The news & observer., 1901-03-08
NOT A WORD OF TRUTH IN 1T.

During the discussion in the House yes
terday afternoon on Judge Grahams
amendment 10 increase the tax or the
gross receipts of railroads, it was
talked by some poorly informed members
that there was "a good reason why this
should not be done 1t was further in
timated that Governor Aycock Corpora
ton Commissioner Mcneil and the
counsel eor the State in the railroad tax
litigation, had made an agreement with
the railroads that no such tax should he
levied
~::.ere Is rot . word of truth in any
such statement. Governor Aycock Mr..
McNcill and Judge Connor who made
The settlement. refused to make any
agreement whatever with the railroads
in order to secure a settlement. II was
agreed that If the railroads would with
draw their suit and pay the tax assessed
against them. the Governor would recon-
mend 20 the Legislature that in the fu-
ture. instead of assessing railroad prop
crty every year (eXcept personal proper
ty). It would be assessed only when real
estate wGs assessed for taxation In
compliance with that understanding,
which was published to the world, Cover
nor Aycook, on February 1st. sent Il
message to the Legislature in which he
made the recommendation in these words:
I'VE therefore declined to assent to any
reduction IL the assessment for either
year. but were willing that the property
OF the railroads subject TO assessment
should only be assessed as often as other
pro"erty IN The State is or shall be as
sessed. Upon consideration those repre-
scnting the railroad companies decided
10 ACCEPT our view OF the matter ana
withdraw their suits and pay the taxes
assessed against them in accordance
with the assessment made by the Cor
roration Commission for the years 1889
ana 1900 and they have paid into the
State Treasurv the full amount OF the
taxes due the State, to-Wit $44.o61, ana
are now ready 10 pay as soon as the
Clerk of the Corporation Commission can
make out the necessary statements
So. .0S4 into the school fund and $lUl,oo5
to the counties. cities and towns, agSre-
eating s17S,244. This settlement appears
TO me TO be just. and l. therefore rec
ommend TO the General Assembly TO
place the railroads, as TO the time OF as
scssment Of heir property, upon terms CT
equality with any other assessable prop
erty in the State. If such law shall be
passed the railroads VIII not be again
| assessed until 1893.
| There IS NOT a word or sentence in the
| Governors letter to warrant any sug-
gestion that he agreed that DO income
tax should be levied or that it should if
| levied, be it small or large Every agree
ment he made is set out in the above
| extract, and any suggestion that there
| Was some tacit private agreement un-
derstanding or the like. is not true and
does the Governor injustice. On the
morning that the Governors message to
the Legislature appeared, The News and
Observer said editorially
.,As TO The future. whether the State
shall assess property this year or wait
till 1908: whether it shall impose a
! franchise or privilege tax in addition
TO The property tax; whether it shall in
corporate graduated corporation tax
| in its revenue law--these are matters
entirely With the Legislature and are not
i'll any WAY connected with the settle
| mcnt Of the litigation
| That was the truth then: it is the truth
| now. II any member of the Legislature
wishes to vote against Judge Grahams $
amendment to increase the income tax on
railroads, he must DO = upon his own re-
sponsibiity and not on or behind the false.
whispered suggestion of railroad lobby
| lists that Governor Aycock agreed that il
should not be done Governor Avcocll
made no suen agreement. If he had done
20. he would have traGacended his powers
and have usurpcd the authority vested il
| the General Assembly. He wrote in his
Imessage every recommendation he agreed
TO make. There IS nothing else behind il.
q