The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-09-04
RAILROAD FRANCHISE TAX
The Suit is Brought by Sheriff Jack
son of Washington.
VALUES from $3.50 o, 900 TO $3.50, 10000
The Corporation Commission is Confident Thai
il is Obeying The Law. The Case is
10 be Heard Here Before
Judge Robinson.

JuOSe nOpihSOH'
A suit was started yesterday in Wake
county to compel the North Carolina Cor
poratiOn Commission to increase the tax
valuation of railroad property in the State
from $4s, 900, COO to $3.50 ZOO, OOO
The proceeding is a petition for man.
damus, brought by Sheriff w. j. Jackson.
of Washington county N. c., and return
able before Judge w. S. OBJ Robinson at
chambers, in this city, on September
23rd.
Mr. II. S. Ward of Plymouth, is attor-
ney for Sheriff Jackson.
The petition sets forth that Franklin
Mcneil, Samuel l.. Rogers and ID. H.
Abbott are the duly constituted members
OF the North Carolina Corporation Com
mission, and as such they are required
by section AZ of chapter of the Laws OF
1901 TO appraisc and assess for taxation
railroad, telegraph, telephone, street rail-
way, canal and steamboat property and
the property of other companies exer-
cising the right of eminent domain.
'That the defendants as members of the
said North Carolina Corporation Com
UllSSlOH nave ldlieu ana refused TO ue-
termine the value of, and assess for
taxation, the tangible property of the
railroad companies in this State, to-wit:
the franchises separately from the as
sessment of the tangible property as they
are directed to do by sections 43 and so
of chapter 7, Public Laws of 1901 and
have failed and refused to attempt to
make such valuation and assessment. And
II f,i 11I ov,I .Af,,
to attempt to determine the market value
of the capital stock, certificate of indebt
edness, bonds and other securities of said
companies in their assessment of the
properties of said companies.
THAT he is informed and believes and
AYERS that said Corporation Commission
is in possession of reliable evidence to
tho effect that the market value of capital
stock certificates, bonds and other Sc
curities of the railroad companies in this
State is as much as $50 900 900. The value
of the tangible or physical property of
said companies is found by said Commits
sion to be about SAP 100000. so that the
asso ssment of the said franchises as above
set out and as the law directs, would
find the value thereof to be approx
mately sos, 900 900, which it is the duty
of said Commission to assess for taxation
in this State in addition to their assess
ment of the said physical property"
That the plaintiff is citizen and tax
payer of the State, that he has demanded
OF the members of the Commission that
they proceed to perform the duty set out
above and they refused and still refuse.
Therefore he prays that peremptory
writ issue from the court to the said
Commissioners commanding them to pro-
coed without delay to assess and make
due return of the said franchises and to
so perform their official duties as above
set out and as defined in section 60 chap
ter z, Public Laws of 1901, and to per-
form such other and further duties as
may be necessary to that end"
The Corporation Commissioners were
much surprised when the papers were
served on them yesterday; as they were,
and still are. perfectly certain that they
have complied with the law requiring the
tax assessment Of railroad property.
THE proceeding is based on the idea
that the franchises of the railroads has
never been taxed said Chairman Nc
Neill. This is not true. The law has
always said explicitly that it shall be
taxed and it is included in the $4,000 900
valuation fixed on railroad property by the
Commission
1.-THE legislative debates show that it
was the intention Of that body that rail-
road property should not be re-assessed
till other real estate is; l know that was
the idea also of the Governor, and cer-
tainly that is the provision of the law.
And this same law says explicitly that
to arrive at the value Of the franchise
you must first ascertain the value OF the
real estate. Under the law that cannot
be done till 1903
In the petition, printed above, it is
stated that the Commission have failed
and refused and still refuse" to assess
the property as claimed in the petition IL,
should be assessed.
How either Sheriff Jackson or his at
torney knew this is little queer as the
demand to do so was received from him
by the Commission on Monday and the
letter was answered yesterday. and even
before it was mailed the petition for the
mandamus.s was served, sietasn, a
Following is a copy of the Commissions
letter written before it was known that
suit was brought and explaining why the
demand OF Sheriff Jackson could not be
complied with; sorged'aN Ab -
Raleigh, N. c., Sept. 8, 1901.
w. j. Jackson, Esq, -
Sheriff of Washington, County
plymouth, N. C..
Dear Sir-Your communication of the
31st ult. was received and contents noted.
Your demand is one that you have
no right to make. and one that we have
no power or authority to grant. The
North Carolina Corporation Commission
discharged the duties imposed upon them
by law, and certified the result of their
work to the counties of the State in
terested therein on the 30th day of July.
1901 We presume that the Register OF
Deeds of your county received the certi-
ficate prepared for your county, as we
have not heard to the contrary.
We do not understand that Section 90
of the Machinery Act requires or con-
templates separate assessment of the
tangible and intangible property of Rail-
road Companies this year. There is no