Evening journal., 1909-02-12
Legislature Spent a Day
Wrestling With Recon-
mendafions of the Rev
enue and Taxation Com
mission.

Special to THE EVENING JOURNAL
DOVER. Del. Feb lg.-Somc interest /
ing discussions took place yesterday in the
sessions of tho Senate aud House sitting
as committee Of the whole TO consider
the bills to carry out the recommended /
lions OF the Commission OH Revenue and
Taxation. The members Of the Commits
sion attended the hearings, and Henry
Ridgely and Senator George w. Sparks.
members Of the Commission, explained
tho bills. Mr. Ridgely being the chief
spokesman. The bills that were voted a
favorable report were those increasing
the tax on tho D.. NJ. and V. Railroad TO
$3.50. nxing the tax on the Wilmington
and Northern Railroad at 5000, an in
crease from sso0 fixing the tax on the
NJ u and V. Railroad dho old Queen
Annes) at $500; clarifying the manufac-
turers' tax law. the law adjusting the
taxes on distribution stores or depots
maintained by persons, firms or corpora
lions whose principal place of business is
outside the state. fixing tax of fiye cents
on each key Of 81 gallons of beer brewed-
taving each telephone TRANSMITTED twenty
nvo cents. and tho collateral Inheritance
tax. reviving the old law on that sub
iect The committee Of the whole will
meet again on Monday 10 consider fur
Their the revenue measures, principal
among those remaining being the higher
liquor license bill and tho additional tax
OH express companies.
While the bills already considered have
been given favorable report. ii was in
timated by Representative Connolly and
Senator Drcxler that there will be some
interesting discussion when the measures
come I'D in the respective branches. Some
Of the members Of the House also began
10 inquire into the subject OF taxation of
the Delaware Railroad Company yester-
day. 10 change in that company's taxes
of $4,000 a year to the state being recom-
mendcd by the Commission. Senator
Thomas NJ. Monaghan is chairman of the
committee Of the whole
No Opposition From Roads.
Mr. Rigdely at the outset reviewed the
work OF the commission. and then called
up for consideration the first bill. incrcas-
ing the state tax on the Wilmington and
Northern Railroad from $500 to 5000 An
/ drew f. Sanborn. OF Wilmington, appeared
/ for the railroad company. and after
/ speaking OF the fact that II is a small
railroad. passing through a country not
/ populous and having few resources in the
way of patronage TO draw FROM he said
/ lie thought the increase was by far too
great However, II the Revenue Commits
| sion thought the tax TO be equitable. COM
pared with that paid by the other railroad
companies, he said tho W. and ~ would
not oppose the increase. lie spoke OF the
importance OF some fair law to tax the
railroad companies and hoped that a law
would be reported by the Commission two
years hence.
The comittee Of the whole decided to re-
port the bill favorably.
Then the bill TO increase the tax on the
d.. NJ and V. railroad from $500 to $780,
was called up. Mr. Ridgeiy said the tax
was calculated OH the best information
that could be obtained. as the market
value OF that railroads stock could not
be learned. Mr. Ridgely explained that the
Commission reached it's basis OF railroad
taxation In the following manner: Add the
market value of the capital stock and the
market value OF the funded or bonded
debt. Where the railroad lies partly with.
in and without the State the market value
obtained by the method stated was dlvid-
ed by the number Of miles 10 give ar
average per mile, and then the value fol
tho number Of miles within the State wai
computed. On this valuation the rate o.
tax on the railroads was computed on thu
same basis as on land assessments In thi
section through which the railroad passes
Then the taxes paid for county purpose
were deducted leaving the tax decided
upon by the Commission.
Wanted Mileage Basis.
Representative Connolly asked IL tn
fairest way wouldn't be to tax railroad
so much a mile.
Mr.. Ridgely explained that the difficult
would be in determining the basis per mil
Mr.. Connolly remarked that the vii
mlngton and Northern has about % mile
or the tax at rate of 5000 a mile.
Mr.. RldRey said that the trouble woul
be in getting a fair tax. as the railroa
that passes through a country sparsel
populated should not be required to pa
20 much tax as the road passing throug
populous sections and possessing valuab
terminals But one instance OF tax o
the mileage basis had been found NJ
RdEely said. lie thought the best motho
would be upon a basis OF the earnin
capacity or upon the commercial value ,
the railroad.
Physical Valuation.
Senator DroXler said he believed n
hest method would be for tho commissic
TO employ an expert engineer and asce
tain tho physical value OF the railros