The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-08-03
COMPLAINTS AS TO TAXES
HEARD YESTERDAY BY THE RAILROAD
COMMISSION.
The Southern Asks $4,000 Reduction in
VaIuation--The Pullman Company
Gets a Reduction.

The Railroad Commission yesterday
heard exceptions to the valuation of rail
road property for taxation.
The Southern Railway and the Pull
man Car Company excepted yesterday.
The Seaboard Air Line and the Atlantic
Coast Line and Cape Fear and Yadkin
| Valley will be heard to-day. The two
| latter systems have filed letters setting
| forth reasons for their objections and
will probably not appear before the Com
mission in person.
| The Pullman Company yesterday got
the reduction it asked; the objections of
the Southern were taken under advise
ment.
| Mr.. Henry w. Miller, Col. Andrews
private secretary, appeared for the South
ern. He said the Southern was aware
| that general increase had been made
on all the roads and therefore he would
have nothing to say as to that, his road
being perfectly willing to pay its proper
! tionate part of the taxes. But, Mr..
Miller contended the increase has not
been uniform, too much of it being put
on the Charlotte Air Line and the West
| ern North Carolina Railroad. The net
jearnings of the Charlotte Air Line, At
lantic Coast Line and Raleigh and Gas
ton Railroad were about the same-be-
tween 81 400 and $1,000 a mile, while
| the two latter were assessed only SILL
500 mile, while the Charlotte Air Line
was valued at $4,000. This, he thought
unjust, though he admitted that the
operating expenses of the Charlotte Air
Line were S4,S24 mile, over twice as
much as the Coast Line and a fourth
more than the Raleigh and CASTOR.
why" asked Commissioner Ohio
Wilson, docs it cost 70 per cent for the
Southern to operate it's leased lines, and
only 60 per cent to operate those it
owns?'
Mr. Miller could not tell, but he asked,
in view of the fact that the net
earnings of the Charlotte Air Line were
no more than the roads that had been
assessed at $11, 800 per mile, that the
Charlotte Air Line be reduced to that
| figure.
As to the Western North Carolina
Railroad the Commission was asked that
the valuation from Salisbury to Old Fort
be made $500 instead of $4,000 per
mile, to correspond with the valuation
from Old Fort to Hot Springs.
The change proposed means a reduction
in taxes of about $S50-a reduction in
valuation of $500 mile on 4S miles of
the Charlotte Air Line and $500 a mile
on 10 miles of the Western North Caro-
lima Railroad.
At the afternoon session of the COM
mission Mr.. l.. E. Mcpherson, general
counsel, and Mr.. J. G.. l.. Harris, at
torney, appeared for the Pullman Palace
Car Company, and asked that the valua-
| OF re hn IN rot
it was last year.
In making this request Mr.. Mcpherson
said that the company had returned the
cars at a valuation of $4,000 apiece, or
80 per cent of their actual value. This
made the total valuation of the Pull
man property in North Carolina about
$4,000. The gross earnings of the COM
pany in North Carolina, he said, were
$4,000 per annum; the gross expenses,
less depreciation and taxes, S63, 900.
Taking off 5 per cent of this for depre-
citation (this is the master car builders
standard of depreciation and it leaves,
he said, less than 5 per cent net profit,
with the taxes unpaid. The average
cost of a car was claimed to be S11 ,00O
and average age of the cars used in
North Carolina is five years. On this
basis, he said, an expert for the company
has estimated the actual value of the
cars at $4,000, and this is the average
value used in the company's balance
sheet.
Mr.. Harris argued that, as compared
with the valuation of other railroad
property, and private property also, the
tax value placed upon the Pullman Com
pany was entirely too high. He, there
fore, asked that it be allowed to remain
the same as last year, instead OF
doubling it, as the Commission had re.
Gently done.
The valuation last year was $4,000
The Commission decided this year to
place it at $4,000. The $4,000 increase
this year is due to the fact that the
company has more property in the State
than it had last year.