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At a Railroad Convention held at Columbia, S. C., 13th
April, '64, the following resolution was adopted: |
| Resolved, That the chair appoint a
committee of three to memoralize
Congress on the subject of taxation imposed on railroad companies,
asking, at their hands, that the railroad interests be placed on equal
footing with other leading interests of the country. |
| Under the resolution the chair appointed
as the committee, Hon. John P. King, William Johnston and Thos. C.
Perrin. |
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Memorial
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To the Honorable the Senate and House of
Representatives of the Congress of the Confederate States of America:
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As a Committee, appointed by a general convention of
Railroad delegates, we respectfully memoralize your honorable body for
relief to that interest. We ask relief from the unjust bearing and
oppressive operation of the "Tax Act" of February last.
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It is not our purpose to discuss the proper
interpretation of the law. Various interpretations have been given to
it, and upon its true construction a general concurrence of opinion is
hardly to be expected. But whatever interpretation may be given to the
act upon disputed points, it contains one uncontroverted feature, very
oppressive to the interest we represent, and against which we most
earnestly, but most respectfully, remonstrate. The objectionable
feature is that of inequality. We respectfully submit that the
eye of the statesman should view the nation as one great family, with
equal rights and equal duties, and equally entitled to protection
under the law.
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We will not encumber this memorial with extracts from the
tax law of the 17th of February. Your honorable body is referred to
it, and will have it before you. Suffice it to say, that by a
difference in the currency and as the basis of valuation; a
discrimination is made against shareholders in associate capital, very
unjust and oppressive, and not warranted by any sound principle of
legislation, or justified upon any principle national justice. Under
the provisions the law as construed by official authority, your
memorialists, as shareholders in railroad operations, are subjected to
a tax from five to ten times greater than the mass of their
fellow-citizens, who have suffered less heretofore and certainly have
no stronger claims to the favor and protection of a common government.
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Why this class legislation? Is there anything in the
character or conduct of that class designated shareholders, that
justified this ruinous oppression? Have they superior ability to bear
heavy pecuniary impositions, or have they incurred the penalties of
outlawry by any demerit of their own? On the contrary, as a class,
they are the weakest and most helpless in the community! They are
largely made up women and children, trusts, estates of deceased
persons; literary, religious and charitable institutions. In short,
largely of that class who invest for convenience of management--not
being able to attend to the business of management themselves. They
have no surplus, their incomes being fixed, they are
impoverished by the depreciation of the currency, and being
non-producers they cannot levy the depreciation on others. We
respectfully submit to your honorable body, that there is no class
less able to bear oppressive discrimination, and perhaps no class that
so little deserve it from just and paternal government. Such is the present
status of shareholders in railroads as a class, extending
it is believed to a majority both in number and capital. |
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Is there anything in the character and object of railroad
enterprises to justify any oppressive discrimination against railroad
property, without regard to the present conditions of the
shareholders? |
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Shareholders in railroads have no dangerous powers
or odious privileges. Original shareholders have been rather
noted for sacrifices to public spirit, than for the spirit of
speculation; and many of them have been summoned to the grave
before receiving any return from an unprofitable investment. Capital
is associated only for the convenience of management, and to gain the
power, by combination, to accomplish enterprizes which are
beyond the resources of individuals. It is obvious, therefore, that
the rights of the shareholder are in no way changed, or his claims to
equal protection at all lessoned by
having his property associated with others. Associated, too, to
accomplish enterprizes of paramount importance the country and
indispensable to the government. We will not dwell upon these
obvious truths. Our object is rather to remind Congress of
facts and principles, than to instruct it in the performance of a
public duty. We ask only that shareholders in railroad companies shall
be placed upon the same footing with the rest of their fellow-citizens
of equal ability to contribute to the common wants of a common
government. |
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In making this claim, not to favors but simple
justice, we respectfully bring to the notice of your honorable body
the following facts and considerations: |
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1st. That no interest except banking Corporations, has
done so much to aid the finances and sustain the credit of the
Government. |
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2nd. That on the first organization of the
Government, the Railroads readily gave up the mail contracts with
the old Government, and substituted contracts with the new, at an
average reduction of more than 30 per cent.! |
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3rd. That they agreed to transport troops and
munitions, and all other property of Government, for half the usual
rates to individuals, which did not repay the cost of the work, and
by which the Government has saved millions! |
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4th. That the Government has claimed, and the
Companies have conceded, a preference, and after the exclusive use of
their roads, greatly encroaching upon and curtailing a more profitable
private business. |
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5th. That Government by seizing and appropriating their
iron has ruined some works and inflicted lasting injury on others! |
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6th. That Government by monopolizing rolling mills, iron
works, and other sources of supply, have deprived them of the
materials necessary for raising and repairing their roads or advance
the slender stock within their reach to most fabulous prices. |
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7th. By a system of seizures and impressments, their rolling
stock has been carried to distant parts and either wholly lost, or
returned in a ruined and dilapidated condition! |
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By these relations with the Government partly voluntary,
partly forced, their roads are worn out, their machinery ran down,
their rolling stock lost or broken up, and both rail and rolling stock
have become unsafe, subjecting the roads to incessant and heavy claims
for damages! Other interests more favored in taxation and more
profitable at present are preserved uninjured with full
productive power in the future. Not so with Railroad property. If
dividends have been made, it has been only because the labor and
materials could not be commanded to keep road and machinery in repair.
Railroads have in reality made no nett profits for the last three
years, and are making nothing now! It would require much more
than the dividend paid, to place the property in the same condition it
was in at the beginning of the war! Having thus suffered in the past,
their prospects are still worse for the future. It will require much
more nett earnings of years, after the restoration of peace, to
restore their property to a condition of safety, usefulness and
profit! |
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Under these views and conditions, it is sincerely hoped
and confidently believed, that your honorable body will not consider
that shareholders in Railroad enterprises, are proper objects
of oppressive class legislation. We respectfully pray that each
citizen may be made to contribute to the wants of the Treasury,
according to his fortune. We ask for nothing more, and justice
requires that we shall have nothing less. |
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We pray your honorable body to so change or amend the law
of the 17th of February, as to impose one uniform ad valorem tax
upon all values, constituting the wealth of the country. And we
further pray that the taxes of valuation shall be upon the
prices of 1860, or some other period, when we had a uniform
standard of value. Or if it shall be deemed advisable to adopt a
different mode of valuation for associated capital to that
applied to other values, we pray that a tax be laid upon the cost or par
value of the stock, compensating for any difference in value, by a
discriminating tax upon incomes, or that such other relief may be
granted as to your honorable body may seem meet. |
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John P. King, Wm. Johnston, Thos. C. Perrin |
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Committee |
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May 9, 1864 |
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