The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-02-27
WILLARD'S WISE WORDS
he Says the Opposition Shows That it
Should Stand.
HENOERsoN's AMENDMENT VOTED DOWN
All Sections Heretofore Prescribing Methods OF
Taxing Railroads Have Given Simon
ton Chance for an ln-
Junction.

Senate and House met yesterday after
noon in the State Treasurers office to
complete the work on the machinery act
The most important matter for consid-
Grafton was the fate of section so, the
section prescribing the methods which
the Corporation Commission shall employ
in assessing railroad property for taxa
tion. There was quite debate about
the matter. Senator Henderson, OF
Rowan. offered the following ameTdment
TO subsection b. of section so:
And the Corporation Commission in de-
termining the valuation mentioned in
subsection b, shall have the discretion,
after considering the whole matter of
such valuation, to determine what is the
true valuation In money Of such proper
ty.''
After long argument Senator Hender-
sons amendment was voted down by a
vote of IL to s. Those voting for the
amendment were: Senators Glenn, of
Guilford, Allison of Cabarrus, Durham of
CASTOR, and Henderson of Rowan and
Representative Nissen of Forsyth,
Those voting against it were Senators
White, Mitchell, Walker, and Aaron and
Representatives Graham, Doughton, Dav-
idson. Blount Kicks, Smith, Simpson and
Daniels of Vance. No roll was called.
Senator London presided over the ses-
sion of the Joint Committee. Maj John
D. Shaw. attorney of the S. A. L., opened
the discussion. He contended that
section so was wrong in that it prescrib-
ed a different method in ascertaining the
valuation of railroads for taxation than
was prescribed for ascertaining the value
of private corporations for taxation. He
said all the railroads wanted was to be
put upon an equality with other corpora
tions That under section so the rail-
roads would have to pay tax upon their
bonded indebtedness, While private cor
porations, under section so, would not be
required to pay tax upon their bopds.
He thought this was discrimination and
ought not to prevail and argued that
section so was too ironclad and too man
datory. and that it was an unjust method
contrary to the Constitutional provision
as to equality of taxes.
Senator Henderson argued that section
so was mandatory. and that the act as
sessing railroads for taxation ought not
to be mandatory but merely directory
that there ought to be no ironclad rule.
.'If section so stands" he argued, 1.-THE
Corporation Commission would say that
they had followed out the mandate of the
General Assembly in assessing railroads
for taxation, whereas they ought to have
a discretion" He then offered the
amendment quoted above to be added to
the end of SUBJ section b. of section so.
Judge Graham moved as a substitute
for Mr. Henderson's amendment that
section so remain, be adopted without a
change.
There we're some questions and answers
between Mr.. Cyrus B. Watson repre-
senting the Norfolk and Western Rail-
road, and Judge Graham.
Mr.. Watson: ''Why did the LeSisla-
ture of 1901 change the method of as
sessing railroads for taxation?"
Mr.. Graham: ITO get a sure plan OF
assessing the railroads at their true value
and in consequence of an alleged agree
ment the case of the railroads against
the Railroad Commission, which was
compromised"
Mr.. Watson: "Where did they get this
section?'
Mr.. Graham: 81 do not know. ! think
1t was taken from the acts of several
northern States"
Mr.. Watson: as there any real OBJ
lection why the Corporation Commission
should not be allowed to use their dis
cretion?"
AT this 1uncture Chairman London
noticed that Mr. Willard. of New Han
over, who. as member of the Finance
Committee of 1901. had had much to do
with framing the revenue and machinery
act. stated that he was sure the commit
tee would be glad to hear Mr.. Willard
and Judge Graham requested that as ne
was more familiar with the act than he
was. to answer Mr.. Watson's question.
Mr. Willard then spoke brief1v and
strongly against changing section so. In
answering Mr.. Watson's question he said
that the act was adopted for the purpose
of getting at the actual value of railroad
property and to get that property on the
tax books. He said the section was dis.
cussed very fully two years ago at meet.