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pluses on hand. I think it is due not only to foreign steamers. There are steamers running companies in the country are to-day, after pay. these other companies, but to the people of | into the port of New York almost every day in ing their expenses, receiving little or nothing the country, that this should not be an excep. the year, and this would abolish the tonnage for their investment. More than that, if gention. So far as humanity is concerned the tax altogether.
tlemen will look at it a little further, they will argument will apply as well to fire, marine, Mr. CORNELL. Not at all. It applies to see that this applies to boats of every character and accident insurance companies as to life river and sound steamers, and not to foreiga on the lakes and rivers and on the sound. Take insurance companies. It is as good an arguvessels at all.
the large companies running on Long Island ment in one case as in the other.
Mr. PIKE. I hope this will be remitted to sound between New York and Boston and the The amendment was agreed to.
the bill I have alluded to, which has a section intermediate places, and these companies with No further amendment being offered, the devoted to the tonnage tax.
one single exception hare been unable to make Clerk read the next section, as follows:
The amendment was disagreed to.
a living out of it. One of those companies Transportation Companies.
Mr. TWICHELL. I move to strike out the collects perhaps five hundred thousand or a SEC. 119. And be it further enacted. That thero shall words and a half," in line three; so that it
million dollars during the year and they are be levied, collected, and paid a tax of two and one will read,
on the gross receipts of railroads,'' assessed on the entire amount, and with a single ball per cent. on the gross receipts for the transportation of passengers of every railroad, canal,
&c., "two per cent." I trust there will be no exception those large companies bave made sterinboat, ship, birge, canal-boat, or other vessel: objection to this from any member of the com- failures. The same thing is true to a great and stage coach or other vehicle, except hacks or mittee.
extent of the companies running on the rivers carriages not running on continuous routes, engaged A MEMBER. What is the law now? or employed in the business of transporting passen
and lakes. Why? Because, after paying this gers for liire; and on the gross receipts of every toll
Mr. TWICHELL. It is two and a half. It extraordinary assessment, they have nothing road, ferry, and bridge, authorized by law to receive is certainly a discrimination against railroads. to divide. I hope, therefore, that the amend. toll for the transit of passengers, vehicles, and freight of any description, over such toll-road, ferry, or
I do not propose to discuss the question of the ment of the gentleman from Massachusetts will bridge. The tax hereby imposed shallpot be assessed reasonableness of my proposition. I am sure be agreed to. This tax's not only exceedingly upon receipts for the transportation of passengers it will commend itself to the members of the burdensome to the railroad companies, but is between the Onited States and any foreign country, but shall be assessed upon the receipts for such
committee. There is no reason why it should exceedingly burdensome to the steamboat in. transportation from a place within the United States be as high as two and a half per cent. on the terest on our lakes, rivers, and sounds. through a foreign territory to another place within gross receipts.
Mr. BENTON. I withdraw my amendment the United States, and shall be assessed upon and
Mr. SPALDING, collected from persons, firmas, companies, or corpora
I think this is right.
to the amendment. tions within the United States, receiving hire or pay There is no allowance for expenses.
The question recurred on Mr. TWICHELL'S for such transportation of passengers: Provider, That Mr. SCHENCK. The present charge is two amendment, and there were-ayes 49, noes 35; no tax under the provisions of this section shall be assessed upon any person, firin, company, or cor
and a half per cent.; we have not increased it. no quorum voting. poration, whose gross receipts do not exceed $2,000 Mr. SPALDING. That is too high.
Tellers were ordered ; and Messrs. TWICHELL per annum; and that when the gross receipts of Mr. SCHENCK. I am willing to submit to and FarxswORTI were appointed. any bridge or toll-road shall not exceed the amount
the House whether the tax ought to be reduced. The commiitee divided; and the tellers renecessarily expended during any term of twelve consecutive months to keep such bridge or toll
Mr. TWICHELL. It has been said that the ported-ayes 52, noes 45. road in repair, no tax shall be assessed upon the railroads have all increased their fares. The So the amendment was agreed to. receipts during the six months next preceding: And provided further. That all boats, barges, and flats, not
road that I represent has not increased the Mr. COBURN. I offer the following amendused for carrying passengers, nor propelled hy stean fare during the war or since.
ment: or sails, which are floated or towed by tug-boats or Mr. HOPKINS. I am very glad to hear horses, and used exclusively for carrying coal, oil,
Page 175, line twenty-eight, after the word "prethat there is one road that has not put up its minerals, or agricultural products to market, shall
ceding' insert the words "and that when the gross be required bereafter, in lieu of enrollment fees or fare.
receipts of any stree: railroud company in cities and tondage tax, to pay as an annual tax, for each and Mr. BENTON. I move to strike out "two
towns of less than seventy-five thousand inhabitants every such boat, of a capacity exceeding twenty-five
shall not exceed the gross expenses during any term tons and pot exceeding one hundred tons, live dol
and a half” and insert “three." The railroads of twelve consecutive months, notax shall be assessel lars; and when exceeding one bundred tons, as afore- are raising their fares all over the country. upon the receipts during the six months next suosaid, shall pay ten dollars; and said tax shall be A MEMBER. It will only come back on the
ceeding. assessed and collected as other annual taxes provided people.
The effect of that amendment is to put street for in this act.
Mr. BENTON. It is notorious that there railroads in towns of less than seventy-five Mr. SCHENCK. I move to strike out the is no more profitable business in the country
thousand inhabitants upon a par with bridges word "preceding' and insert “succeeding."
than this. The amendment was agreed to.
I yield to the gentleman from
and toll-roads. Such street railroads are kept Ohio.
in repair and run very frequently in small cities Mr. SCHENCK. I move further to amend
Mr. SPALDING. Very many of these com- in the interest of the public rather than of by striking out the words and used exclupanies, I know, after charging their expenses
individuals. The amount that the Government sively for carrying coal, oil, minerals, or agrihave nothing left with which to pay this two
would lose by reason of the taking off of the cultural products to market."
and a half per cent. on their gross receipts. tax, if the tax were taken off where the railThe amendment was agreed to.
