The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1900-11-27
HOW TO TAX QUASI PUBLIC
CORPORATIONS.

"But when the question comes up again
we will have the usual stock arguments
about driving capital from the State, con-
fiscation of property, anarchistic Opposi-
ton to wealth, &c, giving no one credit
for an honest desire to Justly arrive at
an equitable solution of a problem which
has veXed mankind since the secession
OF the ten tribes of Israel disrupted the
Jewish monarchy"
These are the words with which Mr..
Martin S. Willard, member of the
House from New Hanover, closes an
excellent article in today's paper on
the subject Of the taxation of the
franchises Of q~uasi-public corpora
tons. Mr.. Willard is one of the first
business men of Wilmington, selected
in 1898 and again this year as the rep
rescntative of the business interests of
Wilmington in the Legislature. He has
given much thought and study to the
subject of taxation. about the science
OF which there is much dense ignor-
ancc. In the last Legislature, Mr.. Viii
Hard presented d well considered bill
ittNlilS w III ld\ilIoi. u i1 bholo v
the gross income, of the franchise of
quasi-public corporations. The bill
passed the House, but when it reached
the Senate it failed Of a majority. The
reasons that actuated some of those
who voted against the tax was that
some of the Democratic leaders had
promised in the campaign that no tax
should be imposed upon corporations
that was not imposed OF individuals.
Others tool the ground that, inasmuch
as the railroad property itself was no
toriouslv undervalued. the wisest and
busiest course would be to remit the
assessment to the newly elected Cor
poration Commission with instructions
to consider the value of the franchise
in making the assessment. Neither of
these classes supposed that the rail
roads would contest the valuation i'm
posed by the Corporation Commission.
They thought they were taking the
quickest and best steps to secure a
fair valuation and a just increase in
taxation.
Acting under the resolution of the
Legislature, the Corporation Commits
siond made little or no increase in the
assessment of the small roads from
their old low figures, and increasing the
trunk lines to a figure less than n
half OF the cash, forced sale, value of
the roads. 1t was believed that the
railroads would be glad to pay on so
moderate an assessment INC that fric-
ton between the State and the large
corporations would be avoided. Not
so. They rushed to Judge Simonton,
who keeps iniunctions on tap for rail
road corporations, and secured an in
junction against the collection of the
taxes imposed by the Commission and
have twice escaped the payment of the
just taxes, imposed by the lawfully
constituted authorities Of the State,
defying the power of the State to levy
and collect taxes on property lying in
the State. The farcical investigation
ordered by Judge SimontOn is drag
cling its slow length along and it is
probable, from present appearances,
that a result will be reached by 1910,
but not at all certain. In the mean
time the State, counties, cities and
towns are deprived OF revenue which
justly belongs to them.
The question has changed from one
of the best method of taxing quasi
public corporations to one of far
greater Importance, to-wit: Whether
the State has the sovereign right to
levy taxes on property located in the
State or whether that sovereign right
has been transferred to Judge Simon
ton, who owes his judicial elevation tC
the support Of great and powerful tax
lodging railroads. That is the far
reaching question. Government by
injunction" is a menac to the sovcr
ei2n power OF the State as well as tC
the right Of the citizen to be tried bN
a jury of his peers.
When the Legislature meets in Raj
elGh IN january, h two most impOr
tant questions with which it will hav,
to deal are these: /. How to fulfil
the party pledge for a four month.
school, and 2. How to secure the RICH
OF the State to tax, without Fedora
injunction, corporate property in tn,
State. Though very different qucs
tons, the connection between the tw,
at this time makes the first largely dc
pendent on the second. The peopl
nave been promised a good fou