The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1896-08-01
FIGHTING ASSESSMENTS
Railroads Argue for Lower Taxation - M
Earning Expenses


A Sacramento special to the San
Francisco Chronicle says:
The state board of equalization today
listened to an argument by c. n. Sterry,
attorney and solicitor of the Atlantic
and Pacific railroad. in favor of a sep
arate assessment of that part of the
Southern Pacific Railroad company's
lines in California which was leased to
the company which he represented.
Sterry explained that when the Atlantic
and Pacific company wanted TO get into
the state they found that it would be
much better for them to purchase the
track already laid across the Mojave
desert and owned by the Southern Pa
citic company than to build parallel
line across territory almost totally de-
void of human habitatior
With this purpose in view they had.
in 1884, entered into a lease containing
a contract to purchase 2t2.S7 miles of
track The purchase price was s3O.oo0
a mile and there was stipulation that
until the Southern Pacific company
could convey a clear title the purchas-
ing company should pay semi annual
rental of S21S13S Since this contract
had been entered into the Atlantic and
Pacific company had controlled and
operated the leased lines. The title
being in the Southern Pacific company
the roadbed and track was. of course.
assessed to them, but under the con-
tract the lessees had TO pay the taxes.
The lines of the Southern Pacific COM
pany in that part of the road were as
sessed at a uniform price per mile in
elusive of the $40 odd miles leased 70 the
Atlantic and Pacific. This Sterry did
not believe just The lines operated by
the Southern Pacific were far more
valuable than the property operated
under the lease. These leased lines, he
declared. would not pay interest on a
dollar of the investment in hundred
years. He asked that the leased prop
| erty be assessed separately, and de-
clared that he had seen Mr.. Herrin ano
| Mr.. Mills of the Southern PACING com
pany. who had given their consent tc
this being done.
All that the road he represented was
assessed for last year was its rolling
stock, which was assessed at Sl25'ooo;
| This he thought, was too hlgh, ana
said that s60650 was the proper value.
Sterry's main contention however,
was for separate assessment or track ana
roadbed. and if the board would grant
this he would say nothing about being
assessed on the rolling stock. He con-
Guided by saying that more than 800
miles included in the Atlantic and Pa
cific railroad. western division, mad neV-
er paid operating expenses, owing tothe
nature of the country through which 1t
passed, and this was forcibly demon
strated by the fact that it was now in
the hands of d receiver and the COM
pany had been compelled to borrow
over $1,000 600
Another railroad to appear before the
board today was the Southern Califor-
MIA, which owns and operates 490 miles
of track in Los Angeles, San BernardiNo.
Riverside San Diego and Orange cOun-
ties Last year the road was assessed
| for 81 $50, 600, but j. Holterhoff, who ap-
peared for the road. thought this was
too much, and stated its value to be
81 SCI 200 He declared that he thought
railroads should be assessed according
to their earning capacity
Controller Colgan of the board said
that if that method was adopted prop
/ erty that earned nothing could be as
sessed FOR nothing and non-interest bear
| ing bonds would go unassessed.
! In answer to a question Mr.. Hotter
/ hoff said that ne thought railroads were
assessed higher in proportion than any