The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-09-17

creating it to tax railroad property. Its
the only way out for the railroads. Tho
contention is weak as dish water, but its
positively thevonly thing that hasn't been
cut from under their feet.
saw Mr.. James II. Pou today and
called has attention to the statement
IL the Asheville Gazette Of this morning
TO the effect that the States affidavits
II the railroad tax cases had been pad
led and that really not more than one
thousand men had made affidavits.
Mr.. Pou said: THE Gazette state
ment is entirely incorrect We intro
luced affidavits sworn to by $500 midi
viduals. Our affidavits now exceed three
thousand, but some men We're assessors
and also euualizers; some were county
officers and also money lenders, and
a few of these men made affidavit in
several capacities. But a discount of
two hundred is an exceedingly liberal
estimate for this class.
A count will show that $500 men
have made affdayits in behalf of the
State. They represent 81 counties, and
they are of the very flower of the State
clu.zenshp.
Against this testimony the railroads
combined, after strenuous effort, haS
introduced 2S2 affdavits The ratio is 10
to l against Them and Judge S:mNonton
holds that the burden is on them.
THE railroads have given up all hope
of winning on the merits of the case; all
they hope TO do now is to turn on the
claim of want of taxing power in its
Corporation Commission. They are in
the last ditch
1t is predicted by lawyers here that
they viii lose on that point also. Section
sixty of the revenue act they say con-
fers power sufficient on the Corporation
Commission.
There was an important part of Mr..
Simmons speech yesterday of which
nothing has been said in the public
prints-that in regard to tax on fran
chise.
He showed that the contention of the
railroads that they were denied equal
protection of the law because the com
mission was directed to consider the val
ne of the franchise in making their
assessment against them, was without
merit and contrary to facts. MANY
States have similar provisions and they
have stood the test of the courts. That all
other corporations in North Car
Dina pay tax on value Of
their franchise, taxed as intangible
property. Even private corporations
are required to give in their stock at
its true value and pay a property tax on
it. The railroads are not required
and have not given in their
stock, which in all CORPORA
tions represents intangible as well as
tangible property, and if its franchise
is not considered in assessing it, this
part of its property would escape tax
ation altogether and the constitution
which requires all property not expressly
exempt to be taxed would be violated.
THE difference of mode Of assess
ment amounts to nothing if only there is
a difference in classification, and the
object of adj these different methods is
to arrive ut proper valuation of the
property. The railroad commission have
always heretofore considered the value
of the franchise as is shown by the
affidavits of former Railroad Commits
sioners Wilson, Caldwell and Abbott,
introduced here by the railroads.
The act of the Legislature simply re-
quires the Commission to consider the
franchise, gross and net income If it
had not been SO instructed it would have
been its duty to consider them anyhow
since all these things are essential ele-
ments III the value of railroad property.
There is no objection to the Legisla-
lures prescribing different modes o.
assessing property of different kinds or
classes, if all kinds are required, as un-
der our law, to be assessed in these diff
ferent ways at its true value. The as
sessment iii each case being based on
its true value" the constitutional prin-
cple of uniformity is preserved.
Income is an element Of value of near
~ every kind of property, and if it is
left out in assessing it there can't he
a true valuation. Every law that re-
quires property to be assessed at its true
value necessarily involves considera-
tion by the assessing officers of its in
come capacity.
Tax laws of nearly all the States rec
ognize these principles. The acts of our
last Legislature required railroads to be
valued in one way, telegraph companies
in another, express companies another,
stocks another, and lands another. The
elements of value in each case being
somewhat different. You can't get at the
true value Of each by exactly the same
methods, but they are required to be as
sessed at their true value"
True valuation thus becomes, in law,
as it is in fact, the basis of uniformity.
Continuing as to the proper valuation
OF railroad property, he said:
Il suppose the same rule applies to
the valuation of railroads as applies to
the yaiuation of fa1ms-the price AT
which the owner may find Il ready pur-
chaser. The United States Supreme
Court has said in the Pittsburgh VS..
Backus that the best standard Of
value for railroads is the united value
of the capital stock and bonded indebted
ness. The men who own stock in rail-
road own the railroad as much as | own
the lot to which / have a deed The
value of that road is what the stock
and bonds will bring on the market.
Ii ] wanted to buy a railroad with IA
bonded debt / would have to buy the
stock at its market value. | woul'l
then own the road subject to the mort
gage indebtedness, and if i wanted All
unincirmbered title would have to bny