The San Francisco call., 1896-07-31
RAILROAD ASSESSMENTS.
Interesting Proceedings Before
the State Board of
Equalization.
Elaborate Compilation of Statistics
Which Greatly Impressed
That Body.

SACRAMENTO, CAL, July 30.-The
Board of Equalization spent the morn
ing listening to the extended argument
OF Thomas Mellersh, the secretary and
controller of the San francisco and North
Pacific Coast Railroad, why the assess
ments on the railroad property gener-
ally, and his road in particular, should
be reduced. MeIlersh presented statis-
tics purporting to show that the railroads
throughout the United States were as
sessed out of all proportion to other prop
erty. He showed that in 1892 fifty-two
roads went into the hands of receivers,
and IN the first half year of 1895 twenty
hve roads were forecloseu. The average
rate per ton of freight moved was reduced
from 1.236 cents in 1894 to .S51 cents in
1893, but the assessments had not been
lowered In conformity.
dhe question of using the income of the
road as criterion for valuation came up
at this point. Governor Budd advanced
the idea that the market value of the stock
would nix the value of the road.
Chairman Morehouse asked if the stock
could not be manipulated and run up or
down as the occasion suggested.
Speaking for his road, Mr.. MeIlersh
stated that it was assessed at the rate of
| $ll, 400 per mile. Mellersh stated that the
| operating expenses were greater than ordi-
| narily over large portion of the road.
10 the casual onlooker the proceedings
were dry and uninteresting, yet to the
members of the board they were replete
| with interest and gave better insight
| into the workings and requirements of the
| great railway systems of the world than
could be acquired in years of study, and
| from the compilation of volumes of
statistics to-day the board fully realized
that they were addressed by men who had
given years of study to the question and
were probably the best informed in this
| line of any on the coast.
| Another thing which materially aided
| to insure them hearty welcome was the
fact that they made no plea for any reduc-
| tion of their tax levy, and yet their argu-
ments, IN which they clearly demonstrated
that railroad property was assessed equally
| as well If not better than individual prop
| erty, had great weight with the board and
the correctness of the schedules presented
were without cavil Mr.. Mellersh's chief
| object was to impress upon the mind of
| the board that railroads should be assessed
| in accordance with their gross earnings.
Governor Budd spoke in favor of raising
rather than lowering values, claiming that
| if values were doubled the tax rate would
! be cut by one-half. He claimed that the
| high tax rate obtained in California kept
capital from investing.
In his closing argument Mr.. MeIlersh
said: s'If the State must have money to
pay outstanding and prospective debts the
board must assess property at such rate
as will enable it to raise the money. 1t
is observable that private property is as
sessed moderately. The State needs more,
| and instead of the needed being taken out
of property generally it is tackled on to the
railroads"
Six thousand eight hundred wheels
| (blcycles) are on the assessment list in
San Francisco, and ne estimated that
! S., 100000 had gone out of the State in the
last eighteen months for ''bikes." Peonle
in Sonoma County, he said, are selling
their pianos and sewing-machines and
buying ''bikes." All these are reasons
why railroading is not as profitable as for
merly.