The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-07-23
OF RAILROADS FOR
TAXATION.

ious year. The several members have trav-
elled all over the State and one member
Of the commission has visited nearly every
county instructing the assessors as to how
property should be valued for taxation.
The law as to valueing private property is
the same as the law valuing railroad and
other quasi-public corporations, the only
difference being as to the methods pre-
scribed at arriving at the true value in
money.
The Corporation Commission will soon
find the railroad attorneys coming before
them and saying: 1.-The returns from the
State at large show that private property
has been increased 90 or IS per cent.
therefore our property ought to be in
creased in the same proportion" That ar
gument sounds very plausible, but it can
have no weight with the commission. That
body has nothing to do with percentages.
1t must be governed in assessing quasi
public property by the rules it formulated
and sent out to all the assessors in June.
In their letter Of instructions, under the
question: How Shall Property Be As
sessed, the Corporation Commission laid
down the following correct rule:
The constitution and the laws of the
State of North Carolina require that all
property shall be assessed Tor taxation ac
cording to ITS TRUE VALUE IN MON
Ely, cash. The Board of List Takers and
Assessors is authorized and empowered to
administer oaths in all cases necessary to
obtain full and correct information con-
corning any taxable real and personal
property In their respective townships so
as to procure a proper assessment of said
property.
Real property shall be valued by the
assessors, either from actual view or from
the best information that the assessors
can practically obtain, according to ITS
TRUE VALUE IN MONEY. In determin-
ing the value the assessors shall consider,
as to each piece. its advantage or disad-
vantage of location quality of soil, guam
tity of standing tiriber, water privileges,
mines, minerals, quarries, or other valu
able deposits known to be available there
in and their value.
stAll articles of personal property shall.
as far as practicable, be valued by the
assessors, according to THEIR VALUE IN
MONEY.
THE definition oil market value or
true value is as follows The intent and
purpose of the tax laws of this State is
to have all property and subjects of taxa
ton fairly assessed at their true value IN
money in such manner as such property
and subjects are usually sold, but not by
forced sale thereof, and the words market
value or true value. wherever in the
tax laws, shall be held and deemed to
mean what the property and subjects
would bring at cash sale when sold in
such manner as such property and sub
jects are usually sold.
ut has been claimed that a rule of
assessing property at less than its true
value in money obtained in the State of
North Carolina some years ago, but in view
of the above definition there CANNOT
NOW BE ANY EXCUSE FOR ASSESS
ING PROPERTY ACCORDING TO ANY
OTHER RULE THAN AT ITS TRUE
VALUE IN MONEY
The assessors have followed the law as
thus interpreted by the Corporation Com
mission In some counties there is dissatis
faction because, acting under the instruc-
tions, the assessors have made large in
crease in the assessments. They have been
requested to make only 90 or % per cent
increase-(the same appeal the railroads
will be making to the commissioners), but
they have answered in the words of the
Corporation Commission: "Thcre can
not now be any excuse for assessing prop
erty according to any other rule than AT
ITS TRUE VALUE IN MONEY"
The machinery act plainly declares how
the Corporation Commission shall assess
railroads for taxation. 1t is in the same
words as were contained in the Act of
1901. 1t has been before the Supreme
Court and that body declared it consti-
tutional, but held that it would not go
into operation until 1903-the regular time
tate for taxation.
The method of arriving at the true
value in money of railroads is thus
clearly laid down in section So Of the Ma
chinery Act as follows:
Sec s.. TANGIBLE AND INTANGI-
BILE PROPERTY ASSESSED SEPA-
RATELY.
"(a) The said Commission shall first de-
termine the value of the tangible prop
erty of each division or branch of such
railroad, of rolling stock, and all other
physical or tangible property. This value
shall be determined by due consdera-
ton of the actual cost to replace the
property, with just allowance for depre,
citation on rolling stock, and also other
other conditions, to be considered as in the
case of private property.
(b) They shall then assess the value of
the francise, which shall be determined
by due consideration the gross earnings
compared with the operating expenses;
and particularly by consideration of the
value placed upon the whole property
by the public (the value of the physical
property being deducted), as evidenced by
the market value of capital stock certifi-
Gates of indebtedness, bonds or any other
securities, the value of which is based
upon the earning capacity of the prop