Year: 1861

points Foreseeng that this Road would ne
| cessarily compete with the State work, the
| Legislature granted the charter on condition
the said Company should pay to the State five
! mills per ton per mile for all the freight car.
ried on the Road, during the summer months
t0he4l the State Canal qoould be open. They


were not required to pay this tribute during
the winter thus showing clearly that the OBJ
! ject of the Legislature, was to protect the
business of the state work against competing
! Company, and not to raise revenue. The
charter was accepted and the Road built SUBJ
ject TO this tax The coal and lumbermen, the
| transporters of iron and all heavy articles of
production soon found that this tax was well
nigh prohibition and almost preeluded them
from the use of the Road. They could not pay
the freight and then the tax (for they had to
pay il, J and get their products to market as
cheaply as other and competing producers who
were not subject 10 this taxation. That this
would and must be the result, any man can
see at a glance. In compliance. therefore,
with many aud earnest petitions, the LegisIa-
ture in 1855, exempted lumber and coal from
this tax entirely, aud reduced it on all other
! freight from five 10 three mills. In conse-
Gueuce Of this we're your taxes increased =
| Was the State swndled? Were those voting
| for the measure branded as traitors aud rene
gadeS? Not whit of it, This tax the Com
/ pany paid punctually into the State Treasury
! until 1857. when the Legislature passed an
! Act rrovidng for the sale of the Main line
I In this Act will be found the following pro-
! visions


! Aad ProriGe further, That If the Pennsylvania


Railroad Company shall become the purchasers OF said


Main line, said public sale 10y assignment rs aore


said they shall pay in addition to the purchase money at


which il may struck uown and which shall not be less


than the and half millions OF dollars. the


sum of and half millions OF dollars, the whole


OF sale TO be paid in the bonds OF the Company


bearing the te of five per cent er annuin


payable semannualy. The thiryhrs day OF January


and July each year and which bonds without further


record shall remain lien upon the salG Nam me one


hundred thousand dollars OF which said bonds shall tall


due the 3l>t day OF judy 1855 and 100000 tbe eof


annually thereafter until The 5lstday o JuiN loSV Much
one million of the residue shall fall due and one million
annually thereafter until the whole is paid and upon
the execution and delivery said bonds the treasurer
the State the Pennsy ylvania Railroad Company and
and the Harrisburg Portsmouth Noun Joy aud Lancas-
ter Railroad Company shall in eOsdc'Gt on htregt, be
dis harged by the Commonwealth ion creT, from ne pay
ment all fGres upon tonnage and freight carried over
SAID Railroads and the said Pnnsy vania Railroad Com
pany shall also be released irom the payment OF G0hf


duties It's Capital Stock bonds d,udsnds or
property crccPt for school cy county, borough o. toen
ship purposes"


Now mark. 1t was thus IegisIativcy pro-
vided that if this Company took the State
work at 7 l.2 millions, the minimum price
and then paid one million and half more
they, should be relieved from the tonnage tar
and from the STATE tar on their property, dirl
dends, &c, forerer. For this bill the Senator
and Members from Bradford County voted and
their conduct was indorSed by the convention
held at Towanda, the following fall. Upon
these terms the Company were ready to take
the State work But at this juRcture the
Supreme Court decided that part OF the Act
eXempting the Company from the State tax
10 he unconstitutional and therefore null and
/ void


/ The works were then offered for sale by the
! Executive without the release of taxes and no
/ purchasers could be found. 1t is well known
/ fact that no association OF men eXccpt the
Penna Railroad Company could or would Euy
the Main line at the price fixed by the LegSla,
ture, and they refused to buy save upon the
unconditional ahrogatiOn of the tonnage tax


Gov. Pollock therefore gave them his pledge
that if they became the purchasers at the price
fixed he would give the force of his official in.
fIence in favor Of the repeal OF this tax,
measure which be considered right in as much
as by the sale 0f the work, the reason that
called the tax into being would cease to exist
Relying upon this plighted faith of the Gov
crnor, and never dounting but that the LegiS-


ature would favorably respond to a PROPOSE
tion so pa pably inst, the Company took the
works and gave their bonds for the ieven and
half millions True to his pledge the Gcv-
ernor in bis next message, 1858, recommended
the repeal of the tonnage tax as follows.


The law Incorporating the Pennsylvania Railroad
Company imposed tax OF three mills per ton per mile
all tonnage passing that road equivalent for
anv decrease in the revenues the Commonwealth that
might from the anticipated competition of the road
with the business of the main line OF the public improve
mentS This tax is not imposed upon the Company, but
upon the tonnage and paid By the the freight


transported the road the Company acting agents
in its collection and payment to the State 1t i virtual
ly tax upon the trade and commerce of the Common
wealth. and upon the of other States whose
productions seek market this road and
thus by increasing the rate charges and the cost Of


Transportation the produce OF the west forced upon
competing Railroads of other States and other markets
than The necessity that required this tax
regards the Commonwealth and her improvements has
ceased Ii should be the policy OF the State to invite the


transmission of the products OF other States through her


territory her markets, and therefore the propriey
ofreevlng trade and business ofthe Commonwealth
and country from this tax upoI II; respectfully submit
ted for your consideration"


The Legislature heStated, and the session
passing away and the law was not repealed.
When the next inStament of tax became due,
the Attorney General as the law nnrepealed
required him, demanded its payment. The
Company refused and said repeal your law &C
cording TO contract. He sued them obtained
judgment and they appealed, resolved to vindi-
cate their rights to the last extremity Not
knowing but prejudice and lliberality on the
part of the Legislature would compel them
Gnay to pay in violation of all agreements
to the contrary, the Company continued to
collect the tax of the transporters from 1857,
the time of purchasing the State work, until
last winter, and the aggregate amount thus
collected was S850000.