The Washington times., 1906-05-23
Startling Inequalities Ex-
posed by the Senate
District Committee.
GET FRANCHISES FREE
Public Service Corporations
Not Bearing Their Share
of District Expenses.

IN submitting his report on the bill
providing for an increased taxation of
al public service corporations in the
District Of Columbia. Senator Hans
hroU gh said that the street railway com
panies had not complied with the strict
letter OF the law In submitting annual
reports OF their operations TO Congress.
reports were submitted he said. but
the information conveyed by then, was
80 neager as TO hamper intelligent leg
isiation on the part of Congress upon
his important subject.
lie said that the subcommittee reaI-
izins the peculiar and important re-
sponsioihty OF Congress in dealing with
PuoIlc service corporations Of the Dis
Irlct deemed IL wise TO make as
thorough an inquiry into the business
OF the corporations embraced IN tn
category as time and opportunity U,o,,Id
allow. 1t found that the total gross ,-o
ceipts OF the various street raiIvyavs Is,
lhe District for the year OF 1905 amount
eo TO Stills, while the report of the
Coiiector OF Taxes for the District show
cd that for the same year the gas. teIo-
phone, railway and Hgbtipa~ cov,r,,-,ez
PAID S5li,562-O6 in taxes in addition 70
Ihe railways $335o0 police tax.
Inc report Of the committee coDt,trs
complete and comprehensive expos;-
Ioh or the taxation Of public-sar,-icc
corporations in other parts Of the conn
Try, and the facts ascertaincd aDuear ~
furnish some interesting sIIcrestio,,g
pertinent TO a discussion of the general
question covered in the proposed amend
ments 10 the pending bill. and uuon
such facts the committee based its roc-
ommendation that the bill be enacted
into law without delay.
Escape the Franchise Tax.
In part. the report Of 0Ir. Hansb-ouph
follows.
The committee reached the coucII-
sion that the pUblic-service corDorations
Oh the District Of Columbia should be
required 10 pay additional taxes. II
VIII be observed that the average gross
earnings tax paid by the street railroads
In group Of fifteen States is 81 per
cent In addition TO this they paw taxes
IN other forms. In some OF the States
these corporations paid substantial
amounts for their franchises. whereas
In the District of Columbia street raiI-
way and other public-service corpora-
tions are enjoying the right to do busi-
ness free OF any franchise tax or other
charge whatsoever.
This privilege comes to them as IN
absolute gratuity. and an examination
'tAN-sNtNs1 VIII NllbH AldL the DTOlL-
or the public service corpora tiOns have
reached an amount which viii Justify
the increase IN taxation proposed. The
existing law imposing a per cent tax
on the gross receipts Of the street rail-
way and the electric lighting company
was enacted fifteen years ago when the
earning power Of these enterprises was
lnuch less than IL is at the present
time SINCE then there has peen no
change in the rate of taxation
The management of the rcsooctIya
Slreet railway lines state that the entire
street railway property in the District 0f
CQiumbia could be deUplicated TODAY FOR
slt,t0OUOO. This IS their outside figure
Inc combined funded indebtedness Of
tne properties amounts 10 SlS,444, ,0jO mn
on which there is being paid an annual
- interest OF per cent as nearly ss rsr
oe ascertained. In addition 10 this me
street railway corporations and tho
SSIecSrlc lighting plant are capitalized
LOT SSi-ep-pr1. upon which Capitalization
dlVldends were paid last year amounf-
lhg 20 Sl,l4o,O ,OOo which. added to the
dmount or interest that is being Maid
upon the funded indebtedness gives a
toI5l on $2.u6i.200 paid for the wear 1q05
III ulNluends and interest
Less Than Individuals Paw.
The rate Of taxation IN the District
OF Columbia that is being paid on real
estate by private individuals is IL Dar
cent on an assessed valuation. which ie
ABOUT two-thirds of the actual vaI,,A ~
the property. Taking this as a basis Of
(COntfnued On 7-o,,.. p,