Newt Making
CMtlBMd Praat Editorial Pm<?
lng they can enlist for six
months of Intensive training
and yean In the military
reserve. On the other hand. If
they wish to get all their mili
tary service over with, they can
be drafted for two years and
no reserve service. The Presi
dent also suggested some in
ducements In the way of pay
Increase and benefits for train
ed men who stay on In service.
Surely, today no one sug
gests that we dont need a
strong military force. Surely,
we have now learned the ter
rible, terrible cost of sending
untrained men into battle to
buy time while we train others.
And surely today with all the
technical aspects of modern
warfare, training is even more
Important than ever before.
The President's proposal
seems to me to be a good com
mon sense approach to solving
Just a Reminder . . .
WE GIVE GREEN STAMPS!
One on Every Dime,
Ten on Every Dollar
ON ALL CASH AND CREDIT SALES
This Is An EXTRA SAVING
to You
? ? ?
Bryant Furniture Co.
Phone 106 Franklin, N. C.
the problem of having a career
and allowing a young man to
meet his obligation to his coun
try In the way of military serv
ice in time of need.
? ? *
For several years, I wrote in
this column concerning the
need for a good hard surfaced
all weather road between Frank
lin and Nantahala, crossing one
of the various gaps in the Nan
tahala range. Now it seems that
this need "is on the way to be
ing met as crews are at work
on such project.
I think that now the great
est need for the people In Ma
con County Is a matter that ap
plies state-wide. The people of
North Carolina need a Utilities
Commission that is dedicated
to serving the people of this
state rather than one that
seems to have as Its guiding
star the idea of catering to the
requests of the companies that
it is supposed to regulate. How
long could a teacher keep order
in a school room If her main
idea was to respond to the vari
vou'll send]
FOR US IF
XOU ARE
WISE,
^MO IF YOU
WOULD
ECONOMIZE
? LOCAL TKADCMAW. Im.
W. G. HALL
Plumbing and Heating
PHONE 397
ous and many requests of her
pupils?
Proof of my accusation, I
think, is found, not only In the
rate Increases of the Western
Carolina Telephone Company
and the local bus situation, but,
also, in the fact that the At
torney General of North Caro
lina has seen fit to step in
and protest against a recent
rate increase granted the
Southern Bell Telephone Com
pany. II one department head
bucks another in conservative
harmony-seeking North Caro
lina, you can feel sure there is
really something "dead up the
branch."
No. 2
ords, was nearly as involved as
the company's. For all the In
volvements, It may show how a
little-known phase of govern
ment operation is handled.
Background
To explain the answer, some
of the background first must be
set down:
X. Western Carolina Telephone
Company was formed Jan. 1,
1952, by a group headed by
Linn D. Garibaldi of Charlotte
from fivfe smaller companies ?
Western Carolina Telephone
Company, Carolina Mountain
Telephone Company, Weaver
ville Electric and Telephone
Company and two non-operat
ing companies. The Madison
Telephone Company and The
North Buncombe Telephone
Company.
2. Before the merger, Western
Don't Suffer With
RUPTURE (Hernia)
Get the New, Scientific
SUTHERLAND TRUSS
Guaranteed for Life
See W. A. STEELE, Agent
Main St., Franklin, N. C.
Carolina Telephone Company
bad a total aaaeeaed tax value
of $194,920; Carolina Mountain,
$242,000, and Weavervllle Elec
tric and Telephone, $71,974.
3. In 1953, following the merg
er, the State Board of Assess
ment fixed the total taxable
value of the new Western Car
olina Telephone Company for
the year ending Dec. 31, 1952,
as $724,606. This valuation,
under state law, became the
basis on which counties and
municipalities in which the
company operates would levy
local property taxes.
4. In 1954, the valuation for
the year ending Dec. 31, 1953,
was assessed at $836,372.
5. In spite of this increase,
Macon County and Franklin
each learned they would have
less to tax.
6. In Macon County, the tax
able value of the company's
properties was lowered from
$134,129 in 1953 to $88,588 in
1954. On the basis of the coum
ty's new $1.40 tax rate, Macon
stood to lose $637.58. In Frank
lin, the valuation was lowered
from $74,109 in 1953 to $44,129
in 1954, and the tax take due
the town was down $329.78. At
Highlands, the tax value was
cut from $42,063 to $27,296.
