The record-union., 1898-07-27
BAD FOR THE VALLEY ROAD.
1T WON'T MAKE A CENT THIS
THIS SEASON.
Uncertainty Of the San Joaquin
Valley-Tax Equalizers
at Work.


rotary Thomas Mellersh of the San
Francisco and North Pacific Railroad
were before the State Board of Equal
ization yesterday morning regarding
the assessment to be levied on that
property.
Mr.. Mellersh said that the condition
of the road was never better, and that
the prospects for the present season
are excellent, owing to fine crops in
Sonoma and other counties through
which the road runs. He thought, how
ever, that when the board last year
made a wholesale reduction of values
in every county in the State except
San Francisco the railroads had been
forgotten. The length Of the road is
1876 miles, and in 1897 was assessed
at 81 OBJ, 400. Mr.. MelIersh asked that
a reduction of at least 10 per cent. be
made, in order that it be equalized in
common with other property in the
State.
He said he realized that the present
year is an exceptionally hard one, and
that the San Francisco and North Pa
ciflc road runs through an exceptionally
favored locality, but insisted that in the
matter Of assessments nothing owned
by railroad companies escapes, and he
understood equalization to mean uni
form basis of taxes for all property
No corporation makes more correct
statement of its property that railroad
company, and he merely asked for
equalization. In his opinion the road
he represented, as well as the other
lines in the State, had not been fairly
treated. He thought a reduction of 20
per cent. would not be too much, but
4 A1rYn inta OF
the very least.
Mr.. Mellersh submitted a statement
showing that in 1889 a season of pros
perity, the proportion of State and
county taxes to gross receipts per $1OO
was $500, and the proportion of taxes
to expenses per 500 was S4.99; while
in 1897 the proportion of taxes to gross
receipts was S446 per 500, and the
proportion of taxes to expenses per SlOO
was S7.37. In 1889 the gross receipts
amounted to $757,29 the expenses
S4S4 1888. and the taxes paid S24, ,2U9.
In 1897 the gross receipts amounted to
SS05, $50, expenses S4S1, ,531, and taxes
paid $50, 500
According to the statement, in one
year only QS96) had the tax rates
been higher than last year, and Mr..
Mellersh contended that something
must be wrong. The State Board of
Equalization, he said, is the last resort,
and when it fixes a valuation the COM
pany has nothing to do but pay. He
read from a recent letter written by ex-
President Harrison touching the social
and financial conditions of the country,
and setting forth that the remedy for
the present unsatisfactory condition lay
largely in the hands of Boards of
Equalization.
The board took the matter under ad-
visement.
Attorney z. F. Preston, representing
the San Joaquin Valley Road, was also
before the board. He had no intention,
he said, of asking for a reduction from
the value placed on the property last
year, though the present season Is dis
astrous and the line will not pay ex-
penses.
The road has, he said, increased its
mileage from 125 to 269, and the value
per mile fixed last year (S1,0OO) would
be entirely satisfactory. He declined
to discuss the question of parallel lines
running through the valley, and relied
upon the statements made last year,
which explained the condition of affairs.
The road Mr.. Preston said, runs at
the present time from Stockton TO vi
salia, and from Fresno to Bakersfield,
though in March last the latter branch
ran only from Fresno to Dewey, two
miles north Of Bakersfield. He consid-
cred that this season, owing to the
many total failures OF crops in the San
Joaquin Valley, the extra length Of the
road would mean a loss to the COM
pany. The net earnings of the road for
the year ending December 81, 1897, had
been $1O6, 504.19, and would this year
be nothing.
The road, Mr.. Preston said, is handi-
capped by having no direct connection
with San Francisco, and low water in
the river and other causes make II
lack positive value until such connec-
ton can be had.
The matter was taken under advise
ment-
The Santa Fe and the Atlantic and
Pacific roads have been cited to appear
to-day.