Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1903-09-19
Writes Letter to Charleston Mail
on the Tax Question.
ANSWERS SOME CRITICISMS
And Defends the Theories Of the Adyo-
Gates Of Tax Reform-TeM Of
the Letter.
the Letter.

the Charleston Daily Mail. In reply
to criticism of that paper regarding
the report of the tax commission and
the proposed legislation at the next
meeting of the West Virginia legisla-
ture. Believing that 1t is in the III
terest of the public welfare that as
much light as possible be thrown on
the subject. The Evening World
publishes the full text of the COVER
nor's letter. He says
Do understand that your columns
are closed to any statements favorins
the consideration by the legislature
of the tax commissions report or the
recommendations OF the governor? III
not, will not YOU in the interest OF
the public, kindly allow me to cor
rect statement in your issue of YES
terdayq You seem to think that the
corporations are paving 5000, 900 OF the
81 400. 600, Approximately taxes gather
ed into the state treasury annually for
state purposes. OF this sum $4o0. 900
is derived from the Dawson corpora-
tion law, being the annual charter
license tax, much of it being collect
ed from corporations which do no bus
iness in West Virginia or do not have
their home or habitat in this State.
The other $500, 900 you say is paid by
the railroad corporations into the
state treasury for State purposes
Allow me to say that the amount
paid by the railroad and street car cor
porations in this State for State pur-
poses for the fiscal wear ending Sep-
TENDER 30th. 1902. was $57. 56S O6, or
about one-ninth of the amount you
state.
You will recollect that l recon-
mended to the legislature the taxation
of public service corporations. and es-
pecially railroads and street cars. on
their gross receipts, as they do in
Pennsylvania, New York and many
othur states if we took off the direct
State tax of 35 cents on the 500. Per-
init me to say that steam railroads in
Penns vlvanja Ga state where no d.
rect taxes are levied for the support of
the State aovernment) are taxed eight
tenths of one per cent. on their gross
receipts; five-tenths of one per cent.
on THEN capital stock annually. and
fourteenth of one per cent. on their
bonded Indebtedness annually. These
steam railroads in Pennsylvania paid,
IN 1901, for the support of the state
government. under this tax, the mag
nifcent sum of 50, sos, 090.67 The
street RAILWAYS of the State, which
are taxed in the same way, paid for
the support of the Pennsylvania State
government for the same year 81, 1893.
O42 80. or a total for all railways, of
STATS, l33. &c. This wear it will reach
about S., 10000
Now compare the S.. 900. 600 paid in
Pennsylvania by the railroads for
State purposes with the $57.000 paid
only in this state the same way they
do in Pennsylvania, and take off the
direct State tax of thirty-ive cents on
the one hundred dollars, the railroads
would pay to the State of West Vir.
ginia, proportioning the amount &C
cording to our railroad mileage. nearly
as much as the entire tax of thirty
five cents ON the one hundred dollars
now produces. or approximately $780,
coo. Think of the significance of this
statement.
tax of thirteen and one half cents ON
the one hundred dollars, as against
our direct tax of thi~ty-tive cents, the
railroads pay, in addition. tax such
as recommended to the legislature
one per cent. on their gross receipts.
This one Der cent. tax produced last
year over S1.00J. 900 from the railroads
and about $l75!O00 from the street
cars. If we tax railroads in West Vir-
ignia on their gross receipts the same
way thev do in Ohio. making proper
ago, our receipts from railroad taxes
for the state would aopro ximate $3.50.
900 instead of the S57, 600 now paid in
60 the State treasury for state pur-
poses. Think of the significance OF this
statement.
One more illustration. In Maryland
steam railroads paw no direct state
taxes, and with the exception of the
B & o. railroad. pay a graduated tax
according TO their gross earnings per
mile, running from eight-tenths of
one per cent. on the first 81. 200 per
mile of gross earnings mp to two per
cent. of 81, 200 per mile or over. The
b. d 0. railroad. which has tina prin-
eipal mileage of the State. has certain
exemptions and special charter and
pays but the nominal tax of one.h half
OF one per cent. Aud vet if we taxed