Evening journal., 1901-02-06
STRONG RAILROAD LOBBY
WORKING AGAINST NORRIS BILLS
Friends Of Measures Claim Easy Victory in House and
Railroads Direct Their Energies Toward
Having Them Killed by That Body

NANt anu NallNf UHQtN lut
cial clause of the Federal Constitution
lsee 4 Houston PIP 1S9-199). This
! judgment fully sustained the conten-
tion of the railroad company and
the effectiveness of its protest as to
tax on interstate passengers, and as 20
the result thereof the company became
equitably entitled to demand and re
ceive the said sum Of S307 ,345.70, pay
ment whereof had been unlawfully ex-
acted under color of said statute by the
State authorities, but made under pro
test as aforesaid.
Meanwhile the act of 1869 having
been passed, it Immediately became
the subject. Of litigation in the United
States Circuit Court, and was finally
passed upon by the Supreme Court in
October, 1878.
Pending the litigation, however, the
whole matter OF State taxes, under
beth acts, was made the subject OF
careful investigation and considera-
tion between tho representatives OF
the railroad company and the General
Assembly at its session of 1873 and an
/ agreement considerably reached fixing
a fair and just sum to be paid by said
, railroad company in Communication of
taxes; and the act of 1873 providing
fer the cOmmutation and producing
the sum of $4,000. the amount agreed
on, was passed accordingly.
The charter of the Delaware Rail
road Company exempted its property
from all taxes for a period of fifty
years, which expired with the year
1886.
Although in the discussion and nego-
tiation between the. representatives OF
the railroad company and the COM
mittee of the General Assembly, which
resulted in rhe agreement and adjust
ment evidenced by the act of 1873, il
was we'll understood that, because OF
its charter exemption, the Delaware
Railroad Company's property could
not be directly taxed under either act:
/ this was, nevertheless taken into con.
sideration in fixing and prescribing
, the annual payment of $4,000, and il
was then well understood as cOntem.
plated and designed that this sum iu
fact represented what was regarded as
fair and just contribution from the
property of both companies; and as
che 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 were 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-
cOmplished directly.
IT. was Of oD1f1.cn ,~,,1.-l,.-tr,1
stipulated between the railroad com
pany's representatives and the Gener-
al Assembly's committees that the
company should relinquish. all claim
Tor repayment Of the above mentioned
sum Of SSO7.345.70, 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 $4,000. in
Communication of its taxes, was under
consideration. all the circumstances and
conditions, as hereinbefore set forth.
were fully presented and made known
to the committees of the General As
sembly having charge thereof: and il
was knowledge of these conditions.
and the understanding that the Della
ware Railroad CQmpany's propertv
was intended indirectly to be subjected
to liability for taxes through the an
nual payment of $4,000 by the Pbila-
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 Ons, might we'll have
been considered as inadequate. .ineuuita-
Die 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
1887 has been since maintained with
out modification or challenge.
The fact that the act of 1878. and the
commutatiOn thereby provided. was
the result of an agreement between
the company and the Legislature con-
s.derately reached. which involved
adjustment Of long pending contro-
versy, and the surrender and release
by the company of its right to reim-
bursement of 1907, ,345.70 unlawfully
extracted from it and paid under pro
test as above stated and that the faith
ful observance of its requirements by
the company has I'm addition to said
sum unlawfully collected) produced
an aggregate revenue to the State of
about one million one hundred thou
sand dollars R1,1OOOOO) ought not to
be overlooked. but should be duly
weighed in considering whether the
existing commutation ought in fairness
to be disturbed
While 1T may be true. as stated in
the preamble of the pending bills. that
the sum therein prescribed by way OF
communication would be less than the
amount OF taxes under the acts of 1864
and 1863. this can have no special sig
hhcanee; because the tax at the rate
fCnnffnuad an rrhf,a p,.o,