The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-07-05

Gne railway systems OF hanSaS. Inc re
port first discusses the question of the as
sessment of the rolling stock and other
personal property of railway companies
1t appears that many factors must enter
into the consideration of making a fail
and equitable assessment of the rolling
stock of the several lines of railway in
Kansns. Some of these factors may be
AIMED briefly:
rIrsU-Ine actual cost of the rolling
stock.
Second-The earning capacity of said
stock
Third-Fhe amount it really earns
Fourth-Its present condition and value,
if it were sold in the market.
Fourth-How shall it be assessed so thar
its valuation for taxation may be equalized
with nersonal property owned by private
citizens.
In determining these factors the board
CLEANED many facts interesting in them
selve, and goingfar in explanation of
the unfortunate financial condition
of the railway companies. The
railway rolling stock in Kansas was
purchased years ago upon the basis Of
abundant harvests and rapidly increasing
output of cereals, live stock dairy and or
chard products. The building of new lines
of railway into regions where surplus crops
of any kind for railway shipment are very
meagre at best, and almost phenomenal
when any surplus exists, required an out
lay in rolling stock alone upon which the
taxes last year exceeded the gross earnings
for freights in the cereals and live stock in
many localities. 1t is clearly demonstrated
hat the earning capacity of the railway
olliug stock of Kansas is, to the amount
ctually earned, as ten TO one, The first
COST of the rolling stock depends largely
upon the date of purchase. AS an illuStra-
tion, the board learned by examination of
original bills, and otherwise, that the cost
of locomotives and other rolling stock had
decreased from thirty to sixty per cent.
during the past fifteen years In the table
Of figures given herewith the price fixed
upon locomotives is made to cover the av-
erage cost of locomotives including ordina-
ry passenger engines, the great moguls
and switch engines The cost of cars of
various grades is arrived at by striking an
average upon the prices paid by different
companies.
To determine what weight the fourth
factor should have in this consideration, is
n very difficult problem. "The present
condition and value of the rolling stock if
sold in the market" is hard to determine
The board finds upon personal examina-
tlOn that at least 30 per cent of the loco
motives owned by railways in Kansas are
constantly in the shops for repair-dis-
abled for business-and, in many cases,
nave W &C thoroughly ONSEudufeu ana
practically rebuilt What would be the
value of such rolling stock in cash mar
ket? Perhaps the best answer to this is
found In the fact that the Rock Island sys-
TEN in Kansas has seventy-two locomo-
motives purchased second hand at s.. 500
each. 1t goes without saying that no class
of personal property is more subject TO GER
tain and constant depreciation than rail
way rolling stock.
ASSESSMENT OF ROLLING STOCK.
How shall it be assessed so that it shall
be equaliZed with the personal property Of
private citizens?
If mower, reaper, thresher, wagon or
plow, badly worn by years of service and
practically rebuilt by the machinist, black
smith or wagon-maker, should be assessed
at actual purchase price when new, then
the same rule should be applied to the roll
ing stock of the railroads. On the other
hand, If the farm implements and ma
chlnery are reduced in assessed valuation
by local assessors for the good reason that
a machine half worn out is not equal in
value to one fresh from the factory, then
the same rule should apply to the rolling
stock of the railroads
The board flds upon examination that
Tor four years, beginning with 1887 and in
cluding 1890, that the assessed valuation
of the personal property of the citizens of
Kansas has constantly decreased, while
he assessed value of railway property
has constantly increased. The total
assessed valuation of all personal property
in Kansas III 1887 was a trifle less than
sol 100000 The total assessed valuation
of railway property in Kansas that year
was nearly 4l.250,00 In 1855 the total
personal property assessed valuation in
Kansas was less than $50. 500. O00 while the
railway property had increased TO more
than &No bflO ono m 1880 ha al
valuation of all personal property was a
little more than S53 600 000 while the
assessed valuation of the railway property
shat year was nearly $57, 500, 000 In 1890
She total assessed valuation of all personal
property in Kansas was less than Sac. .OOO,-
000 while the assessed value of the rail
roads increased to nearly 5S,0000OO In
1887 the assessed valuation of railway
property in Kansas was over l3 per cent.of
the entire value of all property in the
state; in 1883 it was over Is per cent: in
1889 1t was over 10 per cent, and in 1890 /
over l. per cent.
These figures show very conclusively |
that the assessed valuation OF railway !
property has increased more rapidly than !
sny other property in Kansas. There was |
a large increase Of mileage during the |
period named. That other personal pro |
perty has not kept pace with the marvel |
Gus increase of the railroads Is apparent I
upon the face of the returns. That there /
should be such large margin Of differ /
ence, however can not be accounted for 4
solely upon the ground that the railway |
property has actually increased in much /
larger proportion than all other personal |
property. II Is true that railway lines
have been constructed in localities where |
there is no demand for them. and equally /
true that railway companies have invested 1
capital IN lines that, in the very nature of /
things, viii ever remain dead property, /
but 1t is not fair 10 presume that the lack /
Of business prudence upon the part OF rail /
way companies wholly accounts for the |
wide margin in assessed valuation OF roll /
ing stock aud the personal property valua-
bion Of private citizens. The board does |
not believe that there has been such an
enormous decrease of the value of personal |
property taSlde from railway property in |
Kansas as Is shown by a decrease in its !
assessed valuation from 1857 TO 1890 from
200, 600, 600 TO S49,000,C00 in round numbers.
An examination OF the returns from all /
the counties show a steady decrease OF
assessed valuation of personal property. t
taking the state as Il whole
AS an illustration, the reports of the
auditor Of state for the years 1857 to 1890
Inclusive, show the following facts:
First-That the assessed valuation OF
lands in Kansas has decreased from 1897
10 1890 inclusive from an average of 81 II
per acre in 1887 TO So 50 per acre in 1880
Second-That the assessed valuation OF
personal property of the citizen has de-
creased in a greater proportion than the
decrease in value OF lands.
2hird-That there is an evident lack Of