The copper era., 1906-02-15
WHAT RAILROAD
EXEMPTION MEANS.
Congress Would Make Railroads Pay
Taxes on Their Valuable Property.

The Hamilton railroad bill into
duced in congress last week is one of
the most far reaching and important
measures that has been introduced
in its bearing towards Arizona.
Many leading lawyers in Arizona
have maintained for years that all
the exemption laws enacted by the
Arizona legislature were void. AS
they contend that the organic act of
the territory does not clothe the
legislature with such power, but
some 600 miles of railroad has been
constructed in Arizona under those
various exemption acts, and the peo-
pie of Arizona are too honest and
just to seek to invalidate the law to
compel these roads to be placed on
the assessment roll.
The Santa Fe, Prescott & Phoenix
road was the first one constructed un-
der an exemption statute. The legis-
lature rejecting the will of the peo-
pie, enacted a law granting any
railroad that would take advantage
of the act an exemption from taxa
tion for period of twenty years.
This law in fact was passed ex-
pressly for the benefit of the Santa
Fe, Prescott g. Phoenix road, and I'M
der its generous provisions Frank M.
Murphy induced eastern capital to
subscribe to the bonds for the con-
struction of a railroad from Phoenix
to Ash Fork.
To illustrate how badly this line
was needed, and the feeling of the
people of Maricopa on the subject.
they voted bonds to the amount of
$4,000 per mile as a bonus to the
men who would build the line, and
the bond issue carried almost unani-
mously in Maricopa county. Only
few scattering votes were cast
against the measure, but the act had
to have the endorsement of congress
which it received.
President Harrison vetoed the bill
and it failed. The feeling in Mari
copa county was one of the deepest
indignation towards the president for
his veto, but when the next legisla-
ture enacted a twenty year exemp-
tion law, Frank M. Murphy succeeded
in interesting sufficient capital in the
project to build the road.
Following this first exemption were
many others, ranging from ten to
twenty years, and up to date some
600 miles of road have been con-
structed under the provisions of the
various exemption acts.
This bill of Congressman Hamilton
repeals all these acts.
The claim that the exemption gives
the railroad companies operating I'M
der the grant is a vested right is a
mistake-under the authorities it is
only a gratuity-this has been de-
cided so often that it is no longer de-
batable. The principle was settled
years ago by the supreme court of
the United States.
One good feature of the proposal
law is the fact that it repeals con-
gressional act which allows the Santa
Fe, or the Santa Fe & Pacific rail-
way in Arizona to only pay S175
mile-this is an infamous measure
and congress will do a just act when
it repeals the act.
The railroads in Arizona that will
be affected by the passage of the
Hamilton bill are largely under the
control of the Santa Fe corporation.
Only few miles have been constructed
by any other corporation under the
exemption laws.
While it cannot be denied that the
exemption from taxation of the en-
tire Santa Fe system in Arizona has
worked a gross injustice upon its
competitor, the Southern Pacific,
compelling to pay its taxes and COM
pete with strong competitor that
the laws of Arizona exempted. The
consumers of the territory have had
to pay the extra burdens brought
about by this pernicious system.
The people of Arizona are not re-
voices against carrying out the con-
tract entered into by the territorial
legislature and the men who invested
their money in the railroads eX-
empted. This bill was not introduced
at the instigation of the people of
Arlzona.-Phoenix Enterprise.