Evening journal., 1907-02-28
Thursday, February as, 1907.
HOUSE HEARS CORPORATIONS

TIE corporations were given an opportunity
\ by the House at Dover to express their
already known opposition to any and all meas
ures now pending in the Legislature which in
any way increases the taxes they pay to the
State The Pennsylvania Railroad Company's
solicitor submitted letter TO the House in which
was rccitcd the various moves made by that
company to reduce the tax on its property. The
recital Of the history is one discredtable to the
State and shows how at different stages the force
and power OF the railroad company over our
Legislature has increased until the company to-
day pays to the State probably less than IS per
cent Of the earnings than it did forty or fifty
years ago.
Every change that has been made in the law
has been to the advantage of the railroad COM
pany and the disadvantage Of the State. Take
for instance the Delaware railroad. Solicitor
Biggs undertakes to make the point that it would
be terrible outrage and imposition to increase
the tax on that road, and that by reason of'the
fixed rental it receives, it has LITTLE no income
and therefore should escape further taxation If
that be true, which we respectfully contend is
not the case. then the lessee or operating COM
pany which derives such enormous earnings and
profits from the road should be made to pay the
tax AS matter of fact, the Delaware Railroad
Company last year, after paying all of its fixed
charges. every expense Tor maintenance and bet
terments and an increased dividend on its stock
had left over and placed in the surplus fund be-
tween $4,000 and 100000. This information
is given to US by one Of the largest stockholders
in the road and who, be it said to her credit
favors the road paying just and fair tax to the
State based upon its earnings. Yet, in spite OF
the enormous profits derived from the exclusive
privilege of operating in an exceptionally good
territory. the railroad pays the State the insg-
ni6cant annual tax Of $4,000 We cite this as a
fair instance Of the utter weakness OF the railroad
company in opposing an increase OF tax on their
property to meet the increasing demands upon
rie State for revenue.
There is absolutely not reasonable argument
or a truthful statement that can be offered why
tho railroad should not pay an increased tax
We believe the House is inclined 10 ignore these
false and deceptive arguments and in order to
,sse The revenue required by the State, will inn
nose an additional tax upon those having special
and valuable privileges and who arc best able to
paw IT, AS strong as is our hope IN the integrity
and LOYALTY OF the House to the interests OF the
oeonle and the welfare of the State, is our fear
of the Senate, which body seems to be in the
control OF a conscienceless clique which ignores
The rights of the people and serves no interest
other than the corporations. Fortunately the
people will soon be relieved OF their anxiety The
adjournment Of the Legislature is in sight hap
pilv and we viii soon know to what extent the
people have been deceived and outraged by those
members Of the Legislature in whom they re-
posed their trust and confidence