Ei
Pennsylvania Legislature.
ROUSE OF REPRESENTATIVES.
AFTERNOON SESSION.
FRIDAY, February 15
COMMUTATION OP THE TONNAGE DI-TIE,
The House went into Committee of the
Whole (Mr. SHEPPARD in the Chair.) on
House bill, No. 248, entitled "an Act for the
commutation of tonnage duties."
The bill was read as follows :
AN ACT for the commutation of Tonnage Du
ties.
Whereas, By a provision of the Act to incor
porate the Pennsylvania Rail Road Company,
approved the thirteenth of April, eighteen hun
dred and forty six, and a supplement thereto,
approved the twenty.seventh of March, eigh
teen hundred and forty-eight, a tax or duty was
imposed on all tonnage loaded or received at
Harrisburg, Pittsburgh and intermediate points
and carried or conveyed on the Railroad of the
said company more than twenty miles, which
said tax was intended to compensate for any
probable diminution in the receipts of the Main
Line of the Public Works, (then owned by the
State,) by reason of the construction and opera
tion of the said Railroad.
Andwhereas, It was provided in the third section
-of the Act for the sale of the Maine line of the
Public Works; approved the sixteenth day of
May, eighteen hundred and fifty-seven, that if
the Pennsylvania Railroad company should be
mut the purchasers of the said works, the said
company, in addition to the sum of seven mil
lions five hundred thousand dollars ($7,600,000),
the price limited l)y the said Act should pay
the sum of one million five hundred -thousand
dollars ($1,500,000), in five per cent. bonds of
the company, and that thereupon the said com
pany, and the Harrisburg, Portsmouth, Mount
Joy and Lancaster Railroad company should,
in consideration thereof, be discharged by the
Commonwealth forever from the payment of
all taxes upon tonnage or freight carried over
said Railroads, and the said Pennsylvania
Railroad company should be released from the
payment of all other taxes or duties on its cap
ital stock, bonds, dividends or property.
And whereto., It was subsequently decided by
the Supreme Court of this Commonwealth, that
while the. 'Legislature had full authority to re
peal the provisions of the said Acts, by which
tho said tonnage tax was imposed, yet, inas
much as part of the said laat-mentioned section
in the Act for the sale of the Main Line placed
all the property of the said company beyond
the reach of the taxing power, it was therefore,
to that extent, unconstitutional and void. •
4nd whereas, It was the clear intention of the
Legislature, by the said Act for the sale of the
Main Line, in case the said Pennsylvania Rail
road company should become the purchaser of
the same, to exhonerate and release the said
company from further liability for the payment
of said tonnage tax, and for the additional con
sideration therein named, all other taxes ; and
as the said tonnage tax now falls indirectly on
flour, grain, cattle, iron, mierals and other do
mestic products, transported on one line of im
provements, while similar products, transport
ed on other lines, are exempt from the same ;
and as the reason for the imposition thereof
ceased to exist on the sale of the works it was
intended to protect, the right of the State any
longer to demand the payment of the said tax
is denied, and said demand has led to litigation
between the State and the company, and will
probably involve the parties in litigation with '
citizens of other States, to the injury of our in
ternal trade and, commerce, which it is the duty
of 'the government to encourage and protect, by
all lawful means.
And whereas, Tho said company has proposed
a compromise and final settlement of the ques
tion, by paying into the Treasury, in commuta
tion of the said tonnage tax and in discharge
thereof, such additional sum semi-annually,
over and above the instalments of principal
and the interest on its debt to the State, as may
be required to make said payment amount to
four hundred and sixty thousand dollars ($460,-
000) annually, until the year eighteen hundred
-and ninety, at which time the entire balance of
tw principal and interest shall be paid in full
avriky,p,ay . ing, also, in addl .
