The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1878-02-24

information were practically accessible.
Mr. Duncan expressed willingness on /
behalf of his company to allow every facil-
ity, by the examination of tie books |
o. the company at Mobile or otherw Sc I
of inquiring into and ascertaining fully and |
definitely. the cost of said road. and the earn |
ings and expenses thereof and your commit
tee know OF no means of certaining such
facts definitely, except by the appointment
of commission by the Governor, by and with
the advice and consent of The Senate, whose
duty 1t shall be to visit Mobile, and make
thorough examination of the books of the Mo
bile and Ohio Railroad Company and report
10 the Governor whenever such examination
shall have been concluded the result thereof.
for such action as the Legislature of the State
may in future deem necessary.
| Third. As to to the suits now pending In 1875
tax sought to be collected by the Sheriff
| of Lauderdale county on the road bed and
| lands of said company for the year 1874 The
NJ & O. K. K Company enjoined the collection
| of said tax, claiming that ali the property of
! said company was exempt from taxation. The
State de hurried to the bill, and the demurrer
was sustained. The company prosecuted an
| appeal 10 the Supreme Court and the Supreme
| Court held the road bed and property of the
| company necessary to the operation of the
road was not subject to taxation under the
| third section of the charter of the company,
| until it shown that that triton of the
road ying within this State was paying eight
| per cent interest upon the cost thereof; but
that the detached lands of the company not
| necessary to the conduct of the business of
the company, were not exempt from taxation.
The decision of the Court below was revers-
Il ed. The State then answered the bill. and
filed cross bill the nature of bill of discov-
cry. To this the company demurred and at the
same time filed exceptions to the answer.
| Upon the hearing of the demurrer and the ex-
| ceptions, the Chancery Court of Lauderdale
county overruled the demurrer and required
the company to answer the bill of discovery.
AS to the exceptions, they were, IN the main,
Cd Thn y hos of
swered the cross bill. In the mean time, pend
: ing he litigation orr glnating in the Chancery
Court Of Laudnrdale county, upon an attempt
being made by the Sheriff of Lauderdale c0un-
ty to collect the privilege tax assessed against
the company, said company filed bill of in
junction 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 Supreme Court. Neither
of said injunctions has been dissolved, thouQ b
either would doubtless be modified upon mo-
ton so to allow the collection of taxes upon
the detached lands of the company.
| Fourth. AS to what offers of compromise
has been made by said company.
1 Mr.. Butler Duncan, President and Receiver
of the company, has made the following offer
: of compromises
To pay to the State the sam of TWEEN.
ty-fve thousand dollars, if the State will re-
: ceive the same in full of all taxes of every
kind assessed against said company, its road
bed, lands, and all other property. for the
!, year 1874 1875, 1876 and 1877, and said roac
agrees that all its detached lands shall be re-
e assessed during the year 1878 and shall in flu.
l ure be subject to taxation other lands in thi:
: State, and to dismiss all its suits pending, in
reference to the taxes Tor said years. and pay
all the Court costs thereof
Your committee recommend the acceptance
of said offer of co npromise. Whilst it is
y small sum compared with the amount of take
9 assessed for said several years, yet your com
= mittee are of the opinion that it is grea
u point gained by the State to have the lands o
= the company placed upon the assessment roll
Il to bear taxes without question for the future
: and thus end all litigation with said compa
81 ny touching the question of the taxes on sait
= lands, which litigation may be greatly pro
- | tracted and result in considerable expense t.
- the State.
u A bill has been drawn embodying the point
} of said proposed compromise, and has alread,
/ been introduced in the Senate and your com
: mittee recommend the passage of the same
q JNo. W Jewell,
/ Chairman on part of Senate
IL JOHN P SEABRooK,
!. Chairman on part of House.
~ Committee under resolution and liability O
u Mobile and Ohio Railroad to taxation:
Il VIM. Butler Duncan being duly sworn de
poses and says: Il am President of the Mo
g bile and Ohio Railroad, Trustee of the frs
Ii mortgaged bonds ofsaid road, and have bee
in possession of the road as such Trustee, an
i as Receiver of the United States Court sine
= May 1875. | have some data from which
" am able to state the cost of the construction G
- said railroad. | refer to the report of the Re
~ ceiver to the company made for the fiscal yea
- ending the first day OF September, 1877, c
the operations of the road for the present year
and contains statement of the cost of tn
entire road. [ herewith hand the report t
the committee. From that report the origina
cost of the road, without estimating value
lands, town lots, ETC., was S1S, 126, 865 81 TIL
includes branchas, rolling stock and all othe
= property except lands and town lots. [ refe
} Particularly to schedule Is of said repor
From information and belief | would stat
lie that the cost of the road within the State
Y. Mississippi at its completion in 1861, exclu
ie ding the branches, and including the proper
ton of rolling stock belonging to that porto
t. of the road to --- have been al that dat
J. near can be ascertained. thirty thousan
dollars per mile. The road bed, superstruc
al ure and permanent works, up to the compile
V. ton in 1861 cost about twenty-five, to twenty
six thousand dollars per mile There are Ii
of miles of the main line in MississiI
il pi. The road has never paid any div
idend. The only profit of the road we ca
l. estimate is that earned since the war. Th
~ cost of constructing represented to tn
- best of my knowledge, by first and secon
., mortgage bonds and by stock and subscriI
y tons. The first mortgage bore six per cen
= interest; the second, eight per cent. interes
The first mortgage bonds were originally req
IL resented by income bonds bearing eight pc
~ cent. interest. No interest ever paid o
these bonds, to the best of my knowledge, til
tie 187O-then it was paid for 1870 1871, 1872 an
1878; they bore six per cent. in crest, an
o. the interest was paid in about 100000 a
Y together including coupons of interest funde,
The interest on the second mortgage bond
ID were only paid for very short period
cannot state how long. There were abor
D 81 100000. The interest on the second NOR
I'd gage bonds was paid in 1878 Taking til
whole first mortgages belonging to MssissiI
a. pi it would be about S5,5c0,000 to which ha
:, to be added the funded interest from issuanc
80 to 1870. The proportion of the second NOR
- gage bonds would tie about 81 900 600.
-. cannot give the gross or net earning fc
u any year previous to 1866. I fur nish yo
with statement of the gross earnings an
expenses of operation and maintaining
that portion of the road in Mssiss ppi, til
Ga road for all the years, and since 1866. As
- ,ri rs I urdnrSt % ii tn far