The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-02-25
RAILROADS OUGHT TO PAY
MORE TAX.


The debate over that section in the
Revenue Bill, imposing a tax ON the
gross earnings of railroads, has now oc,
cupied nearly two days of the time Of
the House. 1t is well that it should
he carefully discussed, for it is a matter
of very great Importance.
1t has been championed by Chairman
Holman, of the Finance Committee;
Mr.. Willard, Mr.. Thompson, Mr.. Rob
inson. Mr.. Boushall, Mr. Hartsell, Mr..
White. of Halifax. and others
who are among the wisest legis-
lators. The gross income tax
has been antagonized by Judge Con
nor, Judge Allen, Mr.. Craig, Mr.. JUS
tice. Mr.. Rountree, Mr.. Winston and
others. The debate has been conducted
upon a high line by these gentlemen,
who have presented their views clearly
and forcibly.
About the close of yesterdays session,
Judge Conner, after reviewing the diff
ferences of opinion, suggested a method
of taxation. which he thought would
be generally approved, and which was
not in any sense a double tax or new
departure in taxation. He adverted to
the fact that according to the sworn re-
ports of the railroads, the roads in this
State earn, after paying all expenses
and 100000 in taxes, six per cent upon
$50. 1SO.T5O. and he offered an amend
ment that looked to assessing the rail
roads at that valuation. The resolution
he offered, he said, had been drawn
crudely and would need changes, but
he argued that the correct principle upon
which railroads should be taxed was the
basis of their net income. He thought
that a six per cent return ON the in
yestment was a fair one, and il could
be safely taken as the basis of taxation
The railroads are now assessed for tax
alton at 500. 619, S6S.19, which calls for
State, county. city and other purposes.
The Conner resolution would about dou
BILE the assessment and the tax. As
hastily drawn it might release from all
taxation those roads that are not earn
ing six per cent. but notice was given
that it was offered as a principle of tax
alton, with the intention of making
such changes as would be necessary to
secure fair and consistent system of
taxing railroads.
1t is notorious that the railroads do
not pay their just proportion of the bur
dens of government in North Carolina.
For ten years this writer has been
printing fact, after fact to arouse pub
lie sentiment to the position that rail
roads ought to be required to pay tax
just like private citizens. During all
these years the hirelings of corporations
have met the facts and figures present
ed by saying ''it is a Populistic fight on
corporations" There was time when
vent free discussion by such falsehoods.
The antics of Russell and his allies,
who, after pretending to fight for the
people, sold out or gave away every prin-
ciple for which they pref ,nded TO stand
delayed the hour when the true rep
resentatiyes of the just people of North
Carolina could consider this question
judiciously and wisely. That time has
now come and this General Assembly
is the forum. The issue having been
raised it is as well for the peoples rep
now assembled to determine
the assessment of railroads in the light
of their sworn reports as to postpone
its solution to future time.
North Carolina gets fifty per cent less
in taxes per mile from its three great
systems than they pay in Virginia and
South Carolina. On July 18th, 1897, in
reply to request, the editor of this
paper wrote communication to the
Railroad Commission from which the
following extracts are made
THE Atlantic Coast Line, the Sea-
board Air Line and the Southern Rail
way have lines in each of these States,
and while they all have more miles in
North Carolina than in either of the 9th
er two States. there is no question that
they regard the North Carolina section
as quite as valuable as any other por-
ton of their systems. And yet all three
of these systems are permitted here to
list their roads for taxation at a much
less value per mile than in the States
north and south of MS. The RAILROAD
Commission is charged with the duty of
listing their property for taxation at a
just valuation, and until the assessments
are raised to correspond with a just
assessment-not less than in other States
the people and the press will be war
ranted in continuing TO urge action by
your body.