- -ttatalments
anPi.41.7.” 56 -ki"x , 4 l 4. unlit
semi-annuml his all other taxes on
their property to wic they may hereafter be
made liable under the general revenue laws of
the State, and agree to make reductions for
transportation of local trade, as hereinafter pro
vided, and to aid, also, in the construction of
certablateralrailroads, the completion of which
is essential as a means of facilitating the settle
ment and improvement of valuable districts of
the Commonwealth yet undeveloped:
•44ndwhereas, In the opinion of this Legislature,
it is expedient to accept the said proposition,
and to relieve all agricultural, mineral, and in
dustrial products, and other property passing
over any railroad, canal, or slackwater naviga
tionl3l this Commonwealth, from the payment
of tonnage-tax or duty to the State ; therefore,
&vri ue I. Be it enacted by the Senate and
House of Representatives of the Commonwealth of
Pennsylvania in °metal Assembly met.andit is here
by enacted by the authority of the same, That if a
majority of the Directors of the Pennsylva
nia 'lkdlroad company, who,' for the pur
poses of this act are hereby vested with all
needful Mithority, shall at a meeting call
ed for that purpose, resolve to. accept the
provisions of this Act, and shall authorize the
execution of a written contract under its cor
porate seal with the Commonwealth of Penn
sylvania, to pay into the State Treasury on ac
count of its indebtedness to the Common
wealth, by reason of the purchase of the Main
Line of the Public Works, on the' thirty-first
days of January and July in every year, until
the thirty-first of July, eighteen hundred and
ninety, inclusive, such Sum, in addition to the
interest on its bonds • owned by the State, and
in addition to its annual liability to the State
on account of purchase money for said line of
improvements, as ,will increase each semi-an
nual payment on account of said debt and
interest to the sum of two hundred and thirty
thousand dollars, ($280,000,) and the aggre
gate of all such payments to the sum of thir
teen millions five hundred and seventy thou
sand dollars, ($13,670,000,) and shall agree
to pay, on the said thirty-first day of July,
eighteen hundred and ninety, into the Trea
sury, the balance then unpaid of the princi
pal and interest of said bonds, and shall further
agree to reduce its local charges for the trans
portation of grain, flour, cattle, iron, minerals;
and other property, as hereinafter provided ;
and if the said company shall, in, the manner
aforesaid, en or before the first day of July next,
make and enter into with the Commonwealth
of Pennsylvania a written contract to that ef
fect, and shall on or before the said day deliver
the same to the Commonwealth, by depositing
the same in-the-office-of the Auditor General,-
then and in such case, and in consideration
thereof, the Commonwealth of Pennsylvania
shall not at any time hereafter lay, impose,
levy, or collect any tax or duty upon, or in re
spect to freight or toimage passing over the said
Pennsylvania Railroad, or the Harrisburg,
Portsmouth, Mount Joy and Lancaster Railroad,
or any part of them, or either of them, unless
like tax shall at the same time be imposed, laid
or levied upon all other railroads or railroad
companies of this Commonwealth; and all laws
imposing taxes or duties upon freight or tonnage
upon the railroads, canals and slack water
navigation companies, for the use of the Com
monwealth, be and they are hereby repealed,
and no further or other proceedings shall be
had or taken on the part of the Commonwealth
to enforce the collection of any tax or duty, or
obligation given therefor, or judgment recover
ed, or obtainetl in pursuance of any existing
aws on tonnage carried or conveyed on the
the railroad of said Pennsylvania Railroad
Company. or on that of any other company in
corporated by this State ; and the said compa
nies shall be, by the proper officers of the Com
wealth, exonerated, released and relieved from
every lien and liability to the State on account
theredf.
SEC. 2. That from and after the passage of
this Act, all railroad, canal and slack-water
navigation companies incorporated by this State.
and liable for the payment of taxes on duties
on tonnage, imposed by any laws heretofore
enacted, shall make a reduction of their
charges for transportation on their local freight,
as fixed by their respective toll sheets, on
the first day of February, one thousand eight
hundred and sixty one, equal to the full
amount of the tax or duty chargeable upon
such freight or tonnage by the laws aforesaid ;
the present winter rates between first day of
December and the first day of May, shall be
considered as fixed at 90 cents per 100 lbs. for
first class, 75 cents per 100 lbs. for second class,
60 cents per 100 lbs. for third class, and 40
cents per. 100 lbs. for fourth class. Summer
rates between the first day of May and first day
of December in each year, shall be 76 cents per
100 lbs. for first class, 60 cents_ per 100 lbs. for
second class, 50 cents per 100 lbs. for third
class, and 40 cents per 100 lbs: for fourth class,
on all trade carried between Philadelphia and
Pittsburg, and a failure on the part of either of
said Companies to make such reduction, shall
render the Company so neglecting liable to the
Commonwealth for double the amount of the
tonnage tax heretofore chargeable against
them open such trade—and every such Com
pany shall, within thirty clay§ after the passage
of this Act, loader - a like penalty, file in the
office of the Auditor General, under the oath of
the President or other proper officer, a toll sheet
of their rntes of charges for transportatiqn of
local freights, upon the first day of Feb - nary,
one thousand .eight hundred and sixty-one, I
accompanied by a statement of the reduction to
be made in pursuance of this Act, and the
said rates as so reduced shall be the highest
rates that can be charged for the transportation
of such freight and tonnage by any Company
accepting the provisions of this Act : norther,
the Pennsylvania Railroad Company shall not
at any time charge or collect rates on any de
scription of freights from any eastern or sea
board cities to. Pittsburgh, higher than the
gross rates charged •or collected by the, same
route from same points to any point west of
Pittsburgh ; nor shall the said Pennsylvania
Railroad Company at any time charge or col
lect rates on any description of freights from
Pittsburg to Philadelphia, Baltimore, New
York' or other seaboard cities, higher than the
. gross rates that may be charged by the same
route from any point west of Pittsburgh to the
same points on the same description of proper
ty. The local rates from Pittsburg or Philadel
phia to stations on the line of the Pennsylvania
Railroad shall at no time exceed the gross rates
charged through between Philadelphia and
Pittsburg ; nor shall local rates between any
two stations on the road between Philadelphia
and Pittsburgh exceed the through, rates as
made from time to time under the provisions of
this Act, nor shall the rates charged to any local
points exceed those charged to any point of
greater distance in the same direction from the
place of shipment : And further, all shippers of
western products, under through bills of lading,
from any point west of Pittsburg, by river to
Pittsburgh, to the seaboard cities, shall have the
privilege of disposing of their property at Pitts
burgh, by giving timely notice, before its arri
val at that point, to the transfer agents of .the
Pennsylvania Railroad company, and by deliv
ering up their through bills of lading, thin re
leasing the Pennsylvania Railroad company
from all liability on account thereof. If the
property is not sold at Pittsburg, the owner,
consignee or shipper of said property shall have
the ,right to deliver the same to the transfer
agency of the Pennsylvania Railroad company
at Pittsburg, and forward the same within ten
days after its arrival at Pittsburg, under the
conditions and rates of the original through
bill of lading.
