The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-05-28

| man. of Rowan, introduced the following
resolution in the House:
'WhereaS it is claimed and generally
| believed that the railroad property OF
| the State is not bearing its equal pro
portion of taxation; and whereas all the
| property of the State should bear its
full share of the burdens of government
Resolved by the House of Represent
atves. the Senate concurring, that the
Railroad Commission or any body sue
ceeding to its powers be and they are
hereby directed as soon as practicable
to revise the assessment for taxation of
the entire railroad property of the State,
taking into consideration in making the
said revised assessment, the earnings
and gross income, as well as the fran
chise of said railroads"
On the same day, Speaker Common in
troduced the following resolution:
Resolved, That the Railroad Com
mission be and are hereby instructed to
assess the value of all railway property
in this State for taxation on the basis
of & per cent. upon their net income.
Speaking to his resolution on the 10Th
of February, Mr.. Overman said that
for sixteen years he had been on record
in the Legislature and in the Supreme
Court as in favor of making the rail
roads bear their just proportion of the
burdens of government.
I'm 1883 | introduced the first Rail-
road Commission bill ever introduced in
the General Assembly of North Caro-
lima. They were then paying but a
pittance of taxes After that from time
to time | have stood on this floor and
tried to get their property on the tax
books.
"While / favor increased taxation of
railroad property, | do not think the
principle involved in this proposition to
tax gross earnings is founded on correct
principles Neither do | think the Rail
road Commission has done it's duty in
this respect. | am in favor of the cleo
ton of three cOmmissioners-broa
minded men that will give this matter
the attention that it demands"
Mr.. Overman said he thought Judge
Connor's resolution was along the right
line. but under it some of the railroads
for this reason he sent forward another
resolution.
IF the Railroad Commission does its
duty under this resolution l believe it
will bring into the treasury $15O,0OO of
increased taxes
Mr.. Holman. interrupting asked.
What power has the Commission ur-
der your resolution that it has not
had all along under the Railroad Com
mission Act?'
Mr.. Overman replied. "None. But
this is a resolution of instruction. eX-
pressing the will of this body. 1t will be
IL voice that the Commission WILL
NOT DARE TO DISOBEY."
Prefacing the introduction of his
amendments Judge Common made an ar
gument to show that gross income
tax was not the best way to tax rail
roads,. but that the basis of earnings
was the fairest method that could
be devised. From tables prepared by
the Secretary of the Railroad Commits
sion, based on sworn statements, he
showed that if the roads were taxed
on an assessment chat would enable
them to earn eight per cent, the assess
ment would he S47 ,035537; if taxed on
Il six per cent. earning basis, the assess
ment would be S66, $50, $50; If on a four
per cent. earning basis the assessment
would be S99.2OO0O0. He gave reasons
why he thought the six per cent. earn
ings basis was the fairest way to in
crease the tax.
The victory in the contest all rests
with those whose research and labors
caused them to advocate the gross in
come tax. While their proposition fail
ed in the Senate, they won sub
stantial victory as the history of the
debate abundantly proves. Last year
when they and others sought to have
the Railroad Commission increase the
assessment on railroad property equal
to that in Virginia and South Carolina
they were denounced as "enemies of
''demagogues' and the like.
The same appellations were hurled ut
the advocates of the income tax early
in this session. but investigation con-
WINGED every impartial man that it was
a gross injustice upon every taxpayer
in the State to permit railroads worth
SS7 1913. 113 to be listed for taxation az
only $50. 619, S6S.1O.
The Legislature has given absolute
instructions" to the Corporation Com
mission and fortunately we have a
board composed of men who will obey
the spirit and letter of the law.
The duty of the Railroad Commission
S plain. 1t will follow the directions of
the Legislature and apportion the in
.rease where it rightly belongs. One in
.ident has occurred since the Legislature
adjourned that will throw light upon
heir Duties. The Cape Fear and Yadkdn
Valley Railroad at present is taxed on
a basis of $1,000 per mile. 1t was re-
Gently sold under the hammer at more
than $4,000 per mile, and is to be bond
ed at more. OF course it ought to be
taxed at higher rate than under the
old assessment.
The wise man never loses his reputa-
ion by attempting to answer fool qucs-
ions.