The news & observer., 1901-03-09
WHY IT DID NOT PASS.

Judge Graham presented an array of
facts and figures yesterday with refer
ence to the taxation of railroads that
cannot be denied The railroads ought
to pay more tax than they are now
paying, and nobody in the House dis
puted the proposition that Judge
Graham laid down in advocating a
larger license tax than the revenue bill
imposes. But the larger tax was not
imposed. Why?
/. There are always men in every
Legislature who oppose any new or
increased tax and are misled by the
clap-trap that you are depressing the
railroads" if you seek to impose just
taxes on them. Every Republican
voted against the tax. They always
vote as they get orders from the rail-
roads.
>. Since the last Legislature, the Cor
poration Commission has increased the
assessment of railroads ten million dol
lars, which adds 100000 per annum to
the taxes paid by the railroads. There
were those who, while admitting that
the taxes paid were still too low, said
that this was not the time to make a
further increase, that it was better to
make steady increase every assess
niont year than to make large increase
at this time
8. There were others who held that,
i'm vicw of the settlement Of the recent
litigation, while no agreement as to an
Income tax was made, an agreement had
been made not to assess railroad prop
erty except in the. years when other
assessabe property was assessed, and
a large income tax would be doing by
indirection what it had been agreed
should not be done by direction.
4. There were others, among them
Mir. Willard Of New Hanover, and Mr..
Thompson, Of Onslow. who championed
the gross income tax that passed the
House in 1899, who felt that in securing
the recognition of such a tax in the
Revenue law this year a great principle
OF sound taxation had been perma-
nently secured. Heretofore the rail-
roads have been able to defeat any
proposition looking to a privilege OF
license tax This year they have
agreed to the principle though the
a.. J.; .,ya.o,l :, foo low n fio1Ira The
license tax on railroads will not exceed
$4,000 or $4,000, a sum that Mr.. Will
lard and others who believed in the
tax accepted chiefly because it was a
victory for the principle of taxation for
which they contended and lost in 1899.
There will be no contest in future
Legislatures as to the propriety or JUS
tice Of this license or privilege tax. 1t
is permanently engrafted upon our sys-
tenn of taxation. Two years hence, the
tax will be levied upon such basis as will
give to the State Treasury just reve-
nuc from the railroads of the State.
Judge Graham and the other members
of tho House, who stood for a large
license tax based upon gross receipts,
will never regret casting that vote. The
tax they advocated is just, is based
upon a right principle, and it is as GER
tain to be adopted substantially by fu-
ture Legislatures as that reforms never
so backward.
The advocates Of the gross income tax
as a license have won substantial vic
tory in securing the small tax and en-
grating it upon the revenue laws of the
State. The tax imposed is far too low
and ought to have been not less than
SlcOo0O per annum. But, the principle
obtained and settled. complete victory
is only deferred two years.