§so. 3. That the Pennsylvania Railroad
company shall be liable Nation for all
State purposes, and the, pa ti
pay the same rata of
or ma • taxation which is now,
adDag - I&..7after, be imposed by any general
41m - operating upon all other Raiirdad compa
nies incorporated by this Commonwealth. The
semi-annual instalments of the said, sum -of
thirteen millions five hundred and seventy
thousand dollars, '(513,570,000,) and the bal
ance of the said debt and interest so to be paid
into the State Treasury as is herein provided,
are hereby pledged to, and the same shall be
applied only, to the payment and -extinguish
ment of the principle and interest of the fund
ed debt of this Commonwealth, and tone other
purpose whatsoever.
Sac. 4. That, for the purpose of developing
the resources of the State, • the Pennsylvania
Railroad Company is hereby authorized and re
quired to expend the sum ofOght hundred and
fifty thousand dollars in aid to the Chartiers
Valley Railroad Company; The Pittsburgh and
Steubenville Railroad Company ; The Fayette
County Railroad Company, (between Greens
burg and the Youghiogheny River ;) The West
Pennsylvania Railroad Company, (between
Blairsville and Butler ;) The Ebensburg and
Cresson Railroad Company ;- The Bedford Rail
road Company, (between Hopewell and Bed
ford ; ) The l'yrone and Clearfield Railroad Compa
ny, and the Phillipsburg/and - Waterford Railroad
Company, (between Tyrone and Brookville ;)
The Tyrone and Lock Haven Railroad Company;
The Mifflin and Centre County Railroad Compa
ny, (between Lewistown and Reedville 0 The
ChambersburgandAlleghenyßailroadCompany,
(between Chambersburg and the point of connec
tion with the Bedford Railroad near Hopewell;) or
their successors or assigns, in sums proportion
ed to their respective lengths between the above
designated points, by purchasing their bonds
respectively from said Companies, payable in
twenty years, with interest, payable semi-an
rurally, secured by a first mortgage created for
the purpose on their property, real and person
al, and franchises acquired and to be acquired,
and the said Companies are hereby respectively
authorized and empowered to create and
issue such bonds, and secure the payment there
of by such mortgages, by and with the con
sent of a majority of their: respective stock-.
holders present at a meeting to be called for
that purpose, of which notice shall be given;
as provided by their charters or by-laws, re-,
spectively; said bonds, and the mortgages given
to secure the same shall not exceed in amount
the sum requiredfor the cos t of the superstructure
of bridges, the rails, cross-ties, the chairs and
spikes, and laying the track of the saidroads, re
spectively—and the proceeds of all the said bonds,
so secured, shall be exclusively applied to the
said purposes—and the said purchases of bonds,
shall be required to be made of each of the said
companies in installments, after sections of said
roads, respectively of the length of five miles
from each end, as hereinbefore designated,
shall have been duly and properly graded and
the masonry completed, and after the said gra
ding and masonry shall have been approved by
a competent Civil engineer, appointed by the
Governor for that purpose—and who Shall be
paid for his - services by the said companies re
ceiving aid under the provisiens of this Act—
and when each section of five miles so graded
from each such end of the said roads respective
ly, shall have been so completed and such cer.
tificate so given, then the pro rata proportion of
the said bonds shall be purchased, and so con
tinued from time to time until the amount
payable to the said companies shall be' exhaust
ed—and the sum paid upon the completion of
the said sections as aforesaid respectively, shall
be exclusively appropriated and be used for
the purposes above mentioned, upon the
section for and in respect to which the pur
chase is made—and for no other purpose or
portion of said road whatsoever—Provided, how
ever. That if either of the said Companies shall
prunspluanialv Zelegraph, fribav 2Wtentoon, ftbruarg 22, 1861.
fail to grade and prepare fur bridges., super
strecture, and laying of track at least one sec
tion of five miles at each of such end of its
road within one year—or the whole of their
respective roads within three years from the
passage of this Act, any such Company, 80 in
default, shall no longer have any right to de
mand or require any further purchase of their
bonds as aforesaid, and the sums which any
such defaulting Companies would have been
entitled to demand in payment of their bonds,
shall be added pro`rata to the purchases to be
made of such of the said Companies as shall
comply with the provisions of this section.
Ssc. 6. That if any stockholder or stock
holders of any rail road, canal, or slack-water
navigation Companies shall be dissatisfied
with, or object to any of the provisions of this
Act, then it shall and may be lawful for any
such stockholder or stockholders, within six
months after the passage of this Act, to apply
by petition to the Court of Common Pleas of
the county in -which the chief office of the said
companies may respectively be held—to appoint
three disinterested persons to estimate and ap
praise the damage, if any, done to such stock
holder or stockholders, and whose award, or
that of a majority of them, when confirmed by
the said Court, shall be final and conclusive.
