Oil city Afro-American., 1900-01-27

matter of live stock Is also noticeabl
\ and cannot but impress the mind thu
its listment for the year last name
was not at all commensurate to its tru
value.
No more instructive and effectiy
illustration of the gross inadequacy /
the return by the railways of the
physical properties for taxation can b
eiven than a comparison of the Valu
OF these properties as assessed wit
that placed upon them by the railroa
commission.
The assessment rolls, as befor
stated, show them to have been ren
dered at the sum Of 81 032,235. Th
commission, after most careful an
intelligent examination. has place
their true value at that time at SAP,
400 ,11701-a difference of 81. .457 ,SS2.
Whose fault has It been that sucl
gross under-valuation was possible
It will not suffice ID say that the los
tc the state has been compensated b.
the receipts from the passenger tax, a
they amounted only to SAT ,004.37 dur
ing the same year.
To make such rendition more ag
gravating and less excusable 1t ha
for several years past been cOntendet
| by these roads that, in fixing their owl
1 tax upon the people for freight car
riage, they should be permitted to dt
sn upon the basis of the fair value o
their property, and in order to ascer'
tain such value that they may take
| into account the original est of con-
struction, the amount expended in per-
inn hn
market value Of their bonds and stock
the present as compared with the
original cost of construction, the prob
able earning capacity of the properties
under particular rates prescribed by
statute, and the sum required to meet
operating expenses.
This contention Was approved by the
supreme court of the United States In
the case of Smyth VS.. Ames, October
term. 1897 in the language that l have
used, and it is upon this and kindred
cases that the roads depend in their
contentious as to freight rates with
the state railroad commission.
IT will be interesting to note, in
this connection, that as shown by that
commission, the outstanding capital
stock of the railways in this state
amounted on June 80, 1898, to $135,-
5J421O, and that the amount of their
bonded Indebtedness was then $229,-
410 ,OO1. If the railways be permitted
tC exact from the neople freight rates
high enough to pay the interest on
such Indebtedness, and dividends on
such stock, besides expenses OF ad-
and for other purposes,
with what justice can 1t be urged that
they should be only required to pay
tax upon but one-half of the value OF
their physical properties for the sup
port of the state government and of
he public schools?
Why should they object to a rule for
taxation that has received the en-
Jhatic sanction of the highest judicial
tribunal in the land, and which has
been pronounced by it to be the fair
ISL and most equitable method that
.ould be devised? In a well considered
opinion Of great Importance, the su-
,reme court of the United States spoke
IS follows:
when you have ascertained the cur
'ent cash value Of the whole funded
lebt, and the current cash value of the
'ntire number of shares, you have by
he action of those who, above all 9TH !
RS. can best estimate it, ascertained
he true value of the road. of its prop
rty. its capital stock, and its fran
hise: for these are all represented by
he value of it's bonded debt, and of the
hares of it's capital stock" And fur
her, "It may be we'll doubted whether
Il not a better method of determining
hat portion of the track within any
ne county has been devised, than to
the value of the whole road,
nd apportion the value within the
ounty by it's relative length to the
hole" And in another case, in which
be method of taxing express compa-
les by the state of Ohio was directly
lvolved, the same court declared it
} be "a cardinal rule which should
ever be forgotten that whatever prop
'ty is worth for the purposes of income
nd sale, it is also worth for the pur-
oses of taxation" and that substance
right demands that whatever be the
eal value of any property, that value
lay be accepted by the state for the
lrposes of taxation, and this ought
OF to be evaded by any mere confu-
on Of words"
The tax commission, in the prepara-
on of its bill, has been very careful
follow it's opinions in the provisions
II the taxation of railways, express
'mpanies and other corporate insti- ,
tions. Should there be any doubt as !
the policy or constitutionality of
ch provisions, 1t is earnestly recon-
ended that a most thorough consid- :
alton of the cases cited In the report {
the commission be given before final
tion. +
| am further advised by the railroad c
mmission that the net profits arising L
ON the operation of 9540.21 miles.
of main lines, branches and
urs, and 152S.79 miles Of yard tracks t
ID sidings, during the year ending O
ne 80, 1898, after deducting $50. .293,- a
BIC for every expense of administra- f
II, amounted to $40, ,S0S ,S37. .98-that n
g number of miles valued by the /
mmission was 89S453, exclusive of 8
I'd tracks and sidings-and that the b
te per centum of net earnings upon ii
: roads so valued was for that year a
8 per cent on the total amount of s.
'ck ana bonds; 7.45 per cent on the Il
valuation OF physical prop
les; and 14.44 per cent on their n
lue as assessed for taxation. a
n the report of the railroad COM ii
ssibn we find the total taxation for n
'8-including counties cities and a
every character of prop NJ
y, in this state owned and used for r
lway purposes by the companies, to ct
1890. .2O22S al
The corporations paying this tax la
d and operated 9239.57 miles of first e'
main track-other tracks not being ii
ed. From the tax stated should be til
lucted that due on one hundred ii
les of railroad in the Indian Terri vi
v, and belonging to the Gulf. Colo
% C Santa Fe Railway company. to
34S.9S miles In Louisiana and be- fu
ging to the Texas & Pacific Railway fr,
npany, as no part of the tax upon W
Sc particular properties has ever tf1