Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1901-01-10

The forthcoming report Of Railroad
Commissioner Rice contains IN add'
ton Ia the usual array Of figures two
important recommendations; one con,
corning railroad taNation the other re-
gardiug the reorganization of the rail
road commissioner departments MI
Rice after reviewing the history of ratH
road taNtiuu at some length draws tho
conclusion that the taircst method of
assessment would be upon the net earn
ings computed upon the mileage basis.
In his recommendation that the rail.
road department be reorEani2ed he
asks for moro clcrt2yl help.
OF taNtiou he says in par:
In the early days of railroad build.
ing, taxation was little thought of, and
In many western states charter OK.
emptious from taxation were granted,
from which much litigation resulted,
The state OF Illinois was wise In
granting Il charter TO the Illinois Cen.
trail railway company by including n
provision In the charter that In lieu
Of the many benefits granted the
company pay to the state each year
seven per cent OF its gross earnings
within the state, In Missouri, and
many other states, railway property
as other corporate and individual
property, Is assumed TO be assessed at
It's cash value, that is. at what the rs,
SCISSORS say IN the cash value, the at
tempt being made TO adapt the general
property tax to railway property In
Michigan. Minnesota, and our own
earnings, although recently the const
tuition of Michigan has been amended
so as to authorize tax upon value
basis rs other property IL taxed,
Tho tax upon gross earnings, while
easily asCeTtainod, and thus free from
the difficulty encountered In ascertain.
ing the value, is open TO tho economic
objection that 1t dscriminatos against
the companies which have heavy OpCr.
ating expenses with small profits, and
earnings with larger per cent of
profit; and is also open to the practical
objection that II ia difficult to adjust
The rate Of tax upon the earnings so na
to produce IA seeming equality of tax.
alton ms compared with the property
tax upon other property.
con the other hand, whore the tax
is upon value, that Ia, upon the states
share Of the entire value, as above cX.
planned, there are obvious difficulties
In determining that value. The su,
prcmc court of the United states has
sustained the rule of valuation of
adding the value Of the funded debt
to the cash value of the shares, saying
that this fixes the value by the action
Of those who can best estimate It. In
some states this Is applied by taking
the market value OF the funded DEBT
If ut par or below and adding thereto
the market value Of the shares. There
Is difficulty, however, arising from the
iuctuatlng market value Of the shares.
In most of the states enforcing the tax
upon value. there Is no fixed standard,
but the assessment rs left To the mdg.
mcnt Of the assessors, and their find.
ing, as a rule, Is not renewable by the
courts.
Assessment OF the road bed by
county assessors has been found i'm
practicable, and the system has been
very generally established In the diff
ferent states Of assessing the entire
road bed In state by a state board
who apportiOn the same to tho differ
ent counties and cities along the
line. The local property, however,
not directly connected with tho road
bed is usually assessed by the local
assessor. This appOrtionment OF the
value OF the entire roadbod IN a
state OF the different counties and
cities according 10 mileage, IL open
10 the objection that II dlscrimlnates
against the cities where valuable
terminals are located, as that value
Is distributed through all the counties
along the line. This as essment by
state boards secures uniformity OF
valuation, as between the counties
along the line Of the road as to tho
roadbed and rolling stock, but II rs
found practically impossible 10 Sc
cure uniformity with other classes OF
property.
ut is notorious that property is not
assessed at its cash calue anywhere,
except when the assessor succeeds
in reaching money or securities In
the hands Of the trustee or admins.
traitors This practice OF underyal.
uatlon is so common that In some
states II Is recognized by statute,