Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1881-01-16
RAILROADS AND TAXATION.

Central Pacific Road has 452 miles of track in
operation in the State, and this property
lands excepted, IL valued at $37 ,232 ,2SS. The
total aggregate value of taxation placed upon
this vast property by the County Assessors
and Commissioners of the State for the year
1880 amounts to little over ten per cent. oil
its actual value, or s4,l52,414. This showing
is crushing and unanswerable comment
upon the officials of Churchill Elko, Eureka,
Humboldt. Lander, Lyon and Washoe coun-
ties. The steel rails alone, wi .'i.l'h the
track is being relaid, are w"r.. u.rIc than
the property is taxed for. Valued at five
cents a pound, the cost per mile OF 2lI ZOO
pounds would be SlO,55O. or s4,s66,6OO The
Company own 5000, 600 acres of land, some
valued at less than 81 80 per acre, and most
of it as high as $40 and sI2 per acre, in all
worth about $4,000, 600. Only 3e4,559 acres
are assessed in this State, at an average value
of 81 g. per acre. In no other State of the
Union are railroads allowed to escape their
Just taxes. Controller Hallock, in his report,
makes these significant comparisons:
SIN Michigan, railroad companies organized
and operating their roads under special char
tiers are subject to an annual specific tax of
three-fourths of one per cent. upon their CAPT
tai stock paid in, and upon all loans made to
the companies for the purpose OF construct
ing or purchasing their roads, purchasing,
constructing or hiring steamboats,, etc. And
under this law the Michigan Central Rail
road pays on valuation of SS0,S9i 81 per
mile.
"Under such law the Central Pacific would
be taxed on a valuation of Slll,39l 20 per
mile!
"Undor the general railroad law of Mich
gan, tax of two per cent. is imposed upon
all gross receipts not exceeding $4,000 per
mile Of road operated, and three per cent. on
gross receipts.
'The Illinois Central Railroad of Illinois,
pays a tax of five per cent. on its gross re-
ceipts, and the regular State tax on the value
of its property; provided, that if the aggregate
be less than seven per cent. of the gross re- !
ceipts, then the company shall pay into the
State Treasury the difference, so as to make |
the whole amount equal to at least seven per |
cent. Of the gross receipts.
LAS has been shown, the gross earnings of
the Central Pacific Railroad Company was
$4,000 per mile of road through Nevada.
These facts show that the question is one of
great importance to this State, ana one
|
sources of revenue demand serious and care
full consideration. The law requires that al
property shall be assessed at it's cash value,
and our Supreme Court has decided that the
cash value of a railroad is measured by the
amount Of cash required to procure it, pro
vided it's utility is commensurate with it's
cost; and the amount of cash required to pro- {
a railroad is the necessary cost of its con-
structiGn.' But, believing that the law is not {
complied with in assessing this class of prop I
erty, and that the burdens of government are t
unequally apportioned through local inter- v
ests, misrepresentation, or otherwise, | earn 7
estly recommend to the Legislature the pas t.
sage of law fixing basis for the valuation P
of railroad property that will be uniform IN a
its operation in the different counties of the n
State, and that State Board OF Equalization
be created endowed with power to carry the
law into effect, and with such further powers
to equalize taxes as may be deemed advis q
ble." O.
The Stockton Mail, speaking of the manner II
in which the Central Pacific Road in Califor- al
MIA evades its taxes, says: ~
''The action of the Central Pacific Railroad III
Company in refusing to pay it's taxes, thus q
entailing law suits and delay upon every
county in the State, becomes more exasperat- If
ing the more it is considered. Hereafter nc
when a railroad company wants charter -,
rom this State, it would be we'll to profit by :.
he experience Of Illinois, and insert a pro- OIL
'ision which will prevent any law suits in To-
ollecting taxes. When the Illinois Central W
Railroad wanted a charter and grants of land l..
rom the State, and when the bill was about
. pass, Stephen A Douglas caused an amend
nent to be inserted which exacted from the ~
abroad a small percentage OF its net earnings.
yhich was to be paid to the State annually in raj
eu of all other taxes forever. The company to
,joiced at the arrangement, for it exempted tor
aeir property from taxation for several years. HI
ut the railroad carried people out upon the pe
linois prairies, they made homes and COM GU
fenced to raise crops, which had to be sent
market, and at las: the road began to pay.
hen the company began to squirm, and tried W,
have law amended, but could not. 1t was ant
irly drawn, was a contract which had served CHI,
o company we'll while it was weak and aid
rugging, and there was no reason and no
stice in amending it simply because the I
mpany was so prosperous that to give up a ne'
action OF its earnings involved large sum-" wo
Yesterday the APPEAL published resolu- not
IN introduced by Senator Williams, which
Us bare the eXtortions and robberies perpe-
tied daily in this State by the most cold of