The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-02-27


ings of the committee, and that railroad
attorneys and railroad officers were pres
ent when it was discussed After full
discussion it had been printed and laid
on the desk OF every member of the Leg
islature
'T JUDGE FROM THE OPPOSITION
TO SECTION so THAT 1T WILL AC-
COMPLISH ITS PURPOSE If IT IS
ALLOWED TO STAND"
He argued that the same method of
ascertaining the value of railroads for
taxation could not be adopted as in the
case of property of private corporations
or individuals For a long time we have
been looking for a mandatory method to
put the property of railroads on the tax
list at its proper value. The very obpect
of section so is to make such assessment
mandatory. 1t will not make any railroad
pay tax except at their true value. Ad-
verting to suggestion that railroads VIII
be made to pay taxes on their indebted
ness, Mr. Willard said that everybody
knew that the railroads issued bonds to
secure money with which to build and
extend their railroads, and that it was a
perfectly proper subject for taxation. He
said that the bonds of these corporations
were held abroad and at the north. and
that it was impossible for the State to
get at them in the hands of their owners
for taxation. The proper way, therefore,
was to make the assessment as provided
under section so. In the matter of pri
vate property the State requires man
who owns mortgage on a house TO pay
tax on it, The owner of the house also
pays tax on it. He went on to say that
the matter had been threshed out two
years ago and in the tax suit. He was
interrupted and asked some legal ques-
tions, and replying to one said he could
not answer that.
you will have to ask Mr. Morton. l
am not the Constitutional lawyer from
New Hanover county"
1t had been suggested, he said that
some other property was not fully valued
and, therefore. railroad property should
not he assessed at its actual value If
we begin cutting off these assessments,
where shall we stop? The true theory is
to tax the railroads at their true value
and to tax all other property at its true
value. The law cannot admit any other
method The true obio~I - Tsegisla-
ture should be not to relieve railroads of
just taxation but to invent a system of
assessment that will reach that and all
other property.
Mr.. Henderson,: Where did this law
come FROM"
Mr.. Willard: at was made by the
Finance Committee of the Legislature of
1901. We had before us the taxing laws
OF every State in the Union. They were
studied carefully and this section 50 is a
composite law taken from statutes of sew
eral States"
Mr.. Henderson: 81 have never seen
such provision in the law OF any other
State"
Mr.. Willard: That may be so, but if
it stays in our law, it will hereafter be
found in the laws of many other States.
They will be glad to copy so good a law
from North Carolina"
tee that framed this law was composed
of some of the best men in North Caro-
lima. Among them was a railroad Off
Ger, Congressman-elec Page, and other
wise men, who had no desire to oppress
railroads or to overtaX that o. any other
species OF property.
Mr.. Henderson: THE Supreme Court
Of North Carolina had declared that
sub section q. of section so was discretion
ary. but that sub b-section was manda-
tory. This is an obiter dictum."
Mr.. Willard: 'Up to two years ago
an effort had been made repeatedly to get
the CORPORATION Commission to put the
proper valuation upon railroads for tax
alton. but they had not done so. 1t was
the purpose of the section 20 =" --@'ra
the assessment mandatory TO the end that
this property shall be fairly assessed.
Judge Connor introduced an amendment
in the House to require the Ccrnorat'"r
Commission to assess the railroads upon
the basis of the 6 per cent. earnings, and
it came very near passing. This scared