The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-08-31
ARGUMENT IN THE CASE
ABLE SPEECH BY HON. f. G.. DU
BIGNON, OF GEORGIA.
OTHER COMMISSION PROCEEDINGS
The Raleigh and CASTOR Passenger Rate Cues
ton is Continued of Railroad
Attorneys is Filed With The
Commission.

The North Carolina Railroad Commits
sion met yesterday and decided by 4
unanimous vote that the Southern EN-
press Company should pay the war stamI
tax of 1 cent per package on all ship
ments. The Commission after voting
down motion made by DR.. Abbott TO
dismiss the Governors appeal for reduc-
ton of passenger rates on the IL. and u.
II. r. decided to defer further action
against this question until after the final
hearing by the courts of the Wilmington
and Weldon passenger rate reduction
case. The petition of the Farmers ALI
ance asking that the minimum car load
of guano be made ten tons instead OF
fifteen tons was read, but the Commits
different railraod companies in accord
ance with Il resolution previously passed
by the Commission, filed n list of attor-
neys employed by them and to whom
passes We're issued.
These were the only questions of i'm
portance that came up for consideration
at Yesterdays session of the Board.
The question as to who should lick
the war revenue stamps on express pack
ages was argued by Mr.. +. G. Dubig-
non. of Atlanta, general counsel for the
Southern Express Company, and by Mr..
f. Ii. Busbee. of this city, associate
counsel. Capt. w. j. Croswell, diyi-
sion Superintendent for the express com
pany, and Mr.. A. p. Bryan local agent,
were also present.
Mr.. Dubignon contended that the stamp
tax is not an over-charge. 1t is an addi-
tional charge to the public, but not II
transportation charge.
The act creating the commission gives
it only such powers as are expressed in
the act The powers of the Railroad
Commission are never extended by inn
plication. All its powers must affirma-
lively appear i'll the act creating the Com-
mission.
The stamp may be hardship. But
the Railroad Commission is vested only
with the power of making rates and
correcting determinations. Whatever
may be the ultimate rights of the express
company and the public the complainant
here has sought the wrong forum. In the
courts resides his remedy.
charge. 1t is condition precedent to
accepting the shippers goods.
'From the very inherent nature of
documentary stamp taxes they are paid
by the consumer. This is the history
of every single stamp tax that has ever
been enacted by Congress. 1t is always
passed along the line until it reaches the
consumer. The last man is the tax-pay-
and telegraph company becomes an in
ternal revenue collector, and commerce
and trade have adjusted themselves to
these conditions.
''In enacting the war revenue tax act
Congress aimed at no individual or al
any class of persons. Congress was sim
ply seeking to tax certain transactions
And the naming of express, steamboat
and telegraph and other companies was
a designation of the method in which
the tax is to be collected and the sin
Cling out of such persons as can give n
receipt 1t is evidence of the transac-
ton of transportation-the bill of lading--
that is taxed.
''The law does not undertake to pre-
scribe who shall pay the fax. it simply
commands that somebody shall pay, that
the carrier shall create a document "A
bill of lading- that a stamp shall be at
fixed to this document, that the stamr
shall be cancelled, and that he who fails
to do so shll be subject to a penalty. Sec
tion q, though goes further and says that
the tax shall be paid either by the per
son who issues the document (the car
rier) or by the person for whose benefit
it is issued Che shipper.)
The government cares not who paws
for the stamp. 1t is content to receive
the revenue.
1.-THE fact that a provis0 was made il.
regard to the shipment of newspapers is
evidence that it was expected that III,
shipper would have to pay the tax.
GAS to palace and sleeping and parloi
cars, though special exception is
made in section % and the car companies
are required to affix and pay for the
stamp.
Mr.. Dubignon said that the Express
Company, in case the Commission shonl
decide that it must pay this tax. would
ask that it be allowed to increase its
rate one cent; that if the old ra;e vas
reasonable and just the new rate of {
reduction of one cent would not be rel
sonable and just. Express companies
he said, did a peculiar business. They
nave TO pay the railroad companies 10:
the privilege of doing business on thcn
lines. the average being 80 per cent 81
the gross receipts. In some cases it i:
40 or 40 per cent; in others 80, % OF III
per cent. This leaves very small mar
gin for profit. When you consider that
the average expense to an express com
pany is 43 per cent, that 80 per cent
is paid railroad companies for the privi
egc of doing business, you can see how
small profit is left.
'"Then there is the United States mail
1t is a fierce competitor. 1t handle,
packages at actual cost. Another com
petitor is the fast freight.
"On great many packages we charg'
only 10 cents. The railroad gets 80 PEI
cent; operating expenses are 43 per cent
leaving II per cent of cent profit Now
make us pay the one cent stamp and W.
lose 40 of cent on each nacl,n on