And the person an appointed shall also appraise
the share or shares of said stockholders in the
said company at the full markft value thereof,
without regard to any' depreciation in conse
quence cif the passage of this Act, and the said
company may, at its election, either pay to the
said holder the amount of tmages so found,
or the value of the stock so ascertained, and
upon payment of the value of the stock as afore
said, the said stockholder shall transfer the
stock so held by him to said company, to be
ta l t_igut
disposed of by the Directors . said.company,-
or beztained by them for e t 'of the
remaruag stockholders. And all ws incon
sistent with the provisions of this Act, be and
the same are hereby repealed.
The several sections of the bill were agreed
to. .
Whereupon, .
The Committee rose and the Chairman re
ported the bill to the House - without amend
ment.
The first section of the billwas,again read.
Mr. BLISS moved to amend by adding the
following proviso :
"And the said company shall pay into the
State Treasury annually, on the thirty-first day
of July of every year, the sum of seventy-five
thousand dollars for the term of twenty years ;
which said sum of one million and five hun
ched thousand dollars shall be secured as a per
manent fund for the support of the Common
School System of the Commonwealth of Penn
sylvania, as shall be provided by law."
On the amendment of Mr. BLISS,
The yeas and nays were required by Mr.
BARNSLEY and. Mr. WILSON, and were as
follows, viz :
Yeas—Messrs. Armstrong, Barnsley; Blanch
ard, Bliss, Boyer, Brodhead, Clark, Collins,
Cope, Dismant, Donley, Frazier - Rapper,
Hayes, Hill, Hood, Irvin, Lichtenwallner, Man
ifold, Myers, Patterson,, Reiff, Rhoadk.Sehrock,
Smith, (Berks,) Stoneback, Tracy, .i.ams and
Wilson-29.
NAYS—Messrs. Abbott, Acker, Alexander,
Ashcom, Austin, Ball, Bartholomew, Bisel,
Blair, Bressler, Brewster,Burns,Butler,(Carbon,)
Butler,
(Crawford,) Byrne, Caldwell, Cowan,
Craig, Douglass, Duffield, Dunlap, Ellenberger,
Elliott, Gaskill, Gibboney, Goehring, Graham,
Harvey, Heck, Hillman, Ilofius, Huhn, Kline,
Koch, Lawrence, Leisenring, Lowther, M'Don
ough, M'Gonigal, Marshall, Moore, Morrison,
Mullin, Ober, Osterhout, Pierce, Preston, Pughe,
Randall,Reiley,Ridgway,Robinson,Roller; Seltz
er, Shafer, Sheppard, Smith, (Philadelphia,)
Strang, Taylor, Teller, Thomas, Walker White,
Wildey, and Davis, Speaker-66. . .
So the question was determined in the nega
tive. m ~
- Mr. WILSON Moved' to , amend the tut+
line by- striking therefro
and in the twen.lar-
y J' . .
•-•
SON. If I understand the practice
(..L..4.5%ad, it has no right under its charter to
charge more for the local freight than for the
through freight. Therefore it is wrong to have
it stated here that if they will "furthevigree."
Let it read "will reduce their fare." lam un
willing to endorse -a proceeding by which the
Commonwealth makes a contract with them.to
reduce their charge on local freight,..blAnse
the law now requires them to keep - it- equal
with the charge on through freight.. ,
On the amendment of Mr. WILSON,
The yeas and nays were required by Mr.
WILSON and Mr. RHOADS, and were as fol
low's, viz :
YaisZ-LMessrs: Alexander, Armstrong, Rixler,
Blanchard, Bliss, Brodhead, Clark, Collins,
Cope, Donley, Ellenberger, Frasier, •Rapper,
Hayes, Hill, Irvin, Lichtenwallner, Myers, Tat
tenon' Reiff, Rhoads, Schrock, Smith, (13erks,)
Stehman, Stoneback, Tracy, 'Williams and Wil
son-28.
NaTs-L.Messrs. Abbott, Acker Anderson Ash-
corn, Austin, Ball, Bartholomew, Bisel, Boyer,
Brewster, Burns, Butler, (Carbon,) Butler, (Craw
(ford,) Byrne Caldwell, Cowan, Craig, Dou
glass, ;, Duffield, Dunlap, Gaskill, Gibboney,
Graham; Harvey, Heck, Hillman, Hollis, Kline,
Koch, Lawrence; Leisenrin,g, Lowther, M'Don
owroh, M'Gonigal, Marshall, Moore, Morrison,
Mullin, .Ober, Osterhout, Peirce, Preston,
Pughe, Randall, Belly, Ridgway, Robinson,
Roller Seltzer, Shafer, Sheppard, Smith, (Phil
adelphia,) Strang, Taylor,
Teller, Thomas,,
Weikel', White, Wildey and Davis, Speaker-L-60.
So the question was determined in the nega
tive. •
Mr. BARNSLEY moved to amend the first
section by striking out, in the thirteenth line,
the word 'State,' in the fourteenth line, the
word "and" and the word "debt," and in the
fifteenth line, all between "said" and "en
tered."
Mr. BARNSLEY. The effect of this amend
ment will be to make the Company pay into
the treasury one hundred thousand dollars
yearly more than is provided-for-irethe -bill as
it .now stands. This change would maker the
brdl agree_with its title. It would then be in
+feet a coMmutation of the present tax, instead
of being, as it'now is, a 4 repeal of the tonhage
duties. • - •
Mr. Speaker, nearly the half'of the real estate
of my county, and I believe nearly the whole
of that of'the Commonwealth, is in the posses
,sion of these who, on an average, are indebted
for one-half of the value of their property.
