The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-03-31
THE RAILROADS
AGAIN APPEAL
To S|MONTON
Saying: Help Me Cassius or
| Sink.
SECURE ANOTHER DELAY
Want Their Books Closed and Other
Folks Opened.
WOULD USE FACTORIES AS CAT'S-PAWS
Judge Shepherds Letter Referring to Judge
Simonton, the Questions Propounded
by the Railroad Attorneys
at Wilmington.

The taking of testimony at Will
mington in the railroad tax cases, be-
fore Hon. James +. Shepherd, stand
ing master, did not proceed very far.
For parts of two days it crawled
along and then stopped with a bang
until April 17th-after the State con-
yention.
And this is what brought the thing
to its close: The railroad attorneys
some weeks ago announced with u
flourish that they would prove. when
the taking of testimony commenced,
that cotton mills, fertilizer factories
and other industrial enterprises, along
with other property of the State, were
not assessed for taxation at ANYTHING
approaching their real value. To do
this, they said, these concerns would
be compelled to produce their books
and paDers to inform the court as to
the real value of the plant and its
earning capacity.
So, the second day of the investiga-
tion at Wilmington, they had Mr..
Henry Savage. secretary and treasurer
of the Acme Manufacturing Company
---an Independent fertilizer factory
summoned to come before the Master
bringing his books for the purpose of
showing that the assessed value of
the property for taxation is at least %
per cent less than the true value Of
the plant, and to set forth its gross
earnings and operating expenses"
Mr.. Savage declined to bring his
books and make a showing of his busi-
ness to his competitors, contending
that the information sought was ir-
relevant and incompetent.
On this point Judge Shepherd de-
clined to rule, and counsel for the
railroads asked that he refer the ques-
tion to Judge Simonton for decision
This he has done, and in doing so he
has added another point as follows:
Whether or not evidence is admissible.
tending to show that railroad proper
ty even now is not assessed at its full
value.
The question came up in this way:
The railroad attorneys put on the
stand Mr.. j. w. Norwood. president
of the Atlantic National Bank, to
prove that the banks were not taxed
mt their full value. So far alright
hut when it came to the cross-eXam-
iuation it developed that Mr.. Norwood
was also director in the Wilmington
and Weldon Railroad and so the at
torneys started in to prove by him
that that road was not assessed for
taxation at anything like it's real val
ne. For instance they asked the Ori-
glnal value of share of stock, and
what was its present value. with such
certificates of Indebtedness or of stock
IN other corporations as have been
added thereto: also what is the
amount OF the outstanding indebted
ness and what the market value of the
bonds issued by the Wilmington and
Weldon Railroad.
The. railroad attorneys wanted to
know the purpose of these questions.
When told that they were to show the
value OF the road-bed. and other prop
erty OF the Wilmington and Weldon
company included in the tax assess
ment made by the Corporation Com
mission. they objected and asked that
the matter be referred by the Master
to Judge SimOnton for decision.
1T has been done, the letter of refer
ence accompanied by exhibits of the
testimony in question) was sent yes
terday and is as follows:
Raleigh, N. c., March~S0. 1900
To His Honor Judge Simonton:
The question under consideration being
OF very great Importance. it is agreed by
counsel that it be certified to your Honor
waiving any points as to procedure. And
the Standing Master hereby certifies the
same TO your Honor, that is to say wheth-
er the said books should be ordered to be
produced for the purposes mentioned in
the annexed copy of the proceedings
lnasmuch as a recess is necessitated by
reason of the foregoing the Standing
Master respectfully asks instructions
upon an additional question that is TO
say whether testimony tending to show
that the defendant Commission has not
assessed the complainants property at it's
full value is admissible.
Your Honor's decision upon these ques-
tions will greatly facilitate the hearing
before me.
Respectfully submitted.
JAS. e. SHEPHERD,
Standing Master
II is probable that JUDGE Simonton