The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-07-28
Work of the State Board
at Sacramento.
CORPORATION EQUALIZATION
Comparative Assessments and Re-
view of Rates Covering a Num-
Der of Years.
Special TO THE MORNING CALL.

the entire Southern Pacific system. ad-
dressed the board In behalf of the corpora
ton.
Several witnesses were introduced by
Mr.. Ryan relative to the elements that
enter into the assessment and make up the
value of the railroad property.
J. T. Klink. chief clerk of the control
ler's Office of the Southern Pacific. said the
net earnings Of the Central Pacific for the
first five months of 1893 were approxi-
mately $4,000, 900. The net earnings OF
the Oakland ferry for 1892 were SS0O,OO0.
The net earnings Of The Southern Paci1c
for the first FIVE months OF 1898 were
S1,275, 600, which would be S. 0o0 1or
the year.
w. F. Knox. railroad builder. testified
as to the actual cost of railroad construc-
ton in California. While Mr. Knox was
still testifying recess was taken till after
noon.
At the afternoon session Ryan spoke
of the Federal franchise under which the
system of roads are operated. Tor by
an act of Congress they must be operated
under one franchise. 1t was made one OF
the elements on former valuations ana
was not subject 10 assessment. The
amount of the first mortgage on that part
of subdivided land in California is about
SIS, 500, 000 on 2To miles. making S31,4SO
per mile. This covers telegraph lines,
shops, station buildings. material. road
bed, right Of way, sixty acres IN MISSION
Bay and other property in San Francisco,
and also franchises from the Government.
MI Black made application 10 have the
Government mortgage to the amount OF
$4,000 per mile deducted from the valua-
ton assessed on the road by the board.
In answer to question he stated that In
Nevada the road was assessed at SIC. 100
per mile: in Utah, $500; in Arizona,
$1,000; in New Mexico. $1,000. In Nevada
The ROAD was first assessed at S14, 900, and
raised month afterward TO $4,000 The
raise was made on all property in counties
through which tho road ran. Oregon
assesses at less than $4,000 per mile for road
aud rolling stock The net earnings of
the California Pacific are abnut the same
As last wear. In 1886 and 1887 Mr.. b ack
states fbe earnings of the ferries con-
peeted with The various roads were added
IN as . part Of tue earnings of the road,
when in fact they had nothing to do
with it.
He called attention to the fact that sew
era well-informed newspapers in San
Francisco, having examined into the SUBJ
iaot. have stated that railroad can be
built from Stockton 10 Bakersfield o.
cost of $4,000, COO. The board had ysssossed
his road at IS, $50. 75o, which is pfetty close
10 those figures.
III k449y ~ S. ..sd % had no expert
ence in building road similar to that be-
tween here and DayisvlIe. but that he
thought an earth smban kment would be
more costly than trestlework
The roads beIon ging TO the Northern
Railway we're then taken up. They are
the Sacramento and Placerville, Amadnr
branch, santa Rosa and Carqunez. San
Joaquin and Sierra Nevada, Vaca Valley
and Clear Lake, West Side aud Mendocno.
Woodland, Capay Valley aad Clear Lake
aad Berkeley branch Mr. Kink testi-
ned that on this system the earnings had
fallen eff during the present year Is per
cent The South Pacific Coast road had
suffered an interruption of traffic this year
from washouts md the caving Of a tunnel,
which had made deficit In earnings, and
it wonld be lneky If it could pull through
so as 70 come cut even at the end of the
year.
Ou tilc QueStlUu VI ItdSSeSSmcutS Ul lU6
roads Mr. Ryan said: From 1880 to 1885.
inclusive, the assessment of each year has
been declared illegal by the courts. For
1866 the assessment although it has an in
validity existing in ii. has not yet been de-
clared invalid. The taxes for 1887 are in
suit and now on appeal to the Supreme
Court of the State. Judge Hebbard In his
decision declared the assessment invalid
in the face of the testimony to the con-
trary. There is no question as to the in
validity Of the assessment of 1887, for the
following reasons:
First-The testimony of members of
the State Board OF Equalization had be-
fore the Judiciary Committee of the Legis-
lature of 1899 and the Corporation Com.
mIttee of 1893 as to Federal franchise.
Standardization made to him In
different years when he appeared before
he State Board of Equalization on matters
pertaining to assessment Of the Central
and Southern Pacific railroads relating
also to Federal franchise.
Third-For the year 1887 the entire net
earnings Of the Central Pacific Railroad
Company were taken as a basis for value
OF the roadway, roadbed, rails and rolling
stock, when from $4,000 to $500. 900 of
these net earnings were derived from the
ferry system. and not from operation over
the rails OF the company.
Fourth-The reason embodied in the
third also applies TO the Northern Railway
and California Pacific. as the earnings of
their respective ferryboats were taken into
consideration in fixing value.
The South Pacific Coast. Mr.. Ryan
stated, is included in the suit brought by
the State for the collection of taxes of
1887. Since 1856 there has been no declar-
alton of invalidity by the court and he
now brought it before this board, as he
considered this board had the right to
make declaration Of invalidity in them If
it was satisfied such was the case. The
Southern Pacific wishes to put all these
things behind them and have them settled.
For the assessment Of 1886 the statute Of
Limitation runs and it cannot be brought
into court. The reassessment cannot work
any harm to any one but the Southern
Pacific. and they are willing to take the
brunt of it. The board is not compelled to
assess it for 1886 aud 1887 this year, but
the sooner it is done the better for all
cd