No allowance is made for drawbacks of ihis roads do not pay, would be very small. There Mr. CORNELL. I move to amend by in
sort, and they all complain that the tax is too are not in the Union perhaps more than twenty; serting in line five, after the word
five cities to which this amendment would gers,' ," the word "only.''
the reduction from two and a half to two per apply. The amendment was agreed to.
cent. is a reasonable one. I believe it would In the State of New York there are some Mr. CORNELL. I move further to insert be satisfactory all around.
thirty-six street railroads, and there are not after the word “hire," in line eight, the words Mr. BENTON. Let me say, in answer to five of those thirty-six that do not pay expenses. " and in lieu of all tonnage tax on steamboats what the gentleman says, that if we can rely In the State of Pennsylvania, out of some or other vessels for carrying passengers.” At upon the information that we receive through twenty-six, there are only four that do not pay. present, besides the two and a half per cent., the public press, where the Government has And in the State of Massachusetts where there There is a tonnage tax imposed upon steam- imposed the tax, it has been doubled and are twenty, there are but three street railroads boats, while railroads only pay two and a half trebled by the companies and taken out of that do not pay. per cent. on passenger receipts. This seems their customers, and they virtually have not These railroads of which I speak are not all to me unequal and unfair. I have in my hand paid one single cent of the tax. They have in places of less than seventy-five thousand the tonnage tax of one steamboat. It pays doubled and trebled and quadrupled the amount inhabitants. In such places as Salem, Massafor tonnage tax, $870; for boiler and inspec- of the tax and charged it to their customers. chusetts ; Troy, New York; Wheeling. West tion, $165; for hospital fees, fifty-seven dol. Mr. FARNSWORTH. And does the gen. Virginia; Harrisburg, Pennsylvania ; Indianap lars; for license stamps, two dollars; while a tleman propose to increase it still further for olis, Indiana ; Nashville, Tennessee ; and other railroad conducting the same kind of busi- them to make the people pay an additional places, street railroads are not paying institu: ness pays simply two and a half per cent. I amount?
tions. I think it would
be a very great hardbelieve the tonnage tax which is imposed upon Mr. BENTON. No; I do not propose to ship if those companies are made to pay a tax carrying passengers should be stricken out. give them any such chance. I propose to tax of two and a half per cent. upon their gross Mr. ALLISON. I do not know that I want then and limit them in the increase of their receipts, in addition to their
original outlay; to oppose the amendment. This tonnage tax rates. and the other taxes have always, I believe, Mr. FARNSWORTH. In many of the States
and the expenses to which they are continually
Jiable. been imposed. I do not like to accept the they are already limited by law in their rates I think it is but right that these street rail
. amendment. of fare.
roads should be put upon an equality with tolli Mr. PIKE. Allow me o suggest that this Mr. BENTON. It has been asserted over roads and toll-bridges. The investment that tonnage tax now applies to foreign as well as and over again by the New York press, and I has been made in a street railroad cannot be American steamers. There is a bill now pend- || bave never seen it contradicted, that where a changed, should it prove to be unprofitable. ing in the House, reported the other day from tax of one per cent. bas been imposed upon Having once been built and equipped, it must the Committee on Commerce, and is to be them they have imposed five and ten per cent. be continued in operation, or the entire amount taken up immediately after the passage of this on their customers.
invested will be lost. bill, regulating this very matter of the tonnage Mr. STARKWEATHER. I desire to say
desire to call the attention of the committee tax. I think it will accomplish the object a word or two upon this subject. There is no to the fact that the deduction from the revenue of my friend from New York [Mr. Cornell] tax on this whole list, it seems to me, which is will be but little should my amendment be much better than this amendinent. The opera- so onerous as this. Yon tax the entire gross adopted, as it applies to those railroads only tion of this would be to take the tax off all the ll receipts, and the record shows that half the
where the expenses exceed the receipts.
As I said before, I
ad with a ser
her para hare on
Mr. PILE. I move to amend the amend. man from New Hampshire to give me, if he is amend the section by striking out, in the twenty-
mittee for a moment I think I can convince e sound. I
a question with regard to the business of these section shall be assessed upon any person, firm, comthem that this exception, if made at all, should companies, in reference to which he must know
pany, or corporation whose gross receipts do not a Long Island be made generally. The same facts and the
exceed $6,000 per annum, &c. am not particularly informed. same remarks stated by the gentleman from Mr. GRISWOLD. The gentleman was giv. Mr. Chairman, the object of the committee
Indiana (Mr. COBURN) with regard to street | ing facts, and I supposed he was conversant unable to make
seems to be to protect the smaller class of railroads in small cities and towns apply to with the subject. I asked for information. roads, turnpike companies, &c., and while we
large cities. I know, as a matter of fact, that Mr. BENTON. I can mention the Penn- recognize this principle it seems to me but fair r and then a
in my city not a single street railroad company | sylvania avenue railroad in this city, and the and just that we should extend this exemption has paid one cent of dividend within the last || railroads in the city of New Yok.
at least to companies whose gross receipts do three years. The companies have multiplied les barre
Mr. GRISWOLD. The gentleman is entirely not exceed $6,000. If there are any roads in their roads and increased the number of their wrong there.
