The record-union., 1896-07-30
ALLEGED DISCRIMINATION.
The State Board Of Equalization Assesses
at Cash Value.
A Southern California Railroad Man
SAYS They Assess Higher Than
County Assessors Do.

The State Board of Equalization yes
terday listened to the arguments of ].
Holterhoff of the Southern California
Railroad.
He presented a mass of statistics
showing the necessary operating eX-
penses of the road and the per cent. of
deterioration as regarded values. He
called attention to the existing depres-
sion of business generally, and that the
business of the railroads had suffered
even more than others. Last year the
property assessment of the road had not
been reduced, while the board had read
justed the assessments Of counties that
1t passed through and given them the
benefit of reduction in amount in con-
sideration of the general depreciation
Of values. Railroad property as a whole,
he contended, was assessed higher in
proportion to it's value than other prop
erty was. In other States it is not so.
Many Assessors when asked how near
to cash value of property they assess
answer from 60 to 90 per cent, but when
railroads are assessed the percentage is
much higher.
The stock and bonded Indebtedness
of any road is not criterion necessarily
for assessment because often, in order
to be able to build the road, large in
ducements have to be offered in order
that investors may take hold of it, but
the earnings of the road after 1t is built
may not be at all commensurate with
its cost, and the net earnings is the fair
est basis on which to ascertain its value
for assessment purposes. Many of the
roads also have been built at a much
higher cost than 1T would require now to
build them. The law requires the County
Assessors to assess property at full cash
value, but they do not do so, and the
State Board, complying with the law
and assessing railroad property as the
Constitution directs, assesses them
higher than the County Assessors assess
the property Immediately around them.
Besides, there is much property IN the
various counties that entirely escapes
taxation, and is never put on the roll,
while the property of the railroads can
not be hidden and is all put on the roll
Part Of the property of the railroads, be-
sides, is assessed in the counties indie
pendently Of the board.
He, therefore, felt concerning these
things that the property of the various
railroads is assessed higher than other
property in view of the fact that the
State Board of Equalization assesses at
nearly or quite cash value, while the
County Assessors assess the property
in their several counties at a lower per-
centage.
His observation in the lower counties
led him to believe that the assessment
in those counties would this year, for
the first time since the boom, reach the
aggregate amount Of the assessment in
the boom year. The southern counties
have been steadily increasing in growth
meantime, and the assessment rolls viii
closely approximate those of 1888. He
believed that railroad property assess
ment should keep pace with the value Of
other property. Instead Of that, while
during the past eight years other prop
erty values fell 40 per cent, the property
of his road had not only been assessed
at the boom value, but had been in
creased. He felt that, had he called the
attention of the board to this point last
year, it would have given due considera-
ton to the point
He could see no reason why, because
value had been set upon railroad at
some time in the past. it should be arbi-
trarily considered. regardless Of deteri-
oration or shrinkage Of values He
should, therefore, ask for a reduction Of
assessment.
THAT argument would properly apply
TO all railroads, as you put 1t, would 1t
not?" asked Equalizer Beamer
We'll, am not speaking for other
roads, but I think it certainly would. !"
replied Mr.. Holterhoff.
Last year the road relaid twenty-nine
miles of track up the Temecula Canyon,
as a matter of good faith, to accommo-
date the residents Of that section and
allow them to send out their honey and
other products. There was nothing in
It for the company, as it cost it much
more than the freights came to.
Equalizer Arnold asked IL Mr.. Hotter
hoff held that it would be fair and just
to assess all the railroads on their gross
earnings, and the latter said he did not
think that an assessment entirely on
that basis would be fair.
The reduction asked by Mr.. Hotter
hoff amounted to 1919. 400.
c. NJ. Sterry, for the Atlantic and Pa
cific Railroad next addressed the board.
He said that he wished to speak of a
section of road near Mojave which was
built entirely under a special Act Of