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

matter was postponed while strong teie-
graph.-l general counsel.
The valuation of the Pullman Car
Company'~ property came MP next
Gnthri. and Logan Harris appearing for
the company, aud Colonel fIinsiale for
The State.
Major Gathrie began hy expressing
the hege. with Eilt fringe. that the com
/ pany would uot BE- tried hy ewSpaper
and popular clamor. lie stated that the
Commission >stiln. n a board of ap-
! prai>cr>. had uo power whatever to put
amy valuation IN the property az the
: Pullman Company under the statutes of
| North Carolina. The company had b+en
paving The tax hitherto ont ~ a spirit
OF pure philauthropy and a warm love
for being taxed. Ills company was viii
ing To- yield the pound IF flesh. bat
drew the line mt Il drop Of blood. The
| valuation at >--si.taHl was excessive. and
wa> an attcmpt Ia tax property not ia
/ the State.
The only companies that the Commits
sion can aprrai~c Tor taxation, are tcle-
graph. railway, telephone. steamboat
! canal ana express companies. The Pull
man Car Company Is neither II these.
Ii j. not even y tlr~t cousin L. a rail
: road company. said the Mayor. He read
. the decision OF the Supreme court of
North CaFuliua III the ease 81 the Isich
mond and Danyillc railroad. where IT
decided that cars used IN inter State
traffic wcrr not subject to tax, all Pull
man ears save one are 50 used in this
State. Ii the absence of any SPECIFIC
law the rolling stock Of the company
could be assessed only AT the home office
of the company. Therefore Pullman
ears would lie subject t. tax only at
- -F ~ 4G.s H.
tin, Commission t. raise tire valuation
Of the cumpanyS property To 11o.hn
WAS asking for blood money.
Colonel Hiu~lalc next spoke for the
Governor. Replying - the assertion
tliat the company is Tot Il railroad com
pauy. Colonel llinSdair said;
If n lumber company engages in the
business OF passenger transportation.
Shall il not subject itself To hc taxed
as Il railroad: This is A part of iii" bus
mess Of Il railroad company. The fuil-
man Palace Car Company II engaged
in transporting passengers ON lis own
railroad ears for fares collected hy It's
own conductors. Whatever instruments
are used in such business must he taxed
as railroad property. 1t cannot escape
taxation by dubhing itself Il ear corn-
nany" instead of Il railroad company
] What's in a Nance y rose under any
Z. other name will smell rs sweet. The
fact that it does not own its motive pow
or. or the rails on which it runs the cars.
will not change the character of its bus
mess.
The counsel for the company. Major
Guthrie. next takes tn" position. that
because the company'S cars are used IN
interstate business. and run through
North Carolina. they have no legal status
III the State. and cannot be taxed here.
He cites Balm vs.. X. and II. K. r. co.
to sustain him. But this ease. decided ID
1890. was directly overruled in 1891 by
the Supreme Court of the United States
in Pullman Palace Car Company VS.
Pennsylvania. al t. S. Is.
Major Guthrie objects that the State
of North Carolina has no right to tax
the capital stock of the Pullman Palace
Car Company. and cites authorities TO
sustain him. But we are not seeking to
do this. We are asking the commission
to tax the property of the company
which is used in the State. In the Penn
sylvania case just cited. in which the
capital stock was specifically taxed, and
the same objection was made. the court
said: The tax on the capital stock of
~ corporation. on account Of the prop
erty within the State. is in substance and
effect. u tax on that property
'"The question remains. How shall the
property be valued? We insist that the
list 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 2G, says:
1.-The mode which the State of Penn
svlvania adopted. to ascertain the pro-
portion Of the complny's property upon
which it should be taxed in that State.
was by taking as a basis Of assessment
such proportion Of the capital stock If
the company as the number Of miles
over which it ran cars within the State
bore to the whole number Of miles in
that and other States over which its cars
were run. This was n just and equitable
mnthod Of assessment. and If it We're
adopted by all the States through which
these cars ran. the company would j."
assessed upon the whole value of its
capital stock. and more
The Pullman Palace Car Company
has a capital of S36. 900 900. upon which
il is making each year a net proht or
1913 per cent. Its capital stock is quote!
in the financial papers rs being worth
500 per share. the par value being 500.
The entire property of this company upon
the basis of the value Of its capital stock
is worth So. coo. 1000. The company re-
ports that the total milea % over which
its cars are run is 133.4S2 miles. That
in North Carolina it is 1.21Sl2 miles.
This is .OO957 per cent of the whole. so
North Cardinals proportion of the value
Of the entire plant upon this mileage
basis is .0O95I per cent Of S~l6.tOo,ooO,
or S123.492. As the assessment by the
board is only S25O.OO0. 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 1896.
! at Il cost Of over $4,000 each. IT asks
this board to value its cars for taxation
at $1,000 a piece. This would seem 10
bo far below their actual value.
Tins wonderfully rich and prosperous
corpoatiOn ought not to complain at be
ing reqired to bear its fair burden of
taxation.
!. G. l.. Harris followed Colonel Hins-