The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-07-13

the Atlantic Coast Line read some ex-
tracts from Gov. Russell's inaugural ad-
dress and the last message of Gov. Carr
to the Legislature, touching the rate
question.
On behalf of the Seaboard Air Line
Mr.. John ID. Shaw now discussed the
question with reference especially ito the
Governors suggestion that the net earn
ings be made the basis for tax assess
ment.
In 1871 Judge Clark was director in
the Raleigh and CASTOR Railroad, he
said. Then the first-class freight rate was
50 cents on 100 pounds and first-class
passenger rate was 6 cents. In 1891, af
ter Judge Clark retired the freight rate
was reduced to 36 and passenger rate to
I2M cents.
Replying to Judge Clark's statement
that railroads ought to be allowed to
make only per cent, he said that he
did not know much about other roads,
but as to the Seaboard, lit was literally
covered with damage suits and two or
three judgments would wipe out the +
per cent profit.
1t was claimed also that even now
other property was not taxed as high as
railroad property. In one county that he
knew a railroad running through it paid
one-fifth of the taxes. The proposition to
increase the tax valuation of railroad
property to about $50,000,000 would.
he said. totally destroy the just proportion
between taxation of railroads and other
property and violate the constitutional
provision that tax on all property shall
be uniform.
He argued that the net earnings of a
road could not be made a criterion of
taxation. The Pittsboro road earns so
cents per mile. yet it is taxed at 5000
la mile. The Carolina and Georgia road
earns S110 a mile and is taxed $4,000 a
mile. The Palmetto road operates at
loss and yet it is taxed 1915 a mile. Not
only the net earnings, but all other con-
Iditions must be considered and the tax
must be uniform. He said the Seaboard
system pays about 21a per cent on its
gross receipts.
The Norfolk and Western Railroad
was represented by Maj. Guthrie and
Mr.. j. G. Buxton. Maj. Guthrie appear
ed for the Lynchburg and Durham di-
vision and for the Durham and Char
lotte Railroad and Mr.. Buxton repre-
sented the Roanoke and Southern.
Maj. Guthrie said party of Phila-
delphia capitalists were now building
the road from Durham to Charlotte, II
miles being already completed and II
miles in operation, and he begged the
commission not to inaugurate policy
of confiscation by too heavy taxes on
the capital brought here and invested in
railroads. 'Its akin to larceny" he
said, ito thus take a mans property I'M
der the forms of law"
Mr.. Buxton asked that the tax rate on
his road-Roanoke and Southern-be re-
duced from $500 mile to $4,000. The
road was now operated, he said, at dead
loss.
This talk of increasing railroad taxa
ton is simply a question as to whether
the people are willing to submit to q
general increase of taxation. The rail-
roads are no more able to stand the
increase than are the people generally"
lie thought it an easy matter to write
editorials about reducing taxation, or to
fire a letter from the Governors office
and then run off to the seashore-but to
show how the taxes could be increased,
rates reduced and yet the roads be kept
in a prosperous condition is quite diff
ferent and much more difficult matter.
He thought such a thing was proposed
simply because the State needed the
money.
Vice-President Finley, of the Southern
Railway, then read the speech he made
before the legislative committee last
winter touching a reduction Of rates.
Mr.. r. 0. Burton and Traffic Manager
Il. NJ. Emerson also spoke in behalf of the
Atlantic Coast Line, and Messrs. w. A.
Turk, J. M. Culp and Geo. S. Hobbs
for the Southern.
At the conclusion of the argument the
following resolution, introduced by Com
missioner S. Ohio Wilson, was adopted:
Whereas, 1t is the desire of this Com
mission to have a full discussion Of the
tax and rate question, and whereas, all
parties appearing were invited to do so
in writing and as verbal speeches and
evidence were given by those represent
ing the railroads, therefore, we invite
Hon. Walter Clark, His Excellency Gov.
Russell, Hon. Josephus Daniels and any
others to come before the Commission,
review the evidence taken by the stenog-
rapher and reply to the same"
Argument by railroads will be contin-
ued this morning. The Commission
meets at 10 o'clock.