The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-02
WHAT Is THE TRUE VALUE IN
MONEY OF THE SOUTHERN
RAILWAY?

What is the "trHe value in money of
the Southern Railway property in North
Carolina? 1t is easy to answer that ques-
ton, for the testimony and evidence is at
hand.
per mile-an assessment made several
years ago under an old and defective law.
The sales of stocks and bonds of the
Southern Railway show that the investing
public is paying in cash upon the basis
of 1926 per mile.
A few months ago the business men of
Danville, Va, brought an action in the
Federal Court to compel the Southern
Railway to reduce its freight charges.
Answering the Danville merchants the
Southern Railway officials made affidavit
that they could not reduce the freight
rates and be permitted to earn dividends
upon their investment. In the trial the
railroad produced much evidence in sup
port of their contention and Judge Boyd
held that the Danville people could not
compel reduction of freight rates. His
decision was based upon the contention
of the Southern that it was compelled to
charge the higher rate in order to make a
fair income on the money invested. How
much is the road worth? That question
became one of the highest Importance and
the Southern Railway brought dozens of
railroad officials from all over the country
to testify as to its value Every one Of
them testified that it was worth not less
than $40,0 900 a mile. And yet it is assessed
for taxation at $12,275 per mile! That is
another way of stating that it is compell-
ing all the taxpayers of North Carolina
to pay more tax in order that it may
shirk taxes on about two-thirds of the
true value of its property.
Fortunately, in order to arrive at the
true value in money of the Southern
Railway the Corporation Commission not
only has the record of the stock market
and the report of earnings, but as side
light it has the sworn testimony of Mr..
Josiah F. Hill, Secretary of the Southern
Railway. In September, 1902, he made
oath to this statement:
I'm MY JUDGMENT $4,000 PER
MILE WOULD BE AN ESTIMATE OR
JUDGMENT IT WOULD PROBA-
BLY, EXCEED $1,000 RATHER THAN
GO UNDER THAT AMOUNT"
For four years the Southern Railway
has been paying taxes to North Carolina
upon one third of its true valuation if
Mr.. Hill, the Secretary of the Southern
Railway Company, did not swear falsely
in the United States Circuit Court in
& case where Danville shippers complained
of excessive freight charges.
Now let us have the sworn testimony
of Mr. J. M. Culp, Fourth Vice President
of the Southern Railway. In answer to a
question as to 1.-The value of the Southern
Railway per mile of road he made oath to
this statement: "Well, 1 SHOULD SAY
NOT LESS THAN $4,000 PER MILE"
Asked as to the true cost and value COM
pared with the average of all the rail
roads in the United States, Mr. Culp said:
well, as compared with the roads of the
South and Southwestern territory, the
Southern Railway, as whole, | think,
EXCEEDS THE VALUE PER MILE
OF THE AVERAGE; as to the roads in
the United States, l should say that it
is CERTAINLY EQUAL IN VALUE
PER MILE TO THE AVERAGE"
We might fill whole page with the
testimony of other prominent railroad ex-
perts who swore that the Southern Rail
way is worth mot LESS THAN FOR
TY THOUSAND DOLLARS PER
MILE" With such testimony they have
attorneys in North Carolina trying to
prevent a just assessment of their prop
erty at its true value in money!" and
their past course would indicate that they
will carry the matter to the Federal Courts
if they cannot dictate the value of their
property for taxation-and their dictation
would mean valuation of one-third of
the price it brings when its stocks and
bonds are sold for cash.
Unfortunately we have not the sworn
testimony of the officials of any railroad
except the Southern as to it's true value,
but the Commission has the information
required by law and will feed all out of
the same SPOON" taxing them upon the
valuation that sales and earnings show
them 70 be worth.
The threat of injunctions ought not to
deter the Corporation Commission from
lending deaf ear to the railroad attor-
N !, l. r