The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-02-25

There wasn't what one would call
''much done in the House yesterday.
But there was mighty heap" of
speaking, and some of it of no bad quail
| ity, either.
All over the proposition to levy a grad
uated tax ON the gross earnings of rail
roads.
The discussion began at IL O'Clock
with a speech by Mr. Winston in oppo-
sition to the tax and continued (barring
| a short interruption at noon for the elec-
| tion of State Librarian and trustees
of the University till 2:30 O'Clock, at
which time Judge Connor introduced the
above resolution as Il compromise meas
| ure.
| Pending its adoption, and to give mem
| bers time to make up their minds on
| it. the House took a recess until 3
| O'Clock last night.
| At that hour. however, that matter
was not referred to, only local bills be-
| ing considered. and the resolution goes
over for consideration again this morning
at the expiration of the morning hour
| The tax proposed in the Revenue Act,
and for which this resolution is a sub
| Stitute, is as follows:
On all railroads whose annual gross
earnings amount to $500 per mile or
| less, tax of one-eighth of one per cent
on the gross earnings.
| On gross earnings of more than 81
| 500 per mile and less than $4,000, a tax
of one-fourth of one per cent.
On gross earnings of $4,000 and less
than $500, one half of one per cent.
On gross earnings of $500 and less
than $4,0O0, three-fourths of one per
cent. -
On gross earnings of $4,000 and less
| than $500, one per cent.
| On gross earnings of $4,000, and less
| than $1,000, one and one-fourth per
| cent.
| On gross earnings of $1,000 and less
| than $500, one and one-half per cent
| On gross earnings of $500 or more
one and three-fourths of one per cent.
| This was the bone of contention around
| which the battle of debate ragged for
| three hours. and ended only with the
introduction of Judge Connor's compro-
mise resolution.
| He SellSdllOlldl speech VI the udN WIS
| the opening gun. 1t was made by Mr.
| Winston. 1t was listened to with dismay
| by Democratic members and with sur
prise by other folk.
| He began by cOmplimenting the FL
nance Committee and speaking in most
| appreciative terms of the work it had
| done in constructing the Revenue Act.
1t was in the main, he thought, Il wise
measure, carefully and ably formed. For
| the most part. the man who had not
had opportunity to investigate these
questions could follow its recommenda-
tions with safety, 1t was therefore with
extreme pain that Mr. Winston found
himself compelled to disagree with the
committee on its proposition to tax rail-
roads on their gross earnings.
| He opposed the tax because he con-
sidered it double tax. The property
was taxed and now it is proposed to tax
| the income on it.
THE railroads are about the only class
| of property in North Carolina that pay
| their full ad valorem tax. The merchant
doesn't do it, for he's turning over his
capital day after day. The farmer
| doesn't do it, for he's eating up his pro-
duct year in and year out"
Touching the argument that the in
come of insurance companies are taxed
and therefore railroads ought to be tax
ed. he said he favored exempting the in
comes of insurance companies to the
amount of capital owned in the State
THE courts will sustain such tax
as this (tax on railroads. only on the ic-
| tion that it is license tax. This for
the good reason that the income is de-
Irived-every single cent of it-from prop
erty already taxed. Are not railroads
| already taxed enough? Then let their
| ad vaIorem tax be increased by the
| Railroad Commission.
did you know that the only inter
est in North Carolina that has been sin
| gled out and had Il guardian appointed
| for ito get its property ON the tax
! hooks-is the railroad. And by this
Commission millions and millions of dol
lars have been added to the taxable prop
erty of the State.
''Why single out the railroads for this
burdensome taxi he asked with great
emphasis.
He believed that nobody would vote
for the tax with the idea that they've
got it and wen take it."
1T was just the fear of such legislation
as this that made the great railroads of
North Carolina pause and hesitate be-
fore they decided with what party they
would cast their lot in the late cam
paign."
He said there was a time during the
struggle when these great aggregations
of capital stood hesitatng.
'The light finally broke, the hour