The daily state chronicle. [volume] (Raleigh, N.C.) 188?-1891, 1890-04-20
THE TAX INVESTIGATION.
THE NORTH STATE IMPROVE.
MENT COMPANY,S AFFAIRS,

NJ EN- tOM "A II = SAFFAlKS.
Col. Julius A. Gray, Vice. e-President of
the Company Before the Committee
Further Facts About the Raleigh and
CASTOR ROad--.As Stated by Major
Winder, General Manager.
The railroad and corporation investi
CATION committee met at 9;30 yesterday
morning. The first business taken up
Was the examination of the North State
Improvement Company. Col. Julius
"A. Gray was present to represent that
company and was examined by the At
torney General for the State
He stated that the North State I'm
provement Company was organized in
1885, at Greensboro. Mr. John D. vii
iiams, OF Fayetteville, is president. l
ana the vlce-president. Mr.. ". H. Nc
tariand Is secretary and treasurer. It's
capital stock is $780, 900, all paid up.
The object Of the company was to buiid
the G. +. y 7. Y. road. None of the
stock has never been offered for sale
| and IL has no market value. 1t has
| never paid dividend, and the stock
holders have never received any profit
on their investment. The stock has
| prospective value. The North State
improvement Company bnilt the G. F.
& \. '. road under contract with that
company, for which the Improvement
Company was to receive $40, 600 per mile
OF first mortgage bonds of the
road. The road has been completed in
three divisions, and the first mortgage
bonds OF $4,000 per mile have been
issued to the North State Improvement
company. The bonds for the first di-
| vision, from the South Carolina line to
Greensboro, amounting to t,500,0 900,
| were sold at 50 cents, with accrued in
terest. The bonds for the second di-
vision, from Greensboro to Mt. Airy,
amounting to 1874, 900, were sold at the
same price. The bonds from the third
| division, from Fayetteville &c Whining
ton, amounting to $3.50, GOO, We're sold
at par, with accrued interest. The
North State improvement company
bought the States stock IN the q. f. &
| 7 Y. road at $40 per share, and the
company nov pays that for any share
wnicn il holder may wish to il. This
may be regarded aa the market value OF
the stock. The Improvement company
pays no tax, except upon lis real estate.
lAla real estate Is such as has been do
Lated to the company. Ali the moneys
received from the sale Of bonds, ana all
ti.e moneys subscribed by various town
sbips II the company, the latter
amounting to S2a 00G, we're spent ii
| thA az Of II,
roa4. The capital stock Of the Improve
meut company was also spent for th
purpose,
Under the contract with the railroa(
: company, the North State Improvement
: company is to receive IS, 600 per mule il
second mortgage bonds, in addition t,
: the SO, 600 per mile OF first mortgag
bonds. All the first mortgage bond
have been received and sold. The Nortl
| State Improvement company owns til
: majority Of stock IN the &. I. d 7. y
road. The Improvement company, ha
! lot listed any Of its stock for taxation
1erause the company>s indebtedness ha
always exceeded tie yaine Of its stock
:, ani the Revenue Act prov ies that i
= tlsilng stock for taxation the amount {
liabilities may be deducted from Tia
= amount Of assists.
Tie North State improvement Con-
pany has subscribed s25. coo tc IL
! i,rt eusboro Sleei and Iron Company
= Dut none OF Gbo amount has yet bee
II paid up. There was some objection 0
Il the part Of some CT the stock oiders
J Improvement Company TO making tn
supscri ptlou, because it will be necessaf
10 t,,,f
IL Was finally deciied to make the sui
IS scfiption hoping that the estahishmeI
/ ot the iron works at Gregnsborc woul
a enuaace the value of the railroad pro-
efty and help to increase its frelg
'e and transportation business.
u The railroad does not claim any e.
D. emption fcom taxation. It's franchi se
ID stock &c. arc !;e..e,l az! tie taxcs pa
III on them.
10 The II. 4 q. Again.
d The CHRONICLE yesterday gave q +
port Of the examination of Maj w. '
Vass, secretary and treasurer CT Fl
Raleigh and CASTOR railroad. Tod;
it gi,es the facts stated by Major Win
t. er when ans 2eriug questions before Il
n committee.
Nv 1t is cf course understood that Il
to business OF this committee Is to ma
an Investigation of the, various railroa
and corporations in the State. With II
view TO determining which, if any, sh
1t pay taxes to the State.
s. A spirited contest is being made
- the r. & G.. company against payi
any tax The situation may be und
Ills stood by stating case now pending
ID the Wake superior court. It is as
Ills lows:
mo 1t is suit brought by State Treasu
.t Balm against the Raleigh & Gas
a'e Railroad company for the payment
the eighty six thousand two hundred 6
1ey fifty dollars 1886, 25O), which the ST
ce. claims is a certain tax due the st
ITS. from the Raleigh i CASTOR RaiIr'
ces company.
[m- The conditions under which the S
his was brought are presented as follows
ne. The charter Of the railroad compa
ON which is part of the laws of 1852
rtv provides that all property Of the r
but of every description shall be veste6
the company, one-half for the use
benefit Of the State, and one-half
the benefit of the individual stockht
ers; and that all the property shall
ia, exempt from taxation for a period