The record-union., 1898-07-29
SOUTHERN PACIFIC'S TAXES.
AGENT RYAN AND THE STATE
EQUALIZERS.
The Company Not Given the Benefit
Of the Reduction Last
Year.

r. Black Ryan, representing the
lines of the Southern Pacific system in
California, was before the State Board
OF equalization yesterday in answer to
the citation to appear and explain
matters pertaining TO values Of the
lines.
MI Ryan lost no time in giving the
board a hard nut to crack. In 1897, 1T
Will be remembered, the valuation OF
railroads was fixed before the question
Oh county assessments were taken up.
A majority of counties in the State
We're reduced from the Auditors re-
turn to the board 10 per cent. on all
values, while in a few cases, notably
that of Sacramento County, assessable
values We're reduced 10 per cent.
Mr.. Ryan said that the reduction of
the valuation in the several counties
did not change the percentage assess
ment on the Southern Pacific Com
panyS lines, and, as a consequence,
while its values remained at the figure
first fixed by the board and it paid
taxes accordingly, nearly every county
through which the lines run was re-
duced ID per cent. below the Auditors
returns, thereby entailing an excess of
taxes amounting in round numbers to
$4,000 on the railroad company.
These points We're presented sue
cinctly by Mr.. Ryan, who urged that
the assessments on all lines be reduced
to correspond with the reduction of
property values in the counties through
which they run.
Mr.. Ryan asked also that a specific
reduction from $11,5O0 to $4,000 per
mile be made in favor of the South Pa
off
submitted was assessed 40 per cent.
higher than any narrow gauge road in
the State
Mr.. Ryan compared the valuation
fixed on the lines in California with that
fixed on the same roads by other and
adjoining States and Territories. In
Arizona the Southern Pacific road. in
Guiding everything. is, he said. less than
SIC0O per mile. while just across the
line in California the valuation last
year amounted to S1T GOO per mile. In
New Mexico the main tracks, excluding
buildings etc, We're valued at S6.0OO
per mile, and sidetracks at S1,20O per
mile
Statistics We're produced by Mr. Ryan
showing that the Central Pacific road.
between Ogden and Truckee, uses coal
mined at Evanston, Wyoming, and
which costs So per ton at the mine. An
nually there is consumed 1000 tons.
at a cost of 100000, to say nothing of
the cost of transporting the fuel, which
is enormous. He quoted from a report
made by Charles Francis Adams sew
eral years ago. to he effect that if the
Central Pacific road had the same ia
cilitieS for fuel as the Union Pacific it
would add to its actual earning capacity
So000, Geo annually.
Mr.. Ryan said he had made careful
examinations of equalization reports
from other States, and that the Central
Pacific, the Northern Railway and the
California Pacific in California are as
sessed at higher rates pro rata than
any other roads in the world.
Equalizer Beamer had a report from
which he CLEANED that a portion of the
Union Pacific in Utah was valued at
only a small sum per mile.
Mr. Ryan inquired whether Mr.
Beamer had cited that report to show
that the Central Pacific in California
ought to be taxed at S17 40S per mile.
Equalizer Beamer. however, discov-
cred that he had been mistaken, and
that the Union Pacific in Utah was
really assessed at from $3.50 to $4,000
per mile.
Mr.. Ryan again reiterated that the
Central Pacific. Northern Railway and
California and Oregon lines are as
sesed 10 per cent. higher than any roads
in adjoining States In San Francisco
and Alameda Counties, he explained
the roads have values-so fixed by As
sessOrs-a ggreating three times as
much per mile as the portions passing
through other counties. AS a conse-
of Equalization gives to those portions
of the roads near the Oregon or other
State lines an equal value with the ter
minal portions at San Francisco. This
condition of things, he said. is being
taken advantage of by County Assess
ors in other States. whose counties ad-
join California and in Jackson County,
Oregon. the Assessor pointed out as a
reason for increasing the assessment
that if the road in California counties
adjoining is worth ST. 400 per mile, 1t
ought to be worth at least $4,000 per
mile just across the line. In other
words. Assessors in other States were
taking or trying to take advantage of
the pro rata system in force in this
State
Controller Colgan suggested that it is
the entire system that gives value to
any particular line of road, and that
a line from San Francisco to San Jose.
with no connections would be of little
value, and with that view Mr. Ryan
conceded
Chairman Morehouse said the ques-
tion seemed to be whether il is right
TO tax roads in California in excess of
the rates fixed by other States.
Mr.. Ryan said he would leave the
question OF right or wrong with the
board
Chairman Morehouse said it is an un-
deniahle fact that railroad assessments
in California are higher than in adj
joining States.