The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-08-18
THE RAILROADS
GOT OFF LIGHT
Their Tax Valuation Was
Mighty Low.
|
A STACK OF AFFIDAvITS
PRIVATE PROPERTY TAXED AT
CASH VALUE.
HOW THE THING is DONE IN TeNNE SsEE
The Fertilizer Rate Injunction Case is About
Ready for Argument. All his lnjunc-
lions to BE- Heard by SIMON
ton at Asheyille.


All the Simonton injunctions- railroad
tax valuation, telegraph tax valuation
and fertilizer rate-haye been set Tor
hearing ON the same day, September
18th.
The fertilizer rate case is now about
ready for argument, so far as the Cor
porafion Commission is concerned. Chalr-
man Mcneil has taken an active part
in its preparation and has collected much
information bearing on the points IN
controversy. This injunction, 1T Will be
remembered, was sued out by stock
holder in the Carolina Central branch
of the Seaboard Air Line
The answer to the complaint on winch
the injunction was granted Is an eX-
ceedingly strong presentation OF the case
frcm the commissions point of view. lie
reviews the history of the road. sets
forth the rates that have been charged
on it. and shows that it is not the fact
that rates are too low, as claimed, but
that they are too high, that makes the
road llnTrosperoHs and bankrupt.
This charge is supported by figures
taken from the roads own statement,
showing. that ON account of the excessive
rate charged the people along the line
do not, whenever they can help it, pat
roniZe it. 1t is shown that the shippers
at or near competing points invariably
use the other routes, though often they
are twice as long as the Carolina Cen
trail. From Wadesboro. Maxton, Ham
let, and Pembroke for instance, cotton
is shipped TO Wilmington by way Of
Florence, s. c., over the Coast Line,
rather than direct over the Carolina
Central, which is about half the distance
of the Coast Line route.
The fertilizers sent back come over
the same long route that the cotton
went All this because of the Carolina
CenfTals high rates, and hence the pow
erty of the road, say the commissioners.
In this same connection, the commits
sion in its answer, points out that the
road runs from the principal seacoast
city of the State, through the middle
of its cotton belt to the extreme. western
part of tlle State. On It's way it touches
at many of the most thriving towns ana
cities in North Carolina and passes
through the centre of Robson, Rich
mond. Anson, Union. Mecklenburg. Gas
ton, Lincoln and Cleveland counties
the first four amog the richest agricul-
tural counties in the State and the last
four dotted adj over with cotton mills.
The first four, with the adjoining coun-
ties, raise the cotton, and the last four
named manufacture it, while factories
at Wilmington make the fertilizers used
by the cotton planters along this road.
These, and other facts of q like nature
lead the commission to the conclusions
that Mrs. Matthews, the widow in New
York, who is ostensibly bringing this
suit, has ground and good ground for
complaint, but that this complaint should
be against the management of the Car
Dina Central and not against the com
mission. She began with over a million
dollar holdings in this road and now
more than three-quarters of it have been
lost. The commission will in its answer
charge that the Carolina Central is be-
ing purposely mismanaged by the Sea-
board in order to build up the other
branches of the system; that there is
conspiracy to freeze out the small
stockholders, to the end that the road
may become wholly the property of
those controlling the other parts of the
system.
The tax case is much more intricate
and important one, but the ATTORNEYS
employed to prepare it have been for
two weeks hard ait work and a mass of
evidence has been accumulated
1t will be shown that exactly the
reverse of the railroads contention is
true-that railroads are taxed much
lower than other property, instead of
higher. For instance, the sworn reports
of the railroads show the cost of the
railroads to have been $S7 100000 and
their bonded indebtedness S115, 900, 600:
whereas the total assessed valuation of
the roads by the commission is only
$42,000,000.
Take the North Carolina Railroad.
Its stock is selling at 162. It's capital
stock is $4,500,000 The value of the
road then according to the market value
Of the stock is upwards of $7,000,000.
But the commission has assessed it at
only $4,000000. Again, the Cape Fear
and Yadkin Valley Railroad was sold in
January at auction for cash a year ago
at $3.100,000 A few months ago one
half Of the road was re-sold for 1900
600. The commission, however, valued
the road for tax at only $2,500,00O.
These, and similar facts in regard to
the other roads, show that the railroads
are taxed ON a very conservative basis
The attorneys for the commission are
collecting affidayits showing that private
property in all the counties of the State
has been assessed at what is regarded
as fair cash value. The assessors, the
County Commissioners. the county Off
Gals and the people generally are
aroused and are sending in sworn state
ments denying the Islander contained in
the railroads complaint to the effect
that they have violated their oaths, and
that there has been a general under
standing that property should be valued
at only twothirds of its true value.
Another fact coming out strong in
nearly all the counties heard from is
that there has this year been a material
increase in the tax value of private prop
erty.
Tennessee with less than 5000 miles
= of railroad, has assessed her railroads