Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-03-19

the roads physical properties, engines,
cars, right of way, ETC.. and some on a
combination Of two or several of these
methods. The Iowa law, passed in 1872;
and reaffirmed in the code OF 81, states
that the gross earnings and amy and
all mattersr shall be considered in fix
ing an assessment, go that the coun-
ellis action has always been purely arr
|bitrary with the result that a great and
| rich property like the Northwestern se-
cures an actual assessment of several
hundred dollars less per mile than the
| Rock Island road an admittedly less
lprofitable and less valuable property.
\ If the council could adopt some sys-8
tenn for assessing the roads which II and
future councils could adhere to and. as
lex-Treasurer Herriott used to say.apply
| the same yard stick to all roads alike,
| 1t would go far to remove the difficult
ties. There is no particular cry for
higher railway assessments. for it is a
Very general belief that the railways
1.-The demand goes forth for an assess
ment TO be levied without favor. Ex-
| Treasurer Herriotl figures that upon
/ the basis of the average rate OF taxes
paid by the roads as compared with;
/ their gross earnings the Northwestern
Ahas been relieved of paying S255.e21 in
taxes in five years BY reason Of favorit-
ism secured thru its activity in politics.
4 This sort Of thing is an outrage and
should be stamped out. The Northwest-
lern is not alone, for the rich and power
full roads have all been favored al the
expense of The smaller, weaker and less
influential ones
Pm bitter row because the persistency
with which certain members favored
certain roads so exas perated Treasurer
fierriott that he exploded in violent,
i3eutburst of wrath against his eolleag-
lsues. Herriott might have been intenl-
PIRATE but he was right and railway
lens before mcconnell unite in saying
/ that Mr.. HeI;l.iott knew more about the
subject than all of the other members
3of the council and most of the railway
{ attorneys present, for he could puzzle
4 any of them with his technical knows-
age. But Hemio,t was turned down
-, :, 49,. !.
His plan was 10 fix the total assess
ments OF all the roads at a sum which
at s. per cent would yield an income
equal to the total net earnings of all the
roads and tax them on one fourth that
amount, III order 70 eaualize matters
end not allow roads With no net earn
ings TO escape he proposed in each in
e'ividilal case 10 take "A per cent of the
4 roads total net and gross earnings for
Ire found. by computation, that on that
II basis the total assessment of the roads
i Mould equal Tho first found sum. which
WAS virtually a capitalization of the to-
III al net earnings at s per cent and which
he thought would be fair. Originally
4 the roads were assessed according tc
i their cost which was easy, because
Il when they we're all new, the cost of con-
i .strucfion was a matter Of general
j knowledge. Later the properties We're
Improved. some more than others. The
4 gross earnings alone cannot be taken as
/ a basis because large gross earnings
a may be the result Of large expense in
Operating and tax on the volume OF
business alone would be unfair. Neither
sscan The net earnings alone be taken as
a basis, for come roads are losing money
but should not be exempt from taxa
lstion altogether The value of a railway
cannot be determined by the market
A quotations of stocks and bonds for only
4, a small per cent of these securities are
y listed and those eauetuats from specuIa-
tive causes Mr.. Herriott devised q
purely arbitrary plan. which he claimed
siwould figure out about right and per
taaps il would. 1t would have applied
!, 20 all roads alike and would certainly
have resulted more favorably than tnt
xisting custom of no system at all.
!, Probably the simplest plan would bs
the method pursued in assessing othel
3 business corporations of placing a value
on all of the roads actual physica
5 property as is done in Illinois and as
sessing taxes thereon. But even this Il
.ehjecsieaaE,e Because rs soul.sii i.
8 competent to investigate the actua
J. Value of railway property and few rail
r way arrangements honest enough to re
turn true invoice report So the ex
ecutive council is left to devise ametho,
81 of its own. If 1t will simply apply tn,
/ same rule to all roads, measure all b.
/ the same yard stick, the public will b.
! satisfied. Secretary of State Martin
d idea that the general assessment shout,
; be raised a little because other propert.
I has been increased and because railwa,
d earnings have been Increased is goo,
= one. The railways should stand gen
4 Grail increase in assessment along witt
I their general increase in prosperity, bu
~ tho vital and irnYortart 511tv nf IN