Evening journal., 1907-02-28
RAILROADS FIGHT
INCREASE IN TAX
BiegS and SanbOrn Tell Leg
iSIaIure Roads They Rep
resent Pay Enough
WILL FIGHT THE MEASURE
spseIal 70 Irhe Evenlng Journsl


Railroad made answer and went on
the rack in the Legislature Of Della
ware all yesterday afternoon. The COM
pany endeavored to make answer and
reply to sharp and pointed questions
on the bills now pending Increasing
their taxes all along the lire for State,
county and municipal purposes. John
Biggs. representing the Pennsylvania
system; Andrew II. Sanborn, repre-
senting the Baltimore and Ohio, and
Walter II. Hayes representing the
Wilmington City and Darby Electric
Railway lines, were vigorously inter-
rogated by Representatives Paradee
and keenan,, Republicans. and Cann
Democrat.
Mr., Biggs submitted his tddress.
which he read and explained in pamph-
let form.
It pointed out the charter rights Of
the company in the matter Of taxation
and set forth that the company was
already paying sufficient tax on its
Delaware property.
Defenses Of the B. G. o. r. r.
Andrew f. Sanborn. representing the
Baltimore and Ohio Railroad, made the
following address TO the committee
of the whole
/ Gentlemen OF the Legislature:
The Baltimore and Ohio Railroad
Company desires 20 submit the follow
ing facts with respect to the proposed
increase OF its Delaware State tax:
Under existing laws the Baltimore
and Philadelphia Railroad Company.
which Is a subsidiary branch Of the
Baltimore and Ohio Railroad Com
psny, pays annually to the state Of
Delaware S27.500. ana to the city OF
Wilmington and New Castle county the
additional sum OF sS,6t759. making "A
total paid by said company In the State
Of Delaware S31 11i7.59
It would be manifestly unreasonable
ana unjust at this time to increase the
annual amount Of said taxes for the
following reasons:
/. Because the tax is already eX-
cessive and the Baltimore and Phila,
delphia Railroad Company is now pay
ing to the State OF Delaware more than
twice the average amount of taxes
per mile paid by the Baltimore and
Ohio Railroad Company in any other
state In the Union through which any
Of its lines pass. as win clearly appear
from the statement herewith sub.
mitted
. The tSate tax alone being 25,500i
II we capitalize this tax by various
rates II will produce various valua-
tions AS the tax rate in many place.
is about 2 per cent for all purposes
State, county. etc. and we capitalize
at that rate, il will produce tax valu.
ations OF S1.375.o00. In Delaware there
are sS s7-l0O miles Of roadbed Of th'
Baltimore and Philadelphia railroad
'tof which q Si-iOO miles is the mair
line and IL 56-100 miles the Landenb rs
branch. II we allow the valuation o
$4,000 per mile to the Landenherl
branch. II 56-i00 miles. we have 1851,
200. This would leave for the Baltl
more and Philadelphia main line, !
the total were valued at Sl375,000, IN
sum OF Si,023.O00. This is about $4,000
per mile for the main line-an amour
greatly In excess Of what would D
necessary to rebuild it. on the basi
OF he valuation OF physical propert.
as applied ia most other states thi
valuation Ia Delaware is most extraor
dinary While no such valuation j
made by any taxing board. the resul
is practically the same as II the roa'
/ vas assessed at that amount and taxe'
C at 2 per cent. thereon.
3. The constitution Of 1897 provide
, that IAN taxes shall be uniform upoi
the same class Of subjects within tn
territorial limits ~ the authority levy
, ing the tax. ana shall be levied and col
r lected under general laws" The Bal
timore and Ohio Railroad Compan
mas no desire or intention to evade. q
escape the payment Of its just and fu
r share Of taxation. and feels conhden
q that II Il was taxed under any just an
fair general law II would annually pa
a considerable less amount Of take
than it does at present. There is
G movement now ON foot in the Legisla
e ture 10 pass some general law securin
a proper uniformity Of taxation with re
spect 10 railroads and public servic
corporations and until such geners
law is passed Il would be manifest
unfair to single out the Baltimore an
Ohio Railroad Company and increas
its taxation. which, as has already bee
y shown, is twice as much as 1t pays [
any other state in the Union throug
i which its lines pass under any Of tn
d various systems OF taxation existin
e IN said states.
{. The whole matter of the reiativ
taxation Of railroads N Delaware wa
Thoroughly gone into by the Legisla
= ture OF 1901 and. after weeks OF dis
oussion and consideration. the amour
& Of taxes 10 be paid by the Baltimor
l. and Philadelphia Railroad Compan
was dxed at s27,5oo, which was an W