The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-05-10

Next month it will be the duty of
the Corporation Commission, under
the new law, to assess all railroad
property for taxation. For the first
time the Legislature has directed
the Commission to separate the
value of the tangible or physical
property from the intangible prop
erty OF the franchise, and has
laid down certain rules in ascer-
tanning such values by which the
Commission must be governed.
Heretofore when the Corporation
Commission has had under consid-
Grafton any proposition to reduce
freight or passenger rates, the rail
road officials and attorneys have
resisted it on the ground that their
roads were worth from $4,000 to
SIS, 900 per mile, and backed up
their statements by showing that
they had issued stock and bonds in
such amounts. OF course much of
said stock in some roads represents
only water put in it by promoters
Cor the purpose Of getting warrant
to charge high freight and pas
senger rates. After preventing re-
duction Of rates by showing high
valuation of their roads, these same
railroad officials come forward,
when the time arrives to assess the
roads for taxation, and undertake
to show that the road is really
worth less than one-third of the
amount they fixed as the value
senger and freight rates was under
consideration.
Here is the evidence i'm proof of
the above statement: In 1899 the
Corporation Commission, in assess
ing the Southern Railway in North
Carolina for taxation, valued the
$50 miles at an average value of
$13, 55S.OS per mile. This sum was
reached after officials of the South
ern Railway had urged a much
lower rate of assessment. After
the Commission made the assess
ment at the average sum of 3d.
558.OS per mile, the Southern Rail-
way (acting with other through
lines) procured an injunction
against the State of North Caro-
lima, and prevented the collection
of the taxes assessed upon the
ground that the assessment was too
high. and much higher than the as
North Carolina. Acting Jointly
with the other through lines, the
Southern Railway refused to pay
the assessment untlI it extorted a
compromise with the State by
which it has for the past two years
saved for it and the other roads as
much tax honestly due as the
amount of State bonds issued this
month to cover the deficit in the
State Treasury. In other words
the deficit represents the sum tbs
railroads would have paid in 1901
and 1902 if properly assessed.
Fortunately for the Moth Caro-
lima Corporation Commission, wher
it comes next month to assess the
Southern Railway for taxation, i
will have the sworn testimony OF
Mr.. Josiah <. Hill, Secretary OF thu
Southern Railway Company, as t.
the true value of that property. II
the case Of the Interstate Commerce
Commission, appellant, versa
Southern Railway Company, appel
lee appeal from Circuit Court o
the United States for the Western
District of Virginia, at Danville-
record fled : eptember 18th, 1909
Mr.. Hill swore as follows in answe
to question as to the value of tn
Southern Railway:
I'm MY JUDGMENT $4,000
PER MILE WOULD BE A MIN
SIMUM FIGURE FOR AN ESTI
MATE OR JUDGMENT. I.
WOULD PROBABLY EXCEL
$4,000 RATHER THAN GO UN
DER THAT AMOUNT"
And yet in 1899 the officials o
the Southern Railway made affida
Wit that the assessment of SIS,
55S.OS per mile was excessive. AM
FOR FOUR YEAR. THAT ROAl
HAS BEEN PAYING TAXES Tt
NORTH CAROLINA UPON ONE
, THIRD OF IT'S TRUE VALUATION
IF MIR. HILL, THE SECRETAR,
, lOF THE SOUTHERN RAIL
: WAY COMPANY DID NO
SWEAR FALSELY IN TIL
UNITED STATES CIRCUIT COUR
+ IN A CASE WHERE DANvILL
{ SHIPPERS COMPLAINED OF Elk
e CESSIvE FREIGHT CHARGES