Many are struggling along under a burden of
debt nearly equal to all they possess. But do
they pay any less tax on their property than
those who have no debt ? We know they do
not. And is this a small amount that rests
gently on people ? On the contrary it is a
burden that is absolutely oppressive. For more
than twepty years the gatherer of taxes for the
use of thE State Treasurer, has been an annual
visitant of every domicile throughout this Com
monwealth ; and did we but know with what
dread his visits are expected at many hamlets
in the State, methinks members would pause
and inquire anxiously whether there were no
means to remove this burden from the beople.
We have passed exemption laws for all debts
owed by citizens to each other ; we have abol
ished laws for imprisonment for other debts ;
but for our taxes . this power still remains ; for
them there is no exemption. No matter whether
the doctor, butcher, grocer, or mechanics' bill
is paid, when the tax-man pays his visit, his
claim must be met.
For twenty years this incubus has been
driving capital from our State, and what is
worse still our energetic young men are forced
to seek for homes in other States, which are
not thus burdened. In each of the two last
Legislatures that have assembled in this hall, I
presented bills to commute this tax half a
mill on the dollar. What became of those
hew • " forther,"'
me thd words: "ragreed
tai
Xll ? .ft] r , tl t
Onegative report by the Committee of Ways
• • d Means, because our treasury could not bear
he loss of revenue which this would cause ;
• a d the policy was to pay off our debt.
Now, this was the conclusion at a time when
verywhere the country seemed in the most
irosperous condition. But what have we now
:hen the country is torn with revolution—
when ive know not how soon we may be called
In to mortgage our resources anew for the pre
ervation of the government—wh en we have al
eady had to endorse nearly three millions of
oars for the General Government which we
a ay have to pay—when our receipts are being
ontracted ? What have we now? Why, a
aro a asition to repeal the tonage tax on all the
.. a . in the State, to exempt a rich corporation
hat has always divided six per cent on all her
.pital stock, from the payment of the consid
•ration which, by her own agreement, she
argained to pay for her own franchises.—
say "exempt," because, in. explaining this
a ill now before us, I find that this is really.the
. caning of the bill, and calling it a "comma'
tion" is a pretence to deceive the people—
. shallow a deception to screen its title from
e contempt which such subterfuges merit.—
Why so far from being a commutation, I think
shall be able to show that it will actually take
l or keep more money from the treasury than
would an unreserved repeal of the tonnage tax
•ow imposed by our laws on the Pennsylvania
seed.
The Act of May 15th, 1857, for the sale of
he Main Line, under which the Pennsylvania
' : ilroad purchased the Main Line, provides
hat the company shall pay $7,500,000 in bonds
t five per cent. per annum, to be paid semi
: remally, and futher.that they shall pay into
he -treasury annually the sum of $lOO,OOO of
he- principal debt until the year 1890, when
hey shall pay one million of dollars annually
until the debt is extinguished. Now, under
his Act, the company paid into the treasury the
resent year the sum of $465,000 principal and
• a terest. The first section of this bill gracious
y.provides that the company shall pay, by way
of commutation, for these items, the "sum of
.460,000,. the. exact amount that they would
:ve to -pay the coming year under the condi
'en of sale. But it does not stop here, but
oes on to say that they will pay this sum an
ually until the year 1890, when the aggregate
willamount to $18,570,600. Well, this looks
• . e:: an enormous Sum: when held up to.-the
eof the people. Just-think of it!.Why;
• ' * confess I was startled when I first saw these
' ',posing figures ; but when we come to consid
-r that the greater part of this sum is made up
.f the yearly interest, it does not seem quite so
d. Some of us, I presume, have had some
•xperience in paying interest; and we have
ound out that when we have paid. interest un
til it amounts to the principal, we may still
owe-the principal sum.
,But to test this commutation business, let us
•nquire what the interest on the debt owed to
by this company will amount to. You will
and it amounts to $8,410,000. Add to this the
:um of $1,000,000 to be paid yearly,and the re
.ult will be three million dollars, which,
a ded to the amount of interest, makes
.11,410,000. Add to this the sum for which
he Commonwealth now has judgment against
his company, which according to the Gover
or's message is about $700,000, and we have
he sum of $12,100,000.. In addition to this
is bill repeals the tonnage tax on the. North
ern Central, and Harrisburg, Portsmouth,
ount Joy and Lancaster Railroad companies,
which have not contested tne right of the State
• collect this tax. Now I find that these roads
• 'd into the treasury during the year 1859,
=A 7,582 68. Add what this will amount to in
hirty years, to $12,100,000, and we have the
whole amount, within alraction,•of what this
ill proposes to pay, without • .
for the "comm' g a penny
a. promised us in the
atti
But there is one generous provision in, this
bill, whichprotrides - that the bompany;shallloan
to, certain other companies therein named,
the money they now owe the State for tonnage
tax, and for which the State now has judgment
against them. There is something so refreshing
ly cool in this proposition of loaning the State's
money for the purpose of building branch roads
to their own,
that one hardly knows bow to
characterize the proposition. It looks to me
much in the same light as though a debtor
should propose to pay over his, debt to his own
wife in lieu of her dower, and think that this
ought to satisfy his creditor, to whom the debt
is justly erne.