which every section of the country is interested cars for the accommodation of the public, Mr. BENTON. Unless the facts are much
it is these little turnpikes that barely pay exg on the ris
until, as I am informed by persons having an | misrepreseuted the railroads in the city of penses. Where they collect from two to four interest in those roads, the gross receipts in New York are not only making money, but,
thousand dollars, under the section as it stands, most cases do not equal the expenditures, and being taxed one eighth of a cent on their fares,
we tax the entire sum. In many parts of the at the set
in no case do they exceed the expenditures by they imposed an additional charge of one ceur country these turnpike companies are in a lansachusetts a sufficient amount to enable the company to on their customers, thus taking the tax, in- guishing condition, and have paid nothing to y escena pay a dividend
the stockholders. In my own State I do not And there is this additional reason for the people. I also understand that in the city of Bos
believe there is a turnpike company that pays steanega:
extension of this exception to railroads in large ton enormous profits have been made by these a single cent. Every one in the country is cities that does not apply to railroads in the horse railroad companies, much larger profits interested in keeping up these turnpike comsmaller cities. In the larger cities there are a than those of the regular railroads. If these panies, and in having others built where the great many poor people whose friends the roads are not profitable, I ask again, why is it interests of the country demand them. I think, street railroads are; persons who live remote that in our large towns you find men rushing to therefore, that a tax upon these roads is really from their places of labor; common laborers, ) invest their capital in this business and estab. a tax upon the people. I hope the chairman of who are dependent upon these roads for their lish new lines?
the Committee of Ways and Means will consent means of transit to and from the place of their Mr. MAYNARD. Does not the gentleman | to this exemption of $6,000 instead of $2,000. d.
daily toil. These railroads in the large cities know that we have been told here on the very The entire country is interested in it. There are kept up largely for the accommodation of best authority that the banks are in a languish
is no one who invests in turnpike companies the public. And thus far in my city, I know, | ing condition?
who expects to make anything out of them. I to these railroads have paid little or no profits to Mr. BENTON. I know that.
This tax of two and two and one half per cent. their owners or proprietors. There are not Mr. MAYNARD. And the patent medicine | deprives them of all hope of making anything those extremes of poverty in the snjaller cities business has been represented to be in a lan
out of their investments. My amendment will and towns as a general thing, that there are in guishing condition.
also relieve the little street railroads whose the larger cities. There are not in the smaller Mr. BENTON. Certainly.
incomes do not amount to the amount I have towns such large numbers of persons who are Mr. MAYNARD. And the case has been fixed. It will also relieve small terries, which less able to pay their fare upon these roads. the same with almost every other interest that the people of the country are interested in If any
class of railroads are to be excepted has thus far come up for consideration. Does keeping up. I hope the amendment will be from this tax because they are an accommoda- the gentleman expect the railroads to be in adopted. tion to the poor and to the common people, any more flourishing condition than these Mr. SCHENCK. Mr. Chairman, I do not and because their gross receipts do not exceed other interests ?
know whether it is likely to meet with success their gross expenditures, I think the exception Mr. BENTON. Not until after these taxes that any one should endeavor to oppose the should apply to all roads where that fact are settled upon. [Laughter.]
railroad interest in this House. I am rapidly obtains, and not be confined simply to the
Mr. HOOPER, of Massachusetts. I sup- coming to the conclusion at which mny friend roads in towns and cities of less than seventy. pose the gentleman from Tennessee [Mr. May. from I'ennessee [Mr. MAYNARD) has arrived, five thousand inhabitants.
I hope, if this NARD) considers a bank to be in a “languishing that every interest of the country, and espe. amendment is to prevail at all, if we are to condition" when it pays a semi-annual divi. cially of corporations, must be in a languishing except any street railroads from this tax, if we dend of only twenty per cent. [Laughter.] and sinking condition. The moment you touch are to put these railroads upon the same foot
Mr. LYNCH. Does not the gentleman from one of them you hear nothing but embarrassing with bridge companies and toll-roads, that New Hampshire also know that the hotels at ments, losses, and the impossibility of making we shall extend the exemption to all of these
the Wbite mountains are in a languishing con- profits. We have heretofore heard from our street railroads alike. dition? [Laughter.)
friend from Pennsylvania [Mr. Scofield] of Mr. BENTON. This is not the first occa.
Mr. BENTON. Not by any means. They "the poor man's light, and from my friend sion, Mr. Chairman, when, in view of being are, I am happy to inform the gentleman, in a from Michigan [Mr. FERRY] of "the poor subjected to taxation, individuals bave sudvery
. denly become very poor, receiving no profits from their investments. Now, I do not be- amendment to tbe amendment, there were man's medicines," which, in my judgment, are lieve any such thing, as has been asserted, that ayes 37, noes 35; no quorum voting.
composed of two ingredients, half poison and as a general rule these horse railroads, as they The CHAIRMAN, under the rule, ordered half profit. [Laughter.] In their sympathetic are termed, do not yield any profits. Undoubt- tellers; and appointed Messrs. Pile and Ben- souls they have no other desire than to help edly there are exceptions to the general rule.
the poor man. No one thinks or seems to But as a general thing you find men organizing The committee divided; and the tellers re- have any idea that the stockhoiders are men themselves into companies and asking for corported--ayes 50, noes 47.
who desire to make money at all, or that they porate privileges for the very purpose of estab
So the amendment to the amendment was are at all concerned in being relieved from this lishing these roads in all our cities and large agreed to.
tax. Let us see whether this sympathetic The question recurred on Mr. COBURN's | feeling is entirely for the poor man. Mr. CULLOM. I desire to ask my friend
try these street railroads. With great ingeamendment as amended. from New Hampshire (Mr. Bexron] whether
nuity they succeeded a few years ago, and with Mr. ELA. I move to amend the amend. there is any horse railroad in the town in which
greater ingenuity they succeeded in getting ment by adding:
upon the statute book a provisionProvided, That all railroads, steamboats, trans
Mr. STEVENS, of New Hampshire. Is the Mr. BENTON. No, sir; I am glad to say portation companies or individuals who do a losing there is not. I think that these horse rail- business shall be relieved from all internal revenue subject of street railroads now in order?
