The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1897-07-20

them interest thereon. One~ generation
does not satisfy their greed, but their
long fingers must reach down into the
pockets of those who are to come after
us. We neither gave nor authorized
that mortgage and we will not be
bound by it.
THERE IS A REASON,
personal to yourselves, permit me to
say, with the greatest respect, why
you ought to grant a reduction. In the
last legislature bills to reduce fares and
freights were defeated by only one ma
iority in each house, and two of your
Commission went before the commit
tees against the bills. It is reasonable
to suppose on that marrow margin that
but for your opposition those bills
would have passed. It was understood
that you opposed them because you
thought that it you'd be a reflection
on you for the legislature itself to make
the reduction which you had the power
to make. It is certain that members
who voted against these bills have at
tempted to justify their course to their
constituents at home by the allegation
that they expected fully that you would
yourselves make the reduction.
If $26, coo, 900 will replace the prop,
erty that is the value of the plant, and
an enormous addition for the valuation
of franchise can only be made on the
basis that the excessive rates and profits
make the property worth that much
more than it conld be built for. I think
the valuation should be placed at what
ever the plant is really and truly worth,
and that fares and freights should be
reduced, taking the previous years.
figures as a basis so that 4 per cent. on
that valuation, above taxes and all e
penses of every kind will be the net
earnings.
To swell the valuation by an estimate
of $28, 600, 900 as n of your number
has proposed, for the value of the fran
chise is simply an admission of grossly
excessive rates of fares and freights.
1t would merely put into the treasury
a tax which cannot exceed two thirds
of 1 per cent. on that sum, while let
ting the corporations put their fares
and freights high enough to earn 6, 10
or Is per cent. on this &28, 600, 900 of
wind" If the treasury prefers it as
a method Of taxation, the rates might
be fixed to yield 6 per cent. net on $780,
600, 900 (above property tax and all
other ~expenseR) and then a tax could
be laid by the legislature on the gross
earnings sufficient to reduce the net
earnings to 4 per cent.
THIS IS REsORTED TO IN SOME STATES
This method would give much of the
desired reduction Of frejghts and
fares and at the same time would add
considerably to the tax receipts. In
Massachusetts the railroads pay 50, $780,.
900 taxes in addition to the property
tax. This is RbJut 9 per cent. on their
gross earnings from passengers. In
Illinois the Central Railroad pays the
State 2 per cent. on gross earnings. In
many other States a similar tax is
levied. In Indiana the railroads pay
81. $50, 900 tax, and even in Pennsyl.
vania, whose government openly be
longs to them, they pay So. 500, 900. In
New York the railroads in one way or
another pay over s., 900. 900 taxes an
nually. Wisconsin, which has our
population, collects over 81, 200, 900
taxes from railroads. In Minnesota
the tax on railroad gross earnings is
one 81. 900, 900, and the railroads in the
little State of New Jersey pay over a
million dollars taxes. In North Caro-
lima all the railroads combined pay the
State a little over 800, 600 on their $26,.
600, 900 Of property, and not n cent
on their nearly $40, 900. 900 of annual
gross earnings OF on their So, 1856, 900 of
net earnings. The three great railroads
OF the State earn Is per cent. usury on
their investment and pay the State
back less than 800, OOO in taxes.
But should your Honorable Commits
sion think it wise to increase the valua.
ton for taxation by some millions for
valuation of the franchise, as has been
suggested, I earnestly ask you,
IN JUSTICE TO THE PUBLIC,
not to overlook the fact that in fixing
rates they should not DE high enough
to give the railroads ( or 6 per cent.
net, on the franchise valuation. They
are only entitled to 4 or 6 per cent. las
you may grant, on the value of the
plant. i. @. on their investment. If
that is $26. 900, 600, then the net earn
ings should be calculated to be earned