But therein one more serious objection. This
legislation is contrary to the Constitution which
we have sworn to support. The fifth section of
the second article provides that the credit of
the Commonwealth shall in no event be loaned
to any company or corporation. Now, what is
the intention of this "provision? Was it not
adopted by the*** to prevent the Legisla
ture from approliriathig the money that belongs
to the whole people, for the benefit of private
individuals, or at the most the interest' of one
section, at the expense bf the whole? And is
not this clearly a case in point? Will any one
pretend to say that what the Constitution will
not permit us to do directly we can do indirect
ly, that we can authorize this Company to fur
nish our money to certain companies when the
Constitution would not permit us to do it were
it now in the treasury ? The fact that it is not
there does not alter the case in the least ; for it
is a debt that belongs to us ; we have judgment
for it in the highest tribunal of the State ; the
parties are able to pay, and our only duty is to
make them pay. In looking over this whole
bill we find nothing that looks in the least to
the interest of the people, except the second
section, which provides for the reduction of the
tonnage tax from certain specified fixed rates,
therein specified, which may or may not be as
great' or even greater after this reduction than
what is charged by other roads for freight car
ried over their lines. And farther, it most
graciously provides that the company shall not
charge the people more for carrying freights be
tween Pittsburg and Philadelphia than they
charge for carrying it from Cincinnati or any
other place beyond. This, in the face of the as
sertion that the company has carried freight
from the west through Philadelphia-on to New
York for less than was charged to Philadelphia,
is certainly a boon which we in Pennsylvania
should appreciate.
These are all the points or provisions, I be
lieve, that are contained in this bill. I have
reviewed them I trust candidly and fairly, not
for the purpose ofcreating prejudice against this
Company, for I feel none. On the contrary, I
look on the prosperity of this Company with
pride and satisfaction. They have done much
for the prosperity of the Commonwealth. But
when they come here to ask to be exempt from
contributing to the support of the State, as all
are compelled to do—ask to be exempt from the
consideration they themselves agreed to pay for
the franchises, granted to, them by the State,
and the property of the State sold them for this
price, and they are asking for that which I, as
a representative of a tax-burdened constituency,
can never consent to permit, until we have re
moved some of the burdens from the toiling til
las of the soil. \
But what are the arguments brought forward
in favor of this measure? Why that the causes
for the imposition ceased when the Company
bought the main line. The answer to this is
that the State was compelled to sell the public
works, which cost twenty millions of dollars,
for seven and a half millions, because the pri
vilege of building a work in direct competition
with them had destroyed their value in a mea
sure ; and in as much as the equivalent of this
tax was agreed to by the Company for these
privileges, and the State was compelled to sell
for the depreciation thus occasioned, we assert
that the cause of the original imposition is not
removed, but remain s with all its primary
foroe.
Again it is stated in the preamble to this bill
that the tax now falls on doi r.. grain. cattle.
iron, minerals and domestic products. The
charter provides that it shall be levied on all
the freights carried over the road.
It would seem from this that the company
have, in defiance of the law, discriminated
against our citizens, and now come here and
offer to quit this practice for the sum of two
hundred or five hundred thousand per year.
Last, it is urged they cannot contend with
the competition of lines in other States. What
are the facts ? While they have made vast im
provements from year to year, divided fair di
vidends on all their capital, the New York and
Erie, their nearest northern rival, has become
insolvent and been sold under the hammer of
the Sheriff. The State of New Jersey is sup
ported almost entirely by the revenue derived
from the tax levied on the carriage of her mil
-1 roads and has no debt, while we, with a debt
l i of millions. and direct taxation eating out the
substance of our people, must listen to a general
howl raised against us, because we have levied
a small tax from a wealthy corporation, which
is likely soon to crush out the voice of that peo
ple, whenever her interest shall conflict with.
theirs.
In conclusion, Mr. Speaker, allow me to ap
peal to the majority of this House to pause be
fore they pass this bill. Allow me to remind
them that we were placed in power because the
people had lost confidence in the Democratic
party on account of their desertion of the in
terests of the toiling masses, for the purpose of
supporting an institution which was undermin
ing our government, through corruption, the
moans of which were procured from the peo
ple's treasury.
Before this measure is passed, you should
first convince the people that itis right. They
are not now so convinced, and it matters not
how well we may be satisfied that the thing is
right, the people will believe that their inter
est has been sacrificed, and they will hold us to
a strict 'atrcountability ; and I tell you that the
members from my section of the State, who
support this bill, will be known to these Halls
no more forever.
Mr. SHEPPARD. I desire to ask the gentle
man a question; whether, if this amendment be
incorporated in the bill, the bill will receive
his support?
Mr. BARNSLEY. lam not prepared to an
swer that question.
Mr. SHEPPARD. I hope the amendment
will be voted down.
Mr. BARNSLEY. [After a pause.] I will
state this, however; if the gentleman will vote
for inserting this amendment, and a majority of
this House will place it in the hill, I will sup
port the bill. I say this on reflection.
Mr. SHEPPARD. I will not vote for putting
it in.
On Mr. BARNSLEY'S amendment,
The yeas and nays were required by Mr.
PEIRCE and Mr. BARNSLEY, and were as fol
lows, viz :
Yszs--3fars. Barnsley, Baler, Blanchard,
Bliss, Brodhead, Clark, Collins, Cope, Donley,
Frazier,
Happer, Hayes, Hill, Hood, Irvin,
!dyers, Patterson, Reiff, Rhoads, Smith, (Berke,)
Stehman, Stoneback, Tracy, Williams and Wil
son-25.
