The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-05-21
ARE RAILWAY PROPERTIES UNDER
TAXED?

TAAEDs
Norfolk Virginian-Pilot.
The Raleigh News and Observer calls
attention to what would appear a serious
contradiction In the estimated value per
mile of the Southern Railway property
by the officials of that road.
The facts are that in 1899 the North
Carolina Corporation Commission, after
hearing in due form, valued the South
ern Railway property in that State at
$13, .O8 per mile for purposes of taxa
ton. This, the railway officials, at the
hearing, protested was too high. The
figure, however, was adhered to, and the
railway company refused to pay the tax,
procured an injunction and finally forced
the State to compromise.
Subsequently there arose the suit of the
city of Danville against the Southern
Railway Company for alleged excessive
freight rates, the record of the case be-
ing filed in Stemptember, 1902. In this
case, Secretary Hill, of the Southern
Railway Company, testified as follows:
'In my judgment $4,000 per mile
would be minimum figure for an es-
innate or judgment 1t would pro-
badly exceed $4,000 rather than go
under that amount"
When further questioned, Mr. Hill
stated, at length, the method by which
he arrived at his estimate of the value
of Southern Railway property. Mr.. Hill
said:
eve have been putting in new
bridges right along; rock ballast,
where no permanent ballast existed,
new stations and additional terminals.
Now, even if you take the minimum
estimate of the first cost of 500, 900 per
mile, instead of $4,000, the consid-
erations above described would bring
that total up, you will find, in the
vicinity of $4,000 per mile, which is,
in my judgment, the least possible cost
of reproducing such property as the
Southern Railway Companys lines.
Now, simply as confederation of that
estimate of a minimum of $4,000 a
mile as the average value of all of
the Southern Railway Company's
properties / have taken from the re-
port of the statistician of the Inter
state Commerce Commission for the
year 1881 think the latest report in
book form-a statement of the aver
age bonded debt and stock per mile of
all rallrOdQS IN the united states,
showing an aggregate of bonds per
mile of about $50, 900; preferred stocks,
about $4,000, making a total of bonds
and preferred stocks of $4,000: added
to which the roads have outstanding
common stock to the amount of $24,-
5000 a mile, making a total average
capitalization capitalization of about
100000 for all roads in the United
States. I think that the lines of the
Southern Railway Company, taking
them as a whole have probably cost
as much and are probably worth in
that SENSE as much as the average
of all the railroads in the United
States"
This we think, fairly raises the ques-
tion as to whether railway property in
the State of Virginia is assessed at a
value proportionately as high as other
property. We have not the figures at
hand but our recollection is that the
assessment is about the same per mile
in Virginia as in North Carolina If
that is the case the difference between
the value of railway property, estimated
under the oath of Secretary Hill and
the assessed value is certainly large
enough to warrant careful investiga-
ton by the Corporation Commission,
with a view to a fair assessment when
the time comes for valuing the property
again.