Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-08-31
EXPRESS ASSESSMENT
Herriott's Protest aad the Reply
Of the Majority Of the
Council.
Explanation on Both Sides Of the
Controversy Over the
New Law.
A Difference Of Opinion on Proper
Interpretation Of the
New Law.

10toTpC0J8tlOu VI lu0
New Law.
Special to Times-R Republican.
Des Moines, Aug. 31.-The protest OF
Treasurer Herriott regarding the man
ner in which the express companies
We're assessed by the executive council
and the reply OF the majority of the
council thereto We're given out stimuli
taneously last evening. They are as
follows:
TIE HERRIoTT SIDE.
Il am unable 70 concur in the action
of the executive council IN assessing ex-
pres companies for taxation under the
new law och. As, acts sth G.. Al and my
|reasons> therefor wish to appear in the
records.
1t need scarcely be said that the law
now governing the council aims to as
sesa express companies for taxation on
the basis of the market value of their
stocks and bonds. The law was passed
after prolonged discussion and the
avowed purpose of the legislature clear
lly expressed therein. This council has.
submit, ignored the statute in the as
sessment as fixed Aug. "a, and arbitrar-.
| lily assessed such companies on the bas-
liz ESQ far as any one basis was ussd) of
their gross earnings reported for 1899;
all Of which issclearly in contravention
of the will Of the general assembly.
The council has taken the taxes, paid
| In this year at the rate of 2 per cent on
the gross earnings for 1899 and placed
THE valuation per mile of the four large
companies at that amount which at the
average rate of state taxes assumed to
be 40smills), would raise at least the
same amount of taxes paid this year.
The valuations placed are somewhat
over the amounts 80 determined. Such
a procedure has, of course absolutely no
connection with the values Of the stocks
and bonds. In the of the Pacific
Express Company the gross earnings
We're not apparently considered.
The majority in their resolution ex-
planning their action would have 1t in
ferred that they assesss the companies on
the stocks and bonds after taking out
| the securities which they agree are not
Y
That such is far from true the following
table giving the value per mile as fixed
by the council, and what the value
would have been if the majority had
been consistent with their resolutions:
Asst as ASS on
fixed, majority's
theory.
American !. ....s.... 1892 sl12
4 Adams ......#.... ~. 100 154
A Pacihc...... 1900. 20 06
5lsunited States .... 96 69
Il Wells Fargo 80. 49,. 100 %
4 1T will be seen that only in case of
4 the Pacific company does the majority
i make their assessment az their resou-
4 ton would have the public infer. There
lsis no consistency whatever in the ma
Ijority's position. According to their own
| theory. they have stimated the
4 American, the United States and the
4 SVells-Fargo companies. The latter is
lgrossly over-estimated on their inter-
4 pretations of the law. The values fixed
4 upon are wholly arbitrary.
"On account of the ambiguity in the
j phras'eology in section 4, relating to the
deductions Of securities situated with
out the state. the council, without any
serious investigation whatever of the
Iclaims of the companies. allowed deduc-
4 tons aggregating s23,5920O0 (s1s,457O0O
of which belongsto the American Ex-
press Company, being securities owned
by the companies and declared by hem
to be used exclusively outside of their
4 business. but concerning which they
4 give no particulars. The council per-
United these deductions contrary 10 the
I judgment of the author of the present
law, and contrary to what l am war;
lranted in believing would be the opin-
lion of the legal adviser of this body.
4 This sum does not include the s6.4S0. 600
i of securities owned by the Wells Fargo
company and declared to be used in
4 their banking business. The council did
4 not compel full and particular ac-
Icounting from the companies as should
9shaxe been done. am of the opinion that
4 had such action been taken 1t would
i haye been found that with the possible
Exception of the Wells Fargo company,
i the securities deducted are earning divi-
i bends for the stockholders and are
4 properly subject to asses sment by the
council. The securities are included by
1 the Indiana state board. The assess
ment which urged would have been as
4 follows Il do not include the Wells
1 Fargo:
American. :slas sos.736l2 s5sot6 l,3os,526.5s
4 Adams $3.50. 100 l64. 23D.OO 285. 46 fs1S.4l
o. Nort'n.... l4s 11.4ll.M 1890 12.7Io.7i
Pacific. @ 3o,soi.4! 9N,oa s13Dl.4a