The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1903-02-17

in the State is or shall be assessed. Upon
consideration those representing the rail-
road companies decided to accept our
view Of the matter and withdraw thelT
suits and pay the taxes assessed against
them in accordance with the assessment
made by the Corporation Commission.
both for the years 1899 and 1900, and they
nave paid into the State Treasury the
full amount Of taxes sdue the State, to-
wit: $44 sci, and are now ready TO pay,
as soon as the clerk Of the Corporation
Commission can make out the necessary
statements, s32. 084 into the school fund.
and SOL, $50 to the counties, cities and
towns, aggregating s178 244.
This settlement appears to me to be
Just, and |, therefore, recommend to the
General Assembly to place the railroads
as to the time of assessment OF their
property upon terms Of equality with
all other assessablc property in the
State. If such a law shall be passed,
the railroads will not again be assessed
until 1908.
There are many good men, | am aware,
who would have preferred to continue
the litigation, and to pass other and
more stringent tax laws against the
railroads., but to do so involves con-
tinued litigation. which so far has cost
the State $18,273. %, with a considerable
sum for services already rendered, ami
which cannot be continued at less than
the cost of 800, coo per year to the State.
The railroads constitute a considerable
and valuable part of the property OF
North Carolina, and they are of great
Importance to its industrial development.
No fair minded man desires in any way
4 tn hammer thpir ornUth md M vo1nnmpnt
On the other hand, no just man can
assent to their having an advantage il
taxation. They ought to bear the bur
dens Of the State in proportion to their
ability to meet them, but it is not a
violation Of this rule to act upon the
assessment made by our Corporation
Commission, who have cOnscientiously
and earnestly Striven to do justice in
the matter Of taxation. In the settle
ment Of a law suit, it never happens, S
far as my experience and observation go,
that either side is perfectly satisfied
] with the settlement; but it is frequently
wiser to settle litigation than to continue
it. l am persuaded that this is one in
stance in which it would be wise, both
for the State and the railroads., to come
to an agreement. 1t rests with the Gen
eral Assembly to carry out or not the
III upon WHICH the settlement mas
been made. The question is no longer
for me, further than to say that. in my
Judgment, what has been done is both
just and wise.
(Signed.) CHARLES B. AYCOCK.
BY the Governor:
CSigned.) P. NJ. PEARSALL,
Private Secretary.
The only reason the Governor, the Cor
poration Commission and the States at
torneys made any compromise at all was
because they were in ~Simonton's court.
They knew he always looked at tax
questions through the same spectacles
that The railroads did. They feared that
the State would lose. The State was,
SO to speak, judicially held up and sand
bagged into the compromise effected.
In the House. at that session of the
Legislature 090D Judge Graham intro
duced a bill to levy a gross income tax on
railroads. 1t would have become a law
at that session of the General Assembly
but for the agreement made to compro-
mise the suit. If it had passed, there
would have been no deficit facing us to-
day. But many of the wiscst men in the
Legislature thought it wisest not to pass
that law then but instead to accept as
final the adjustment, and 10 provide a fu-
turc method of taxation that they regard
ed proof against another Simonton injunc-
tions. To that end section fifty was draft
ed. 1t is exactly in line with the learned
decision of Justice Miller of the United
States Supreme Court and provides a
scientific method of levying tax on rail
roads. 1t is not believed that even sim
onton could issue an injunction upon a
tax levied under the specific directions
there laid down. No objection was made
to that section when it was Incorporated
into the Machinery Act. After the Legis-
lature, upon a construction of the act,
the Corporation Commission held that
the assessment under section fftv was
postponed until 1903. The sheriff of
Washington county, being advised that
the tax had been ordered BY the Legis-
laturc for 1901 and 1902, brought suit to
oIjlt lHe assessment undpr section ff-
ty. The Supreme Court at first held that
the Washington county sheriff was right.
but one of the Justices changed his mind
and the Supreme Court held that the on
Grafton Of section fifty had been post
poned until 1908. There is a difference of
opinion among good men as to the cor
r%ectness of the decision. But the Su-
preme court did endorse section so as
the correct way of ascertaining the true
value of railroads for taxation. as the
United States Supreme court had already
done. 1t is now the law. When the Cor
poration Commission comes to assess
railroads for taxation in June they will
be governed by tho mandatory direc-
tions of section fifty unless
And thereby hangs the importance OF
preventing any modification or repeal of
section fifty. The railroads are irving to
have that section repealed or modified