The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1898-08-02

NHN property va N10 &tAtHdne III -M0Itu
Carolina for taxation at S1.pWs.o~~o.
Il That the said Board in fxiug the
said valuation Of its property for tax
alton did not arrive IT it, conclusion
under section ~, chapter 100. Of tn,
Laws Of 1897. and the same i therefore
illegal.
-. That in fixing said valuation, the
said Board proceeded under section IL.
of said chapter 1862. the same not being
applicable 10 telegraph companies.
>. That in fixing said valuation the
said Board taxed the property Of the
said company in North Carolina more
than its vaIuc when property of other
value.
II. That in fixing the said valuation
the said Board should have found that
all the property Of said company in
North Carolina could have been re-
placed for the sum Of not exceeding
100000. with new instruments. poles.
wires and other necessary appurtenances
or appliances FOR the conduct Of the tele-
graph business. and should nave dcduc-
ted from that amount the depreciation in
value on account of the use of the poles.
wires. &c. and should have considered
that other property in North Carolina
was assessed 1T much below its actual
value.
-. That the said Board had no right
TO proceed contrary to the manner pre-
Scribed by statute for assessing the tax
value of telegraph property Of the said
company. and the tax valuation fixed
was contrary to the statutes of North
Carolina.
IS. That The said Board in fixing val
nation included III part the value Of the
franchise OF the said which
should not have been done.
-. That in assessing the said value
Of said property for taxation the said
Board therein included property taxable
in other States. and therefore improperly
taxed in North Carolina.
IS. That said Board in assessing the
value Of said property in North Caro-
lima at 81. q violated the ConStitu-
ton and laws of the United States. and
the Constitution and laws of the State
of North Carolina. in that it has as
seSSed the property of the Western
Union Telegraph Company ut more than
its true value IN money. whereas other
property Is not assessed at its actual
value: and the same constitutes IN un-
just discrimination. and is otherwise i'm
u oiptI. iltStl any 1 III
Mr.. ]. =. Tree. superintendent of the
Western Union Telegraph Company; was
the first witness examined. He testified
that 5000 Q would put up all the lines
of his company in North Carolina, and
put in batteries and equipment. The
capital stock of the company is S93. 100,
600 and the bonded debt was about
$50. DOC. 600.
Mr.. Julius Lewis. one of Raleigh'S tax
assessors. was introduced. and he said the
practice in North Carolina was to assess
| property for taxation at two-thirds its
value.
Argument Of counsel consumed the en-
tire afternoon session. Mr.. Strong made
a particularly strong speech against the
increased assessment. and Judge Holla-
day followed in an elaborate and able
argument. They held that the property
in North Carolina paid Il small dividend
Col. Hinsdale said. that the Western
Union Telegraph Company's property il
North Carolina is an integral part OF
a unit money producing plant. 1t must
be valued by the Railroad Commission
for the purposes of taxation. not as Sc
many poles. and so many miles Of Wire
but as a part of Il dividend ~producin.
unit. Il part of the entire system OF the
A INV IN!N w L -
the purposes of valuation. it must be con
sidered. not as isolated and separate
from the other parts by state lines, but
as operated in connection with the other
| parts. That this is the only Just and
reasonable method of arriving at its true
value.
He further c~Ontended. that the fact
that the laws of North Carolina pre-
| scribed no special method Of valuation
left it open to the Board Of Commits
| SiOnerS to adopt that method which they
might consider most just and most rea-
| sOnable. That this method Of valuation
has been adopted by many Of the States
In Ohio and Massachusetts it has beer
| passed upon and approved by the United
States Circuit Court Of Appeals, and by
the United States Supreme Court. That
in the State Railroad Tax Cases. the
Supreme Court Of the United States
said: when you have ascertained the
current cash value of the whole funded
debt. and the current cash value of the
entire number of shares, you have, by the
action Of those who above all others car
best estimate it. ascertained the true
value Of the road. all its property, its
capital stock, and its franchises; fol
all these are represented by the value
of its bonded debt. and the shares of its
capital stock
Colonel Hinsdala then showed that
the total number Of miles of wire in
| the United States according to the reports
Of the company, was S4l ,OO2. The total
number of miles of Wire in North Car
[ Dina was 1861. which is one and a hall
per cent of the whole. That the value
Of the plant Of the Western Union Tele
graph Company. as fixed by the valua
| ton of its stock and bonds is. bOndS.S SD
275.2OS: stock. $95.31O.OOO at 90 cents
on the dollar. or SIS. So. 100. which. adj
ded to the bonds. makes S1O3. .3OS
| One and a half per cent Of this IS 81,
53J. 6 being the value of the NOrtl
Carolina proportion Of the plant. upon :
mileage basis. So. that if the boarC
shall stand by the valuation of the
property of the company in North Car
DINA at one million dollars. it will be
we'll within bounds.
The Commission will meet again this
morning at 9 o'clock. The Pullman Pal
| ace Car tax valuation and the Southern