Connecticut western news., 1922-07-20
LARGEST SINGLE TAX
 STATE EVER RECEIVED
Connecticut Co.,, Presents Check for Three-Quarters
 of a Million

On Saturday the State of Connec-
 ticut was presented with a check for
 over three quarter of a million dol
 lars in payment of taxes; the piece
 of paper in question being the larg-
 est single tax check ever received at
 the state capitol in Hartford. The
 exact amount written on the face is
 $781, ,41O.98, and it comes from the
 Connecticut Company's offices in New Haven.
 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 citi- zen 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 it's taxes to the state. At that time the company was assessed four and one half per cent of it's gross income as a state tax, regard less of the net income. From that period in 1917 until 1921, the trolley company was obliged to pass payments of it's taxes to the state because during this time the gross earnings of the company were only about equal to the wages of the employees, costs of materials necas- sary and obligatory maintenance re- hn% n,1lI not be impaired. Incidentally, in the year 1921, the total unpaid taxes due the state from the Connecticut Company was $1,822, ,220.83.
 By the combination of increased rates of fare, large economics in methods of operation and a measure of relief from competition of the meter bus, complete change has been brought about in the Company's financial conditionI The legislature of 1921 enacted statutes remeGying inconsistent and unjust practices which had gradually developed such as regulation of jitney operation, changes 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 as 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 legislative session of 1921, the Conn ecticut Company's is able to liquid ate $362, ,963.O6 of the total amount of $1,822, ,22O.83 which is due in back taxes, and, in addition, pay the state $418, ,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 bond issue of three million dollars was authorized to take care of deficiencies. A short time ago, it was announced that the bond issue would not be necessary, thereby that amount of indebt- edness which the taxpayers Of the 0IdbG "OOAN u4ClIllftIClN ICtNG lNb IH6el- One of the most important items en- tering into the elimination of the bond issue was the fact that the Connecticut Company was to pay the state it's gross income tax for 1921 and one-half of its 1921 net income, to apply on back taxes.
 There is $1,459, 9,25777 still left for the Connecticut Company to pay he state in. back t1 >cs, which will De Ii .uidatei 'a'1 %rar oy the re- ceipt of one half of the total net income of the company. There is also a charge of $437,GOO against 1he company by the state for he rev Bridgc at Devon, one third of the total cost of which was assessed against the company under the old law requiring the trolley company to pay one third of the cost of bridges over Nhich its tracks run. l