The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-06-22
AS WAS FIRST SEEN
BY MONTGOMERY,
Written by Douglas as the
Courts Decision.
RAILROAD FRANCHISES.
He Held That These Should be Taxed
RAILROAD FRANCHISES.
He Held That These Should be Taxed
Separately.
THAT THEY SHOULD BE ASSESSED IN 1901
Afterwards, When Judge Montgomery Flop.
pee" This Decision Became the Dis
senting Opinion OF The Court in
This Notable Case


This Notable Case
We published a few days ago the gist
of the decision of the Supreme court in
the case brought by Sheriff Jackson, of
Washington, to compel the Corporation
Commission to separately tax the fran
chises of railroads. He contended that
the act of 1901 commanded this. The
Corporation Commission took the ground
that, by another section of the act, no
change was contemplated by the Legis-
lature and the franchise tax cannot go
into operation before 1903.
To the decision of the court, Justices
Douglas and Clark dissent. the former
writing an elaborate opinion. 1t seems
from the opinions, that Justice Mont
gomery first held that the tax must be
levied now, end Justice Douglas there
upon wrote his opinion as the decision
of the court, and Chief Justice Furches
wrote dissenting opinion. Afterwards,
when Justice Montgomery 'flopped," the
opinion of Justice Douglas became the
dissenting opinion. Owing to the inn
portance of the case, we publish the fol-
lowing extracts from Justice Douglass
dissenting opinion:
The following are the sections of chan
ter Z, of the public laws of 1901, whose
construction is essential to the determi-
nation Of this action:
Section as. Rairoads-The president,
secretary, superintendent, or other prin-
cipal accounting officers within this
State of every railroad telegraph, teIe-
phone street railway companies, whether
incorporated by the laws of this State
or not, shall at such dates as real estate
is required to be assessed for taxation.
return to the said commissioners for
assessment and taxation, verified by the
oath or affirmation of the officer making
the return, all the following described
property belonging to such corporation,
within this State, viz: the number of
miles of such railroad lines in each coun-
ty in this State, and the total number of
miles in the State, including the road
bed, right of-way and superstructures
thereon, main and side tracks. depot
buildings and depot grounds, section and
tool houses, rolling stock and personal
property, necessary for the construction.
repairs or successful operation of such
by the North Carolina Corporation Com
mission, Pullman or sleeping cars owned
by them or operated over their lines"
Section 10. Ralroads.-T movable
property belonging to railroad company
shall be denominated for the purpose Of
taxation, rolling stock Every person.
company or corporation, owning, con-
structing or operating a railroad in this
hn oF
nually) return list or schedule to the
commissioners, which shall contain
correct detailed inventory of all the roll
ing stock belonging to such company, and
which shall distinctly set forth the num-
Der of locomotives of all classes, pas
senger cars of all classes, sleeping and
DINING cars, express cars horse cars,
cattle cars, coal cars, platform cars,
wrecking cars, pay cars, hand cars and
all other kinds of cars and the value
thereof and a statement of schedule as
follows: a. The amount of capital stock
authorized and the number of shares
into which such capital is divided: ca
The amount of capital stock paid up;
90 Tho market value, or if no market
value, then the actual value of shares
of stock; (4) The length of line operated
60 The total assessed value of all the
tangible property in the State; co., and
if desired, all the information heretofore
acquired 90 be annually reported by sec
ton 1859 of The Code. Such schedule
shall be made in conformity to such in
structions and forms as may be pre-
scribed by the commissioners and with
reference to- amounts and values. on the
first day of June of the year for which
the return is made
Section So. Tangible and Intangible
Property Assessed SeperateIy-(a) The
said commissioners shall first determine
the value of the tangible property of
each division or branch of such railroad,
the actual cost to replace the property,
of rolling stock, and all other physical
and tangible property. This value shall
be determined by a due consideration of
with a just allowance for depreciation
on rolling stock, and also of other con-
ditions to be considered as in the case
of private property. OBJ They shall then
assess the value OF the franchise which
shall be determined by due consideration
of the gross earnings as compared with
the operating expenses; and particularly
by consideration of the value placed
upon the whole property by the public
1.-THE value of the physical property being
deducted), as evidenced by the market
value of all capital stock, certificates of
indebtedness, bonds or other securities
the value of which is based upon gthe
earning capacity of the property. (c)