The commonwealth. (Scotland Neck, N.C.) 1896-1929, 1899-03-09

moved to send 1t to the Committee on
Appropriations The motion was lost
by vote of II to IA. Senator Brown
called the previous question. Senator
Wilson called TOR the ayes and noes
The vote showed:
Senator Mason, against, was paired
with Senator Bryan for the bill. The
motion to suspend the rules and pass
third reading was lost. Senator Jus.
tice withdrew his objection and the
bill passed its third reading.
The revenue bill was taken up and
section four amended. The Commit
tee of the Whole then jumped to sec
ton 60, imposing tax On the gross
earnings of railroads. Senator Travis
sent up substitute Senator Lindsay
said the section should be voted On
directly there was no use in lodging
the question.
Senator Brown said railroads at
present are earning net per cent. on
66 million dollars, while the assessed
taxable value was but 80 million. He
would accept fair fixed valuation
instead OF tax on gross earnings
Senator Travis: / favor leaving
the valuation to the Railroad Com
mission.
Senator Brown: We are the only
body that has power to fix this tax and
we should do it.
Senator Osborne said he did not ia
yor the tax. The Railroad Commits
sion had been authorized to fix the
valuation OF property and be did not
intend to abrogate the power.
Senator Fields: Why not treat
telegraph and telephone companies
the same way?
Senator Osborne: The property of
those companies amounts to nothing.
Senator Brown: Their property is
assessed as high, compared with their
earnings as the railroad property of the
State.
Senator Osborne: I only wish the
Senate to do fairly in this matter.
Senator Fields said committee had
been appointed to investigate the tax
Gu corporation property. They had
reached the conclusion that railroad
property was not taxed in proportion
to other property.
Senator Osborne: I agree with
you.
Senator Fields: The question of
taxing gross earnings Is no new thing.
It is done in other States on all corpo-
rations. The Railroad Commissioners
may have power to levy this tax, but
the fact is they have not done so. l
have not found single Senator who
says the tax on railroads is high
enough. They earn over IL per cent.
in assessed value: the Atlantic Coast
Line earns over 70; the Seaboard Air
Line II. and the Southern l6 per
cent. There is sure to be hereafter,
according to all indications, a rapid
increase of railroad earnings.
The increase of expenses had rem
dered it necessary to either increase
the taxes on property and polls Or to
increase franchise and property taxes.
1t was admitted that the railroads were
not paying their just part of taxes, and
the commission had Jailed to make
thom pay it.
Senator Osborne: Was that not
the fault OF he commission?
Senator Fields continued that rail-
road earnings were on the through
lines absolutely certain. A compar-
ison OF railroad with other property
showed that it paid a larger per cent.
OF profit than any other. The value
OF farms in North Carolina within the
past 10 years bad decreased that taxes
OH them should not be increased was
natural. The tax On earnings was
enlnent1y just. Ten States in the
Union levy such tax. Vermont,
Michigan, Tennessee, New Jersey,
Wisconsin, Missippl and others.
Senator Justice: How many of
these ten States have Railroad Com
mission?
Senator Brown: Seven of the ten.
Senator Glenn: Do you not know
that these roads were, some of them
exempted by charter?
Senator Fields: They avoided pay
ing taxes by watering their stock and
Investing dividends in new lines of
roads thereby keeping below 6 per
cent. limit Of earnings. A railroad
representative admitted before the
Joint Committee that his road had
grown from $50 to eco miles on its
earnings.
Extra franchise rights were granted
railroads, and yet they resisted paving
their just share of taxes. The Rail- |
road Commissioners were not direct |
representatives of the people and were