The daily state chronicle. [volume] (Raleigh, N.C.) 188?-1891, 1891-02-03
WILMINGTON & WELDON b.. u
Especial Cor. STATE CHRONICLE. }


makes some interesting suggestions
touching the advisability Of the accep-
tance by the State OF the contract dc
tated oy the Wilmington & Weldon T.
Z Co
After reading the article examined tie
case Of Reid vs.. The Wilmington & We'll
don L R. reported in 13 Wallace ~. S.
reports) page 264, aud sure enough it
appears that the question as to the ea-
emptlon under the charter Of 1888, as
punctuated, was presented to the court
Every lntendment is taken by the
courts against exemptions from taxation
ana II the point is fairly presented to
the supreme court upon the exempting
section contained in the chapter, [ ap-
prehend it will be exceedingly difficult
TO place "a Interpretation upon that sec
tioD that will be il harmony with tie
CLAIMS Of the company
But apart from this is it wise to accept
terms without a knowledge Of the facts?
1t seems that II vas charged that the ".
u W. railroad owed back taxes to the
State and when the committee appoiG ted
by the Legislature to iUvos ig-te were
ABOUT to enter upon the discharge OF
their duties, the corporation came in and
| offered q qualified surrender of It's ex-
enption, attended with stipulations as
to legislation Of vast Importance to it
as we'll as to the State, aud it is sug-
| gested by four out OF the five members
Of the committee, (Senator Aycock dis
sentlng) that 1t is best to accept the terms
offered by the corporation, as the property
| thereby submitted 70 taxation will yield
about 800, 600 ii taxes 10 the State and
counties through which the road passes.
| have great respect for the gentlemen
upon that committee and feel satisfied
they thought the proposition to the best
iuteresc of the State with the lights be-
fore them, buf did this committee have
such Information as [ propose now to
suggest ? Col. Elliott gave his OPINIONS
to the committee that there was but lit
tie property subject to taxation and Mr.
Wallace was kind enough to specify the
property IN detail which he said was
owned by the company.
The road extends from Wilmington to
Weldon; it has many branches; has in
vested over $500. 900 in the Norfolk
and Caroliua Rail Road and more in the
Wilson Short Cut which it seems is sooG
to become the main line, it owns 500,
900 Of stock in the Manchester anG Au-
gu5ta Bail Road. $500, 00O Of stock II the
Florence Rail Road, $4,000 IN Al Al
Bike Company, $3.50, 600 n th ppy
eaase Of the Eastern Rail Road of So
Carolina. AIhemarle and Raleiga f;.l
cad St44 coo, sleeping car curog @57
900, advanced TO hujd The IIoIo4c.
Hail Road .4e52, 600 The lease OF tn.
Wilmington, COlumbia and Augusta Raj
Road, Of the Petersburg r Z and pernap
other corporations, ard I am Inf,flne,
that il has recently purchased con
trolling interest IN the Richmond. FREQ
ericksburg & Potomac Railroad a5 :, as
Of many hundreds OF thousands ot col
lars Where Gid the money come frou
that was used n acquiring all OF 5hl
property? Why did not Col. Elliott. in
fO1m the committee that the home Of tn.
5 corporation was in North Carolina ant
, that all of these investments were taxa
, BILE by laW2 II there is any exemption
, at all, it only extends to the corporation
proper aud to such property as IS abso
lutey necessary to operate its road be
tween Wilmington and Weldon, all otne
property Or Investments are liable t
taxation in THIS State
/, In the case Of the Bank VS.. Tennes
, see, IA Otto (U. S. Keports) page 493
: Justice Field, in delivering the opinlo
OF the Court, said 'It would lead to IL
, finite mischief if a corporation. simpl
:, by investing its funds in property nc
f... bn oE
could extend its immunity from taXatiO
i and thus escape the common burden {
: government" If the company has mi
: hons invested in other corporations 5h
:, taxes due the State might amount
:. much more than $50, 600 for you, and {
the Legislature has the power to comp'
the paymant Of back taxes the SUI
to realized might run up to hundreds (
thousands of dollars.
The Attorney General OF the State az
yised the committee not to accept tt
. compromise, and Senat or Aycoek decline
q to sign the report Of the Committee, gi'
n Ing cogcnt reasons why the State shou
5. not accept the terms dictated by tt
7. company Would 1t not be well for tt
t. Legislature TO appoint joint committ'
re with power to send for books, pape
and the reports Of the company and 3
r certain whether it is we'll to acceed
d the terms or to enforce the collection
Of the large amount Of back taxes2 CC
le Elliott has only given his opinion AS
IL the property which is taxable. Wou
q it not be best for Col Elliott to bril-
te his books and papers and let the Legisl
ID ture say what IT'S opinion is upon t
De facts.
Buiidtng the Danvii!e & East Tenne
see Railroad.
rs