The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-07-31

III corporation, on account of the prop
crty within the State, is in substance and
effect, a tax on that property"
1.-The question remains, How shall the
property be valued? We insist that the
Just and equitable mode of valuation is
the same as that which was adopted in
the PENNSYLVANIA case. The Supreme
Court in this case. on page 20 says:
1.-The mode which the State of Penn
sylvania adopted to ascertain the pro-
portion of the compnny's property upon
which it should be taxed in that State,
was by taking as Il basis of assessment
such proportion of the capital stock Of
the company as the number of miles
over which it ran ears within the State
bore to the whole number of miles III
that and other States over which its cars
were rum This was just and equitable
mothod of assessment, and if it were
adopted by all the States through which
these cars ran, the company would be
assessed upon the whole value of its
capital stock, and more
THE Pullman Palace Car COMPANY
has a capital of $36,000,O0O, upon which
it is making each year net profit OF
1913 per cent. Its capital stock is quoted
in the financial papers as being worth
500 per share, the par value being Hloo
The entire property of this company upon
the basis of the value of its capital stock
is worth $50 100000. The company re-
ports that the total mileage over which
its cars are run is 1873 ,4S2 miles. That
in North Carolina it is 1.21Sl2 miles.
This is 0O9J7 per cent of the whole. SO
North Cardinals proportion Of the value
of the entire plant upon this mileage
basis is .OO957 per cent of S16,60O,O 900.
or S723, 1872 As the assessment by the
board is only $500 the Pullman Car
Company has no right to complain.
'Furthermore the Pullman Palace Car
Company, according to Poor's Manual
manufactured fifty palace cars in 1875,
at cost of over $4,000 each. 1t asks
this board to value its cars for taxation
ut 5000 Il piece. This would seem 70
be far below their actual value.
This wonderfully rich and prosperous
corpoation ought not to complain at be-
ing rcqired to bear its fair burden of
taxation.
J. c. l.. Harris followed Colonel Hins-
dale. He stated that authority to tax
must be direct and explicit and as the
Commission had no such authority i'll this
son asked him whom he recognized as
empowered to tax his company and he
replied that it could not be taxed except
as. to the one car which remains i'll the
State. Mr.. Harris further stated that
though car costs $4,000 to $4,000 to
build $4,000 is fair valuation because
that was all it would bring if put up and
sold. The Commission reserves its de
cision until after dinner.
The case of the Western Union Tele
graph Company ordered to build an up
town office at Mt. Airy, was next taken
up.
Attorney Strong rose to make argu-
ment, but Chairman Caldwell told him
nsil inc in earth or heaven could nave
him from his opinion, as he had made
up his mind Naturally Mr.. Strong's
argument was brief after that. The
company was given until August 10Th
to build the uptown office.
Mr.. +. III. Busbee, for the Postal Tee-
graph Company, proposed to compromise
on valuation of $4,000 and his propo-
sition was accepted.
The case of the Southern Express
Company was postponed until next meet
ing.
Colonel Hinsdale and J. c. l.. Harris,
attorneys in the case. announced that
they had agreed to- assess the property
of the Atlantic and North Carolina rail-
road at SOL 900, same as last year, in
stead of 100000. The Commission so
ordered.
The matter of the Pullman Car Com
pany was taken mp and last years as
sessment of $4,000 agreed to as the
right of the Commission to tax at all
did not seem clear The Commission
will recommend that a statute be passed
covering this point at the next session of
the Legislature.
On motion of Mr.. Pearson the excep-
tons of the Wilmington and Weldon rail
road in the rate reduction were over
ruled as whole.
Mr. Abbott introduced the following
resolution:
Whereas. The proposed reduction in
passenger rates on the Wilmington and
Weldon railroad will in fact reduce the
revenue but $500 per year which
amounts to the insignificant sum of 9.4
cents per annum to those who will secure
the benefit Of said reduction and is OF no
pra ctical benefit to the people; and
Whereas. the reports of said Whining
ton and Weldon road for the year 1894
show that that road after paying inter
est on its bonded Indebtedness. on its
outstanding liabilities and allowing u
per cent dividend on its stock, had sur
plus of $40, A; and
Whereas. in the opOnion of the Rail
road Commission SO per cent. of SAID
sum to witness 500 1926 of said sur
plus is derived from interstate business
and that IL reduction in the revenues of
s;,.u road of that amount can be made
without confscating the property of said
road,
Resolved 1st That order No. 9S re-
ducing the passenger rates OH the Viii
mington and Weldon railroad be revoked
and the original rates be restored.
2nd. That Il reduction of freight rates
be made OH the Wilmington and Weldon
railroad which shall amount to not less
than 500, 1872 90 per year be made, said
reduction 10 be made upon such com
modities as shall be found, after full
and careful consideration by this Com
mission, to yield the greatest good to the
farmer and laboring man.
The consideration of the Raleigh and
Castor case was postponed to the next
meeting.
Attorney Strong reported that the
Western TTpinn rTaIa0rapb Companv had