7. The only explanation The
Press could get was that the
company's line mileage was less.
It was reduced from 1,935.72 to
969.17 miles In Macon County;
from 1,069.53 to 381.26 miles in
Franklin, and from 607.04 to
298.62 miles in Highlands. These
figures, all hands agreed, were
those the company had filed
with the State Board of Assess
ment.
8. The Press, aware that tele
phone companies don't reduce
line mileage while they appar
ently are expanding, asked the
company how come. (The ques
tion was first asked by the
ge.YOUR PAYLOAD THROUGH
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Performance under severe difficulties ? performance
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On smooth roads, under normal weather conditions
this Truck operates economically on 2 -Wheel-Drive,
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When heavy snow blocks highways, or you have to
take off over rough open country or mud-heavy roads
that bog down other trucks, you can shift instandy into
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The 4-Wh eel-Drive principle, made world famous
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Powered by the great 6 cylinder 115 H.P. Super
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If your business demands getting your payloads
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dealers today. WILLYS MOTORS, INC, Toledo I, Ohio.
I
WORLD'S LARGEST MAKER OF 4 - W H E E L - D R I V E UTILITY VEHICLES
MACON WILLYS COMPANY
Phone 32 REID WOMACK JAY HOUSTON Fr.nklin, N. C
? *? r ?. . i
The Franklin Pre** and Hm HifUukb Macooiaa
Town of Franklin. Editor). The
company answered there had
been "mistakes" In the report
filed In Raleigh and promised
the mistakes would be correct
ed.
9. The Press asked editorially
how a state board could accept
a company's figures without
checking on their accuracy. It
asked, too, whether other pub
lic utilities in North Carolina
might not be making mistakes.
And it wanted to know If it
might not be possible for such
"mistakes" to benefit the com
panies at the expense of local
governments and the public
generally.
The Answer i
^Wow, the answer:
[ <A. first off, the changes In
Jtne..% company's mileage of line
In Macon County, Franklin and
Highlands did not enter into
the total valuation placed on
the company's property by the
state board.
2. The board sets the total
valuation by taking into con
sideration the company's total
plant investment, its capital
structure and its earnings. It
does not consider line mileage J
in this. The figures the board
uses are checked against com
parable figures filed in reports
with the State Utilities Com
mission for rate-regulatory pur
poses and with the State Rev
enue Department for income
and franchise tax purposes. The
figures filed with the Revenue
Department may be checked in
turn against figures reported
to federal income tax author
ities.
3. The line mileage in coun
ties and towns is used only to
determine what proportion of
the total valuation may be tax
ed by local government units.
So long as the mileage the com
pany reports for county and
towns adds up to the total mile
age shown on Its system-wide
records, the net effect to the
company would not be material.
It could stand to benefit only
If it managed to allocate a
greater mileage to low tax rate
counties and towns than it al
located to higher tax rate local
units.
4. The "mistakes" discovered
resulted from a confusion as to
how line mileage should be re
ported. Some of the companies
merged into Western Carolina
j Telephone had reported "cir
cuit" miles in some counties
| and others had reported "con
ductor" miles. The new West
ern Carolina Telephone Com
! pany reported some of its mile
age on the basis of "circuit"
miles. A "circuit" mile consists
of the two lines required to
form a circuit listed as one. A
"conductor" mile lists the wires
as two.
5. When the line mileage fig
ures filed in 1954 were examin
J ed by the state board's secre
I tary, J. C. Bethune, director of
the Revenue Department's fran
chise and intangible tax divi
: sion. he found they did not jibe
with earlier figures. He learned
they were based on "circuit"
miles and so had them doubled.
But the doubled 'or "conductor"
line 'miles did not jibe either.
Puzzled. Bethune took his prob
lem to V. L. Choate, the State
Utilities Commission's account
ing chief. Choate went to West
ern North Carolina, made a
study and. prepared a new set
of local line-mile figures for
each of the counties and muni
cipalities in which the company
operates.
