The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-03-05

given the power to assess
Judge Graham said that this might be
new provision, but we were confronted
with new state of affairs. There was a
deficit in the treasury, and it was neces-
sary to devise some means of reaching
all property of value that should be taxed.
The committee was not welded to this
particular method. if a better one could
be found,
Mr. Mason said 1t only would not be
better to tax old solvent credit by hav-
ing the debtors pay this tax. He did not
believe in discriminating against any
class of solvent creditors.
Judge Graham did not think it would
be practicable for debtors in all cases to
pay the tax on solvent credits. He went
on to say it had been the practice to de-
duct solvent creditors from the taxable
property.
The English Government, he said, en-
forced this method deducting the tax
when paying interest
Mr. Wright's objections were that
previous section levied a tax upon all
real and personal property; that it al
lowed the treasurer to excuse and de-
duct the tax; and that it put the holder
of the bonds at disadvantage. Moreover,
it seemed to him double tax. because
it made the corporation give in the
value of the stocks. and also made the
corporation give in returns for the shares
OF the stockholders.
He thought man ought to be allowed
to deduct his solvent credits from what
he owes.
Mr.. Mason asked what evidence the
committee had that this class had es-
capped taxation more than any other class.
Mr.. Gather said that a gentleman of
wide knowledge on these affairs, and who
himself opposed the section, had told him
that it would bring 90 per cent of proper
ty of this kind that had been escaping
taxation.
Sections ), 6, and were finally adopted.
They are as follows
Section 5. Tax on corporate loans.
Hereafter 1t shall be the duty of the
treasurer Of each private corporation in
ccrporated by or under the laws of this
State, upon the payment of any interest
on any bond or certificate Of indebted
ness other than promisory notes issued
by said corporation to the residents OF
this State, and held by them, to assess
purposes upon the actual or market value
of each and every said evidence of debt,
and 10 report on oath annually, on the
first Monday of July, to the Auditor
OF the State, the amount of the indebt-
edEess of the corporation owned by resi-
dents of this State, as nearly as the same
can be ascertained, and it shall be his
further duty to deduct the amount levied
fnf, Cfatn TOW an doll nf
edness from the interest paid as afore
said, and return the same into the State
treasury within fifteen days after the
thirty first day of August of each year,
and his compensation for his services
shall be the same that county treasurcrs
receive for similar services; and for every
failure to assess and pay said tax and
make report as aforesaid the Auditor
shall add ten per ccntum as penalty to
the amount Of the tax in payment of said
tax by corpora ton, the bonds, or certi-
ficates OF Indebtedness issued by it shall
be exempt from State taxation in the
hands of the holders of the same. When.
ever the treasurer Of a corporation pays
interest in any years, which have ac-
crucd in prior years, he shall deduct the
State tax as above provided for each
and during which years no tax was paid
on said obligations; but this shall not APP
ply to interest or dividends accrued priof
to the passage of this act. Nothing III
this section shall be construed so as to
exempt resident holders of any such bond,
or certificates of Indebtedness from taxes
imposed fer school and county purposes
in the county where such resident hold
err resides.
Section 6. Tax Oh municipal loans.
The treasurer of each county. city end
town of this State within ninety days
after the passage Of this act shall make
return under oath or affirmation to the
Auditor of State OF the amount Of bonds
or certificates of Indebtedness outstand
ing by said county, city. town, or district,
sthe same existed on the first day or
January, 1901, and of each succeeding
year thereafter, together with the rates
of interest thereon at each OF those pc
RODS, under the penalty of one thousand
dollars, the amount to be settled by the
Auditor, and the amount thereof to be
sued for and collected as debts due by de-
faulting public officers arc collected. Said
returns shall state the name and resi-
dcnce of each holder of said evidences
of debt as far as this information can BE-
obtained.
On the receipt of said returns, the All
ditor shall proceed to settle the accounts
Of each county, city. town or district with
the State, and transmit 10 ice cf he
amount, by mail to officers max Ig said
returns.
1t shall be the duty of the treasurer
Of each county. city, town. or district. Tn
the payment of any dividend or interest
10 any holder or agent claiming the same
OH any bond or certificate Of Indebtedness
issued by said county. city. town or dis
trict, to assess the tax made and pro-
vidcd for STATE purposes upon lie nom pal
value of each and every saiI evidence Of
debt; said tax to be deducted by the said
treasurer on the payment Cf any nterect
or dividend as aforesaid, and the same
shall be held by him until paid over TO
the State Treasurer, and the said treas
urers shall be subject to the same penal
tics and liabilities prescribed by law in
relation 10 taxes on loans of private cor
porations, and their compensation shall
be the same that county treasurers re-
ccive for the collection of taxes on real
and personal property.
The bonds and certificates of inGebt =
edaess of any county. city, town or dis
trict in this State, owned by public cor
porations, and he income of which is by