The CHAIRMAN. It is not. roads, instead of being, as claimed, the friend
The CHAIRMAN. The gentleman must Mr. SCHENCK. of all who happen to patronize them, are in
These street railroads many cases their worst enemies. reduce his amendment to writing, and send it
managed to get upon the statute-book a proMr. PILE. On what ground? to the Clerk's desk, before it can be enter
vision, when they were charged two and a half Mr. BENTON. On the ground that fretained.
per cent., which on their fare is one eighth of quently individuals, instead of walking as they The question being taken on Mr. COBORN'S
one cent, to charge an additional cent upon might do, crawl into the horse cars to ride
amendment as amended, there were ayes 37, their fare against the people, and thus get seven twenty, thirty, and forty rods. It has become noes 38; no quorum voting.
eighths upon every passenger by reason of pay. 80 fashionable to ride in the cars that every The CHAIRMAN, under the role, ordered
ing taxes; that is, they make money out of body must ride whether there is any necessity tellers; and appointed Messrs. ALLISON and
taxation. Now, sir, not satisfied with making JUDD,
money out of the tax, they wish to begin at
the other end of the string, and take the tax . PILE. I am very certain that the poor. The committee divided ; and the tellers re
off altogether. people of our cities do not agree with the gen.
ported--ayes fifty, noes not counted.
Mr. PILE. I wish to say that so far as the
street railroads of St. Louis are concerned Mr. GRISWOLD. I would like the gentle- Mr. TRIMBLE, of Kentucky. I move to
its / The question being taken on Mr. Pile's York (Mr. Barxes] told us about " the poor
they have not added on an additional cent. will say that it is possible for any corporation that pays so much tax upon vehicles of this Five cents is the standing fare upon every street to waste or absorb all its earnings in improve- kiud as the State of California ; and I venture railroad in the city of St. Louis.
ments, if you please; to put them in some the assertion that with the exception of the Mr. SCHENCK. I hold in my hand a form that they shall represent other than other States on the Pacific slope and the Terperfect wail from these street railroads. It is | profits; but I tell you, when they undertake to ritories, there is no portion of the Union where from two excellent gentlemen whom I know. expend all their money, their income account the expense of travel is so great as it is there, They show by statistics in what a ruinous con- shows perfectly well whether they make profits not because they charge extravagant prices, dition the street railroads are. None of them
or not. And there is no device by which they | but because our methods of conveyance are far had made dividends or could make dividends can increase their capital or otherwise which more expensive than they are here in the East. in New York. When asked abruptly what the the tax-gatherer will not be able to reach. Now, with this tax added on–I do not mean stock was selling for, they admitted it stood at Sir, I have seen cars in my State loaded down to say that that is the only cause, bat with this 150 or 160, or at some high premium. They with workmen who could not live within the tax added on the burden has become so great said that was the result of dealings in real thickly.inhabited portion of the city, coming that in many instances it has broken up our estate which we had no right to take
notice of. to their daily labor. I know some of these stage routes, and the means of travel from point Well, that may be so; I dare say it is ; but roads that have been carrying these passengers to point have been taken away from the people. my impression is that when the organized during the last two years for less than cost. I I will give an instance of the difference of ex
the tell stock which represents that capital in the will go to any of the large cities where these from Sacramento to my own town, I pay for the hands of the holders is kept above bar, so as railroads are in use he will find it is not the first forty miles in the cars $2 50; and then for to make it a good investment, they are not company--although they may have entered the thirty miles in the stage I pay $4.50. I go suffering to the extent to which they claim. upon the enterprise for profit--but the people the forty miles in two hours, and it takes seven And yet now that we come upon this subject that are benefited.
hours to go the thirty miles. This illustrates of railroads I find we have waked up a very Mr. BENTON. Will the gentleman allow the difference between railroad travel and large feeling of sympathy—to call it by no me to ask him a question ?
travel by stage in the larger portion of the stronger name-in this Louse, and that we Mr. JUDD. Yes, sir,
country. can hardly do too much for these railroads. Mr. BENTON. I would like to know at A gentleman near me says, “Go afoot." We were thought to be acting fairly toward what kind of business those laborers can earn I have heard of walking lines of stages, but I them when we did not propose to increase as much money as they could save by walking am not in the habit of walking so far. Sir, their tax at all, while in regard to many other instead of paying car fare?
the more money we have to pay for traveling taxes there has been a process of equalization Mr. JUDD. I say that the laborer who on these stage-coach lines in California per and increase. Yet these large corporations- commences his work at seven o'clock in the hundred miles the more tax we have to pay, I speak of railroads generally-which now pay morning, being compelled to get bis breakfast for of course the passengers have to pay this two and a half per cent., if the amendment first, and who would have to walk six miles to It has been said here by gentlemen that made to-day becomes a part of the law will his place of work, needs this method of trans- street railroads do not pay, and yet they have pay only two per cent. "And I believe one
portation. And after his day's labor is ended, to pay this tax. They continue to pay it posgentlemen thought it he could only get the when he has toiled eight or ten hours as hard | sibly because they are not so easily broken up Hoor he could bring it down to one per cent., as he can for the support of his family, my and the amount invested in them cannot so such deep sympathy was there in this House friend from New Hampshire would have him, | conveniently be put in other business. But a for these suffering railroads. All I desire to before he takes his frugal evening meal, repeat stage route can be very easily broken up. say is, tbat while we do not ask to put a heavier that walk of six miles. I tell you this is a tax A friend near me [Mr. STARKWEATHER) calls burden on them at all than they have had here- which we do not propose to impose on the my attention to the fact that of the tax de tofore, we shall hesitate for some time about laboring men of our region.
rived from this source last year California coming to the belief that these corporations [Here the hammer fell.]
alone paid the sum of $45,569 64. That tax have suffered or are sullering so that we can- Mr. ALLISON. I oppose the amendment is paid upon routes where it costs four and five pot at least keep up in some degree the pres- to the amendment.
times the amount to travel a hundred miles ent contributions which we require of them Mr. JUDD. I withdraw it.
