The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-02-03
RAILROAD VALUATION.

"Asubscriber" asks us to state in these
columns the assessed valuation of rail-
road property in North Carolina and upon
what capitalization the railroads are now
earning six per cent. The entire railroad
property of the State is assessed in round
figures at $42,O0O.O 900. They earn $685.
$50. from which must be deducted $2,6l9,-
G04 OF TO pay six per cent interest on a
funded debt of $47,S12,5S and from this
must also be deducted $4,000 for taxes
leaving a net income of $2,543,346. NOW
as TO much of the funded, and practically
all the funded debt of the small roads,
It represents the actual indebtedness in
Cured in building the road, but for some
of the larger systems it represents mucn
of water" also. The Stanly county lluga-
tion grew out of the placing of an immense
bond issue on that road, far in excess of
the money expended in its construction
There iss.s'velvet" in the funded debt OF
some other railroads. But. after allow
ing six per cent. interest on all funded
debt Though some OF the interest is four
and some five per cent? and paying taxes
there still remains a net profit to the
stockholders of s., 543, 3i6. The railroads
of the State earn six per cent, on. a capt.
talization of s93O49, 1876. or more than
twelve. per, cent on the $42. 600 900 they are
assessed for taxation, and yet they have
recently made such hue and cry against
paying that assessment, that it has cost
the State nearly $4,000 to compel the
payment,
Is there. any other property in the state
assessed at less than fifty per cent OF a
six per cent earning value?
Let us consider separately the three
systems chat made the contest against the
assessment and see upon what basis they
have been taxed.
The Atlantic Coast Line is assessed for
taxation at $1S, S17 ,29S Last year Its net
inccme from operation was $1,624,473
From that sum must be deducted $S66,o92
10 pay six per cent. interest on its $l4'-
434207 funded debt and S13S,000 taxes,
leaving a net income for stockholders OF
$620. 42I 1t earned six per cent on a capt.
talizaiion of $27.O74,55O though it was
taxed on basis of $15,S17,29S, less than
one-half OF the six per cent. earning basis.
the Southern. Railway is assessed Tor
taxation at STA. O35, 14O. Last year its net
income from operation was 81, O.o4o.
From that sum must be deducted sl,269,-
92135 to pay six per cent. interest on
the funded debt and $4,000 for taxes,
leaving net income Of s1,OS0,624. 1t
earned six Der cent. on a capitalization
of SIC. $40, 416 though it was taxed on a
basis of only 5,O35. lao, giving the road
over fifteen per cent. earnings on the tax
valuation.
The Seaboard Air Line is assessed for
taxation at $7.521, O54. Last year its net
income from operation was 81 ,O31 ,1O9.
From that sum must be deducted $410,
219.4O to pay six per cent interest on
funded debt of $6.S36.99O and $4,000 for
taxes. leaving net income of $534S9O. 1t
earned six per cent on $171S5,15O, though
il was taxed on a basis of only $6,SS6,99O
giving the road not far from fourteen per
cent. earnings on the tax valuation.
The above figures are furnished us by
request by Mr.. Henry c. Brown, and are
taken from the latest report of the Cor
noration Commission.