The Montgomery advertiser., 1907-04-18

shares of the total sooooo shares of the stock of the Louisville and Nashville. making this purchase was to remain in possession of the Nashville trade, which had been coming to the Coast Line but which would have been un- naturally diverted to other lines said enabled us to keep the business which we had previously had. and has helped
 Questioned by the Governor, Colonel Hamilton delved deeper Into the nnan- eial affairs of the Coast Line He holders in 1904. This stock dividend was issued because at the time of the purchase of the Louisville and Nash quired to pay 125 for the stock. The stock dividend was issued to recom- pense them for the premium they had to pay on that stock
 the various classes of stocks and bonds of the Coast Line in Alabama. and ap- portioned 1t per mile to the Alabama statement showed that the road was capitalized in Alabama at s10,924 q mile; The bonds on each mile of road In Alabama amounted to something over $19,557 99 a mile
 Colonel Hamilton explained each class of bonds that had been issued, and said that according to classes, the
  The Governor questioned Colonel Ham, ilton particularly as to the increase of stock of the road and of the manner in which 1t went to the stockholders When the Board and Colonel Hamil- | ton had emerged from a mass of fig ures. Colonel Hamilton said that in the statements which had been made 50 frankly to the Board. 1t was attempted to give the true value of the road. The tax assessments, he said, had been made in the same proportion as the as sessments of other roads and other | property had been made.
 No Hint at Basis of Taxation. He repeated his question as to what criterion would guide the Board in the 1 fixing of the tax values. Governor Conner replied that the Board was try ing to get at the true value of the l road
 He said, further, that the road had | two separate sets of value. one of which was given in the courts where they were fighting the recently enacted enacted railroad legislation, and the l other was to the Board which was fix ing their taxes. There appeared to be wide difference between the two | Colonel Hamilton recalled that he had been member of the Constitution al Convention of Virginia a few years ago, and as member of the commit tee on taxation, assisted in the for. railroad property. The Virginia plan as adopted by the Convention, was to assess the property on its actual phy- sical value and charge franchise tax of one per cent on Its gross receipts.
 The Board Is trying to settle that question right now" said the Cover nor. Bank stock in Alabama is ass- essed at par value and real estate Is assessed lower, sometimes as low as 40 | percent. But real property is not the same as railroad property. and 1t Is not the same as bank stock"
 The Governor recalled that it has been stated that there were securities outstanding against the Coast Line | $3S.000 to the mile. In this connection | Colonel Wiley asked Colonel Hamilton what 1t would cost mile to repro duce the Coast Line and the reply
 ITO the best of my knowledge and information. $21. .000.'
 Auditor Brandon then asked the sig | nificanct question:
 Tn the proceedings instituted in the court. what value mile do you place
 Colonel Hamilton replied that the proceedings averred that 1t would cost at least 1000 a mile to replace the shown that the raid if operated under the rates fixed by the Legislature. would be operated at a lost of $93,000 or $s4.ooo year, with the valuation fixed at $s1,ooo a mile.
 You know the Luverne branch do you not, Colonel Wiley?" asked Gov ernor Conner. would you say that 1t l was worth So1iUUO a mile.
 "I am not saying that it is or is not worth that much said Colonel Wiley. T mean to say that the officers who know say that t would take $si 900 lantic Coast Line in Alabama
 @Cost of Production |"
 "The two statements put the road in rather awkward position" said Governor Conner. The sworn tax as- sessment says that the road is worth $1Oooo a mile and now you say that 1t Is worth s31 .o00."
 You continue to say that we value the road at $31,0o0. We did not say that We said that 1t would cost s31,ooo to reproduce 1t as 1t is today. that here" replied Colonel Wiley.
 Colonel Hamilton about his time took occasion to remark that they were not trying the court proceedings before the Board And he asked the rectly in believing that the Board wanted railroad property to be assess ed at eighty-five per cent. of its ac- tual value.
 To this Governor Conner replied that bank stock was not like other prop erty and that railroad property was not like other property. and that they were trying to get at its true value!
 General Brandon declared that the Board ought to be able to fix the value cf the road as 1t had been given the amount 1t would cost to reproduce it. the amount of securities on each mile. and it's earning capacity per mile.
 The discussion ended with the con. sideration by the Board of the little Alaga owned by the Coast Line, but which was now leased by the Western Union. When Mir. Jones lad given what information he had as to this line the Board went into an executive session.