Every evening, Wilmington daily commercial., 1921-01-20
Circulation Every 1A1CC
Evening Yesterday / l4lOL
THURSDAY, JANUARY 20. 1921
Proposed Tax N Coal

In view Of the natural operations of
a state tax on coal in Pennsyivanla'
which the people Of our community as
we'll as those OF our ncighbor State.
atin have in painful remembrance. IL
ia surprising 10 find in the message OF
Governor SprouI to the Pennsylvania
Legislature. which was read on Tues
dav. an earnest recommendation for
return 70 this unpopular imposition He
recommended n tax Of four cents per
ton on hitumihous coal and eight cents
ton on anthracite. imposed on pro
duotion at the mines.
Several years ago. the Pennsyiv#n nis
Ierislature enacted law imposing
tax of ten cents per ton on coal at
the mines The result was Immediately
impressive. The mining companies
added the tax 10 the bills Of those who
bought their coal at the mines. These
buyers added ~ 20 their charges for
coal 70 the retailers. and the latter
imposed II upon their customers. Thus
the people paid this tax Of ten cents
on every ton Of coal they purchased
for consumption. No matter whore
they resided. the tax followed the coal
rom tho mines to the bins Of the ulu-
mate consumers and war paid hy the
latter 20 the last cent.
Naturally there was immediate on
position 20 this law. and II was at
tackled on tho ground of unconstitV-
tionality. The Supreme Court Of Penn
.ylvsnis declared the law invalid. and
then came tho question of restitution.
The mining concerns paid the amount
in full 20 their customers. These pur-
chaaers rernunerated the dealers who
bought from them. 60 the extent Of
neration practically stopped. The re-
nrstion practically stopped. The re-
saner.. with few exceptions. kept the
tax money. and there is a current
story 70 the effect that one dealer IN
thi. community boasted that this tax
money had enabled him to buy new
automobile. so that II seemed TO, him
like a gift. At least one Wilmington
sealef credited its customers with the
coal tax they had paid on previous
ordors. In presenting bills for orders
subsequent 60 the wiping out Of tho
law. untf the account was squared.
should the Pennsylvania Legislature
extend approval TO Governor SprouI's
obnoxious proposition 20 Impose a tax
on coal at the mines-ana his recon-
mendation makes reasonable the infer
ence that the fatal objection which re-
suited In the overthrowing Of the for
mer law has been removed-there Is no
doubt the tax would he transferred by
successive stages. to the consumers.
juet as was done under the former
tnY. II is estimated that the. rates sug-
sested by Governor Sproul would bring
q the Pennsylvania State Treasury
about s1e.000.oo0 annually and this
would " paid in the end by the com
sslrners of Pennsylvania coal those in
Delaware as well as IN other States
And while the burden would not be
heavy to individual consumers. II
H-ouid be an agsravatfon, and the pre-
vailins rates for coal certainly are suff1-
ctent aggravation 20 all concerned.
n Is hoped the Pennsylvania Lcgisla-
-ture VIII not approve the governors
coal tsx recommendation. While a
great Deal OF the revenue would be i'm
posed upon consumers in other States
the people OF Pennsylvania would feel
the burden also. They should pro-
test vigorously against the imposition.