The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-12-16
SHOULD TAX INCOME
Mr.. Mechanics Report to the
Legislature ForecaSted.
Says 5 Per Cent on the Gross income OF
Railroads viii Pay the Schools
500, 900.

Mr.. c. H. Mebane, Superintendent OF
Public instruction for the State, has made
public forecast of his report to the
next General Assembly
The report is somewhat at length, and
considers the question of public educa-
tion from various standpoints. 1t is per-
haps the most comprehensive ever sub
mitted to the Legislature of this State,
and contains the result of much inves-
tigation.
That portion of Mr.. Mebane's report
that will attract most attention is t1e
part wherein he advocates taxing the
gross earnings of railroads, the taxes thus
derived to go toward the maintenance of
the school fund. He announces himself
as unqualifiedly in favor of this PROPOSE
ton, and takes high ground in his argu-
ment in it's favor.
He starts this argument with this italf'
cised assertion: 1--WE must have more
money before we can hope to educate the
great mass of the people .. Most
every one will admit that in order to
increase the school terms, and in orde;
to secure better and more efficient teach
ers, we must have an increase Of school
fund.-
He then asks: Where are we to get
the money!" Replying to his own query,
he says: 1.-THE letters following will show
where other States get an abundance OF
their public funds"
Then follows letters from thirty States,
a number of which state that the gross
incomes of the railroads are taxed, and
in many of which the amount so col
lected is applied to the school fund.
Among the States in which the gross
incomes of railroads are taxed are New
York, where mills on the dollar is col
ected Vermont, which collects 2la per
cent; Rhode Island which gets l per
cent; Texas where 1 per cent is collected;
one fourth of which goes to the schools;
and Pennsylvania, where a tax o. mills
on the dollar is levied.
He states that while North Carolina
has sweeping statute on the subject"
it does not receive one cent from the
gross receipts or gross earnings. The
statute providing for a ! per cent assess
ment on the gross incomes of railroads,
he says was emasculated by the proyiso
mo railroad or canal company shall re
liable to this tax if it's property is taxed"
He continues II advise the General
Assembly to impose a tax upon the gross
receipts of the railroads in North Caro-
lima for the benefit of the public schools.
We find taxes upon gross earnings in
fourteen States Why not have it in
North Carolina? ID
''The gross earnings of the railroads
in this State are more than eleven mill
lion dollars. Suppose we had law like
Minnesota taxing the roads per cent
on gross earnings? What handsome sum
of more than three hundred thousand dol
lars to give instruction and intelligence
to the great army of poor boys and girls
now cropping in darkness and who must,
under present condition of our educational
facilities, grow into manhood and woman
hood burdened with all the disadvantages
of the ignorant In addition to
this, let us have the same tax on gross
earnings of telephone companies, tele-
graph companies, express companies in
surance companies, and then we will have
a school fund from these sources of about
four hundred thousand dollars. Think
Of having four hundred thousand dollars
added to the school fund by the General
Assembly of 1901"
He concludes this part of the report as
follows
1.-THE railroads in North Carolina now
net five million dollars annually over and
above 4 per cent on the real value Of
their property. These roads could stand
a tax of per cent on their gross earn
ings, which would give us 100000 annu
ally, and then leave them $4,000 900, to
carry out Of the State Let us have 5
per cent on gross earnings and give 1t
ell to the school fund"
Another question of special interest
discussed was the school book question
Mr.. Mebane's treatment of this and other
questions will receive fuller notice in
Iof iC-t