The daily state chronicle. [volume] (Raleigh, N.C.) 188?-1891, 1890-04-20

Vioeo tue pronts were equal to eight
per cent.
In 1866 the State ceased to be stock
holder IN the road, having sold all its
interest to the corporation.
In 1889 the Legislature levied the tax
OF twenty five cents on each share of
stock, due from 1868 to 1859. both wears
inclusive; that body being empowered
to make the levy under chapter ZIG.
laws of 1889.
The State believes that the profits of
the company have exceeded eight per
cent per annum during those years The
tax tor each year amounts to 50 750 for
each year during that time. the total for
all the years being 1862
The State claims this amount as law.
fui tax and asks that the railroad com
pany be required TO make a statement
OF its business for the time above men.
toned, that the amount due the State
may be ascertalned and proved. The
capital stock Of the company is ST, 500.
600.
The railroad company answers the
statements made by the State, admitting
all to be true SO far as the provisions of
the charter go; but the company also
says that when the Legislature of 1869
undertook to levy tax of twenty five
cents on each share Of the capital stock,
it was intended that this tax should be
levied against the individual stockhold-
ers to be payable by them. and not
against the company.
The company further claims that it's
profits have not exceeded eight per
cent. for any one of the years mentioned.
It denies the right of the Legislature to
levy the tax
The company presented further that
Wake county had formerly attempted
to collect this tax of twenty-five cents,
when it was shown that the earnings of
the company had not exceeded eight
/ per cent, and the fact had been affirmed
| by the Supreme court.
The company has never declared a
net dividend Of eight per cent. per an
mum, but 1t has aided in building sew
eral branch roads, and there is q qnes-
ton now as to whether OF not the money
applied to these extensions and invest
ments should be considered net proft.
Of the roads as originally chartered.
Major Winder Before the Committee
Major Winder, general manager of th,
Raleigh & CASTOR railroad. was exam
ined by Col Hiudsdale, attorney for tn
road.
i @ Do you know what property
either in the shape of bonds Or stocks
or anything else outside cf its track
that the Raleigh Il CASTOR railroad com
pay owns?
a. They own stock in the Carolin
Central, the Georgia, Carolina & North
ern, the Raleigh & Augusta Air Line
and the Durham " Northern roads.
g. What bonds do they own?
A. They oSn bonds OF the Raleigh ,
Augusta Airline and Of the Carolln
Central.
@ What is the mortgage indebted
ness Of the Raleigh & Augusta read?
, A One million dollars
, @ How much more does it owe?
, A. 1t owes the Raleigh & Castor
large amount. [ do not know ho
much. This is not bonded lndebtet
! ness
@. Are they able to pay the late
; est on their bonds
a. No sir, not ct present.
5 G. Do you know how much it pays
year on its bonds 2
, A. No sir; I know very little abor
f the accounts.
9 @. Have you az idea of what the il
dehtodness Of the Raleigh & Angus
road is2
e A. Ny impression is, that it i 60
siderable over one million dollars.
n @ Do you know the valuation Of IL
u Raleigh and Augusta Air Line road
# made by the board of assessors.
5 A. S263,SO
y @. At what amount was the total cal
it tai stock assessed by the board
y a $43, $50.
Il Q Do you remember the aggrega
d number of shares IN tko Raleigh & A
J. gusta road
It A l do not remember. The Raleis
d Castor owns nearly all OF II.
( @ If understand you, sir, the K
s, eigu & Augusta Air Line railroad col
ii pany pays taxes on al amount far {
ceeding its capital stock
A. Yes, sir.
Q. What amount OF stock is owned
= the Raleigh Il CASTOR railroad compa
'. in the Carolina Central railroad co
-, pany?
> A. Four hundred and tifty-one thol
u and, Seven hundred and ninety-one d
&c lars and eight cents, in bonds a
stocks.
"a @ Do you know what the total nu
10 Der Of shares of the Carolina Cent
q railroad company is ?
~ A. One million, two hundred tho
81 and Dollars.
bv @. Then, perhaps, S2;a ysa may De a
no to state now whether the Raleigh
ar, Castor Railroad Company owns
in same amount of second mortgage bol
ii. as it does Of stock, it appearing fl
your answer that the total issue
rer 81, 900 900 and the stock was 81, 200.