
Immediately after the enactment Of
this statute, the railroad company
was advised by counsel. that. as ito
passengers entering into, departing
from, or passing through the State, 3"
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
pany with reference to such inter-
state passengers. they should be made
under protest The first return and
payment made by tha railroad COM
pany was S7,S42S5 for the month Of
December, 1864, and like monthly re-
turns Including as well interstate
passengers as those transported wholly
within the State) were thereafter reg
ularly made TO and inclusive of the
month of October, 1868, and the taxes
paid in conformity Herewith; but
all such payments of taxes as to inter
state passengers were made under pro
test and with the express reserva-
ton of the railroad company's right
10 demand and recover the same
Ihe aggregate amount
of taxes TALL passengers
paid by the railroad
company during said
last mentioned period.
as shown by its report,
was ....., ............s 35s,O39 40
The aggregate amount
paid on passengers car
ried wholly within the
State. ascertained as ac-
curately as possible
from the Company's
records and other data
is ............... Sc. 5O,69s 20
Showing aggregate pay
ment on account of tax
es on interstate passen-
gers of the sum of. . S307 .345 20
After the month Of October, 1868. the
railroad company declined to make
return of interstate passengers, and
thereafter suit was incepted against
the railroad company by the State
treasurer. by case stated, in the Super
ior Court of New Castle county. which
on application Of both parties. was or
dered TO be heard in the Court OF Err
r,d