The Bridgeport times and evening farmer., 1922-07-13
STATE TO Get
BIC CHECK ON
SATU R D Ay
Of a Mil
lion from the Connec-
ticut Company, for
Golfers of State.

On Saturday the State of
Connecticut will be presented
with a check for over three
quarters of million dollars,
in payment of taxes; the pieces
of paper in question being the
largest single tax check ever
received at the State Capitol at
Hartford. The exact amount
written on the face is $751;
4iO.9S, and it comes from the
Connecticut Company's offices
in New Haven
History Interesting.
There is an interesting history be-
hind this check, and in the analysis
of this history we find items of in
terest to every person who is a citizen
of the state.
Back in 1917, rising costs of ma
terial, labor and fuel, together with
the effort to keep down the cost of
service to the car riders made it
necessary for the Connecticut Com
pany to defer paying the total amount
of its taxes to the state. At that time
one-ha1f per cent. of its gross income
as a state tax, regardless of the net
income. From that period in 1917
until 1921, the trolley company was
to the state because during this time
the gross earnings of the company
were only about equal to the wages
of the employees, cost of materials
necessary and obligatory maintenance
repair work, SO that the service would
not be impaired. incidentally, IN
1920, the company faced deficit of
s1,436,091. At the opening of the
year 1921, the total unpaid taxes due
the state from the Connecticut COM
pany was $1,S22,2 20.S3.
By the combination of increased
rates of fare, large economies in
methods of operation and a, measure
of relief from competition of the
motor bus, a complete change has been
financial condition. The legislature
of 1921 enacted statutes remedying
inconsistent and unjust practises
which had gradually developed, such
as regulation of jitney operation.
change in the obligations relative to
paving and bridge contributions that
had been charge against the car
rider. The payment of this large
amount to the state a result of
these changes makes a large saving
to the taxpayers of the state.
After the passage of this remedial
legislation at the termination of the
first tax period subsequent to the leg
islative session of 1921, the Connecti-
cut Company is able to liquidate
1852, 963-G6 of the total amount of
SI,SZZ,ZZU-SS winch is due IN back
taxes, and, in addition, pay the state
s41S,447.92 which is three per cent.
of the gross income for the past year.
During the last legislative session.
it was expected that the receipts of
the state would not come up to the
point they have reached at present.
and a bond issue of three million dol
lars was authorized to take care of
deficiencies. A short time ago, it was
announced that the bond issue would
not be necessary, thereby eliminating
that amount of Indebtedness which
the taxpayers of the state would ulti-
mately have to meet. One of the
most important items entering intu
the elimination of the bond issue was
the fact that the Connecticut Company
was to pay the states it's gross income
| tax for 1921 and one-half of it's 1921
net income, to apply on back taxes.
| There is S1,459.257.77 still left for
| the Connecticut Company to pay the
| state in back taxes, which will be
| liquidated each year by the receip1
| of one-half of the total net income
| of the company. There is also a
charge of s4S7,OOO against the com
pany by the state for the new Wash
| ington Bridge at Devon, one-third OF
| the total cost of which was assesse
against the company under the ole
! law requiring the trolley company tC
| pay one-third of the cost of bridges
| over which its tracks run.