The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-01
MICHIGAN AND NORTH CARO-
LIMA.

LIMA.
During the session of the Legislature
the railroads brought every influence they
could command to alter section fifty.
They failed, because the people of North
Carolina had virtually instructed their
representatives not to touch that section
which makes the method OF
taxing railroads mandatory and just The
Corporation Commission has no
discretion except within prescribed linn
its. They must ascertain the
true value" in money of railroads by the
sale of stocks and bonds and the earnings.
When, from these two sources, the true
value is ascertained, it must go on the
tax books. The method is plain and man,
datory. The Legislature virtually assess
ed the railroad property itself, leaving to
to add up the figures, ascertain 1.-The true
value in money" and put the property
actual sales and earnings show it is worth
few years ago the State of Michigan
adopted a plan of valuing railroads for
taxation substantially similar to the one
under which North Carolina will operate
for the first time this year. What was
the result? The Railway Age thus gives
it:
by substituting for taxation upon earn
iings the plan of assessing upon actual
value" of the property the Tax Commits
sion of Michigan succeeded in raising the
amount of tax assessed against the fifty
three big and little railway companies ia
ire State from 81 ,4S3 900 i'm 1901 to s., $780,
429. an increase of 81, 366,522, or over ninety
per cent
In Moth Carolina there are 1851 miles of
railroad. NThe total taxes paid to State
counties, towns. schools. ETC.. aggregate
$547 ,262. of Which there is paid into the
State Treasury 1929, oS5.o1
In Michigan which State had before
passing the pew law taxed the railroads
upon basis llearer their actual value than
has prevailed in North Carolina, there are
S,193 miles cf railroad. They pay in taxes
in that Stste $2.S5O,429.
Here it is: Michigan has two and
twenty-five one hundredths (2.22) more
miles If railroad than North Carolina, but
-
one-fifth times as much money as North
Carolina.
= North Carolina taxpayers all over the
State have been compelled to submit to
an increase on the assessment of their
property. In the city of Raleigh the
property has been assessed according to
law. We take it that assessors all over
the State have complied with their oaths
and assessed property at its true value
in money This being true the railroads
ought to be willing to pay taxes at the
price which the property brings on the
market at the lowest point it has reached
in the hate slump in Wall Street. The Cor
poration Commission ought not and will
not assess railroad property at the figures
stocks and bonds brought on the tidal
wave. The fair way would be to strike
an average between the highest and low
est notch Probably the best way, all
things considered, is to assess it at the
lowest notch it has reached on any bona
fide sales recorded on the markets
North Carolina now has as good a tax
ing law as Michigan, and il its officials
follow it strictly railroad property will be
assessed this year for the first time in
the history of the State at its true value
in money" The law in North Carolina is
based upon the language used by Justice
Miller, who, speaking for the United
States Supreme court in the Tax Cases 80
U. s. 275, said:
ut is obvious that when you have ascer-
tanned the current cash value of the
whole funded debt and the current cash
value of the entire number of shares, you
have, BY THE ACTION OF THOSE WHO
ABOVE ALL OTHERS CAN BEST ESTI-
NATE IT, ASCERTAINED THE TRUE
VALUE OF THE ROAD-all its property,
It's capital stock, and its franchises-for
these are all represented by the value OF
its bonded debt and of the shares of Its
capital stock
The above rule laid down by Justice Mil
lc: was put into our statute under which
the Corporation Commission must make
the assessment To virtually the same eff