The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1903-05-12

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
$4,000 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
for the of getting warrant
to charge high freight and pas
sengcr 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 che
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
when the question of reducing pas
senger and freight rates was under
consideration.
Here is the evidence in proof OF
the above statement: In 1899 the
CORPORATION Commission, in assess
ing the Southern Railway in North
Carolina for taxation, valued the
1889 miles at an average value OF
Sl3,55S.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
mena at the sum of 3d.
55S.OS per mile, the Southern Rail-
way (acting with other through
1ines) 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
sessment of other property il
North Carolina. Acting Jointly
with the other through lines, the
Southern Railway refused to pay
the assessment until 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 the
railroads would have paid in 1901
and 1902 if properly assessed.
lima Corporation Commission, when
it comes next month to assess the
Southern Railway for taxation, it
will have the sworn testimony Of
MI. Josiah F. Hill, Secretary Of the
Southern Railway Company, as to
the true value of that property. In
Commission, appellant, versus
Southern Railway Company, appel
lee appeal from Circuit Court of
the United States for the Western
District of Virginia, at Danville-
record filed ~-eptember 18th, 1909,
MI. Hill swore as follows in answer
to a question as to the value of the
Southern Railway:
I'm MY JUDGMENT $4,000
PER MILE WOULD BE A MIN
IMUM FIGURE FOR AN ESTI-
MATE OR JUDGMENT. II
WOULD PROBABLY EXCEED
$4,000 RATHER THAN GO UN-
DER THAT AMOUNT"
the Southern Railway made affda-
Wit that the assessment of $l3,-
55S.OS per mile was excessive. AND
FOR FOUR YEAR. THAT ROAD
HAS BEEN PAYING TAXES TO
NORTH CAROLINA UPON ONE
THIRD OF ITS TRUE VALUATION
IF MR.. HILL, THE SECRETARY
OF THE SOUTHERN RAIL
WAY COMPANY DID NOT
SWEAR FALSELY IN THE
UNITED STATES CIRCUIT COURT
IN A CASL WHERE DANVILLE
SHIPPERS COMPLAINED OF Ex.
,CESSIVE FREIGHT CHARGES
This is the same case, if we mistake
not, in which the Southern Rail
way won the suit. and won it M
doubt in part because the court &C.
copied the valuation of over S4O,-
OuO per mile placed upon it in the
sworn testimony of its own secre.
tary.