The item., 1900-01-27


gaze, and any effort to remove them is
violently denounced, in certain quar-
ters, as an assault upon capital and as
a hindrauce to prosperity.
Upon the legislature deyolves the
high and honorable duty of righting
these wrongs, and, If such should be
accomplished, it will earn and receive
the lasting gratitude of every one who
truly believes in the doctrine of equal
rights to all and of special privileges
to none-that the law should be no re-
specter of persons or of things-that no
one should be so strong as to be above
the requirements Of the law and none
so weak as to be beneath its protection
and that no property Of whatever
kind, except that specifically exempted
by the constitution, should be relieved
from contributing its just and proper
tional share 10 the support of the gov
ernment. A few facts gathered from
official sources should convince every
one that conditions as to taxation have
not been overdrawn.
Can it be successfully maintained
that the railroads, including their roll
ing stock, were properly listed at the
average rate of $7,3i1.93 per mile and
that the actual value of the increased
mileage with the addition of rolling
stock and permanent improvements
and betterments acquired and con-
structed during those years, as indica-
ted in their reports to the railroad
commission, was limited to the sum of
s. ,226, ,128-the increase of rendition in
mileage being 825 miles?
The decrease of $3,154, ,211 in the
matter of live stock is also noticeable,
and cannot but impress the mind that
its listment for the year last named
was not at all commensurate to it's true
value.
No more instructive and effective
illustration of the gross inadequacy in
the return by the railways Of their
physical properties for taxation can be
given than a comparison Of the value
Of these properties as assessed with
that placed upon them by the railroad
commission.
The assessment rolls, as before
stated, show them to have been rem
dered at the sum Of $71 ,032, ,235. The
commission, after a most careful and
Intelligent examination. has placed
their true value at that time at $142,-
400 ,t17.O1-a difference of 81, ,457 1882.
Whose fault has 1t been that such
gross under-yaluation was possible
1t will not suffice to say that the loss
tc the state has been compensated by
the receipts from the passenger tax, as
they amounted only to $47, 7,O04S7 dur
ing the same year.
To make such rendition more ag-
gravating and less excusable 1t has
for several years past been contended
by these roads that, in fixing their own
tax upon the people for freight car
Iiage, they should be permitted to do
So 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-
ranent improvements, the amount and
market valuo 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 nave
used, and it is upon this and kindred
cases that the roads depend in thelr
contentious as to freight rates Win
the state railroad commission.
II 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 so, 1898, to $780,
51421O, and that the amount OF thell
bonded Indebtedness was then SZZ9'-
41O OO1. If the railways be permitted
to exact from the people trelght rates
high enough to pay the interest," Oh
such Indebtedness, and dlvldends on
such stock, besides expenses OF au'
ministration and for other purposes
with what Justice can it be urged thai
thew should be only required to pay q
fax upon but one-half of the value OF
their physical properties for the sup
port of the state government and OF
the public schools?
. Whv should they object to rule fo
taxation that has received the EN-.
1hatic sanction of the highest judlcla
tribunal in the land, and which has
been pronounced by it to be the talr-
est and most equitable method ina,
could be devised? In well considered
opinion of great Importance, the SUI
preme court of the United States spoK'
as follows:
when you have ascertained the cur
rent cash value of the whole funded
debt. and the current cash value or TN
entire number of shares, you nave o!
the action of those who, above all otn
ers. can best estimate it, ascertalne'
the true value of the road, of Its prop
erty. its capital stock, and It's iran
chise; for these are all represented o!
the value of it's bonded debt, and OF tn
shares of it's capital stock" And fur
ther. "It may be we'll doubted wnetne1
or not a better method of determining
that portion of the track within an!
one county, has been devised, than I.
ascertain the value Of the whole ROAD
and apportion the value within TN
county by it's relative length to tn
whole" And in another case, In Whlci
the method of taxing express compa
nies by the state of Ohio was directl!
involved. the same court declared l
to be "a cardinal rule which shoult
never be forgotten that whatever prop
erty is worth for the purposes or 1ncom
and sale. it Is also worth for the pur
noses of taxation" and that "substanc