The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-06-25
5000 10 1850. Even an sac

k5.UOU 10 SltSBD. Even a. S5g.-
each how many more entirely new
engines would there have 10 be IN
North Carolina than those operated on
all the Southern's lines 10 reach the
total sum that is put down for 70
newals" and repairs - Again on the
North Carolina road. in spite OF the
activity In new locomotives, there Is a
charge for engine and round house"
of s218,413 car Mileage" on the
same road is charged up at s311.93s-
how much OF which is represented b.
Southern Railway system cars IN tran
stu through the State only the expert
who found the North Carolina Rail-
roads liability knows Also is figured
against the receipts of this one piece
Of property loss and damage" ST.
900, injuries % persons" s60249
outside agencies" s4e.s2O75 (this
charge being probably based on the
employment of some soliciting freight
Offices for the system at New York
San Francisco or other outside points
Also there Is a modest item of expense
1aw expenses" S20.835 while the same
item for the Southern Railway lines
in the State is put down at 1918 0s2
for the year, and loss and damage at
s1,1s9S4S-
Fictitious Reports.
On their very face each of these
Each one Of them, as ii reduces the
amount of net earnings, reduces in
larger proportion the reasonable as
sessment Of the property While net
earnings are properly. after all is said
the true basis of valuation, il should
be a real and not a fictitious net
North Carolina should not be charged
up, with the intent Of depriving the
State of its just returns in taxation,
with expenses incurred on lines in
other States or based on railroad ac-
ttvities or needs not remotely connect
ed with local operation Heretofore
the assessments have been made upon
the face Of the reports as furnished
by the railroads who are the parties
interested in keeping down the vaIua-
t1ons. That method should be
changed. 1t is true that the reports
are verified by oath, but naturally in
many respects the oath is one of a
general nature made by men who can
not speak with accuracy of every item
IN estimating what is the real earning
capacity Of North Carolina railroads it
would seem that the method to be fol-
lowed would be one of exhaustive ex-
animation into the character of the re-
ports. The Commission can do this
work and it would be one that would
be highly paid for In the person of
the Clerk TO the ornmision Mr. H c.
an expert in the science of railroad
theory and practice and in the intri-
cate questions of railroad taxation. He
has perfected himself with years of
devoted ability to the study of the
very questions that are now pressing
for solution. Under his eye, and with
his aid. the Commission can get to
the core OF the railroad reports. or
they can at least make them some
thing else than the bland and smiling
farce that in many respects they are
and will continue to be as long az they
can be sent forth by the railroads as
the unquestioned basis upon which
they are to be assessed for taxation.
A reading of figures quoted above
viii disclose the fact that in items sus-
picious on their very face there enter
into the report as touching the operat-
ing expenses of the North Carolina
Railroad alone $958.467 much if not
all. of which is almost frankly book
keeping" rather than legitimate ex-
penses to be charged to the road in
whose report they figure. On the
Southern lines in the State the figures
that should thus be put to close scru-
tiny will mount into the many millions
In the reports of operating expenses
on all the lines the sum that has hith-
erto passed without question will at
tain enormous proportions.
Growth of Roads i'm Value.
How the roads have grown is shown
by looking at the report of the North
Carolina Railroad in 1895, when gross
receipts were s1,225,593 and net
s366,412
While in 1906 the gross had grown
to sS,915,311, while the net was re-
ported at only s1.314.295.
1t will be noted that the increase in
operating expenses in the eleven wears
has been prOportionately much great
er than the increase in net, while COM
mon experience with this well known
road is that the increase has been
In the volume of travel and the in
crease of earnings rather than in in
creased or improved equipment, ser
vice and expense.
These items are quoted as showing
the trend of a system that. as it af-
fords a false basis for taxation is al
accounts. however accurate they may
technically be. Every correction that
is due and that the Commission shall
make will operate to increase the net
and to come nearer to aScertaining the
truth about the profit in the opera ton
of railroad properties in the State
Upon the accuracy of the reports
hinge not only the question of taxa ton
but the questions of lower rates and
the vitality of remedial legislation
The opportunity that is presented is a
great one: and the duty is none the
less great than the opportunity