that it does on any railroad in the eastern for the purpose of sustaining the Govern- Mr. ALLISON. I move that the committee States, and those routes pay four and five times ment.
rise for the purpose of closing debate on this the tax that is paid for the saine distance and [Here the hammer fell.] section.
amount of travel in the East. It makes an Mr. JUDD. I move, as an additional amend- Mr. INGERSOLL. Before that is done I extremely grievous burden upon the people of ment, to strike out "sixand insert -five." I wish to offer an amendment.
a State who can travel in no other way than have listened with a great deal of interest to the Mr. ALLISON. Amendments will still be upon those stages. An effort was made in the lecture of the honorable chairman of the com- in order,
Thirty-Ninth Congress to keep this tax out of mittee, (Mr. SCHENCK.] It is generally pleasant Mr. INGERSOLL. But I want to debate it. the law, and some of the members of the Comto the House, and perhaps it is very well ad- The question was taken on Mr. ALLISON'S mittee of Ways and Means were in favor of vised; but it seems to me that he is urging motion; and the committee refused to rise. omitting it. But a majority of the committee now upon this committee a principle which has Mr. KOONTZ. I move to amend the held that it should be retained, and it was put not a basis of reason. The principle upon amendment by striking out “six'' and inserting in. I think this is one of the burdens from which all taxation is based, and upon which si seven." There are many persons throughout which the people should be relieved. I am this bill is based, is that property should pay the country engaged in carrying passengers who not speaking in behalf of the owners and capiit, and that the revenues derived from prop- are contractors upon small post routes. They talists interested in stage lines, but of the mass erty should bear their proportion for the sup- engage in the business, not so much because it of the people who are compelled to travel in port of the government. I do not believe the is remunerative, but in order to accommodate this way and can travel in no other; and bechairman of the committee would say that he the wants of the public. It is well known that canse the expense of traveling in my State is intended by this bill, or any portion of it, to these mail contracts are awarded to the lowest so extremely high in comparison with the ex: tax a man who is losing money, or to tax a bidders, and I think it unfair to those parties pense of traveling in the Last. man upon property that does not return him who have taken the contracts at the lowest Mr. SCHENCK. It is very natural, I sup: any sort of income, but the theory of taxation price, and who are compelled by public neces. pose, that we should all look at this subject is that you take it from the man that earns sity to carry passengers, that they should be from the point of view in which it necessarily more than bis daily bread; you take from his taxed. I withdraw my amendment to the presents itself in the State or locality we repreexcess and give it to the support of the Gov. amendment.
sent. The gentleman from California (Mr. ernment. Now, sir, there is no reason why, The question recurred on the amendment Higby] objects to taxing these lines of stage: when honorable members on this floor assert proposed by Mr. TRIMBLE, of Kentucky, coaches, and moves to strike out the provision as within their personal knowledge that a cer- Mr. INGERSOLL. I desire, with a view imposing the tax, so as to put them upona tain branch of industry which is absolutely of testing the principle involved in this sec- different footing, as it were, from that occupied necessary to the existence of the people in a tion, to move to strike out "two and one by lines of railroads. And what is the reason certain portion of the country is a losing busi. half," in line three, and insert “seven;"! and ness, that the stockholders derive nothing from in line four to strike out " gross" and insert
he assigns for his opposition? That this tax
operates unequally upon different parts of the it, and that it is kept in existence for the benefit the word "net" in lieu thereof.
country, of the masses of the people, any one should The CHAIRMAN.. That amendment is not The whole amount of revenue received last
und and say that those gent en are in order until the amendment of the gentleman year from the tax on the gross receipts of stage: advocating a special interest in this country. from Kentucky [Mr. TRIMBLE] shall have been Mr. BENTON. Will the gentleman allow | disposed of.
coaches, carriages, and vehicles upon contie
uous routes, was about two hundred and fortyme to ask if it is not very easy under the pro- The question was taken on Mr. TRIMBLE'S one thousand dollars. The gentleman says posed amendment so to expend their income amendment, and it was disagreed to.
that be finds that of that amount $45,000 was as to have none left over improvements and Mr. HIGBY. I move to amend the section collected in California alone. Why is that? repairs ?
by striking out in lines six and seven the Because in California they are running stages Mr. JUDD. Allow me to ask the gentle words and stage coach or other vehicle, coaches, while in other parts of the country man what is the population of his town? except hacks or carriages not running on con- they are running railroads. Mr. BENTON. About five hundred voters. tinuous routes." Mr. Chairman, I venture 1
suppose the tax on bullion in California is Mr. JUDD. In answer to the gentleman I the assertion that there is no State in the Union
many times the amount of tax upon bullion in
Indiana, because they dig it in the one place || ested, I procured a remission of those charges. | receipts, you tax them when in reality they, in and do not in the other. The tax is collected I believe that such enterprises should be re- the beginning of these new enterprises, may where the article is found. And the fact that lieved also from this tax on the gross receipts. have suffered very heavy losses. You tax theni this mode of conveyance is taxed more in one I think such exemption is equally just with the when they have already borne losses in the part of the country than another is compensa | provision exempting toll-roads and toll-bridges. hopes that in the end the enterprise will be a ted by the fact that in other parts of the coun. I hope the amendment will be adopted.
