returning nearly as large an income,* makes this great movement at a charge per ton per mile of a little less than one-third of the usual charge on local movement in this state. The charges on the road referred to and on eight Massachusetts roads are set forth in the accompanying table. TABLE No. 4. Average Rate per Ton per Mile in cents on Freight moved in 1869. The Boston & Albany road should be included in the table, but unfortunately this company does not discriminate in its returns between earnings from through and local freights. Its average charge per ton per mile on its entire freight movement in 1869, was 2.43, or 41 per cent. above that on the Pennsylvania road. No reliable conclusions, however, can safely be drawn from such a comparison; that here drawn by the commissioners is probably correct, but, while one state has a through produce or transit business, or a coal traffic, or a large manufacturing population, which another has not, it is impossible to argue certainly from the one to the other. * The following are the exact figures in the two cases referred to : Deducting from the totals of the Massachusetts system 22 per cent., as representing the amount properly to be credited to portions of the roads lying in other States, the entire railroad system of Massachusetts proper will be found to return a tonnage movement of 351,914 tons, and a gross earnings of $1,890,172 more, than the Pennsylvania Railroad. The case stated, however, fully serves to illustrate the distinction between the municipal and the transportation tax which the commissioners desire to point out. The larger the aggregate of the municipal tax, the heavier the burden imposed by it on the production of the state; while, on the contrary, the higher the total of the transportation tax rises the greater is the volume of business and the lower are the tariff rates probably indicated. The municipal per capita and the transportation per capita in Massachusetts are each about $13.80 per annum; the first is 30 per cent. higher than the per capita of New York and 64 per cent. higher than that of Ohio, while, as regards cities, the per capita tax of Boston is 35 per cent. higher than that of New York, while that of Philadelphia is but 40 per cent. of that of Boston. A sufficient reference has already been made to the per capita transportation tax in this state; so far as any deductions can safely be drawn in regard to it, it would seem to be nearer the average of the whole country than should be the case in so busy and thriving a community. In any event it is safe to say that, taking the two together, a very heavy and oppressive burden is imposed on the annual production of the state. To reduce it is simply to give the Massachusetts manufacturer an equal chance with others in the common market. Meanwhile, so far as the ultimate effect is concerned, in the impetus given. to production, a reduction in the municipal tax or a reduction in the transportation rates operate in exactly the same way. A reduction on an average of 20 per cent. in existing railroad tariffs throughout Massachusetts would probably, though it might decrease net earnings, double gross earnings, which are the aggregate tax, and have much the same effect on the prosperity of the Commonwealth as doing away with the whole state tax. With the municipal tax this board has no concern.* The * In preparing this portion of their report the commissioners were most kindly and liberally furnished with statistics on the subject of taxation in this country and elsewhere, by the Hon. D. A. Wells, head of the commission on revision of the revenue laws of New York. As these figures will appear in the forthcoming report of the New York commission, it has not been judged necessary to use them here. They reveal, however, the startling facts, that, while on a per capita of taxation, Massachusetts is probably the most heavily taxed state in the Union, Boston is unquestionably the most heavily taxed city in the world. returning nearly as large an income, makes this great movement at a charge per ton per mile of a little less than one-third of the usual charge on local movement in this state. The charges on the road referred to and on eight Massachusetts roads are set forth in the accompanying table. TABLE No. 4. Average Rate per Ton per Mile in cents on Freight moved in 1869. The Boston & Albany road should be included in the table, but unfortunately this company does not discriminate in its returns between earnings from through and local freights. Its average charge per ton per mile on its entire freight movement in 1869, was 2.43, or 41 per cent. above that on the Pennsylvania road. No reliable conclusions, however, can safely be drawn from such a comparison; that here drawn by the commissioners is probably correct, but, while one state has a through produce or transit business, or a coal traffic, or a large manufacturing population, which another has not, it is impossible to argue certainly from the one to the other. * The following are the exact figures in the two cases referred to : Deducting from the totals of the Massachusetts system 22 per cent., as representing the amount properly to be credited to portions of the roads lying