The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-01-05
The End Of Litigation is
Reached.
The State Wins the Case, Thus Show
ing That the Assessment Was
Moderate and Reason
able. State Gets
More Taxes.

More Taxes.
The State Corporation Commission
has won its fight.
The railroads will pay taxes for the
past two years on the assessment of
over S42, 100000 made by the Corpora
ton Commission in July 1899 and
again in July 1000. They have paid
on the old assessment of $32,000,000
for the past two years. and now owe
the tax on the ten million increase.
They agree tc pay this, with the PEN
atty, which will give the State Treas
nry about $4,000, and about twice as
much to the counties and towns
through which the roads run. The
property assessment for 1901 and 1902
will remain at the present figures.
Hon. Franklin McNeill, chairman
of the Corporation Commission, has
stood like stonewall against all the
onsets of the railroad attorneys and
against all the suggestions or offers
OF compromise. The Commission was
conscientious in making the assess
ment and gave the railroads the bepe-
fit of every doubt, making the assess
nlent very moderate and very conser-
sative. The railroads, aided by Sim
onton, have made a vigorous attack
on the assessment, hoping thereby To
force some compromise. The head of
the Commission, Mr.. Mcneil, refused
10 consider any suggestion of com
promise, or to do anything that was
in that nature. And the result iusti-
1ies his wisdom.
The Commission has been willing all
along to recommend to the General
Assembly that in the future railroad
property he assessed but once in four
years, the same time that real prop
eI-ty is assessed. 1t is a part of the
settlement that this recommendation
will be made to the General Assembly.
beyond that, the State makes no
agreement.
1t has been believed for nearly a
year that Col. Warren G. Elliott, pres
ident OF the Atlantic Coast Line, was
tired of the suit. He is reported to
have said:
when this suit was begun ] thought
that the property of all the individuals
OF the State was Systematically under
valued | find that such is not the case.
1t is true that there is much irregularity
ana much inequality but the small hold
ers OF property pay much nearer the
true value than / had been led to be-
lieve. The railroads are willing to pay
their proportionate share of the burdens
OF government, and are not disposed to
make any factiouS or unnecessary fight
against what the State deems is right"
He may not have used these exact
words, though his action at Winning
ton shows that he is proceeding along
the line indicated in this quotation
That is the proper spirit that ought
to prevail among all officers Of cor
porations as we'll as individuals.
The State had examined witnesses
from eight counties. 1t had 5000 wit
nesses ready to swear that there was
no systematic policy of undervalua-
ton of property in North Carolina
This evidence had been prepared by
the general counsel and special coun-
sci in 97 counties. As developed in
Raleigh and Wilmington it utterly de-
molished The contention of the rail
roads that property of individuals in
North Carolina was undervalued by
design and system. The evidence in
these counties disclosed the fact that
some property is underyalued: that
some is overvalued; but that this is
not by design, but due to the indi-
vidual differences of judgment of as
SCISSORS. 1t was shown that since the
land was assessed for value in the
cotton counties, the value has increas-
ed. It was assessed in 1899 on the
five or six cent cotton basis, whereas
ten cent cotton has enhanced the value
of all cotton lands. As soon as Col. Ell
lott saw the significance of this tes-
timony, he saw that the railroad CON
tention could not stand. When the
CORPORATION Commissions attorneys
proposed to show the true cash value
Of the railroads, he also saw that the
evidence that he and others would give
would make it clear that, even if pri-
yate property is assessed at only 66 2-3
cents on the dollar that railroad prop
erty is assessed at even less, and he
saw that the State would of necessity
win the case. Other railroad men
who had studied the evidence began
TO have the same conviction.
And so at Wilmington, after the
State had examined witnesses from
eight counties. Col. Elliott made a
proposition on behalf Of the railroads
10 withdraw the suit on condition that
The assessments on the through stems
of the main lines should be reduced
So 900 a mile. Not cent of Teduc-