The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-12-18

the amount OF capital stock authorized and
the number OF shares of stock into which I,
liz divided the amount OF capital stock paid
in; the market value, or the actual value OF
such stock. on the frst day OF january. the
total amount OF the bonded OF funded DEBT
and the market or actual value thereof, and
list OF all lands or lots and their value toN-
elusive OF the land dencminated railroad
tracko.
'aln arriving nj the basis for estimating the
value Of railroad track" II is provided that
I the assessor OF any county shall add together
the market value OF the shares of patd-up
capital stock and the funded or bonded deot
outstanding against the entire line of any
railway and shall divide the value OF such
stocks aud bonds by the total number of
miles OF track in the state. including SIDE.
second and terminal tracks as shown by the
sworn statement the officers OF the railroads
are required to make. thus ascertaining the
average value per mile OF the property OF
any given railroad
/ "The assessor Is then required to value
tho miles Of railroad In his county for as
sessment and to assess the same In proper
tion that the number OF miles oi track In MS
county. including side. second and terminal
tracks bears TO the whole number OF miles of
any such road in tho State. FROM this valua-
| ton he Is required TO deduct the value OF
personal property rendered and thu value OF
the rolling stock that has been apporuoned
to his county by the COMPTROLLER aud the
residue or remainder of the total value so
Iascertained is TO be assessed as the value of
the railroad track. In asccriaining the mar
ket or full and true value of the stocks and
bonds outstanding against any rallfoao, thc
assessor is to be governed by the sworn
statement of the railroad companys officials.
1t is also provided that IN the event of failure
or refusal Of officials to make ne sworn
statement required In article 50SSf that the
assessor shall ascertain the value OF the
stocks and bonds from the best possible
source. and assess il In like manner as II
the sworn statement by the officials OF the
company had been made Failure TO make
tho report Is punished by forfeiture of u
given sum for each day they fail 10 comply
Akxtt 1nxl Dt SLY .fnt "A
is. IN addition, imposed on the officer or
officers designated in the charter for their
failure to comply with the law. each day
constituting a separate ofcnse.
Provision Is made for estimating the value
of railroad companies mart Of whose lines
are without the state, the Same method he
ing followed as where the entire line liz with.
in the State. The value OF the stocks and
bonds for tho entire line is ascertaincd In the
same way and the value Of the number OF
miles within the state. only, Us assessed IN
the several counties through which any such
road passes in proportion that the number
of miles In the county bears to the whole
railroad property within the state having been
ascertained first. TO be that proportion which
the number OF miles in the State bears 10
the whole number of miles.
This in tho Judgment of the commission,
is the best possible way to find the value
of property such as this. Ii - what it i
the bonds will sell is determined by thu
earning capacity of the road. or IFS ability
to meet with promptness the Interest on tht
bonds as It becomes due. az course, tho
rate of interest to be paid Is 4 factor which
goes to assist in making the value of bonds
or mortgages of any kind. The stock con,
trolls tho property. elects the officers ant
agents who manage the property. The bond.
being secured by pledge of the entire
property for the payment Of the principa
and interest. the value of the stock is, y
most cases reduced In that proportion which
Is represented by the selling value Of tn,
bonds outstanding against the property which
the stock controls. The stock, therefore
usually commands price which represent
the value of the property over and above
, the value of the bonds Take the value q
the bonds and the value of tho stock there
fore. aud add them together and you re
, what the world estimates the true worth o
the property they both represent. and Il
what the purchasers OF such property ar
daily paving for It. If property then. sbal
be taxed In proportion to its value. whcl
! shall be ascertaincd may be provided b.
law what better way can The legislator
1 provide for ascertaining this value for TAXA
ton than is here proposed?
But even the value of the bonds an
i, stocks may not represent all the values whie
a railroad company may possess. 1t ma
q have been granted rights. privileges an
immunties by the State which do not ente
into or become factor in making up tn
! price of stocks and bonds on the stock ex
change.
speaking through Mr.. Justice Miller, tn
: United States supreme court IN state Kan
: road Tax Cases. 90 L. s., Cos, said 'Whe
(
= OF the whole funded dtbt. and the curren
Q cash value OF the entire number OF shares. yo
4 have. by the action OF those who above a
e others can best estimate Il. aseertained tn
true value of the road. all IT'S property II
capital stock. and It's franchises. Tor thes
are all represented by the value OF us bonde
= debt and Of the shares of it's capital stock
And in the same case it is said that 1T ma
r BIO well doubted whether any better moo
u of determining that portion OF the track win
a In any one county has been devised than I
n ascertain the value of the whole road. an
n apportion the value within the county b
n its relative length to the whole That J
o Just what is proposed by the chapter taHin
;, railroads In the bin we have prepared on
J., Constitution makes the county commissioner
e court the final arbitcrs OF the value an
Is equalization of property for taxation, IL ais
3 requires all railroad property 10 BIO listed an
Il assessed in the county where situated an
Il says that its value may be asceftaifed z
IL may be provided by law. In PittBburg Z
Is c and ST. Louis X. II. Co. vs.. Backus l'
j. IT, s.. i29). Justice Brewer upholds tho cor
II stitutionality of the Indiana law which prt
q vldes n similar method for ascertaiping u
value of railroad property for assessment f
Z taxation as that which we suggest. In rae
n the identical method Is used. The state boar
n of equalization considered the market 'ai,
= Of the stocks and bonds toge ther with u
m costs and earnings Of the road IN estimatin
te the cash value of the property Tor daNatio
te and Justice Brewer says. in TINS case M
NJ the stock and Indebtedness represent IL
l. property. and then quotes with approval n
e language used In Railroad Tax Cases Z
D. u. s.. 6O5), which IS COPIED above ana q
II, page 4s6. says further. That the aggrega
I'd value OF the entire property Of the compnr
TO was evidence properly receivable ana bearii
upon the question of value OF that part
at Indiana is a proposition which, as we ha'
al heretofore said il clearly established, bot
p on reason and authority In Texas we hn'
le no state board to ascertain and assess q
d value OF any kind OF property Tor taxatio
nf And under the present provisions OF our Coz
la stituton the legislature has no authority
al create n Stnte agency or board for that pu
pose But 1t can provide way for the q
SCISSOR TO ascertain the value OF property 4
1e assessment II is still left 10 the commission
he ers court Of each county, sitting as boa
+, of equalization 10 approve sucn assessmer
- and In passing upon these assessments SUI
70 court can hear argument and take Into co
sideration everything which contributes
at the value OF property, IN estimating what
n, an assessment OF II at It's tnll ana true Valu
d. and may increase or reduce the assess
IS value.
nd Tho report further quotes from numb
er of court decisions bearing upon the subie
~ of railroad taxation and supporting the pl
8, II has adopted for such taxation in II
n state. In conclusion II dlsinisses the snbje
isi with the following:
he .There were $50 miles Of railway In Tex
OF on June 80 1898 according to the report
p the Texas railroad commission, exclusive
as yard tracks and siding the entire railw
n property of the State was assessed In
n s az follows; ,ea 70,