The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-01-25
SOME FIGURES SHOWING THE
INCOME OF LEADING RAIL
ROAD COMPANIES.
THE PLAN or TAXATION IN OTHER STATES
What an Examination Of the Revenue Laws Q
the State DiscIoses. Virginia imposes
One Per Cent Tax on Net
Earnings.

troduced the following bill:
The General Assembly of North Caro-
lima do enact:
Section L., There shall be levied and
collected annually a tax of % per cent
on the gross earnings of all railroads.
telegraph companies, telephone compa-
mics, steamboat companies. and express
companies. which tax shall be applied
10 the various purposes of public eX-
penditure Whenever any railroad or
company of the character above named
shall be operated partly in this State
and partly without the State. the above
tax shall be upon the gross earnings on
local business done within the State, and
pro rata part of the business proportion
ate to the part Of the business done with
ont the State.
Section ,. All laws and parts of
laws in conflict with the act are hereby
repealed.
Section 3. This act shall be in force
from and after its ratification.
Speaking of this bill and his reasons
for introducing it. Mr.: White said:
Il believe that facts and figures can
he produced that will utterly nullifv any
statement TO the effect that tho impos-
ton of this tax viii be smjust to the
property and business enterprises on
Which it is proposed TO levy it.
Examination of the finances of the
greater lines of railroad in North Caro-
lima will result i'll some remarkable reve-
lations. 1T can be shown for the year
1893. the Wilmington and Weldon Rail-
road Co, practically declared a dividend
of 1916 1-3 per cent on each share of its
stock at the par value or 500 Il 5hare.
When the fact is recalled that the origi-
nal cost of these shares. to most Of the
present stockholders. was $40 per share.
the dividend on the original cost amounts
10 3S09s per cent.
"a syndicate recently bought stock IN
the Seaboard Air Line Railway. paying
therefor 5000 for shares Of the par value
Of 500. each. and bought three thous-
and shares. ut the same rate. over and
above the necessary number of shares to
control the management Of the corpora.
ton.
THE Cape Fear and Yadkin Valley
Railway recently sold under the ham
mer, at a forced sale. for S1.045,00O
over and above the amount said railway
was listed for taxation at its true value.
The Southern Railway has bonded
ana stocked its lines at S76.557 per mile,
and earned dividends and interest on
that amount of bonds and stock per
mile, while it is a well known fact that
the Western North Carolina Railroad. a
part Of the Southern system in this
State, costs the Southern Railway Com
pany only $4,000 per mile, and other
IL. 4 ,k,A{x ",
THE total gross earnings of rail
roads in this State are about 1000, 900
annually, and tax of = per cent on the
gross earnings would amount to S240, 600
per annum, and the same tax on the
gross receipts of Express Companies.
and Steamboat Companies would yield
total revenue of S275.000 per annum.
1.-THE Revenue Act in North Carolina
with reference to railroads for the past
several years has been peculiarly con-
structed. and doubtless has misled NUM-
hers of people when the act was under
general consideration. Even since 1891.
and perhaps prior to that. the division
known as Schedule ''C'' begins with the
following provisions: Every railroad.
steamboat or canal company incorpora-
red under the laws of this State. doing
business in this State, shall pay to the
state a tax on the corporation equal TO
The sum of one per centrum upon the
gross receipts of said company. The
said tax shall be paid semi-annually.
upon the first days of July and January;
for the purposes of ascertaining the
amount of the same, il Shall be the
duty of the treasurer of said company
TO render the Treasurer Of the State.
under oath or affirmation. n statement
of the amount of gross receipts of
said company during the preceding six
months, and if such company shall re.
fuse or fail, for a period of thirty days
after such tax becomes due, to make
returns or to pay the same. the amount
thereof, as near as can be ascertained
by the State Treasurer. with an addition
Of ten per centum thereto. shall be col
lcctcd for the use of the State"
a casual observer might think from
reading this provision that the State
was receiving from railroad companies.
and other corporations at least tav
of per cent upon the gross earnings Of
such enterprises: but there has inclden
tally, or by design. been inserted lit
tie lower down. in the same section. this
little line: no railroad company or
canal company shall he liable to this
tax, if its property is taxed" 1t is not
too much TO assume that the introduc-
ton Of this one line was not noticed. or
detected, ut the time Of It's introduction.
and it appears 10 have been unnoticed in
practical way even INTO this day.
This particular matter might he clnbora-
ted 10 some considerable extent The
law as il stands is capable of Il con.
strultion which might permit n colpo-
ration TO pay ] per cent on its gross
earnings, and pay nothing ON its prop
cfty. or pay tax on its property. and
nothing on gross earnings. Tn 10 this
time it has been apparent that MI sncb
corporations have preferred TO nay tax
ON their property To the other altcrna-
tive.
Numerous States of the Union are al