The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1873-04-01
COLUMBUS CORREsP0NDESCE.
COLUMBUS, O., March II, 1873

COLUMBUS, O., March II, 1878.
ED SPIRIT: Last week was an event
ful week on the railroad question ir
Ohio. The defeat of the Wales ia,
bill the passage of Young's amendmen
to the Boesel railroad law, in the House
and the argument of the constitutional
ty of the Boesel law in the Supreme
Court.
shall write of these briefly, in thei
order. The Wales bill passed tn,
Senate last winter. Its object was tC
change the law as it now stands for the
taxation of railroads The present Law
provides that the Auditors fall th.
counties through which a line of railroad
passes, shall meet and aprraise the whole
line of road, including rolling stock, DC
at its true value per mile. BY this man.
ner each county, township and district
through which the road runs, gets its full
proportion Of the aggregate valuation
for taxation.
This, at first, would seem to be fair
and it is nearer fair than any other means
that could be reached under the present
system. Railroads are species of prop
erty whose exact market value can al
ways be determined from the sale o
their stocks and bonds, which may be
said to be always on the market. The
Wales bill proposed to change the Law
so that railroads should be taxed at moi
less than 80 per cent of the market val.
ue of their stocks. The difference be-
tween the market value and the taxed
value being made for any fuctuation OF
downward value of their stock.
The aggregate cost of the railroads
in Ohio is S2I2, 100000, or about $54, >,
500 per mile The net earnings of the
roads were about S10,000.00G last year
and the average assessed value for taxa
ton is $1S,040 per mile, or over one
fourth the cost. Many of the roads are
of course not as valuable as it cost to
construct them, while others are worth
a large amount more than their cost oi
construction, consequently the price o.
their stock is above or below par in pro-
portion to the value OF the road The
aggregate value of the roads in the State
may be set down at nearly $500, 1000, 900
80 per cent of this is $160,000.000
which, under the Wales bill, would bt
the lowest estimate that could be asses
sed ON them for taxation, or not less thar
S42, 600 per mile, thus securing to the
State an additional sum for taxation OF
nearly S1OO,O00,O00 property that nov
escapes taxation
The ouly plausible objection that was
made to the passage of this bill wa:
that the railroad companies were in deb
to the amount of about Sll5,e00, 900
and should not he taxed On their debts
Suppose man huys farm and mort
cages it for part of his payment does
any one suppose he should be permitted
to deduct the amount of his mortgage
from the value of his farm for taxation
purposes2
The Young bill, as it is called is onl,
to guard proceedings under the Boese
law, and define more clearly its provis
ions. 1t however grants some extension
of power / can only refer to some o
its provisions. Tse first-section clearl,
defines the rights of townships, citie
and villages, as provided by section two
of the original law. The second sec
ton provides for the transfer of tn,
bonds to another road through the coun
ty, township or city, as the case may be
or an abandonment ofthe road on two
third vote. The third section provides
for canceling bonds and coupons ant
that more than one election shall not b'
had, substantially on the same question
in any one year. The fifth, sixth and
seventh refers 10 levying tax and with
drawing imperfect bonds. The nintf
and tenth sections provide for a submis
sion to vote of the people for author
ity to lease or sell the road; and, also
provides heavy penalties, against any
person, who has anything to do with th'
bonds, making improper use OF dispos
ton of them; and also for the cuttins
off of the over due coupons, when th,
bonds are sold The amendments mad,
in the House will be agreed to in tn,
Senate, when it will become law.
There were two united phases of op
position to this legislation. First. al
through or trunk lines opposed it, from
the fact that most of the line of road
proposed to be built by this method ar
what are termed cross lines Thes
cross lines have for their termini point
on two or more of the through lines, o
cross two or more of them, thus afford
means of competition on the part o
these lines, consequently reduction o
fare and freight. l give one instance
1t cost 1927 to ship one car load of hog
from Chilicothe to Baltimore; from Gin
cinnat to Baltimore S110, and from 81
Louis to Baltimore, SIT. The distanc
from the latter point is 400 miles fur
ther, and yet competition is the cause o
the reduction. If Chilicothe had tw
roads or was near two lines it woul
make difference of s25 for each ca
load. Hence the opposition of throug
lines.
Second. Those counties and town
that have sufficient railroad facilities al
being enriched and built up, at the e,
pense of those who do not have then
and hence their opposition The tw
combined were almost sufficient to dt
feat the whole measure.
| The friends of this kind of Legislation
who rejoice in the success of their mea
ure should be very careful and guar
well this extension of power even if it
only granting authority to the people
the aggregate to spend their own none,
!, Two cases which have arisen undt
1.-THE Boesel law are before the Suprem
Court. They involve several question
and by agreement have been argued t.
gether. 1t is claimed by those who hay
raised these questions that they d
Involve the constitutionality of the lay
and that the Court cannot dodge th
, issue in the decision. A.
. COLUMBUS, March 18, 1878
Ed SPIRIT: l notice by the numerol
letters. and articles on the subject of
railroad, in your very excellent pape