The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-06
FORTY OR FIFTY MILLION DOL
LARS.

L
| ler) in Sanford VS.. Poe. That case holds
| that the property of an express company
| liable to taxation by n State as not
merely the tangible property it has there
| in, but in addition such proportion of ats
| total capital as the business done III such
| State hears to the entire business done
| throughout the Union. The same rs held
| TO be true as to railroads, telegraph,
telenhone. Pullman Palace car and other
| companies doing an interstate business.
| TO illustrate how this works. The
Southern Express Company now pays,
besides its license tax on gross receipts,
a property tax only on the physical prop
erty it has in North Carolina, consisting
of a few horses, wagons and safes.
BY this decision, it must pay in addition
a property tax upon prorata of its capt.
tai. If it has a capital of S1O,o00,o0o and
does one-tenth of its business in North
Carolina this will add S1,00O,0O0 to our
tax list. We assume these figures for
illustration merely, for we do not know
either its capital stock or the per cent
of its total business which is done in
North Carolina.
But let us turn to other corporations
which we know more about. There is the
Western Union Telegraph Company
with its capital stock of $120,OOO,O0O on
which it pays or s per cent dividends,
though its actual physical, tangible prop
erty is probably worth not more than
So. 900. 900, the balance being water. 1t
leyies upon the people of North Carolina
rates high enough to pay their proper
tomato part on the S120,000,OOO of CAPT
tai, but they pay taxes to the public
only on their few poles, wires and "sich
like in North Carolina, valued at only
$1S2, 900. while probably one fortieth of
their business is done in North Carolina.
If so, they are taxable not only on the
S1S2, 600 tangible property, but on one
fortieth of their $120,0O0,0O0 capital.
This will add S3,OO0,OOO to the tax list
of the State. In the same way, the
Postal Telegraph Company and the
Pullman Palace Car Company will add
largely to the tax-list.
Then there is the Southern Railroad
system. When it comes to paying taxes
they insist on paying taxes only upon SS,-
100,0 900 of tangible property located IN
the State. but when it comes to levying
tolls upon the public they insist on this
being high enough to pay the States pro-
port:onal part of interest on their Sl2O,-
OOO. GOO of bonded Indebtedness and divi-
dend upon S40,000,000 of Southern
stock. As about one-fourth of the track
of the Southern system is in North caro-
lima it is thus arranged that the people
of North Carolina receive a small tax
(2-3 of l per cent on SS,000,000 from
the Southern" which collects, by its
high tariff. dividends of many per cent,
not only on the $S,O0O,00O, but on $40,-
100000 besides (being one-fourth of
S16O. OO0.O 900. which has heretofore es-
capped taxation. 1t is in this way, that
wealth is gathered up in North Carolina,
carted off to New York and London,
and fair proportion of the capital
used in gathering this wealth is not
taxed in North Carolina-nor in London
or New York, either, for that matter.
AS Chief Justice Fuller clearly puts
it in the Express Company case, How
is it that $40, 200 of horses, wagons,
safes, etc, produce $275,000 gross earn
ings in a year? The answer is obvious"
And in like manner, and with like force
| it may be asked how can the bare So
100000 of the Southern" in North
I Carolina (which alone is now taxed
earn good dividends, not only on itself,
| but to pay interest on one-fourth of
| S120OOO,OOO bonded indebtedness and
| on one-fourth of $40,000,0O0 of South
ern'' stock, besides the enormous salaries
| they are known to pay and the expenses
of running newspapers and lobbyists.
With high rates and most of their capital
exempt from taxes no wonder corpora
tons and their officials are rolling in
wealth while the people are getting so
poor that a petty office or a free pass
| is considered sufficient inducement, by
! the corporations, to offer members of the
Legislature, to vote against any change
| in favor of better conditions for the bur-
| den bearers and wealth-producers.
| The railroad commissioners can, if
| they will take the decisions of the United
States Supreme Court for their guide,
| largely increase the amount Of taxes
paid by these wealth-gatherers. 1t may
admit of consideration in the light of the
Express Company decision if the large
| Life and Fire insurance com
panies doing business in the
| State, but with their headquarters
| North, are not taxable ON pro rata
part of their capital, proportionate to the
amount of business done in this State.
| The wealth-earners have borne the sole
.,