Railroad Taxation

Railroads have long been a favorite source of tax revenue, not only to the Federal Government, but to all of the 48 states. Recently the Committee on Public Relations of the eastern roads compiled some figures on railroad taxation, and made some striking discoveries.

Over the past eleven years, taxes paid by the roads increased 160%, while dividends increased only 10%. Ten years ago (1913), railroads paid out $322,300,406 in dividends, and $127,725,809 in taxes. Last year dividends had dropped to $283,000,000 while taxes had risen to $336,399,000. Until 1920 dividends had exceeded taxes, but that year and every year thereafter taxes have exceeded dividends.

Furthermore, while railroad operating costs are now 100% and over, more than they were at the outbreak of the War, railroad income has during the same period increased only 50%. The railroads have survived this handicap only by increased efficiency in putting more freight in each car and more cars on each train.

It seems to railroad men particularly unfair that much of the money taken from them in the form of taxes has been spent to furnish free rights of way in the form of new roads, to such competing forms of transportation as motor trucking, "Even competing canals have been constructed at the railroads' expense."