Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-05-17
Railway Appraisals.

The Free Press Of the 10Th instant con-
tains the following brilliant discourse on Mr..
Dwinell's basis of appraisal OF railway road
beds.
"while the majority OF the state board Of rail
road appraisers have appraised railroad roadoeds
according to some mysterious standard known. II
at all, to themselves only, the minority-Mr,
Dwinell-has adopted as basis OF appraisal the
very extraordinary one OF the earnings oil inc
roads By some elaborate calculations he finds
that the net earnings in each case are six per cent
on a certain sum per mile and assumes that nifty
per cent of this sum fairly represents the value OF
the roadbed and the balance equipment. we no
tice that one or two Of our exchanges greatly
applaud this new departure In taxation; but ior
our part we confess ourselves unable to see the
logic of It. II is difficult to see, for instance, now
the value of a store is increased OF diminished by
the amount Of business transacted In 1t; and the
cases are to a great extent analogous. A railroad
roadbed is good or bad, and consequently valuable
OF the reverse, whether losing or paying busi-
ness Is transacted over II. II Mr.. Dwinell
principle were extended and merchant, say,
compelled in a year when he made 5000 TO pay
for the same premises double the rent he paid the
previous year when he made only 2,oOO, twould
bring about curious state OF affairs.
Apparently the able editor was away on
the above date and in his absence the office
boy amused himself by giving out copy,
though we admit that this explanation i'm
plies an imputation upon the intelligence OF
the boy. People in this section of the state
have an old fashioned notion that the value
of piece of property is gagged somewhat
by its earnings. The value of buildings in
this and neighboring villages is appraised in
accordance with their rental, and so far from
seeing anything every extraordinary in
this basis of valuation, people regard it as
entirely fair and reasonable and widely sepa.
rated from the question of cost. Ordinarily
in buying a piece of property its earnings
is the paramount consideration in determin-
ing the value. Listers here and elsewhere
have appraised property on the basis OF its
net earnings and in so doing they have
obeyed the letter and spirit Of the law as
well as the dictates of good common business
sense. A store, hotel or a mandatory
may have cost twenty-five, fifty or one hum
bred thousand dollars but it may be earning
an income on only five, ten or twenty-five
thousand dollars, and for purposes OF taxa
ton it is just and equitable to appraise
the property accordingly. Six per cent,
the legal rate of interest in this state, is
very naturally the standard by which the
value of a piece of property, with respect
to its earnings, is estimated. Now if this
is fair basis on which to appraise the
property of private citizens, what is there
livery extraordinary in appraising the road
bed Of railway on the same basis Under
any circumstances the basis is entirely fair
and equitable, but as applied to the road
bed of railways the legislature took particu-
lar pains to enact that they should be ap-
praised on precisely this basis. Section
of No. so of the laws of 1880 requires the
state board of listers to appraise the road
beds of the several railroad companies in
this state, not specially exempt from taxa
ton, at their true value in money, as Of the
first day of April of the year such appraisal
is made, as the same is used By such company"
The last clause of this quotation was in.
serted in the original draft of the above
section in order that no higher appraisal of
any companys road bed than that warranted
by its net earnings could be made under any
warrant assumed to exist in the previous
clause, " at their true value in money!" As
to the elaborate calculations by which
Mr.. Dwinell finds what sum six per cent
will earn in one year given amount of in
terest, undoubtedly any boy or girl in the
intermediate department of the very excel
lent public schools of Burlington will divest
the problem of its elaborateness," if the
Free Press will seek the pupils aid. The only
serious question about Mr.. Dwinell's calcu-
lations is whether fifty per cent of the net
earnings of railway is fair pro rata allow
ance for the road-bed, but the presumption
would seem to be if he has erred at all it is
on the side of an insufficient allotment. The
WAToHMAN is one of the contemporaries -
which have commended Mr.. Dwinell. 1t is
difficult to see why he has not proceeded in
accordance with law and reason. 1t is
equally difficult to see why the majority of
the state listers have not proceeded in viola
ton of all law and decency. Investigation
might justify the returns which they have
made. The opportunity for justification
should certainly be given them.