The Caucasian. (Clinton, N.C.) 188?-1913, 1897-07-15

The railroad commission has been u
session this week hearing argument
pro and con, concerning both al in
crease in the assessed valuation Of rail
raods for taxes, and . reduction o.
passenger and freight rates.
Among The papers and argument
submitted were one from Gov. Russell
and one from Judge Walter CLARK. W.
have not space for comment on them
They are their own comment. W.
commend both papers 10 the most care.
fui consideration of the people.
State of North Carolina. TX ecu.i.e De-
partment, Raleigh, July =. 1897.
To the Railroad Commission, Gen.
tlemen: have your note inviting me
to come before Your Bosrd aud pre-.
sent my views with regard to the val.
uation Of railroad property for taxa.
ton aud As to the reduction of freight
and passenger rates. ! observe that
you cite the representatives Of the rail.
roads also to appear and present their
briefs and arguments in writing. Al
the railroad lawyers and officers are t.
present themselves in writing, it 10 per.
haps more decoriOus and more fair te
them that the
DISCUSSION ON BOTH sIDIs SHOULD d
In WRITING.
This is the rule in the Court OF
Claims and perhaps in other high
courts. 1t is conducive to accu.
racy and moderation in statement and
is calculated to prevent recklessness in
assertion.
The resolution proposed by Commits.
siOner 8. Ohio Wilson is in substance
this "LoOk at the net earnings Of Z
railroad, that is, the net income or nsl
profit, the net amount that it yields K
its owner over and above all expenses
just like the MT rent Of store Or mil
or farm; then iiX the valuation at q
sum, the Interest upon which, at si1
per cent per annum, will equal suct
net income"
All property values, with certain
limited aud peculiar exceptions, de.
pend upon their net earnings. Thil
rule of ascertaining values is generally
accepted and is almost universal In thl
affairs Of men. Why should it not ap
ply TO railroads
WHY HAS 1T BEEN IGNORED AS T. THEN
and their values arbitrarily fixed in 8
way that seems to indicate q refusal t(
recognize their net earning power a.
the essential re ment in ascertain:ns
value?
As result Of these arbitrary assess.
vryn rv~,k9 ~,
all the railroad property in the State
taxed on an assessment of anon,
eWenty-six million dollars. Accord.
ing to their reports, their net incon.t
are three million two hundred and IF.
ty-seven Thousand dollars. Four pei
cent for money is reasonable. Five
per cent Is liberal But suppose in con.
flderatiOn of the extraordinary ex.
penses OF some railroads, when they
undertake to conduct our govern
ment,
CONTROL Legislatures AND aOvER.
NORs
appoint Federal judges and even post
masters, maintain daily newspaper
and other Injuries with royal outfits
OF secretaries, servants, aud salaries
we allow them 6 per cent. This would
give valuation of about fifty-four
million dOllars-mOre than double the
arbitrary assessments of the past wear
1t would add twenty-eight million
dollars to our taxable values. 1t would
give a new net income of about two
hundred and fifty thousand dollars foI
the State, the schools, the counties and
the towns.
Now why are not our taxpayers
our farmers, merchants, manufac.
turers and all other property owners
entitled to have the benefit of this ad.
dition to their local State treasures:
Their property is generally
VALUED ACCORDING TO TIA NET r.pr.
ING.
Why not apply the same rule to rail-
roads? The existing law requires that
1t shall be done. The act of 1895 ex.
pressly directs your commission to ne.
certain the value from the earnings as
compared with the operating expen.
ses. (Chapter 119, Laws of 1895, Sec
ZION o. The law means that, while
you snail put valuation upon their
rolling stock and any other tangible
property, you shall look to the net
earnings rs the test for ascertainine
the total amalgamated value of the
franchise AID all other property, stat
ing the total in a round sum. 1t makes
no difference how much nor how little
roli1ng stock the railroad may have.
Inc naked question il,
WHAT IS THIS WHOLE THING WORTH
track, iron. cars. rolling stock and
franchise? And this is to be sscer.
talned by looking at its net income.
Our railroad taxation law is the very
1alrest and best that can be made If Il
can be executed accol ding to its in.
tents and Its equities. This is 90 sim
ply because it taxes every railroad ac.
cording to its actual worth or value tn
us owners. Many of the States mt
the tax by declaring a percentages on
gross receipts. This may be hest in
some cases to secure the State Against
fraud, but it is not SO fair as the North
Carolina plan. II your COmmission
WILL execute the law and put the valu-
alton at fifty million dollars, it will be
nearly equivalent to . tax of four per
cent. on the gross receipts of All the
railroads in the State. Other States
according to the last accessible renorts
taxed gross earnings as follows. dis,
OesI NAs'o AAOOVhOh0 Va OuS O0E cent .
Massachusetts, nine per cent: New
Aork, nearly seven per cent; Ohio.
ABOUT three and half per cent; iii.
nois, five per cent (the illinois Central
pays seven per cent to the Srate).
The attention of your Commission
is invited to CERTAIN CASES OF GROSS
INJUSTICE AID INEQUALITY in these
railroad assessments. For examnle
take eleven certain railroads beIone
ing to the Southern Railroad Com.
pany which makes to you q report
consolidating these eleven in one
Their length is six hundred and
eighty lone miles. Their NET earnino.
according to their report are thirteen
hundred and seventeen dollars a miia
This ia Elk per cent on more than
twenty thousand dollars a mile. Thev
are valued for tsxes at about six thon.
sand three hundred and fifty dollars .
mile. The Cape Fear and Ysdkin VAL
Icy earns little or nothing. eav he.
tween one hundred and two hundred
dollars a mile, and yet it 10 valued At
Eve thousand dollars . mile.