I do not undertake to break down try other taxes are more while in this part of Mr. ALLISON. I oppose the amendment, the revenue from this source. I say that a railthe country they are less. In other words, |, and ask for a vote.
road corporation is better able to pay seven there is no inequality in the matter, because The amendment was not agreed to.
per cent. on the net receipts than two per cent. you tax the mode of conveyance, no matter Mr. INGERSOLL. I move to amend the
on the gross receipts. where it may be found. And in one part of
pending section by striking out the word "two? [Here the hammer fell.] the country you tax one investment of capital, before the words “ per cent.," and inserting in reply to the various amendments, and then
Mr. ALLISON. I desire to say one word and in another part of the country you tax in lieu thereof the word “ seven ;' and also by another investment. It does not follow that striking out “gross" before the word " re
to move that the committee rise to close debate California is hardly treated because she pays ceipts,' and inserting "net ;'' so that the sec
on this section. It is perfectly certain, Dr. one fifth of all the tax raised in the United tion will read :
Chairman, that from some source we must
raise revenue. States upon stage.coaches. Other States might
This practice of raising revThat there shall be levied, collected, and paid, a tax respond that they had paid taxes upon rail- of seven per cent. on the net receipts for the trans- enue from gross receipts is in accord with roads very largely beyond their proportion in portation of passengers of every railroad, canal, &c. almost every provision in this tax bill. We extent of territory and amount of population. Mr. Chairman, I do not know that this tax manufacturers so much on sales. Even There is a fallacy in the statement and argu. amendment will meet the concurrence of a if they have lost $10,000 each on their manament the gentleman "has made upon the in. majority of the committee; but, whether it | factures, still they must pay the tax. So with equality there is in the matter of this taxation. shall be adopted or not, I want to enter my the wholesale inerchants. If they lose, still
Now, sir, the Committee of Ways and Means protest against the principle involved in this they must pay the tax. During the last year in this matter have not gone beyond the pres- section.
we secured about six million dollars from this ent law. They have reported in this bill the Mr. FARNSWORTH. What does my col. source, and there are other subjects which can same provision upon this subject that there is league mean by "net receipts ?''
be better relieved than this. in the present law. We have been unable to Mr. INGERSOLL. Receipts over and above Mr. MAYNARD. If we pass this emascu. see why capital invested and employed in one the expenses of operating the road, canal, or lated section, how much will it give? kind of business should be freed froin taxation whatever it may be.
Mr. ALLISON. We will gain nothing if any more than capital invested and employed Mr. FARNSWORTH. Then you mean
these amendments are adopted. in another kind of business. One thing is profits?
Mr. HARDING. I ask the gentleman to incertain, those who invest their capital in any Mr. INGERSOLL. Yes, sir.
form me whether every dollar of this $6,000,000 business do so with a view to the profits they Mr. FARNSWORTH. Why not say "net does not come at last from the people upon expect to derive upon it. If one kind of business profits?"
whom these corporations, taking the burdens becomes unprofitable, through competition or Mr. INGERSOLL. There may be a dis. off their own shoulders, put them? Do not any other cause, they shift their investment tinction between receipts and profits; because these companies collect this tax from the peointo something else; and thus the whole thing out of the net receipts or earnings of the road, ple? Does the gentleman understand me? naturally finds something like a level.
a company might have to pay interest on its Mr. ALLISON. I do. I do not know that Mr. FARNSWORTH. Will the chairman bonded or funded debt; but still those net railroad and transportation companies do so. of the Committee of Ways and Means be kind earnings would be profit on the running of the But, sir, in some States they cannot do it. enough to state, as I believe he has the returns road for the particular year,
What I design Whatever is imposed upon the New York Cenbefore him, how much revenue has been to accomplish by this amendment is that no tral railroad is compelled to come out of the derived from this tax on railroads, steamboats, railroad company or similar corporation shall stockholders of that company. It is the same &c., during the past year?
be obliged to pay taxation on gross receipts, with some street railroads. They cannot charge Mr. SCHENCK. The gross revenue col. || but only on the surplus after the expenses it
their fares. lected under this provision from railroads has of conducting the business have been paid. Mr. INGERSOLL. Do you know any other been, in round numbers, $4,128,000'; on ships, || Whether the committee shall agree with me or railroad beside the New York Central where barges, &c., $4,876 ; on stage.coaches, &c., not, I for one want to enter my protest against that is the case? $241,297 ; and on steamboats, $91,805, making the whole principle of assessing a tax on gross Mr. ALLISON. These railroads do charge an aggregate of between five and six million receipts. There is no justice, no equity in such
It is a heavy burden, I know, but I a principle. Take, for instance, the railroads want gentlemen who ask that these companies The amendment of Mr. Higby was not agreed in the State of New York. The New York may be released from taxation to provide some to; there being—ayes five, does not counted. Central railroad earns annually $14,000,000 means by which taxes sliall be obtained froin
Mr. DRIGGS. I move to amend by adding of gross receipts, while its net receipts amount some other source. If it is the object of gen. at the end of this section the following:
to $4,000,000; that is the amount left after 1 tlemen to repeal all taxes, then let us do it, and Provided, That no tax shall be assessed upon the
paying the expenses of operating the road. reverse this whole principle. But I say there $8088 receipts of any steamboat or ferry-boat, where The Erie railroad earns, in round numbers, is no tax more just than this upon transportathe same have not amounted to the actual expense incident to running the same for the six months pre
$14,000,000 of gross receipts, while its expenses | tion, especially when we have reduced it one ceding, upon the production of satisfactory proof to are about ten million dollars, leaving $4,000,000
Last year we took off all the tax on the assessor of such fact.
