The daily state chronicle. [volume] (Raleigh, N.C.) 188?-1891, 1890-04-22

So0oiHS Ola pof ctllt. OHtler tNe COQO1-
tons of the Revenue Act, the North
Carolina road presents for taxation
about $1,000 including the rolling
stock, amounting to about $114,OO
The real estate held for right of way,
for depots and for workshops is not
taxed, and the machinery connected
with the workshops is not taxed. The
value of the real and personal property
outside OF the right of way is about
Sl5O,OOO. The capital stock of the road
$4,000, 900.
At this point the examination became
! little tangled and irregular. The con-
fusion arose over Maj. Graham's state
ment that the road, under its charter,
presented $4,000 for taxation. Tho
Attorney General did not think this
amount large enough for taxation, and
al immense lot of questioning and figur-
ing was done. But with al! the cues
tloning and figuring no clear conclusion
Was arrived at. 1t appears that there
| is a provision by which the road bed and
franchise are exempt from taxation.
The value of these two items deducted
from the amount of the capital stock
OF the roads leaves the proper amount
OF stock to be returned for taxation.
The value of the road bed as at the
official assessment of $12, 500 per mile is
81 784 500: the value of the franchise is
$248, 900. These two amounts added
and then subtracted from the amount
of the capital stock, leaves 1907, 500.
Add to this the value of the rolling
stock which is $114, 900 and it appears
that the proper amount for taxation is
$1.0S1, 500; whereas Major Graham
stated that the amount actually re-
turned was $500 900. But Major Ora
ham also stated that some of the stock
was held by non~residents of the State
and was not returnable for taxation, and
it will be noticed also that Secretary
Ruffin stated that about one third of
the individual stock is held By non
residents.
Under the plan mentioned above, it
will be seen that the higher the assess
| ment of the road bed is, the smaller will
be the amount to be returned for tax
alton. The Attorney General expressed
| the opinion that there had been gross
| abuse in the matter of assessing the
| value Of the road bed so high, that the
| taxable returns might be reduced, and
| cited various other roads in the State on
which the valuation ranged from So, 900
t. so 900 per mile. Major Graham
AID oil. Holt affirmed that the road
b7,! Of the North Carolina company had
Cos. $50, 900 per mile or more and was
the best roadway in the State; and their
opinion was that the assessment Of the
read bed was little enough.
Col {. NJ. Hot, president OF the
| North Carolina road, made a statement,
in VII ch he said that this read was dif
ferent from most roads, inaSmuch as the
State owned nearly three fourths Of the
stock, and the directors had always trieC
to look after the best interests Of the
State as well as the interests Of the pri
vate stockholders. The State issued
! bonds Tor the money for building the
road and expects the company to pay
the interest on them. The general as
sembly has made no provision for the
payment of this interest, and it must be
paid from the earnings of the road. The
provisions of the charter exempted the
road from taxation till it should be able
20 declare dividends in excess of six PEI
cent The fact that the road receives g.
per cent. as rent on its capital stocl
does not justify it in declaring a diyi
dend in excess of six per cent, for it ha
been necessary to pay out the excess o
per cent for salaries, and toward th
liquidation Of the old debts Of the road
Col. Holt emphatlcally disclaimed an.
, disposition on the part of the road to 81
divert it's receipts as TO prevent a create
dividend than six per cent, and ais
that the company had never attempted
, any evasion Of taxation. Col. Holt, il
making reference to expenditures, extra
ordinary, said that one special thin;5 tn
: road had to do was to build a depot i
' Raleigh. It was something that was dc
manded by the people Of the whole Stat
p almost. The present structure here wa
q a disgrace to the railroad company an
: to the State, AID was an insult to th
good people of Raleigh.
: This closed the work for the day
+ Chairman Kerr arrived aud joined tn
9 committee short whiie before ad jourI
q meut
O The committee will meet this mornin
promptly at $50 o'clock, when the e.
+ animation of the Raleigh & CASTOR raj
+ road will be esumed.