The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-05-04

account of the consolidation of the
road, made at Richmond two weeks
ago. the above facts must become
public property; and even if they
should not, it is. only about month
now (June 1st) before another as
sessment of railroad property for tax
alton will be made in this State.
In making this assessment the Cor
poration Commission, should it so de-
sire, has access to the books of the
railroad companies, though such ac-
cesseS is denied to the commission by
Judge Simonton in the tax case. now
pending.
Under these circumstances the
Coast Line people, at least, have come
to the conclusion that a cessation of
hostilties on their part is the better
part of wisdom. Since its consolida-
ton two conferences have been held.
looking to this end. One i'm Whining
ton between Col. Warren G.. Elliott
and Col A. b. Andrews, representing
the Coast Line and the Southeast: tic
other in Raleigh this week, between
the attorneys for the Seaboard, the
Southern and the Coast Line.
The situation is just this: The
Coast Line wants to stop the fight for
the reasons above pointed out. The
Seaboard is in much the same box
by virtue of it's proposed consolida-
ton. in which one share of stock in
the Raleigh and CASTOR Railroad is to
90 for two in the consolidated sys-
TEN and one share in the Raleigh and
Augusta Railroad is to 90 for one and
a half in the consolidated road.
The Southern, of course, being al
ready consolidated. stands in just the
same position it did when the assess
ment was made; it is just at that polhu
it was when it instigated the present
fight in the courts. or when it had IA
bill introduced in the Georgia Legis-
lature to prevent the consolidation of
anv other railroad. 1t is now on the
same footing it occupied when it
bought the Western North Carolina
Railroad for $4.356.000 ($500,000 pur-
chase money and S3.S56.000 first con-
solidated mOrtgage), on which it is
now assessed at a valuation of $930.710
or one-fourth of its original cost
Its position has not changed since it
leased the North Carolina Railroad,
which lease it estimates to be worth
about 81, 625 900. but which can by no
method of apprafsement be valued at
less than twice that amount. The
present market quotation of North
Carolina Railroad stock is 160 which
would make its capital of $4,000.000
worth $6,400.000. It's rental after De-
cember ;, 1901. will be $2S6.00O and
taxes. Omitting the taxes this rental
would make the stock worth 81. $50, 900
on a per cent basis, or S4. 100, 500
on a 6 per cent. basis. This value is
based entirely on the rental. which.
of course. is unfair. as a lease-hold
which yields only the rental is worth
nothing. Its positive value depends
exclusively on the profits over and
above the rental. 1t will therefore fol-
low that the North Carolina Railroad
lease. in the entirety of its value to
the Southern. is worth from 1892, 900
to $11.775,0OO.
And vet it complains at valuation
of about S4.500,000. and wants to keep
up the fight.
Thus the matter stands today.
Whether or not the Coast Line and
the Seaboard will decide to come in
and pay their taxes. or whether they
will allow the Southern to rule the
roOst and hold them to the fight re-
mains to be seen.