of net receipts, I think, sir, those roads paid transportation or freight, because we thought Mr. Chairman, I would not have proposed about two hundred and eighty thousand dollars it was a burden on the people. I hope the this amendment but that I have felt it to be each per annum upon their gross earnings. next year we can take off this entirely. I agree my duty to do so. I am satisfied that no tax Mr. MAYNARD. My friend will pardon | it is a burden, but it is one we must endure for should be levied on the proceeds of any busi- me. That was paid out of the gross earnings, the time being. Therefore I hope the several ness or enterprise when those receipts do not and not out of the net earnings as he calls them. amendments interfering with the revenue to be equal the actual expenses. I think, sir, that
Mr. INGERSOLL. Many of our roads, and received from this source will not be adopted. the cases contemplated by my amendment are the gentleman will see the distinction, pay on Mr. HIGBY. I can tell the gentleman low peculiar, and perhaps different from any others their gross receipts and have no balance left. to remedy it. By equalizing taxation-not by which have been presented to the attention of They have to pay on the gross earnings of the throwing off all taxes, but by equalizing then. the committee. In some of the newer sections road even if they sink money in the opera- Mr. ALLISON. I am obliged to the genof the country, it frequently happens that little tion. That is the proposition here. And, sir, tleman for the suggestion. I move that the steamers are started to run to and from places
not one half of the railroads in the United committee rise. where small communities have been built up ;
States pay dividends to the stockholders. Take Mr. TRIMBLE, of Kentucky. Will the gen. and this means of communication is a matter
the roads in Minnesota and Wisconsin and tleman yield to me? I think if he will agree of absolute necessity in order to accommodate elsewhere. There are roads now building in to strike out $2,000 and insert $1,000 it will the people of those settlements. In my own
Illinois, extensions of roads in operation, which relieve a great many of these little stage comdistrict, a gentleman during the last year ran have never paid one farthing of dividend.
panies and turnpike companies. Mr. FARNSWORTH. Is it not in the power Mr. ALLISON. I will agree to that. I 10 a great extent by the citizens, who paid of these railroad corporations to make these believe it is a just and fair amendment. If double fare in order to keep them running, and dividends as they please?
the gentleman had not made it $6,000 I would to make the receipts somewhere near the ex
Mr. INGERSOLL. If they are rascals, then bave voted for it before. penses. That gentleman was assessed of course make laws to detect them.
Mr. TRIMBLE, of Kentucky. I make that upon the gross receipts of those boats. Now, Mr. FARNSWORTH. Cannot they take motion. it seems to me that there is a great hardship them off in a thousand ways ?
The CHAIRMAN. It is not in order now. in imposing sueh taxation. In many cases
Mr. INGERSOLL. I do not want my Debate is exhausted on the pending amendment. these steamers and
ferry-boats ply but a few miles. They have been charged, in some in;
time taken up with that question. Mr. Chair- Mr. INGERSOLL. I move to strike out the stances, custom-house fees on departing and man, 1 object to taxing gross receipts. There
word " receipts.? are many new enterprises, such as the manu. Mr. SCHENCK. Can the gentleman modify arriving
. In regard to some boats of this char. facture of sugar from beets, and so on, in which his own amendment and thus make another acter in which my own constituents were inter•
capital is invested, and if you tax the gross ll speech?
The CHAIRMAN. He cannot if it is ob- Bartlett and Carrie Edwards, children of David posed the amendment applied equally to both jected to. W. Edwards, deceased.
parts of the section. I can see no reason for The question being put on the amendment
INTERNAL TAX BULL.
charging telegraph companies three per cent. of Mr. IxGERSOLL, there were-ayes 7, noes
and express coinpanies only two per cent. 48; no quorum voting. The Committee of the Whole on the state
Mr. IIOOPER, of Massachusetts. I underTellers were ordered; and the Chair ap:
of the Union then resumed its session.
stood that the motion was to strike out three pointed Messrs. INGERSOLL, and TRIMBLE of Kentucky, of the committee that all debate upon this sec
per cent. and insert two and a half per cent.
in both cases. tion shall be closed. That will not prevent The committee divided; and the tellers
Mr. SCHENCK. Two of the members of reported-ayes 24, noes 71. the offering of amendments,
the committee have said that they understood The CHAIRMAN. The Chair votes in the
There was no objection, and it was
that this amendment was to apply both to ordered. negative, making a quorum; and the amend
Mr. TRIMBLE, of Kentucky. I move, on
express companies and telegraph companies. ment is disagreed to.
They will recollect, however, that not one word page 173, line twenty-three, to strike out Mr. HIGBY. I move to amend by insert
was said about anything but express companies. **two" and insert “four" in lieu thereof; so after the word "and," in line six, the words
Mr. HOOPER, of Massachusetts. That may that the proviso will read: one per cent. on the gross receipts for the
be so; but still I understood that the amend.
Provided, That no tax under the provisions of transportation of passengers on;' so that it will this section shall be assessed upon any person, firm,
ment applied to both. read : company, or corporation whose gross receipts do not
Mr. SCHENCK. If it was so understood, On the gross receipts for the transportation of pasexceed $1,000 per annum, &c.
of course the case is different from what I sapsengers of every railroad, canal, steamboat, ship, The amendment was agreed to.
posed. bargo, canal-boat, or other vessel, and one per cent. on the gross receipts for tbe transportation of pasMr. COBB. I offer the following amend.
Mr. MAYNARD. I know it is not exactly sengers on stage coach or other vehicle, &c.
ment as a proviso, to come in at the end of the ) in order to refer to what took place in the I have proposed this amendment in order to section :
committee-room. But I think I may be persay something in answer to the chairman of Provided. That those railroad companies which
mitted to say that we had before us persons the committee, because he did not-I will not
have received grants of land from the Government representing express companies, while there
of the United States shall pay four per cent. on their say intentionally—but he did not represent the
was no one there representing telegraph comgross earnings, matter as it truly is. If the object is simply The amendment was disagreed to-ayes ten,
panies. That was the reason, perhaps, why to tax capital when he is taxing income upon
nothing was said about telegraph companies. noes not counted.
Mr. °SCIENCK. Very well; by voting stage companies it goes a great deal further
The Clerk read the next section, as follows: down this amendment the tax will be left at than our experience justifies. He is taxing the people who support these lines of coaches.
