The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1900-11-01
Simmons and the Gross In
come Tax Bill
Extract from Judge Allen to Wehstcr's
Weekly.l


With reference to what is said in YOU,
article by yourself and Senator Lindsay,
in connection with Mr.. Simmons posi-
ton upon the proposition To impose, in
addition to an al valorem tax. tax
upon the gross income of railroads. ! am
Informed the following are the facts:
Early IN the campaign of ISIS. il was.
after conference between members OF
the State Executive Committee. believed
to he necessary to the success of tho
white supremacy movement, that all cl-
ements and interests in the party i'll the
State should be brought together in earn
est support Of the Democratic ticket
Certain property interests, including the
manufacturers. railroads, etc, expressed
fears that if the Democrats got control
Of the State. there might be Legislation
discriminating against their interests. In
order to satisfy these people, it was
agreed. as result of this conference
that Governor Jarvis should make a
trip through the State and assure these
property holders that if the Democratic
party was restored to power they shonld
have fair treatment. Upon Governor
Jarvis return from the VISIT he was
asked to prepare an article Ito be pub
lished, and which was published in
the Democratic Handbook of that year,
embodying Il statement of the assurances
he had given. That article will be found
in the Hand-boo of 1898. nnder the title
'Democratic Policy as to Property
When it was proposed in the Legs-
lature, after imposing upon the rail-
roads an ad valorem tax upon all their
property. that there should be an addi-
timal tax upon their gross incomes. it
was claimed that this was Discriminating.
legislation. and a violation of the cam
paign pledge Of fair treatment made as
above stated. Mr.. Simmons at once
telegraphed Governor JARVIS to come to
Raleigh. He and Governor Jarvis in
tervicwed many members of the Iegisla-
ture upon the subject, and as Il result it
was generally agreed that the railroads
were not paying their full share Of taxes,
but that whatever course the party might
see tit thereafter to pursue with refer
ence To taxing the gross income of rail
roads. that was Il new method of taxa
ton and, for the then present. whatever
increase i'll their taxes might be just and
proper should be made, as against indi-
ylduaiS. by increasing the assessment of
their property, and, as Il substitute for
the income tax, the provision of the rev
enue bill requiring and directing the
Railroad Commission to re-asSeSS all tho
railroad property. and To raise their as
seSsmentS so as to make them pay their
just and full taxes, was adopted. That
the victory for permanent white suprem.
acy WAS only half wop. that in 1900 "A
great battle was to he fought for con-
Stitutional amendment which would set
tie that great question. and that no new
methods Of taxation which might tend t9
divide the white people or ALLEVIATE any
part of them ought to be entered upon
until after that great battle was fought
and won.
This course was followed because it
was believed to he right.
Subsequently, hn HaiI
SIGN. acting under this authority and
mandate. did increase the assessments
OF the railroads about S1UHDD.0OO, and
the amount of taXes due the State from
the railroads by reason of this increase
will be fully equal to what would have
been realized from the gross income tan
After this increase was made in the as
scssment. Mr.. Simmons became one Of
the leading counsel for the State in the
suit against the railroads TO enforce the
payment OF these taxes. and has vigor-
uuSly prosecuted these suits. 1t is true
the railroads are resisting the payment
of this increased tax. j. is also well
known that if the gross income provision
had been incorporated in the revenue
bill. they would have resisted that.
NJ. Simmons said, in his letter, re-
ferred 10 by You. Il neither lobbied IN
the last Legislature. nor discussed with
its members subjects connected with
fnelf duties, not pertaining 10 general
legislation. such aS the constitutional
amendment. the election law, etc. The
matter above referred t. was general
legislation. and Mr.. Simmons confer
enceS with the members Of the Legi<la-
ture concerned it. Neither he nor Gov
ernor Jarvis were appearing for the
railroads. they were NJ. lobbying but
were representing the Democratic party.
as a matter Of duty. and without lcom-
h., nv =
paign pledges: and. while insisting that
tn" railroads should b. made Ia pay their
full share OF taxes. insisted mat full ms
tice could be done 10 all con,crneI under
old and well established methods OF
taxa ton.
The provision in the revenue law
which required the Railroad CDinmiSsio
10 increase the assessments of railroad
property. and under which that assess
Inent has been increased slo.rp.tEp
was prepared jointly by Mr.. Simmons
and Governor Jarvis. The latter portion
Of this article has been shown ~ GOV
ernpr Jarvis and meets his approval.
In your original article, YOU said your
only desire was tn secure a senator wh,
would support Mr.. Bryan and his
rnea surt-s In view OF the records ~
these two gentlemen. do you not think
you should now support Mr.. Simmons it,
stead OF General Carr
Respectfully yours,
w. A. ALLEN
Goldsboro, y. G., Oct. 10, 1875.