Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-10-12
.R[RR|O|1 NOT AFRAID
Shaw's Little Reference to Rail-
way Taxation Outdone by His
Colleague.
Bluntly States That Assessments
Have Been Unequal..No Sys-
TEN Used.
Some Measured by Yard.stick.
Some by Foot.rule.-Favors Net
Earnings.

Some by Foot.rule..Favors Net
Earnings.
n Marengo, Oct 12.-John Herriott. re-
publican candidate for lieutenant gov.
Iernor and former treasurer of state
opened his speaking campaign here las
night. He was greeted by large audi
ence and his utterances were freely ap.
plauded. Mr.. Herriott devoted con-
siderable portion of his time to an elab-
crate analysis of the railroad taxation
problem, pointing to the inequalities oil
the assessments of the past, and propos-
ing, as a better method for the future
that assessments be based primarily on
net earnings or, If that method be re-
jected. on the market value of stocks
and bonds. Mr.. Herriott did not neglect
other issues. He urged development
OF reciprocity. freer trade and the re-
moval Of modification of tariffs on trust
controlled products.
THE ASSESSMENT OF RAILWAYS.
\ On the subject of railway assessments
Mr.. Herriott said:
1t has frequently happened in Iowa
politics that after a matter has long
been an issue among republicans our
democratic friends take up the cause
and push 1t forward. Something like
this has happened in the present agita-
ton of better assessment of railroads.
In his letter Of acceptance the demo-
cratic candidate for governor speaks
out strongly for reform in our methods
Of taxing corporations. AS citizens and
as republicans we should not complain
il they appear to strive to give the inn
preston that they inaugurated the agi-
tation for tkis needed reform, altho the
subject has been in controversy among
republicans for several years.
1t is perhaps needless for me to say
that am glad that there prevails such
unanimity Of sentiment as to the urgen-
cy of the reform of our law assessing
railroads. The question is of immense
importance. and demands our best
thoughts and earnest attention to se-
cure satisfactory solution. For many
reasons it is desirable that both political
parties could cooperate for the common
good in this matter of taxation. We
have presented to us very complicated
problem, one that should be settled as
Mr.. Cummins has well said in nom
partisan manner. Reforms in this field
of government are always more lasting
II they are attained in accordance with
widespread demand therefor, and the
| To- tn ,f al
sideration of all interests affected. With
both political parties now demanding
and standing for reform in our corpor-
ate taxation the future is bright with
the hope of better things
The conviction has been growing
that there is something wrong with our
railroad assessments, the conviction is
widespread and of late the popular feel
ing against some Of the practices in
vogue has grown greatly in volume and
intensity. The objections made against
the assessments are, in general, two.
First, there is no plan or system pur-
sued; instead, fayoritism and serious in
equalities appear in the assessments.
Second, railroad property is not valued
as high as the code requires, namely, at
its actual value
These objections are, think, well ta-
ken. Some, no doubt, will disagree with
me- The records Of the executive coun-
ell, however, the body that assesses
such property, affords us the evidence
we need for deciding the points in dis
pute and I refer you to the last report,
compiled by the secretary of the coun-
ell, Hon. A. H. Davidson, and in partic-
ular to the statistical tables. Nos. 5. 81
and Z.
"Our law requires that the council
shall take gross earnings into consider
alton and any and all other matters
necessary to make a just and equitable
assessment Let us take the eight
trunk lines and examine their assess
ments as measured by the percentage
of their gross earnings taken for taxa
ton. You find that the c., B. & @. sys-
tenn was assessed 1920 on every 500;
the c.. r. I. & P. on $3.50; the c. & N
w. on s2.40; the c., NJ. & st. p. on $3.50;
d. & S. C.. illinois CentraD on $40; the
Great Western on $3.50; the b., c. r. &
N. on $40, and the I. c. on $780, The
average rate for all railroads in the
state was 50 on every 500. This means,
of course that the smaller and weaker
roads were assessed at higher rates
than the trunk lines to bring the aver
age up to that figure. The tables show
that these inequalities have existed for
years.
But we discover the same incongrui-
ties IL we take the amount of net earn
.irgs assessed. The c., b. & Q. system
was taxed on s11.70 per 500; the c.. r. I.
s. P. on $780, the c. & N. w. on $3.50;
the c., M. & st. P. on IS; the d. & S. c.
allinois Central) on $3.50: the Great
Western on 1920; the b., C. r. & N. on
S1o.4o; and the i. C. on $40. The aver
age rate on all railroads in Iowa of net
earnings was 1910. Equality of burdens
is evidently not secured by our present
method of assessment if net earnings
are the basis for determining valuations.
II we take the market value of the
bonded Indebtedness and
stocks of our railroads as a basis we
find the same inequalities existing. The
same is true If we take the cost of the
property" or the assets" of the roads
as reported annually to "Poor's Man
ual" On former occasions 1 have ex-
hibited the inequalities computed on
these bases and need not repeat them
here. Moreover, we may take any Of
these bases in combination and the as
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