The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-28


1t shows the exemption of one thousand
dollars and taxes the excess at the rate
of one per cent. Compared with the ad
valorem tax, how moderate. In many
places in North Carolina the tax on a
thousand dollars worth of property IS
twenty-five dollars without any exemption
1t is probable that il the Constitution had
provided that the General Assembly should
not levy an income tax in excess of Ave
cents or any given per cent, the tax
would have been imposed up to the limit.
At any rate the convention of 1858 cid
insert in the Constitution limits TO taxa
ton OF polls and property
The first limit provided for an equaliza-
ton and proportion between polls and
property, and limited the poll tax for
State and county purposes to two dollars
on the head and the property tax for
State ana county purposes to sixt SIX and
tWofh'fds cents on the hun6tel dollars
value OF property, cash.
Agala. it provided that all properly
should be taxed at its true value in money
and ut he same rate lust why lie con-
vent,on fixed Che limit a. sixty SIX and
two-thirds cents on the hundred dollars
cash value of property. / do not know;
tax thit was imposed upon land prior to
1868, in this State. Land had been taxed
on the ad valorem plan for many years
ll;or to iSeS 1t may have been that the
convention thought that the income from
lands upon an average would not bear a
higher rate. 1t may have been that they
thought that upon an average land would
ret yield more than six per cant, and
that 10 tax 1t at sixty-six and two thirds
cents vlcn it would only yield six doll
lars ", uld be equivalent to an imposition
of an income tax at the rate of eleven
per cent.
j. was dt olared in the British Parliament
by one of its members of that body that
ten per cent was the natural limit of tie
income tax, and although this tax has
lieen enc OF the chief sources of income Of
the British Government since 1912, it has
never exceeded ten per cent. Whatever
may have been the reason the Constitu
tion contains the limitation that tine
property tax for State and county pur
poses combined shall never exceed sixty
six ; nd two thirds cents on the hundred
dollars cash value
While the other limitations contained IN
;his Constitution have bee scrupuously
adhered to, that is to say while the
equation and proportion between polls
and property has been strictly enforced,
and while the law has commanded wear
after year that all property be taxed and
that it be taxed at the same rate. yet this
limitation of two dollars on the poll. and
sixty-six and two-thirds cents on the hun
dred dollar cash values of propertg has
been overlooked. and in 1901 only tween
out of the ninety-seven counties in the
State were observing this limitation. Just
this in our opinion. is the cause of many
OF the irregularities and inequalities that
exist under our law If this limitation
were enforced, we would not witness the
spectacle of having forty eight counties
out fthe ninety-seven counties in the
State receiving more revenue from the
State Treasury than they paid in iii the
year 1902
But the highest tax rate is in munich
pahties where the city tax rate is added
to the State and county tax rate; IN
some instances this amounted to two and
one-half dollars on the hundred dollars,
actual value of property. l need not
argue to bankers that this is an excessive.
and burdensome tax rate as to a great
deal of property in the municipalities
that it almost confiscates a large part OF
the property.
Now the question is what is the remedy
for it? These municipalities must have
money They must keep up with the
progress Of the day How can it be had
and yet not impose burdensome and op
pressive taxes This is IA problem which
will not settle itself
The complications arising in it are be-
coming greater and greater every year.
The tendency is to increase rather than
reduce this tax rate, while, on the other
hand capital is avoiding, as far as pos
sble, subiecting itself TO this rate.
How many of you have seen large plants
that would have been willing and glad to
locate within corporate limits OF these
Municipalities and pay a reasonable tax
rate. instead of doing so located short
distance outside to avoid the excessive
and oppressive rate. So we cannot ex
pect that the capital will settle in the
municipalities except in cases where IL Is
compelled to do so and where the profits
or income will be adequate to bear the
high rate.
Fortunate for bankers, in az much as
they are compelled to locate in the towns,
their earnings have been great enough
TO pay this high rate and yet leave il
reasonable income. / hope that their
profits may never be less, but they may
be.
Now the question is, what is the solution
OF the problem? We, with msgivings, ven
tured to make suggestions and recon-
mendations. along this line which l will
not take up your time in discussing or
mentioning | ask that you, as an asso-
citation or as individuals, help solve this
problem. Your business qualities you for
the investigation of this question. You
have under your control approximately
$43, 100000 of the property OF this State
and you are, therefore, greatly inter-
ested, and | am sure that your patriotism
will prompt you TO do what you can Ill
this regard.
| have thus IN very general way spo-
ken of the work of the Corporation Com
mission In conclusion / desire to thank
you for the honor that you did me in in
vitng me to be present with you on this
occasion and for the great pleasure that
coming here has given me.
The next address and last address of the
session was delivered by the gentleman
who was honored by election to the presi-
- M I II a