Erpress and Telegraph Companies.
two and a half per cent. upon both telegraph who have to
Sec. 120. And be it further enacted, That shall and express companies. be
Mr. ALLISON. The Committee of the on the gross amount of all receipts for carrying on or Whole has reduced the tax on transportation pay, I will not say extravagant prices, but much doing any express business within the United States, higlier prices for traveling than is paid any.
or between any place within the United States and companies from two and a half to two per
any foreign country; and on the gross amount of all cent. Under the present law express and where in this Union on stage coaches. I have receipts for receiving or transmitting dispatches or nothing to say with reference to our railroads messages by telegraph.
telegraph companies are placed precisely upon or steamboats. Although we are paying a large Mr. SCHENCK. I am instructed by the
the same footing. We have agreed to reduce revenue to the Government by our thousands Committee of Ways and Means to offer the
the tax on express companies from three per of passengers from San Francisco to New York | following amendment:
cent., as reported, to two and a half per cent., every month, we pay the tax willingly. But Page 175, section one hundred and twenty, line
for what reason I do not know, except that when you come to our inland travel by stage three, strike out the word “three' and insert
the proposed tax was too heavy. and one half" in lieu thereof; so that it will read: Mr. CULLOM. The different companies coaches, I to the House that the price we say
That there shall be levied, collected, and paid a have to pay is marvelous ; and when this tax tax of two and one half percent. on the gross amount
pursue different kinds of business. is put on over and above it, and the people of all receipts for carrying on or doing any express
Mr. GRISWOLD. In justice to the chairwho travel bave to pay it, it will be considered
business within the United States, or between any man of the Committee of Ways and Means,
place within the United States and any foreign couna terrible burden upon them. I think we shall
[Mr. SCHENCK,]I desire to say that I was try, &c. find the same to be the case in the Territories, The amendment was agreed to—ayes fifty- | Committee of Ways and Means, when we had
present this morning at the meeting of the where they cannot travel by railroad, especially two, noes not counted. in the Territories west of the Rocky mountains.
under consideration the subject of decreasing Now, sir, the tax that rests on our shoulders
Mr.SCHENCK. I offerthe following amend- the tax on express companies. I understood in California amounts to over fifty thousand
ment from the Committee of Ways and Means, the matter exactly as the chairman says he dollars, where we have only some two hundred
to come in immediately after the words just understood it. Nothing at all was said about
read: miles of railroad, and yet on our stage coaches
reducing the tax on telegraph companies, and we pay between forty and fifty thousand dollars.
And on the gross amount of all receipts for pro- I supposed the agreement was to leave that us
viding sleeping-cars or other special accommodaThat is borne by the mass of the people, those tions for passengers on railroads for which charges
it was reported in the bill. who have small means. They are obliged to
other than the fare for transportation are made. The question was then taken upon the amend. travel, and there are no competing lines by
The amendment was agreed to.
ment of Mr. Allison to the amendment of which they can go. Upon our great thorough. Mr. SCHENCK. I propose, now that sleep.
Mr. SCHENCK; and it was not agreed to. fares, where there is competition, where there ing.cars are taxed, to add the words " and
The question recurred upon the amendment are different lines competing with one another, sleeping.cars'' to the head line.
of Mr. SCHENCK, to make the tax on telegraph it is very different. But it is not so in that The amendment was agreed to.
companies three per cent. State and in the neighboring States. There are
Mr. FARNSWORTH. I move to amend
Mr. SCHENCK. I offer the following no competing lines, and they cannot be main.
the amendment so as to make the tax two per amendment from the Committee of Ways and tained. It is for that reason that I make this
cent. I see no reason why telegraph compaMeans : motion, and ask that the people shall be
nies should be taxed more than railroad com
Pnge 175, at the end of line six, insert the words relieved from this burden; for it is not the three per cent;" so that it will read:
panies. companies who pay it, but the people. And threo per cont. on the gross amount of all
Mr. SCHENCK. Because their profits are The question was taken on Mr. HiGBY'S receipts for receiving or transmitting dispatches or greater.
messages by telegraph. amendment, and it was disagreed to--ayes
Mr. CULLOM. It is the most profitable
Mr. ALLISON. I should like the chairman twenty-six, noes not counted.
business in the country. of the Committee of Ways and Means to Mr. FARNSWORTII. It seems to me we ENROLLED BILLS SIGNED.
inform the committee the reason for a distinc- might with just as much propriety tax people At this point the committee rose informally, tion between express companies and telegraph for the letters they receive.
The telegraph and the Speaker having resumed the chair, companies.
interest is an interest which involves the whole Mr. HOPKINS, from the Committee on Mr. SCHENCK. My colleague had better people of the country. Everybody is inter Enrolled Bills, reported that the committee have asked the committee. The committee ested in telegraphing, and in having it made as had examined and found truly enrolled bills this morning, upon a revision of this section of the following titles; when the Speaker of the bill, agreed to bring the tax on express
cheap as possible. Taxing it simply increases
the cost of telegraphing: signed the same:
companies down to two and a half per cent. Mr. CULLOM. And it is so with every. A bill (S. No. 322) granting a pension to No proposition was made to bring down the thing else. Sherman H. Cowles ;
tax on telegraph companies. By a vote of the Mr. FARNSWORTH. So it is. But why A bill (S. No. 323) granting a pension to committee the tax on express companies was increase the tax on telegraph companies when Michael Kelly ;
brought down to two and a half per cent., and A bill (S. No. 344) granting a pension to hence it is necessary to repeat this language.
you decrease the tax upon railroads and ex: Caroline and Margaret Swartwout; There were was no action in the committee in
press companies? I am not aware that tele
graph companies are any more prosperous than A bill (S. No. 420) granting a pension to reference to telegraph companies. James A. Guthrie;
Mr. ALLISON. I will say this: that I hap- companies have more burdens imposed upon
express companies. I do not kuow that express A bill (S. No. 421) granting a pension to pened to be out of the committee-room when
them than telegraph companies. It seems to Caroline E. Thomas; and
the final vote was taken upon this question of A bill (S. No. 424) granting a pension to the tax upon express companies. "But I sup
me it is making an invidious distinction which should not be made. I have no interest in