The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-09-10
ABOUT THE R. R,
TAX INJUNCTION
Why Did Simonton Grant the
Railroads Prayer =?
STATE HERTAlN tn WIN
STATE CERTAIN TO WIN
C CONSIDERATIONS THAT MAY
HAVE ACTUATED ROADS.
THE RAILROADS KNOW THEY WILL LOSE
Thought the Governor Could Let it Go by De-
fault. Hoped to Vindicate Simonton,
or to Save Themselves from
Any Future Increase.
Any Future Increase.

or to Save Themselves from
Any Future Increase.
| chanced to be talking with a we'll
informed gentleman few days ago
about the injunction issued by Judge
Simonton against the assessment of rail
road property in the State by the Cor
poration Commission. He made
some observations that, whether
right or wrong, will put folks to think
ing. Some may think he was talking
through his hat, and that there is moth
ing in his comment, but there will no
doubt be others who will see in his views
lots of sense and much of truth.
Il see the injunction case will be
heard before Judge Simonton at Ashe-
vile next week. he said | told him
that it was set for hearing at that time.
well, there is no doubt about the re-
suit he went on to say. "Simonton
will dissolve the injunction and the
State will get the taxes as assessed by
the Corporation Commission. There can
be no other ending
/ ventured to remark that the rail
road attorneys with whom | had talked
seemed to feel confident that the rail-
roads would win. that they had agents
travelling all over the State who were
getting affidavits that other property
was listed at from 80 to 70 per cent of
its actual value; that Judge Simonton
owed his elevation TO the bench to
political railroad officers and that he
would do what they wanted.
Ordinarily that is true" said my
friend. 'and if the railroads regarded
this case as of the highest Importance,
Simonton would not desert them. But
this injunction was not brought for the
purpose of winning. Lit is not sham
battle in the real sense of that word,
but it is sham battle all the same.
The railroad does not expect in the end
to win the case. 1t is fighting because it
thinks in the long run it will pay to
make this fight. In getting Simonton
to grant this injunction, either of three
considerations might have prompted the
railroad officials. They were
I. The railroad men know that S42,-
100000 instead of being a high assess
ment on their property in North Caro-
lima, is a low assessment. According to
their reports filed with the Corporation
Commission tand you can take them
with grains Of allowance the railroads
of the State earn six per cent on $66,-
100000 and eight per cent ON $4S000,-
900. If their value should be computed
at sales of stock made this year, they
are worth $120,000000 These figures,
which are not disputed, make it clear
that the assessment of railroad property
is too low rather than too high, but
the railroad men reason that it they
were to acquiesce in the present in
crease without a mighty row, there
! would he other increases from year to
year until at last the six per cent basis
of earnings was reached, or an assess
ment of 66,0OO,OO0 Judge Connor Of
fered an amendment in the House in
February to fix the assessment for 1899
and 1900 at $66,OO0,00O. The railroads
know the assessment will 90 TO that
figure If their receipts increase as rapid
IN y
are fighting to postpone it as long as
they can. They think by a big row they
can get some compromise now by which
they can be assured there will be no
further increase, or il no compromise
by crying oipt that they are being rob
bed, they can make public sentiment
50 strong in their favor that they can
prevent any further increase for years
TO come. That's their game. Simonton
may dissolve the injunction, he may APP
point master to take depositions and
hang up the case year or two, or
he may make some other order that
will help the railroads temporarily, but
the State will win in the long run and
the railroads know this as well us or
better than anybody else
=. The railroads. when they began
the contest and got Smonton to issue
his injunction, did not believe the State
would contest it. In that event. Simon
ton could have decided with them by col
lnsion with the Governors attorneys.
Go TO the News and Observer files and
you viii see that the railroads had
fixed" or arranged" or had an ..un-
dersanding" with Governor Russell.
When he traded away the States right
10 appeal In the lease question. he not
only surrendered on that but on every
thing else, aud has not and viii not
antagonize the political railroad with
which he traded, during bis administra-
ti0n There isn't an employee Of that
road that in a critical emergency they