The Washington times., 1906-05-24


The question Of taxation OF public
utility corporations IN the District OF
Columbia was the subject Of an ami
mated informal debate in the Senate
early this afternoon.
Senator Gallinger moved that the bill
reported by the District Committee. OF
which he is chairman. two DAYS 40, he
recommitted. This is the bill which pro
Vided for granting 10 the city railway
companies the right 70 extend their lines
10 The new Union passenger station. and
In reporting which the committee add
ed series Of important provisions for
the increase Of the taxes Of all The uub-
nc utility corporations. The Increase
provided FOR was Z per cent OF the uer
earnings or the railways, electric, gas.
and telephone companies, IN addition 70
lne per cent OF gross earnings which
they now pay.
Senator Gallinger Explains.
Senator GaIIInger was one OF the
members OF the committee who opposed
reporting the measure. 1t was. however.
voted oct Of the committee By a vote
OF 70 4 in moving that the measure
De Escommitted this morning Senator
IaIilnger called attention 70 the drastic
taN4L4Oh provisions that had been incor-
porated and made some statements
which bordered on the sensational Ne
S1d tnat early in the present session
ne h4d turned over 20 a subcommittee.
OF which Senator Hansbrougb va.
chairman. measure 10 authorize the
street railway companies TO extend thair
INES 10 the new Union Station The
companies would benefit in no wa 50
Id- as their business is concerned bv
lnis change- and would be put 70 large
expense IN making IL As the companies
deslre 10 begin operating their cars in
the new station in September or Ocre5er-
OF TINS year it was important that rkey-
should 6e given the privilege as early
.. The BIZ giving this right. Senator Gal
AnSer said. was referred TO the sama
subcommittee. which last year had IN
Ger consideration the measure to give a
FRANCHISE 20 crosstown line on N
street. No report came from the sub
committee and two and one-haIf rnonths
aI1er the Dill had been turned over 10
-. senator Gallinger wrote a letter 10
senator Hansbrough as chairman Of the
SuDCoInmlttee. calling attention TO the
importance Of an early report.
Receiving no reply, he wrote another
letter a month and a half later again
urging the matter. and as a result the
subcommittee reported, not on the mat
@ 1er or the extensions only. but presented
an elaborate measure providing for
quaorupllng the taxes OF the street rail-
roads gas, electric lights. and telephone.
companies. and. incidentally. including
new union station
Question Not Germane.
Senator GaIlinger insisted that this
matter of taxation was not pertinent or
germane TO the matter Of extension and
ought not 10 be presented in the same
BILL He declared that although the bill
as reported by the subcommittee was IA
vorably reported by the District Com
mittee by vote Of ; to l. three members
Wno az tnat time voted for the favorable
report nave since explained that they
ola 50 under a misapprehensiOn
Senator Hansbrough in reply said
that the subcommittee had been slow
IN reporting because Of the onerous
duties imposed upon members this ses-
SION he proceeded TO say that Sen
ator Gailinger was mistaken in assum-
ing IhaI the proposed amendment 10 the
taxation would Quadruple the taxes OF
the corporations, pointing out that
Wereas they now pay per cent on gross
earnings the PROPOSITION IS 70 add 10
mat i Per cent on net earnings. which
is a very different matter The pres
ent law for taxation of these companies
was passed fifteen years ago when con-
diuons were entirely different. has never
been changed and ought nov 10 be
modernizeG-
Scott Is UnseIfsh.
Senator Scott Of West Virginia de-
clared the companies were not paying
enough taxes and said that as a small
stockholder in the Capital Traction Com
pany he had voted TO report the meas
ure- He had afterward been told that
by his vote he was injurilg his holdings
in that company, and had replied that
he didn't care If he was; that the com
panies were not paying enough taxes
and ought 10 be compelled TO pay more.
Senator Hansbrough then took up the
report and further analyzed Il, showing
the financial status Of the different cor
porations He said that they are now
paving a total OF S14.00O, and that the
addition proposed by the measure would
be SS04. 900. Senator Patterson proceeded
10 make a speech on municipal fran
~bfSeS in general