New Figures
6. On the basis of the new
figures supplied by Choate,
Bethune prepared a "corrected"
breakdown of the company's
line mileage. This was adopted j
by the State Board of Assess
ments.- The chairman of the]
board is the state revenue com
missioner (Eugene Shaw). Its
members are the Utilities Com
mission chairman (Stanley Wi
borne), the state treasurer (Ed
win Gill I, the attorney general
(Harry McMullan) and the di
rector of the State Department
of Tax Research (James S.
Currle).
7. Western Carolina Telephone
operates in 11 counties ? Bun
combe, Cherokee, Clay. Graham,
Macon, Madison, McDowell,
Mitchell, Jackson, Swain and
Yancey ? and 16 municipali
ties ? Andrews, Bakersville,
Bryson City, Burnsville, Dills
boro, Franklin, Highlands, Hot
Springs, Hayesvllle, Marlon,
Marshall, Mars Hill, Murphy,
Robblnsville, Sylva and Weav
ervllle.
8. The company's "uncorrect
ed" reports listed a total of 9,
799.06 line miles In 1953 (for
19521 and 8,657.52 miles In 1954
(for 1953 p. On this basis, the
taxable value per mile was $69.- 1
2916 in 1953 a;nd $91.4059 In
1954.
9. The "corrected" figures are I
13,745 01 miles in 1953 (for
1952) with a taxable value of
$49.3992 per mile and 18,487.60
miles In 1954 (for 1953' with a
taxable value per mile of $43 -
8035. The figures are important
only in their relation to those
in other counties and towns.
They all are based on the "con
ductor" miles reporting system
used for other telephone com
panies. The taxable value per
mile represents "excess valua
tion" after real estate Is sub
tracted. Real estate Items are
listed with local assessors.
10. On the basis of "correct
ed" mileage, the allocations per
local unit have been revised.
The Macon County figures for
1953 were revised from 1,935.72
miles and $134,129 valuation to
1,935.72 miles and $95,623. Those
for 1954 were changed from
969.17 miles and $88,588 to 2,
400.87 miles and $102,766. Simi
larly, changes were made In
figures for the other counties
and municipalities.
11. The total valuation was
not changed. It remains at
$836,372 in 1954 (for 1953) and
$724,606 in 1953 (for 1952). The
total amount of "excess valua
tion" certified to the counties
and municipalities remains at
$678,993 in 1953 but was chang
ed in 1954 from $791,348 in the
first form to $791,338 in the
"corrected" form.
12. All figures on which the
Board of Assessment based its
valuation ? plant investment,
capital structure and earnings
? checked with comparable
figures the company listed in
reports on file with the Utilities
Commission.
Embarrassing Fact
That's about it, except for
the embarrassing fact that the
revisions will mean some coun
ties and municipalities won't
get the taxes they expected and
may have to make refunds for
1953.
Bethune explained this in a
letter he sent to counties, cities
and towns December 14.
"The Western Carolina Tele
phone Company, in filing with
the State Board of Assessment
its report far 1953," he wrote,
"made some errors in comput
ing and consolidating the wire
line mileage that was taken
over in the merger (in 1952).
These errors have affected the
distribution of the valuation to
some of the counties, cities and
towns in which it operates.
"Through the cooperation of
Western Carolina Telephone
Company and the chief tele
phone accountant of the North
Carolina Utilities Commission,
we have determined the correct
wire mileage for the years 1953
and 1954 which is reflected in
the recertification certificates
enclosed.
"We regret that a number of
the affected counties, cities and
towns will have to make tax
t adjustments to correspond with
this report. However, we feel
that the future years will work
out to the satisfaction of all
concerned, by reason of this ef
fort of correction."
Smith Is Speaker
At Rotary Club
Don B Smith. Franklin Rotar
ian. was cuest speaker at last
Thursday's meeting oi the Ashe
ville Rotary Club at the George
Vanderbilt Hotel.
M". Smith related some of his
experiences as a trapper in Canada
a number of year* aao.
A jail management course 'or
sheriffs and jailers is conducted
annually by the Institute of Gov- /
eninient. in cooperation with the
State Board of Public Welfa:
as m mry p* m i
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