The Green Forest tribune., 1893-01-19
NEEDED RAILROAD LEelsLATioN.


following interview with Hon Iverson
A. Jones, concerning needed railroad
legislation, which should occupy the
attention of our present general as
sembly.
"I want says Mr. Jones "to ask the
Times to lay before the public some of
the facts in regard to the inadequate
assessment of railroad property in Ar
kansas. There is no logic, rhyme or
reason in the law that directs our
board of railroad commissioners in the
assessment of railroad property. The
railroad property in Arkansas, made
up of their stocks and bonds aud other
assets, WAS worth, on the first Of last
July, at face value, $l10,6l6, 10000,
while it is assessed for taxation for the
year at only SIS, 100000. The board
| of assessors did their duty. i have no
derelictions to impute to them, it is
the law that is at fault. The market
value of the stocks and bonds defines
the value of railroad, and should be
made the deterlniLance OF the assessa-
bic values OF the roads of the state;
the legislature should change the law
SO that the railroads would be assessed
as they pass at sale. To illustrate
what mean, with y title deed conveys
is the assemble value of a farm. Now
we assess the locomotives, the cuts and
embanklnents, cross-ties, steal rails,
buildings, and the rolling stock and
the marke values Of these articles the
ultimate determinant of the assess
ment. Now, no railroad is ever sold
this way. No man buys a cut, a tun-
mel, a cross. tie or water tank, but
buys the stocks and bonds and thus
acquires full title to the railroad
property.
"The way the law is we simply assess
turkey gobbler escapes untaxed. Now
while the face value of our railroads as
determed by their stock and bonds is a
| hundred and ten millions as stated
above, the sum Of all the items taxed
is only eigh teen million seven hundred
thousand dollars. Mark the disparity,
broad and deep, there is difference
Of S92 600 600 between the face value
and the assessed value of this property"
''It is not claimed by me that the
railroads should be assessed at the full
S11O, geo 600, because other property is
not assessed at its full market value,
but they certainly ought not to be as
scssed at less than SIS ,000, 600"
| "The railroads in Arkansas earned
last year 50, ,233 ,32l, which you will
see is ten per cent of $92 900, 900. If
we could raise our railroad property
run all our free schools six months in
the year. Certainly property that
yield ten per cent on $92 ,o00,o90 could
easily bear an assessment Of So 900, :
600. Jay Gould'e railroad, the Iron
Mountain, is stocked and bonded in
Arkansas for $45 ,067 ,339 and is assess
ed at only sS,1S5,42 The little,
Eureka Springs railroad is assessed at
only $4,000 per mile when it is cap
itaiized at $50 900 per mile.
Our legislature should SO change the
law that railroads Ike other property
should be assessed at something like
their market value. | think the next
legislature should establish railroad
commission with full power to fix freight
rates, and they should Immediately
pas a statue reducing the passenger
fare from three to two cents per mile.
Jay Gould succeeded last year in negn-
tating q loan by placing a third mort
gage on the Iron Noun tain road by
which e raised money and paid of Si,
! 600 900 Of seven per cont. boads; these
third mortgage bonds bearing only five
per cent. interest. Think of a property
that is lnortgaged in our State for S233,-
! 70G, 900 being assessed at only So, ,o5 900,
/ the assessment amounts to just about
one third Of the mortgage; SO you see IL
property assessed at eight millions that
is mortgaged at twentyfoGr. All he
wie interest is being lowered en- rail
road bonds and the freight rates should
be reduced by the legislature ac-
cor,iingly; but ain our State it has
never been done The railroals in Ar
kansas are yet due the state at least
Slo3 900 in back taxes, and believe