Wichita eagle., 1889-01-15
RAILROAD TAXATION.

! figures were true, and in the next place
intimates that in discussing the question
we are jaunty and reckless. The Repub
lican can't get around our figures. They
are correct, as a generally stated propo
sition. The Republican must take us fol
| a fool when it cites either the stock is
sued or the bonded Indebtedness Of any
road as an evidence of its value or of Its
cost. The Republican evidently don't
see that It's talk seems to indicate that il
don't know that hundreds of miles OF
road were built in Kansas, even within
two or three years, for the sole purpose
of obtaining money with which to pay
interest and dividends; that is, were con-
structed for the sake of the margin be-
tween the cost and bonded price, which
surplus was used for paying
guaranteed interest Our figures
are correct. For $1,000 cash
per mile we will build and equip a
railroad from Emporia to Wichita, or
what would be better, Will take the Car
bondale road and build it to Emporia,
and on to Wichita and turn the entire
line over to Gov. Eskridge, absolutely
free of any mortgage or other debt OF
whatever character when completed, or
for s. 900 cash per mile, in advance, we
will construct and equip the road and
give him forty nine per cent of the
stock: or better still; within one year
after completion and equipment give
him $4,000 of money per mile back, and
also forty-nine per cent of the stock. In
other words, the EAGLE knew what it
was talking about when it said that the
railroad property of the state of Kansas
is paying as much taxes, per their cost
or as per their cash value, as other prop
erty in the state of Kansas.
The Republicans table, submitted,
neither '.knocks the EAGLES figures"
nor do they knock anything else. They
are not german. AS for our
statement of the cost of
roads being "a random guess"
the EAGLE stands ready to show
hundreds of miles constructed in Kansas
in 1887 at a less cost than the maximum
figure given by us. Because Gov. Esk-
ridge, by guaranteeing the interest,
could mortgage his printing house for
one hundred or two hundred or three
thousand is no argument that
his Office should be assessed for any such
1t ought to be assessed for
exactly its value as a property, which
value, as we said in our former article,
can only be properly ascertained by its
earning power, in the absence of which.
then by its cash cost or cash market
value. So far as Gov. ESkridge's table is
if he will show that the stock
of the roads quoted Is worth par, that is
that these roads are not only paying the
interest on their construction bonds but
a dividend on the stock equalling or
any where near legal rate of interest
then we will assert that the railroads are
not taxed in proportion to other prop
erty. But this he cannot do. If the
governor should come down to Wichita
to buy the EAGLE, in determining
is value he wouldn't inquire the
mount of its issued and paid up
stock or its Indebtedness Not by
a long shot. He would say, "Here
Murdoch what is the earning power of
this concern-how much cash does it
show annually over and above expenses?
If the books showed it was regularly
-unning behind with no immediate pros
poets of improvement, he wouldn't take
t at any price and agree to keep it going.
which is the case with railroads.
As for the EAGLE getting around your
acts you offer no facts for it to get
around, or only such facts as are pre-
ented by the socialists when be rizes to
howl there is no freedom, no liberty in
America"
II Governor Estridge means to say
hat railroad builders issue too much |
took, i. e., more paid-up stock than the |
irst cash-cost of the road represents, and !
he means that these roads are bonded |
or three or four times their real value, |
nd then proportionate rate of charges !
for their service for the ex-
'ANoo pun poSO VI iliCCtlIS tuS iHUtItSL Oh !
hese imposed speculative burthens.-
which somebody has pocketed, and that
lie, therefore, proposes TO tax them on such !
basis of wrongful and fictitious value,
their evidences of debt.
which are held by innocent and gullable
with the sole idea in the end
f breaking the roads down in the inter
st of equitable service and then throw
lg them back on cash cost basis, both
S to charges to the public for services
nd as to the payment of dividends,
hen that is another thing. But that
recess, while it would give US much
heaper service, would not increase
heir assessed value over what it is now,
7ould in fact, probably lower it.
Upon the whole, the thing to do is,
7hen their is a wrong felt-and the
-orld is full of them, is not as is gener-
lily done by the world, knock down and
rag out all the innocent people who
appen to be in sight, but to carefully
etermine where the root of the trouble
and then put the knife to it; and we
ope that this statement of our con-
fusion will neither appear jaunty or
lsincere to our old friend. the editor of
he Republican.
CANADIAN ANNENION