The record-union., 1896-07-31

raised, so that a lower tax rate for the
State might have been made, which
would go out to the world and invite
capital here for investment.
The assessment of all property in Illi-
nois, outside of railroad property, has
been decreased 151a per cent. since 1873,
while the assessment of railroads has
been increased 11S per cent. The total
earnings of the roads of the State last
year were $1,725.000 less than their
fixed expenses and their total loss dur
ing this period was not less than $780,
100000 and has resulted In total bank
ruptcy for many of them.
Mr.. Blackstone concludes: Unless
popular sentiment in this country shall
so change as to recognize the princi
pleas it is recognized in other coun-
tries-that railway control by the State
in the interest of the people involves
the duty of the State to protect the just
rights of those at whose expense rail-
ways are constructed and operated, we
see no reason why we may not expect
the railroad history of the last quarter
of a century to repeat itself.
Speaking of competition, Mr.. Mel
lersh said he would be glad if the Gov
ernor would request the passage of a
law by the next Legislature Furnishing
anyone who projected or attempted to
induce people to construct a railroad
into territory which could not support it
after it was built. If the State Board
would assess all roads that were built
on paper at $4,000 per mile there would
be no need to assess the other roads.
In the afternoon Mr.. Mellersh re-
sumed his argument, saying that he
had written to all the other States
asking for information relating to the
relative assessments and equalization.
In some States those written to did not
seem to dare to give the information
asked. He found that, where infor-
nation had been obtained, the Boards
of Equalization, in making their de-
cisions, took into account all the cir
cumstances bearing on values, condi-
ton Of road beds, bonded Indebtedness,
earning capacity, etc. 1t would be seen
that in some Of the States railroads
were assessed lower than in California
and in some higher. He did not feel
that the railroads of California had.
The State Board had done it's duty in
the State Board had done it's duty in
the matter, fairly and inpartially.
He did think his company. however,
had been assessed higher than any
other in the State, and would like the
board, If it came to that conclusion,
to put it on an equality with them.
The Governor called his attention to
figures in the report and asked If the
relation between gross and net earn
ings should not be considered in fixing
values.
He read extracts from various letters
and reports received by him, showing
how and by whom the assessments
were made Indiana assesses its rail-
roads higher than any other State.
The Governor said he believed that
the proper way to assess the roads was
to assess them upon the amount Of
their capital stock He believed the
day would come when it would be so.
He believed that should be the basis Of
taxation of national banks, and that
the State Board Of Equalization should
have the power to assess them.
1t appeared from the letters read by
Mr.. Mellersh that there was a great
variety in the way the assessing
boards were composed, and as great a
difference in the methods Of assessing
the roads, some being assessed on their
gross earnings, some on their capital
stock, and some in much the same
manner as 1t is done here. Nevada
has abolished its State Board of Equal
ization, and the County Assessors
assess the roads and the Supervisors
equalize them. The basis OF assess
ment is the needs of the counties
/ xu1of nh
Equalizer Beamer called attention to
the fact that the Central Pacific is
assessed at $11, 900 per mile IN Nevada,
while in California it is assessed at
SIT .408; the Carson and Colorado road
is assessed at $4,000 mile in Nevada
and $2,132 in California.
Mr.. Meliersh then presented an arti-
Gle on railroad taxes, q paper read by
j. H. Paddock at the eighth annual
convention of Railroad Commissioners
In May, 1895.
It called attention to the omission
of all mention of them in the prelim-
mary report of the Interstate Com
merce Commission and their inclusion
under fixed charges in the belated sta
tistical reports of the commission. 1t
also spoke of the relation of taxes to
net earnings in the United States and
in Great Britain, and of the enormous
increase In the ratio Of the taxes paid
to the rents, interest and dividends
earned by railroads in the United
States In recent years.
| Notwithstanding the higher rates
charged by the British railways, the
lower wages and cost of operation and
the larger dividends paid to owners, the
percentage of the gross receipts which
is consumed in taxes Is substantially
the same with them as with us. The in
crease In gross receipts in the United
| States in the past seven years was S92
401, ,633 and the increase in taxes in the
same time was S13,S14,771, an increase
OF 1915 per cent. of gross receipts, while
there was an increase of 54.31 per cent.
in taxes. The increase of income from
operations before deducting taxes was
| SO, TBS, ,564, so that there had been an
increase of S4,0S6,2 ,207 more in taxes
| than in income.
| Tn f1a same time there had been an