Ness—Messrs. Abbott, Acker, Alexander,
Ashcom, Austin, Ball, Bartholomew, Bisel,
Blair, Boyer, Bressler, Brewster, Burns, Butler,
(Crawford,) Byrne, Caldwell, Cowan, Craig,
Douglass, Duffield, Duncan, Di lap, Ellenber
ger, Gaskill, Gibboney, Goehring, Graham,
Harvey, Hillman, Hofius, Huhn, Kline, Koch,
Lawrence, Lcisenring, Lichtenwallner, Low
ther, M'Donough, ll'Gonigal, Marshall, Moore,
Morrison, Mullin, Ober, Osterhout, Peirce, Pres
ton, Pughe, Randall, Reny, Ridgway, Robin
son, Roller, Sc.hiock, Sel4er, Shafer, Shep
-8" . t.L l ,..,TLiiNgPtia 7 rrtrtiiii, Taylor,
eller, Thomas, Walker, White, i Wilde' , and
* Davis, Speaker-47.
So the question was determined in the nega
tive.
BOYIKEt moved to adjourn.
The Motion was not agreed to.
The question recurring on the first section, it
was agreed to.
The second and third sections were read and
agreed to.
'The fourth section was read
Mr. ABBOTT moved to amend by inserting
after the word "bonds" in the sixteenth line
the words "at their par value."
The amendment was agreed to.
Mr. ARMSTRONG moved to amend by insert
ing after the word h acquired," in the eigh
teenth line the words "and the said Pennsylva
nia Railroad company shall pay over and de
liver the said bonds to the State Treasurer, who
shall apply the 4roceeds thereof, and when the
same shall have become due and payable, together
with all interest thereon, to the payment of
the State debt in like manner as is now pro
vided by law for the application of the sinking
fund."
Mr. ARMSTRONG. This section proposes to
appropriate $850,000 for the purpose of assist
ing certain railroad companies therein mention
ed. Of that $850,000, some $750,000 is akeady
the property of the State. It is the money now
earned belonging to the State, and but for the
fault of the, Company it would now be in the
Treasury of the State, or would have been ap
plied to the payment of the State debt.
Now, sir, what right has this Company to pay
for these bonds, not with their own money, but
with the money that belongs to the State? Is
this Legislature to sanction this proceeding, and
to say to the Company that they shall make
profit out of their own delay ? Having litigated
this case in the Courts of Pennsylvania, they
carry the'proceeding to the Courts of the 'United
States. They there set up a defence upon the
ground that this tax interferes with the right of
transportation between States. And now, after
the money is earned, when every reason that
can apply in "equity or otherwise calls upon
them to pay over the money, they propose to
take it out of their own pockets with one hand
and put it in with the other !
Now, sir, I am not opposing this bill particu
larly in its entire length ; but I. ask the mem
bers of this Legislature whether they come here
prepared to vote this, thing through as it stands.
I ask them to consider whether this is not an
unreasonable demand at the hands of this Com
pany. It is not enough that we are to give to
up $850,000 a year out of the Treasury of the
State, but we must add $850,000 more, which
now belongs to the State, and of which the
Company stands onlyas trustees. •
They stand as a debtor with this money in
their hands—a perfectly . solvent Company—
with judgment for a part of it and an execution
—money that can be collected, every dollar of it.
They have extended the amount to $850,000.
The amount already due is, I believe, $761,000.
This money belongs to the State. And, sir,
there is another question whish is raised here,
Which this Legislature should consider. The
money is already earned. It is the, money, of
the State in the hands of this ComPany, as a
trustee, aqd by the terms of the constitutional
amendment, it is already appropriated to the
payment of the State debt. By what authority
can we appropriate it in the manner proposed in
this bill?
Do gentlemen say that this is a fund in liti
gation ? The Company can not pretend, sir, as
to a part of it, that they have a defence 'against
it, for it is already a definitive, judg
ment, on a portion of which execution has
issued, • and for , the balance of which ex
ecution may issue at any moment. Now I
appeal to the members of this House that, by
such a disposition as is here proposed, of that
money due, they place themselves in direct op
position to a constitutional enactment. This
constitutional objection will bring them and
this bill in.review before the Supreme Court of
this State, upon the ground that the money is
already approy tie I ; 1-1 belong= not to us to
be thus dispoied of. lc is not within the con
stitutional power of this Legislature to appro-
plate this money in a
that which the law ba.-:
Now, why should this
enough to this Company wh , ::;
lug, execution and compvi]in_: t
this money in cash to the Shit , v, ,
to make their own arra`l . 4oni, •
o , mpanies and to pay it to then
those companies may agree.
