The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-02-16


The organ of the Southern Railroad, as
is we'll known, has been engaged for two
years in trying to defeat the assessment
Of railroad property made by the Corpor-
alton Commission The increase was
about ten million dollars. The Post, UNI
der directions from its Southern Railroad
boss contended that the tax was unjust,
their full value. while the other proper
~ was generally assessed at not more
than ree-fourths of its value by uni
form rule through the State. The evil
denee taken before the Master showed
that there was 10 uniform rule OF under
valuation in North Carolina but that
much property owned by men of wealth
and corporations was undervalued. When
the counsel for the Corporation Commits
sion began TO inquire into the true value
Of railroad property. the railroads. in or
der to prevent such examination. agreed
10 pay the tax assessed against them and
The costs CT the suit If the testimony of
The officials OF the three lines OF railroad
making the contest had been taken and
published. the whole world would know
that these three railroads are earning
IRON twelve to fifteen per cent on the
valuation ayed by the Corporation Com
mission, and that in truth. if they had
been assessed like the property Of the
men who own farms and homes worth
less than two thousand dollars, the full
not have been one cent less than one
hundred million dollars. If assessed like
the property of some private corpora
tions, the assessment would have been
not less than sixty million dollars. The
railroads are now paying tax on forty
Two million dollar valuation.
The Post yesterday morning sought to
convey the impression that the News and
Observer had admitted the contention
made by the Post during the past two
years. During ali these years the News
and Observer has made two contentious
First. that there was no uniform rule
of undervaluation in the State; that there
were great inequalities and much proper
ty. particularly corporate property, un-
dervalued.
Second. that, even if the contention Of
Yae Post and its railroad owners was
,rue. to-wit: property generally was not
assessed for taxation at more than three
fourths of its value, still the railroad
property ought to pay the tax assessed.
because it was not valued at as much as
tbree-fourths OF it's actual cost-selline
value as shown by the actual sale of its
stock and its net earnings.
we have published in these columns the
testimony OF prominent men from all sec
tions of the State. Only in one county
of the State was there any testimony
showing that there had been undervalua-
ton by rule or system. In few other
counties il was shown that there had
been general naturalization, but in the
great bulk OF counties, in such counties
as Wake. Johnston, Durham and the like,
the uniform testimony was, that, While
there was much differentiation, particu-
larjy of corporate property and property
.,,.,,o, nv, rich men there was no rule OF
undervaluation At the conclusion of the
investigation one of the leading railroad
officials of The State said to friend
when this investigation began, was
honestly Of the opinion that all the prop
ertv of the State was assessed at only
about two-thirds or three -fourths OF its
value. This investigation has shown me
that as to the property OF small farms
and PARTIES owning less than two thousand
dollars worth OF property, this Is not
true 1t has demonstrated that very
much oil the corporate property and the
property OF men worth over two thousand
dollars is undervaiued." And the state
.nent Of this gentleman is the best sum
mary of the result Of the investigation.
There were notable cases OF underval-
nation that called for remedy. For in
stance Mr.. Mcqueen. president of the
Aurchison National Bank Of Wilmington,