The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1903-08-04
WHAT Is THE TRUE VALUE IN
MONEY OF THE SOUTHERN
RAILWA Y?

Carolina? 1t is easy to answer that ques-
hand.
1t pays tax on an assessment OF s12,27
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 1892 35 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 It's 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 a 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 800 0 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
only has the record of the stock market
and the report of earnings, but as a 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 $40, 900 PER
MILE WOULD BE AN ESTIMATE OR
JUDGMENT. IT WOULD PROBA-
BLY, EXCEED $40, 900 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 il
MI. Hill, the Secretary of the Southern
. Railway Company, did not swear falsely
in the United States Circuit Court IN
8. case where Danville shippers complained
of excessive freight charges.
Now let US have the sworn testimony
of Mr.. ]. NJ. Culp, Fourth Nice-Presiden
of TIE Southern Railway. In answer to q
question as to 1.-The value of the SoutherI
Railway per mile of road" he made oath to
this statement: well, 1 SHOULD SAY
+ NOT LESS THAN $50, 900 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
w Gil. DIS oIlIdIC Will tliC oON VI ~
South and Southwestern territory, tn,
, Southern Railway, as a whole, l think
EXCEEDS THE VALUE PER MILE
OF THE AVERAGE; as to the roads il
the United States, should say that !
is CERTAINLY EQUAL IN VALUE
PER MILE TO THE AVERAGE."
X -o,~l en- = ,rh,1o ,arO NTH ~,
testimony of other prominent railroad e X
perts who swore that the Southern Rail
way is worth mot LESS THAN FOR
,'TY THOUSAND DOLLARS PEI
MILE" With such testimony they hav'
attorneys in North Carolina trying t.
! prevent a just assessment of their prop
erty at its true value in money!" an,
} their past course would Indicate that the.
. will carry the matter to the Federal Court
if they cannot dictate the value of thei
property for taXation-and their dictatiol
: would mean a valuation of one-third 0
;, the price it brings when its stocks an,
bonds are sold for cash.
Unfortunately we have not the swor1
2 testimony Of the officials of any railroa
except the Southern as to its true value
but the Commission has the informatio,
required by law and will feed all out Q
? the same SPOON" taxing them upon TIL
e valuation that sales and earnings shoy
5 them 20 be worth.
The threat of injunctions ought not t
deter the Corporation Commission frOr
!, lending a deaf ear to the railroad attol
4 neys. OF course they will ask for an il
e junction if a fair assessment is made. an
while it is pending they will try to effec
a compromise by which they will oscar
just taxation. And they may win an
probably would upon the hearing befor
some of the little subordinate FEEDER;
Judges. But, fortunately, the Legisl;
ture In enacting a law for the assessmen
OF railroad property followed to the lette