The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-09-04
STATE is HARD HIT
BY THE FINDINGS OF THE RAIL
WAY ARBITRATORS.
WILL LOSE ABOUT 100000
IN TAXES BECAUSE OF REDUCTIONS
IN ASSESSMENTS.

Distinct Victory. Won by the Rail
ro"ds-BOth the Southern and the
SeabOnrd Air Line Came Out on
TOp-At the Same Rate With the
Other ArbitratiOns the Loss to the
State Will he Heavy--J. Pope
Brown Says Law Is NuIIihed.
Atlanta, Sept. 3.-The first of the big
franchise tax assessment arbitrations
was concluded to-day. and the results
indicate that there will be a $780, 900
hole in the state treasury.
The Southern Railways franchise
was passed by the board which had it
under consideration at 81 800 per mile,
or total of 81 $50, 500. This is about
$5,O0O,000 less than Controller General
Wright's assessment, which was So
581,297. The controller generals as
sessment on the Southern's tangible
property was allowed to stand, this
being $10,395, 1877, making a total valua-
ton put on the Southern, franchise
and all. of $12 O45727.
Hon. J. Pope Brown. representing
the state in this case, held out for a
total assessment of SIS, 100000. while
Roland Ellis, for the railroad, did not
want to go over 100000 on the fran
chise or a total of about $11,OOO,OOO.
Umpire on Middle Ground.
Judge Warren D. Nottingham, the
umpire. got right in between them,
and neither one of them would come
to his figures. This kept the thing
hanging fire for some time. until At
torney General John C. Hart was final
Iy called on for a ruling as to the
status of the umpire. Judge Hart de-
cided that the decision of the umpire
in the matter was final, whether either
of the arbitrators agreed with him or
not, and that it was the duty of the
arbitrator to join the umpire in max
ing the report.
This, of course, settled the matter,
and Judge Nottinghams figures were
adopted. The same assessment, $4,000
per mile, was put on the Alabama
Great Southern, making a total of
$432, 74o on the 242 miles of that line
in the state.
The arbitrator awarded Judge Not
bingham $3.50 for his services in both
cases, half of which is to be paid by
the state. GIksAkll
Case of the seabOhrd.
The other franchise return settled
was that of the Seaboard Air Line The
controller general assessed this line at
So. 907, 991 on it's franchise, there being
no disagreement on the return of tam
gible property. The arbitrators return
ed the roads franchise at $1,250,OO0, or
about $2,250,000 less than the as
sessment On these two systems the
state loses returns of $7,25OOOO as COM
pared with the Controller Generals as
sessments. At the same rate with the
other arbitrations ahead, the state Will
lose about $40, 100000 of assessments on
franchises, all of which was taken into
considerable in fixing the tax rate at
five mills This means there will be
500, 900 less in the treasury than the
Governor and Controller General had
calculated.
The Seaboard's arbitrators We're
Judge Spencer R. Atkinson, for the
state, R. C. Aston for the road. and
Howard Thomson of Gainesville, UNI
pire. The umpire in this case was paid
$500.
POpe Browns Opinion.
Judge Atkinson filed a dissenting
opinion, though he joined in making
the award under the ruling of the Con-
troller General. Hon. j. Pope Brown
also filed a dissenting opinion in the
case of the Southern arbitration, de-
claring that the award made the franz
chise tax law a nullity. Mr.. Browns
statement is as follows:
1.-THE people of the state have de-
clared in favor of franchise tax and
expected to collect the same upon a
fair valuation of the property involved
This award (Southern railway virtual
" makes the law a nullity so far as
this case is concerned. Therefore. l
dissent therefrom."
Under Judge Harris decision the UNI
pire is the whole thing, and can abso-
lutely settle the question in the arbi-
fra tiOns vet to be had.