The record-union., 1897-07-28
NORTH PACIFIC RAILROAD.
PRESIDENT FOSTER BEFORE
THE EQUALIZERS.
If Any Roads Are Reduced He
Asks That His Road Also
Be Favored.

A. W. Foster, President and Geherdi
Manager, and Thomas Mellersh, Secre-
tary and Controller of the San Fran
cisco and North Pacific Railway, were
before the State Board Of Equalization
yesterday morning.
In his opening statement Mr.. Mellersh
declined to inflict upon the board long
statement concerning the financial con-
dition and net earnings of the road.
These questions, he said, had been thor
oughly aired last year, when Governor
Budd was present. He submitted that
the road was in similar condition as 1t
was in 1896.
DOCTORING REPORTS.
In touching on the matter OF assess
ments, Mr.. Beamer questioned Mr.. Mel
lersh upon the possibility of doctoring
reports Of returns to the board.
Mr.. MelIersh said such a course would
be a matter of correct or incorrect book
keeping, and as the books were always
open, an error could be easily detected.
Railroad companies, he submitted, made
reports to several institutions annually,
and in order to protect the stockholders
the reports must be accurate. He sub
mitted that the taxable valuation of
property should be determined upon its
net results, and if the earnings of a road
were consumed in keeping up the condi-
tion of the property its taxable valua
ton should not be extensive.
SHAREHOLDER AND TAXES.
President Foster submitted that the
San Francisco and North Pacific road
paid more into the treasury than any
other railroad in the State. If, he said,
the sums paid in taxes were distributed
among the shareholders they would re-
ceive from that source alone a very
creditable income.
The San Francisco and North Pacific
road has 165.32 miles of roadbed in the
State, and the value per mile, in 1896,
was fixed at $11 ,I04 81 or a total valu
alton for the entire line Of 81 ,935, 900.
Mr.. Foster stated that the company
was unable to put coal on q tender for
less than S6 per ton. as against 50 per
ton on Eastern roads, and that the earn
ings Of the line were virtually eaten up
by coal, labor and taxes.
QUESTION OF REDUCTION.
Then Mr.. Mellersh got down to busi-
ness. In the matter of requesting a re-
duction, he quoted Russell Sage, who in
a recent interview said that the present
not by scarcity of money, but by a
shrinkage in values and securities.
According to Mr.. Sage said Mr.. Mel
lersh, railroad values in the United
States have shrunk over 80 per cent in
the last few years. In other words, the
shrinkage in railroad values in the
United States amounted to more than
three times the shrinkage on values of
Il.
tended that the railroads of California
We're not exempt from the general
shrinkage. If securities, he submitted,
have shrank somebody must be the
loser.
Equalizer Cheeseborough suggested
that the roads in the start had been cap
italized for more than they We're worth.
Mr.. Mellersh admitted that such was
the case, but submitted that the CAPT
talization of a road could not be re-
sponsible for shrinkage in actual values.
If continued Mr.. Mellersh, the board
considered it advisable to reduce the as
sessable values on all roads in the State,
the San Francisco and North Pacific
would like to participate in it, and owing
to the present hard times, occasioned by
shrinkage Of values. he thought % per
l..
not be out of the way. In other words,
he asked that the assessment of 81 ,935,
900 levied in 1896 be reduced to 81 ,450,-
200
Mr.. Foster subsequently stated that
the application for reduction was based
only on the supposition that values on
all railroad properties in the State would
be reduced.
Equalizer Morehouse said there is no
question but what there had been a
great shrinkage in all railroad values.
Controller Colgan inquired of Mr. Mel
lersh whether he considered the San
Francisco and North Pacific road had,
previous to the present hard times, been
assessed at anything near it's actual
value. The latter submitted that the
road had been assessed up to a fair valu-
alton as compared with other property
in the State.
THE ANNUAL GHOST.
At this point Equalizer Beamer res
urected the annual ghost which has
haunted the board ever since its primary
organization. Nearly every man in the
State, he complained, imagines that the
State Board of Equalization has COM
plete power to assess everything that
pertains to railroads, while as a matter
of fact it was empowered to assess only
the right of way. the road bed, the roll
ing stock and the franchise. He wished
he said, that all the takers in the State
could be made to understand that fact.
Equalizer Morehouse got back to the
valuation of railroad properties, and
submitted that railway corporations had
no way by which to conceal their prop
erty. Every mile of track and road bed
was in sight, as was every piece of roll
ing stock.
Mr.. Beamer submitted that it is pos
sible that railroad values are often as
sessed higher than ordinary real estate
The railroad shops in this city. he said,
which cover d acres, and are piled high
with material, are assessed no higher by
County Assessor Berkey than the line of
road between Sacramento and San
Francisco, and still a great many per
sons raised the cry that the Board of