The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1878-02-22
THIRTY-NINTH DAY.
SENATE.


THURSDAY, February 2l, 1873.
Senate met pursuant to adjournment.
Lieutenant Governor SIMS in the Chair.
Prayer by Rev. w. II. Watkins. Roll call
tREsENT-Messrs. Allen, Barry, Bills,
Bridges, C..lllcott, Carter 1st District, Car
t.r 9th District, Cowan, Dowd, Parish,
Fewell, FitzGerad, Foote. Furlong, Gayles,
Gibbs, Gilbert, Grifti1, Hooker, jackson,
King, Lanneau. Lee, Lowrarce. McCaskill,
Reynolds, Rogers, Terry, Thompson, Vance
and West--36.
ABsENT--Mr. Currie--1.
The privileges of the Senate were ex-
tended to Hon. j. G. Hall, Of Pamela.
S. B. relating to excessive charges Of
railroads was taken zap. The Committees
substitute was adopted. number of
amendments were adopted and the bill
passed. Yeas, Is; nays, II; absent. 6.
REPORTS.
Reports were made from nearly all the
standing committees.
Mr.. DEMONSTRATIONS joint Special
Committee appointed by both Houses I'M
der joint resolution and thereby instruct
ed 10 ascertain and report certain matters
touching the Mobile and Ohio Railroad, tue
cost of that portion of said road lying in the
State Of Mississippi, the earnings OF su III
portion since the year 1874, and other mat
spectiully report that they have considered
the same and beg leave to report ds fol-
lows:
l. As to the cost of that portion of said
Railroad lying in this State, your commit
tee have not been able to obtain any inor-
nation except that contained in the sworn
testimony of w. Butler Duncan, President
and Receiver OF said Road, who came before
your Committee and was examined. Said
testimony, with certain documents furnish
ed by Mr.. Duncan to your Committee is
herewith returned. From that testimony
it would appear that the cost of that por-
ton OF said Road Wing in this State, up TO
its com pletiou in 1861, and Including only
the road bed, snperstructure and permanent
works. was over six million eight hundred
thousand dollars.
| 2 As to the earnings since 1874, your
Committee have not been able TO get other
| inform alton than the testimony OF Mr.. Dun
| can, and the documents and exhibits 1u"-
| nshed bv him, and which are here with re-
| turned, and which are referred to as part OF
| this report.
| Your Committee are not able to report
more definitely because of the lateness OF
| the session, and the fact that no other sOurcs
of information were practically accessible.
Mr.. Duncan expressed a willingness on be-
half of his company to allow any facility 10y
the examination of the books of the compa-
! ny at Mobile, or otherwise, of inquiring into,
and ascertaining fully and definitely
the cost of said road and the
earnings and expenses thereof; and
your Committee know of no means of as
| certaning such facts definitely except
by the appointment of Commission by the
Governor, by and with the advice and con-
sent of the Senate, whose duty it should be
to visit Mobile and make thorough exam
nation of the books of the Mobile and Ohio
Railroad Company, and report to the Govern
or, whenever such examination shall have
been concluded, the result thereof for such
action as the Legislature of the State may
in the future deem necessary.
3. As to the suits now pending. In 1875,
a tax was sought to be collected by the
tSheriff Of Lauderdale county on the road
bed and lands of said company for the year
1874 The Mobile and Ohio Railroad Com
pauy enjoined the collection of said tax,
claiming that all the property of said COM
pany was exempt from taxation. The State
demurred to the bill and the demurrer was
sustained. The company prosecuted and
appealed to the Supreme Court. and the
Supreme Court held that the road bed and
property OF the company necessary to the
operation of the road was not subject to
taxation, under the Sd section of the char
Ter of the company until it was shown that
that portion of the road lying in this State
was paying s per cent. interest upon the
cost thereof, but that the detached lands of
the company not necessary TO the conduct
OF the business OF Tue company were not
exempt from taxation. The decision of the
court below was reversed. The State then
answered the bill and filed a cross bill in
the nature of bill of discovery; to this
| the company demurred and, at the same
time. led exceptions TO the answer. Upon
| the hearing of this demurrer and the
exceptions, the Chancery Court of Lauder
dale county overruled the demurrer and
required the company TO answer the bill of
discovery. AS to the exceptions, they were in
the main Overruled. The company have not
yet answered the cross bill. In the mean
time, pending the litigation originating in
the Chancery Court OF Lauderdale county
and upon an attempt being made by the
sheriff of Lauderdale county to collect the
privilege tax assessed against said company,
said company filed a bill OF injunction in
the United States Circuit Court, for the
Southern District of Mississippi, against the
collection of said tax. The said Court decided
the case upon the same basis as the decision
OF our Supreme Court. Neither of said in
| jurctiOns has been dissolved though either
would doubtless be modified, upon notion
so as to allow the collection of taxes upon
| the detached lands OF the company.
| 4. Is to what offers OF compromise have
| been made by said company. Mr.. w. Butler
Duncan, President and Receiver of the COM
pany has made the following offers of COM
| promise, viz:
To pay the State the sum of twenty-five
thousand dollars Il the State would receive
the same in the full of all taxes of any kind
assessed against the company, its road bed,
lands and all other property. for the years
1874 1875, 1875 and 1877, aud would agree
that all of its detached lands should be re-
assessed during the year 1873, and should in
future be subject to taxation as other lands
in this State; and to dismiss all of its suits
pending in reference to the taxes for said
years, and pay all the Court costs thereof.
You committee recommends the accept
4 of n
| it is a small sum compared with the amou MT
of taxes assessed for said several years, yet