The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-02-08
THE TAXES TOO HIGH NOW
THEY PLEAD POVERTY AND
TALK POLITICS.
ATTACKED IN HOUSE OF THEIR FRIENDS
Helped Garry the Election and Didn't tx
pect to be Paid for II in This Kind
of Coin. Merchants Pur-
chase Tax.

chase ak,
At joint meeting of the House and
Senate Finance committees, in the
State Treasurer's office yesterday after
noon, a hearing was given to the rail-
road men touching the proposed tax on
the gross earnings of railroads..
Those who spoke were: President
Warren G.. Elliott, of the Atlantic Coast
Line; Maj. John ID. Shaw. for the Sea-
board Air Line; Mr.. Il. III. Busbee, for
the Southern Railway; Nj. =. Il. Wat
son and Maj. w. A. Guthrie, for the
Norfolk and Western. Vice President
A. b. Andrews, of the Southern Rail-
way, also filed statement with the
committee setting forth his reasons for
opposing the tax.
At conclusion of the argument the
committee adjourned without taking ac-
ton.
The bill to tax gross earnings of rail
roads was first introduced in the House
by Mr.. White, of Halifax. 1t provided
for 2 per cent tax on the gross incomes
of all railroads. Later Mr. Thompson,
of Onslow, introduced a substitute fixing
a graduated tax on the gross earnings
as follows:
Less than 81 900 per mile fgross cam
ings) annually, Il per cent.
As much as $1,000 per mile or less
than $500, n per cent.
$1,000 per mile or less than $4,000, 1
per cent.
$1,000 to $1,000, III per cent.
$500 to $4,000, ~ per cent.
$4,000 to $500, 1s4 per cent.
$4,000 to $4,000, 2 per cent.
$4,000 to $4,000, 214 per cent.
$4,000 to $4,000, 212 per cent.
$1,000 to $500, 2$4 per cent.
$500 to $4,000, 8 per cent.
$4,000 or more, 3H per cent.
The bill further provides that this
tax shall be paid semi-annually, and that
failure TO make proper returns or pay
the tax shall be punished by the colIec-
ton of an additional 10 per cent
This tax on earnings is in addition to
the property tax already levied ON rail-
road property.
The first speaker was Maj. John ID.
Shaw, of Rockingham.
He said the bill would increase the
taxes of the Seaboard Air Line $780,
600 a year. Of all the drastic every
started, he thought this beat ALL
When the Populist party started they
wanted to own the rai1roads-wanted
the government to own them. They
were willing, however, to pay for them.
But this bill is more drastic than any
Populistic measure I've ever known
ct does seem that nowadays when
the government wants Ito raise money
it goes to taxing railroads. In North
Carolina the valuation of railroad prop
erty has been increased $4,000 0G,
while the valuation OF other property
has been decreased S1O,O0O,OOO.
Since 1892 the State has lost 1000
900 acres of land. Any effort being made
TO recover it? To supply this loss in the
public revenue the railroads have to
march up and pay.
1.-THE value of all the iands in the
State is $110,063057; city and town
lots. S44, 7S6,5G0; all other property.
S177,397, 712; railroad property, $751;
52o,421 Real and personal property has
decreased in value since 1892, S10,202,-
472: railroad property increased since
1892, S13, 1893, 10S
why then this renewed effort to
kite valuations. | don't know a rail
road in the State to-day that's not pay
ing its full share of the taxes. If the
idea and purpose is to drive out capital
and prevent further road building, You
are accomplishing your purpose. This
bill would raise S23700O additional
taxes on the railroads of the State The
Raleigh and Castor is paying now on a
valuation between $4,000 and 5000
more than the road COST.
IF You have any respect for uniform
ity or equality you'll disapprove this
bill. There can't be any justice in il
unless You want to make an exception
of railroads and make them bear the
heat and burden of taxation"
In beginning his argument Mr.. Elliott.
president of the Coast Line, referred to
the exemption from taxation his road
enjoyed for SO many years, and the
subsequent compromise of the matter.
we were willing to bear our fai" and
equitable part of the public burdens.
We wanted no unjust determinations
in our favor, and in surrendering our
exemption we asked no conditions. We
put ourselves in the hands of the chosen
representatives of the people, relying on
their wisdom and sense of Justice
but it seems that at each recurring
Legislature we are TO be hauled mp
here to demand of us why we should not
pay--more.
1--WE had this proposition - meet and
fight as far back as 1896. had coca
sion to say then and | repeat it now.
that we are willing to bear ous equal
proportion of the taxes in this State.
We are among the first to come for
ward and tender our check. We are
not shikers.
THE taxes which we have already
been paying are vastly beyond what we
ought to have paid.
1T is such movements as this that
will prevent outside capital from COM