The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-02-22

THE REVENUE BILL.
On motion of Gov. Doughton, the House
resolved itself into Committee of the
Whole to consider the Revenue Bill. and
section one was of course adopted with
out discussion.
Sections 2 and provoked a long de-
bate.
Gen. Davidson thought it was a ques-
tion whether the proposed tax levy set
forth in the bill would raise sufficient
revenue to carry on the business of the
State for the next ten years. In fact. he
did not consider it would He thought
there would be another big deficit at the
end of the first year He would like to
know what the estimate of the commit
tee was upon that subject, and as to
the amount that would be raised.
Gov. Doughton said they believed that
the additional amount of property, real
and personal, that would be placed upon
the tax books. by the natural increase
in property, would be anywhere from
$5,000,00 to $20, 100000 Moreover they
believed that by the special taxes under
schedules and c, the amount raised
would show a net gain of 1888, 553. The
committee thought that amount added
TO the amount raised by the increase in
property, would be sufficient TO
meet the necessary demands upon the
State. 1t might not be enough to meet
all the demands But this General AS
sembly should be just and liberal, but
not extravagant The committee be-
lieved that we could not afford to raise
taxes in North Carolina at this time.
If we were going to increase app"opria-
tons. he agreed with Gen. Davidson that
we ought to raise the rate of taxation;
for we must not allow another deficit
Gpplause.) But he considered that the
State should not go beyond its income in
its expenditures.
He called upon the chairman of the
Committee on Appropriations to make
statement regarding the ideas OF that
committee, in order that the appropria
tons might not be too large for the reve-
nue. raised. We must not allow the reve-
rue to be too small to meet the appro-
priations.
Gen. Davidson called attention TO the
fact that the total revenue raised would
be about s1,sS0,0 900 annually. Therefore
the appropriations must not exceed ST.,
10000
Judge Graham then called attention to
the fact that we must remember that.
besides the other appropriations, it must
be remembered that there was still owing
to the public schools the sum of 100000
RAILROADS ESCAPE.
He also reminded the House that two
years ago he had urged that a gross in
come tax be levied upon the railroad COM
ranies, contending that they were not
being taxed in accordance with their
values If that had been done, there
would have been no deficit.
But there had been long discussion or
this subject between the chairman of that
Finance Committee and the chairman OF
the Committee on Education, Judge Con-
nor, in which Judge Conner held that
there had been 4 compromise made with
the railroads in Wilmington, whereby
the State was bound not to put this gross
income tax upon the railroads until 1908
when the quadrennial property assess
ment was made He himself did not
consider then that the State was bound
TO any such thing. But the House had
held otherwise, and the deficit is the
result.
Now there had been placed upon the
desk OF every member of this House a
pamphlet prepared by the railroad at
torneys. and signed by Mr.. Henry w. Mil
Ter, of the Southern Railway, in which
II was held that there had been no con
tract permitting the State to tax their
gross incomes. If it was their claim
that there was no contract, then they
admit that the State is rot bound tC
any agreement whatever regarding thu
tax on gross incomes, or any other ta'
they might choose to levy.
AS to the special taxes, it was re
markablc fact that the reports of tn
Auditor showed thirty-three countie
making no returns on sales of cigarettes
From horse dealers there were no re
turns from IS counties. And 81 made
no returns from pistol dealers. II restet
with this General Assembly to make sucl
laws as to insure the carrying out of thu
provisions of the Revenue Act. II WI
should compel the sheriffs to collec
these back taxes. as we have lega
right to do. there would be enough raised
to pay the deficit
REVENUE FROM LIQUOR.
Then there seemed to be a change il
the sentiment of the people in regarc
to the tax on liquor dealers. Although
we had heard great deal about tenn
perance recently, he believed the PEG
pie of North Carolina consumed abou
dis much liquor as most other States. HC
considered that there ought to be a bis
income from that source, and there
would be an amendment offered to the
bill whereby this could be effected As
ii was, only about $4,000 was raised
from this source, and it ought to BIZ
about $500 600 in favor of our revenue
instead of the $4,000 from the spccia
taxes. as estimated by the Finance Com
mittcC.
The amount of railroad property as
sessed had been only SAP, 200, 900. Blu
the railroad companies had paid pc
cent. interest on $157, 000, O00. Even com
putting the interest rate at per cent.
the property TO be assessed would amour
to S10T GOO, 600 as had been shown in thu
case of jackson rs. Railroads, decided il
the Supreme Court.
Referring TO that case. Judge Graham
said il would prove most entertaining
all L.,I I ay.