The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-07-03
WILL ASK THE GOVERNOR
JUDGE CLARK'S VIEWS HAVE
ALSO BEEN ASKED.
JULY TWELFTH IS THE DATE FIXED
Commissioner Ohio Wilson Wants to Increase
the Taxation of Railroad Property
From S26,000,O0O to
$50. 100000.


rates is to come up before the Railroad
Commission at an early date-Monday,
July 18th.
The Commission yesterday, by a reso-
luton introduced by DR.. Abbott, fixed
that day for the hearing and cited GER
tain persons-Gov. Russell, Judge Clark
and Mr.. Josephus Daniels-to appear be-
fore the Commission and present their
views or any information or facts that
may be in their possession, touching the
rate question in North Carolina.
Following is DR.. Abbotts resolution,
which was adopted by the Commission:
'Whereas, The Railroad Commission
ers are required by law to place a valua-
ton upon the railroads of North Carolina
for the assessment of taxes; and whereas,
the said Railroad Commissioners desire
to ascertain if any more equitable method
of valuing said property than has here
tofore been pursued, can be found, and,
whereas, the Commissioners also desire
to ascertain if any more equitable freight
and passenger tariffs than now exist
can be put in force,
Therefore, be resolved, That the rep
resentatives of the different railroad com.
panies of the State are requested to APP
pear before the Railroad Commissioners
on Monday, the 18th day of July, 1897,
and there show cause in writing, if any
they have, why a very material increase
in the valuation of the railroad property
for assessment and taxation shall not
be made by the Railroad Commissioners,
sitting as Board of Appraisers and
Assessors, and why a revision of the
freight and passenger tariffs shall not
also be made.
Ordered further, That the Hon. D. L.
Russell, Hon. Walter Clark, Hon.
Josephus Daniels and other interested
citizens are respectfully invited to be
present at the hearing above cited and
present their views or any information
or facts they may be in possession of
them touching the question at issue"
Apropos of this movement for lower
railroad rates, it may be mentioned that
there is in other States, notably Georgia,
a fight against the railroads on the ques-
ton Of a reduction in cotton freight rates.
The following are the resolutions adopted
by the Cotton Exchange of Savannah and
laid before the Georgia Commission:
"Whereas, intra-state freight rates on
cotton over our railroad systems have
not been changed by the Railroad Com
mission of Georgia since 1889, though in
the meanwhile cotton has declined in
price, at Savannah, from 101a cents in
1SSS-S9 to IA cents in 1862, and in
creased in volume in the same period in
Georgia from 950,S94 bales in 1SSS-S9
to 100000 (estimated) for 1S96-97;
from 6,935. 0S2 bales in the Southern
States in 1SSS-S9 to 100000 bales( esti-
mated in 1S96-97; and
Whereas, Commissioner Fort, in his
dissenting opinion in the Bower hori-
zontal reduction case intimated that he
thought the time had come for revision
in the cotton rates because of the in
creased supply, reduced price, the i'm
proved facilities for handling and ship
ping and economy in methods of trans
portation; and
"Whereas, revenue from all kinds of
business ventures, real estate and other
forms of investments, in the last nine
years, have materially lessened and all
business transactions are now done on
the closest margins of profits, therefore
be it
Resolved, by the Board of Directors
of the Savannah Cotton Exchange, That
in their judgment the time has come for
reduction in the rates of freight on
intra-state shipments of cotton, and that
they should be reduced at least twenty
five (25) per cent. to have the railroads
bear their part of the declines that have
depressed every business interest, and that
appeal be made to the Railroad Com
80 ,ho StnfA 10 hn nHI1n-
ton of twenty-five per cent. effective at
date so that the producers of cotton
may each and every one participate fully
in the benefits of the reduction prayed
for in marketing their growing crops at
maturity.
Relative to the assessment for taxation
of railroad, steamboat, telegraph and
telephone property, Commissioner Ohio
Wilson yesterday introduced the follow
ing resolution, which was simply laid be-
fore the Commission for it's considera-
ton, but was not acted upon:
Resolved, That in assessing railroad,
steamboat and telegram property, both
franchises and tangible property be as
sessed at such figures as are just and
reasonable both to the State and COM
panies.
ludC the VdludLIOu Ol SUCH ITdHCnlS-
es and property shall be an amount ap-
proximate to a principal which, at per
cent per annum, would yield the amount
of the net earnings of such property.
"That whatever sum such franchises
and property may earn as income from
operations, shall be considered as inter
est on a given amount of valuation, and
whatever sum the net earnings of such
franchises and property will pay 6 per
cent per annum upon, shall be held to be
the value of such franchises and proper
ty for assessment. Provided: That in
cases where a franchise or property or
both, whose income from operations does
not equal the physical values on the
basis of percentage above named, such
franchises and property shall be assess
ed at such values as said property is
worth as items, viz: Value of iron, ties,
structures, etc.
THAT in calculating net earnings, no
operating expenses shall be considered
INre, AaI nI e.