The daily state chronicle. [volume] (Raleigh, N.C.) 188?-1891, 1890-12-20
x RAILROAD TAX VALUE.
A VAST DISCREPANCY IN TAX
VALUATION AND CAPITALI-
ZATION.

Results OF Some Investigations Made |
Dy Col. X. NJ. DOuglass..One Road |
In the State Taxed at 81 $4,000.
While Capitalized at sI5 .735 900.
The sessions Of the state railroad and |
corporation investigation committee
which were held in Raleigh during the
past year were of peculiar interest.
Readers of the CHRONICLE will remem-
ber some of the results Of its work.
While the Investigations were in pro.
gress, Col. R. NJ. Douglass, of Green's
boro was here on professional business
before the committee; and while here he |
was requested by the Attorney General
to give the benefit Of whatever informa-
tlon he might obtain relating to taxa
ton during his official investigation of
the subject.
In compliance with that request, Col.
Douglass has issued a circular letter in
which he says:
Il take the liberty of calling your at
tention to the vast and unaccountable
discrepancy between the valuation for
taxation of the railroads in this State as
shown by the auditors report for 1889,
and the capitalization of the same roads
| as shown by the report of the inter state
commerce commission on railway stats.
tics for 1888
One instance will suffice: The West
ern n. @. R r. is assessed for taxation
at 81, ,569,375 and is reported as capital
lied at $15, 735, 600, nearly ten times its
tax valuation, and so per cent. greater
than the tax valuation of all railroads in
the state, which is given at S1O,OO3,-
652 O5.
This capitalization comprises So, OOO,-
600 Of stock and $7,735,O 900 of bonds,
being stock at the rate of $43 1928. 90 and
bonds at the rate of $41, 721 90 per mile,
aggregating total capitalization PER
MILE of $S4, $40 90.
The stock and bonds of a railroad com
pany are presumed to represent the cost
of its property; which, in absence of any
evidence to the contrary, is fair critic
rion Of its value; and private property in
this state is said to be assessed, on an
average, at least one-half its value.
By this standard the Western North
Carolina railroad should be assessed at
$7,S67, 500 90 instead of ST. ,5S9, ,275 90
as shown by the Auditors report.
Such gross disparity between the bur
dens borne by the corporation and the
citizen demands redress, especially as ii
exists, in a great degree, as to other
: roads; as for instance, the Statesville &
| Western, which is assessed for 500, 400
= 90 and capitalized at $500, 900 90.
, Acting upon the maxim of one of tht
- sages of the law, that: BLESSED be, no
= = the complaining tongue, but the amend
e ing hand" | venture to suggest posi-
> BILE remedy. That is the creation Of
6 railroad commission consisting of th'
u State Treasurer, auditor, COMMISSIONS
of Agriculture and the Chairmen of th
). Finance Committees of the two House
y of the Legislature.
All questions Of railroad taxation
J should be referred to it, with an appea
70 to the courts.
y This commission would not increas
the actual number of offices and woul
20 cost but little, as the members would
70 paid only their actual expenses and
reasonable per diem while actually i
/ session. In their different position
they would acquire information pecu
- liarly fitting them for the work Of th
70 commission; while the tenure of thei
80 Offices and the different sources of thei
IL election would effectually prevent an
suspicion of the commission being pack
?. ed in the interest of the railroads {
~ ~ against them. The Commissioner {
III Agriculture should be member, as b
o. is familiar with the productive value
~ " farm lands, which pay the greater pal
III !! of our taxation, and which, in the
H. present depressed condition, should Gel
~ tainly bear only their just burden
10 When one article escapes taxation, tt
r. rate is necessarily increased upon whs
is taxed; and what the locomotive fai
9o to pay, must be levied upon the mule
The commissioners of the counti'
should assess all railroad property
Sc their respective counties, and shoul
to send their lists to the chairman of Il
n, commission. These assessments would
or simply for the information of the COZ
sr- mission, and not binding upon it.
.ct The commission should have power
On elect its own chairman; to sit at diffe
ed ent places in the state when necessary;
summon witnesses and send for boo
and papers, and require such repor
from all railroads as it may deem prope
In contested cases the state, as WI
any county or railroad interested. shou