in other States, the entire railroad system of Massachusetts proper will be found to return a tonnage movement of 351,914 tons, and a gross earnings of $1,890,172 more, than the Pennsylvania Railroad. The case stated, however, fully serves to illustrate the distinction between the municipal and the transportation tax which the commissioners desire to point out. The larger the aggregate of the municipal tax, the heavier the burden imposed by it on the production of the state; while, on the contrary, the higher the total of the transportation tax rises the greater is the volume of business and the lower are the tariff rates probably indicated. The municipal per capita and the transportation per capita in Massachusetts are each about $13.80 per annum; the first is 30 per cent. higher than the per capita of New York and 64 per cent. higher than that of Ohio, while, as regards cities, the per capita tax of Boston is 35 per cent. higher than that of New York, while that of Philadelphia is but 40 per cent. of that of Boston. A sufficient reference has already been made to the per capita transportation tax in this state; so far as any deductions can safely be drawn in regard to it, it would seem to be nearer the average of the whole country than should be the case in so busy and thriving a community. In any event it is safe to say that, taking the two together, a very heavy and oppressive burden is imposed on the annual production of the state. To reduce it is simply to give the Massachusetts manufacturer an equal chance with others in the common market. Meanwhile, so far as the ultimate effect is concerned, in the impetus given. to production, a reduction in the municipal tax or a reduction in the transportation rates operate in exactly the same way. A reduction on an average of 20 per cent. in existing railroad tariffs throughout Massachusetts would probably, though it might decrease net earnings, double gross earnings, which are the aggregate tax, and have much the same effect on the prosperity of the Commonwealth as doing away with the whole state tax. With the municipal tax this board has no concern.* The * In preparing this portion of their report the commissioners were most kindly and liberally furnished with statistics on the subject of taxation in this country and elsewhere, by the Hon. D. A. Wells, head of the commission on revision of the revenue laws of New York. As these figures will appear in the forthcoming report of the New York commission, it has not been judged necessary to use them here. They reveal, however, the startling facts, that, while on a per capita of taxation, Massachusetts is probably the most heavily taxed state in the Union, Boston is unquestionably the most heavily taxed city in the world. figures concerning it are adduced here simply for purposes of illustration. The discussion of railway charges is of at least as much consequence industrially to a people as the whole ordinary question of taxation; but, in discussing it, the object the community should ever keep in view is, not to reduce the gross amount it pays, but so to regulate and dispose of the burden as to enable it continually to pay more. The commissioners desire, therefore, to remove in the outset any false, though perhaps popular impressions which may exist in regard to what they have here designated as the transportation tax. They are very far from implying or believing that it has been exacted for insufficient services rendered, or that it ought to be or ever can be abolished. On the contrary, it is a payment which has been cheerfully made in compensation for services of inestimable value. Unless, however, both the nature and the magnitude of the burden are clearly understood, it will be impossible to appreciate the prodigious relief and impetus which any sensible reduction of rates must afford to Massachusetts. Before entering into the discussion as to what, if any, reduction is possible and how it could best be effected, it may be well to examine into what has been already done by the railroads looking in this direction. In order to do this the commissioners have gone back over a period of ten years. The subjoined table (No. 5) shows the rates, according to their own sworn returns, at which several railroad corporations have transported passengers and tons of freight during each of the years between 1861-70. The results do not indicate any material reduction, and, in many cases, a decided increase. The table, however, is not satisfactory, as no distinction is made between through and local business as regards freight; and, as regards passengers, the package and season ticket business, which has vastly increased during the period taken, tends also to vitiate the result. With a view to arriving at a more exact comparison, the commissioners were very anxious to analyze the past returns, dividing earnings between through and local business, and thus ascertaining what had been the charges for each. It was found, however, that certain corporations, particularly the Boston & Albany, whose returns they especially desired to analyze, had failed to apportion their earnings in the method prescribed in the printed forms. The accompanying table, (No. 6) nevertheless, |