The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-08-21
A TALK OF THE TAX CASE
Attempt to Show Real Property sys-
tematically Undervalued Fails.
OFTEN ASSESSED ABOVE ITS REAL VALUE
That the Railroads Have Not Been Assessed a
Two Thirds of Tn ir True Value the
Commission is Now Pre-
pared to Prove.
Charlotte Obseryer.l

(Charlotte Observer
The taking of testimony in the tax
assessment cases was concluded here
Saturday at II o'clock. The next hear
ing will be at Asheville on the 2Sth of
this month The compliments directed
their examination of the witnesses to-
ward proving their contention, to-wit:
That there was a system and de-
sign in North Carolina long establish
ed ond well understood whereby lands
and personal property are assessed for
taxation at about two thirds their real
value. They introduced witnesses from
Rutherford, CASTOR, Mecklenburg, Ca
barrus, Stanly, Rowan, Iredell, Alexan-
der, Catawba. Mcdowell, Richmond,
Robson and New Hanover Witnesses
from most of these counties testified
that properly was undervalued and
that in some instances the tax value
was not over one-fourth it's real value.
Many instances were testified to where
prices obtained for property were large
ly in excess of tax value. Evidence
was introduced showing that in some
counties the assessments were made
after consultation with county COM
missioners and assessors and an I'M
derstanding had that two-thirds of its
real value would be considered its true
value for taxation. There was some ev-
1dence to this effect from Cabarrus, Gas
ton. Mecklenburg and Rowan. When 1T
was not proven that such was the under
standing and agreement there was evil
dence to prove that it was customary
1t was proven that in New Hanover
county in 1899 the assessors valued pro-
perty in Wilmington at its real value
and that the board of equalization re-
duced this. And that bank stock was
listed at about two thirds it's market
value; that stock in the Atlantic Ma
tional Bank, worth $50, was listed at
los. There was evidence that cotton
mills in Richmond county were listed
at the par value of their capital stock,
while that stock was worth two for one
on the market
The trend of the cross examination
was to show that there had been no de-
sign to undervalue property, and that
the discrepancies in valuation were ac-
cidental; that the assessors had endeav-
ored to, ascertain what property would
bring at a cash sale had on June 1, af-
ter 80 days advertising. and to list the
property at this price, and that this
prize WdS usually dDOuJ lWO-JllTQS OF
what land brought at private sale in
the fall of the year after an opportuni-
ty for negotiation and with some cred
it: that sales were usually made this
latter way. This view was assented to
by a number of witnesses, notable
among whom was ex-Sheriff Propst. of
Cabarrus. He said that such was the
case and that in his township two
pieces of land had been sold at four
sales since the last assessment and they
brought about their tax value Capt
w. !. Everett, of Richmond county, stat
ed that several townships in Richmond
county, known as the Sand Hill coun-
try, were assessed for fully as much
as they were worth while he thought
that town property and the river lands
were assessed at less than they were
worth, and that he did not understand
that the land tax value as distinguished
from its real value was much used in
his county. Mr.. r. A. Johnston cot
ton mill man, of Rockingham, said the
mills around Rockingham were assessed
at their face value, while their stock
was worth from 125 to 200, but he said
many of these mills could be duplicated
for the amount of their capital stocks,
and that their large dividends were due
to successful management rather than
to the value of the physical properties.
He mentioned one mill of $3.50 capt.
tai, assessed at SIPS, 900, stock selling
at 200. He said this mill could be dupli-
Gated with old machinery like it now
runs with for 100000.
Mr.. A. L. Mcdonald formerly register
of deeds of Richmond county, testified
His was very much like Captain Ever
etts testimony. He named on cross
examination, a large number of tracts
of land in Richmond assessed for as
much as they would bring, and some for
more than they would bring.
Capt. A. L. DeRossett thought proper
ty in Wilmington generally undervalued,
but mentioned a piece belonging to the
DcRossett family that sold for less than
tax value and another piece which they
offered to sell for less than tax value,
but could not find purchaser. The
examination brought out evidence tending
to show that when lands were assessed
last, June LIST, 1899, cotton was lower
than it ever had been on the 1st day
of June; that there was no profit in
making cotton and cotton lands were
greatly depressed in value, hardly hav-
ing any selling value, and that the as
SCISSORS appraised them under these con-
dtions; that since the assessment cot
ton had risen from 51a to a12 cents per
pound: that cotton growers were now
prosperous, and cotton lands rising in
value. and that all this had come since
the assessment.
Counsel for both sides seem to be sat
listed with the examination. After SO
days from the 14th of this month. the
commissioners will introduce witnesses.
The railroads are at the bat now
Before leaving Charlotte yesterday az
ternoon Captain Chas. Price, attorney
for the Southern Railway, made state
ment to an Observer reporter in sub
stance as follows:
Some seventy or more witnesses have
been examined, from about ffteen coun-
ties. These witnesses have testified to
facts. showing the existence OF the rule
of reduction. contended for by the COM