It might be a question
would have a right to divert the
purpose, even when the bonds \\,:
our hands, for the reason that
the Legislature would he
of the Company for the ca,h air. , i.
ated to the payment of the .:•zat •
should have been already in the
Now, I think my proposition i s
able ; and if the Legislature
measure of this sort, let them sir ti;
ney belongs to the State and nr:;:t
State purposes and to the paym.:'
debts. Neither equity nor any pr:,
will constitute a valid defence wF,•
tribunal to which we must all an-,
be demanded of us by the
monwealth why we have giNtq l
money to a corporation alr,afi
largely to control the
Mr. ABBOTP. The gentl. mu. 7 - 7
ing (Mr. Anamoso) has att, nr,,c,
marks before this Legislahtr•' t
Pennsylvania Railresd Company
tage of the plea which they hay;
defence for non-payment , 11 the
nage tax to which he has ae,•,„l,
we all know that the amount. sh,'
specified, or near that. has certain;,
is by form of law due to
Commonwealth. We kno
Pennsylvania Railroad company ~-.!
against its payment. They have i : . z
non-payment on grounds of eqc,h7
has been deemed to be a very t I
able inference from a certain soli -%
of 1851—the Act for the sale of C.• .
of the Public Works. It will he fr:, ; !
that inconsideration of the pureh.l ,, .
Line by the Penna. , Railroad co in ‘.ll.
of $7,500,000, and in view also 4 .f
al payment $1,500, the company w
to be released from further payment
nage tax, but, that their property Iva
empted from taxation:for State r:rp,
sir, it is a fair inference that that
had reference particularly to a corn;.
the State in consequence of thy' r• :.
the company's property from Stat. ,
that a 4 the purchase by this Cn_oinp,
Main Line of the Public Work,:,
all claim on the part of the Common
the ground of competition, thort.o.
in justice, in equity, the claim of t
wealth for the tonnage tax ought to
Now, sir, there was no fault f un
Act. It did clearly propose to roloa• •
lyand at once the Pennsylvania I ail
ny from all further tonnage tax : 1
consequence of that Act going still
proposing to release the property
we well know that the Act failed t• ,
approval of the Supreme Court, it
unconstitutional and invalid.
But, sir, I ask does the decislo:.
necessarily or properly apply in
payment of the tonnage tax ? It
or pretend to decide that the r. !
Commonwealth of Pennsylvania ~ f
tax to the Pennsylvania Railroad i•
unconstitutional, but merely that t I
the Company's property from the 0.
tax was unconstitutional.
Now, sir, the gentleman. from
thinly begs the whole questi,.!
once to condemn, without a
this very justifiable plen m h v.
nia "Railroad Company has srt y
he asserts also that this case is
Well, sir, I am not so clearly c 1.% .1. ,
gentleman from Lycoming that OW.
tided properly. lam not at all au:
the , Company have not recourse tf ,
banal ; nor am Lsure at all that the
the tribunal will not be in favor of
sylvania Railroad Company. I t
sir, that a very good case could U. , n
favor of the Railroad Company an
constitutionality of this tax.
But, sir, at all events, this mail ,
pute, and this bill proposes to settl,
in a very amicable and just munn : .
hand, and in a manner far more
the interest and dignity of the
than insisting upon a continuane ,
meat of this tonnage tax. I az..1,.
that provision in the Act for th
stain Line of the Public Works
plained, when -that Act proposes t ,
tonnage tax, except it be on thy.
the claim of the Commonwealth, ;%Li
ted in view of competition, w.m
ed, there being no longer any rump.'
again I ask, why should this
press severely upon this amp any
upon the very last dollar ? \Was ti
went, the purchase of the puitli ,
exceedingly attractive ? Was it ilot
cony investment? Did not the oc
off the hands of the Commonweal'
worthless property but an actual
sir, it is well known and underst.—
public works, continuing in posse--
Commonwealth, constituted a grit-, t
political and moral curse. Does
tend, on this floor, that those work
one half of 57,6004000 to any part i e .
Pennsylvania Railroad company
that to them only in consequent: , 1 , ! .
liar position.
Now, sir, I have no objecti“l..,
monwealth availing itself of the pe.
cities and position with reference 1, ,
works of the Pennsylvania Railroad
insist, in all equity and justice, tit
pany shall have the benefit of the T
that tonnage tax, when all cowl ,
ceased between the operations of t'll3
and the State works.
Now, sir, this is the plea; this I- t
set up. There is no disguise ;
tempt at disguise. We clearly sly
the .commutation of the tonnage
back to the period of that Act. I
we ask in the bill. The gentian;: :
coming (Mr. Anassraoso) declart , t
very unjust; that it is wrong,
see the matter in a very different
that in which it is viewed by the
from Lycoming. I see nothing in ti
tion in behalf of the Pennsyiv,i;
Company, that is not absolutely jut
right, not only equitable but hi,:
tageous to the interests of the Conn.
I will, further say that even if th!'
cannot be 'convinced of the prop'
measure, at ler&t the body of the
this House are convinced—by rell•
the reflection of .a moment ; but I t
the decision in favor of this measur ,
stilt of.years of reflection. Ido not
at this session of the Legislature,
my mind summarily upon this P t
upon the general propositions contai
bill. I have revolved them over and .
in my own mind in view of the br :
volved in the case, the law involve
so far as I oan comprehend it, an , '
dally the equity of the case, the
in view of the State policy, in view
interests of the Commonwealth and t
terests of the country ; and I come
session, honestly convinced that
propose a proper, an equitable, a j . :-
ment of these ifferences which .1
issue ; and I do trust that this just
subject, this generous and proper
amicable view, will be taken by this I
that the gentleman from Lycoming
concur in it.
I feel, air, that thepolicy which 11:,:
has been pursued - in Pennsylvani 3,
ence to her public works, has been L
ID