Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-10-12

NJ There are some who maintain that the
existing assessments are just, and the
best that could be made. / would like
to concur in this Judgment, but when
examine the facts offered in proof they
usually consist in comparisons that dc
not compare like with like. A branch OF
g spur is compared with main line; OF
2 main line with system. a branch OF
one road that pursues one method OF ae-
counting and apportioning its receipts
and expenses is set off against the
branch of another system following a
and vary figures in comparison to the
utter confusion of those unfamiliar with
railroad values.
As for the assessment of railway prop
crty at its actual value: In 1874 we had
Il S,i2S miles of railroad earning gross S4.-
i39 per mile, assessed at s5,S23, or 141 per
cent of their gross earnings. In 1900, al
tho we had 1926 miles with average
gross earnings of 1884, they were as
sessed only $49S1 per mile, or but 90 per
cent of their gross enrnings-a decrease
compared with twenty six years ago of
14l per cent. The amount of gross earn
i ii1gs taken fore->s-sss,siI.ent in 1900 was
less by 49 points than III 1874. can not
raake myself think that any one really
4 believes that Iowa's railroads are worth
I less today than they were a quarter of a
1 century ago. Comparing the total gross
or the total net earnings reported in re-
cent years with the aggregate assess
ments and the objection made is further
1 confirmed. If we take the present mar
| lset value of the outstanding bonds and
stocks as the basis for computation the
valuation of our railway properties, ac-
4 cording to our mileage. would exceed
S100,000,000. Excluding the natural in
crease due to new mileage and the total
! valuation for the state has remained
stationary for the past ten years. The
/ changes made have all been in the way
of equalization or shifting so as to Sc
cure the necessary aggregate valuation.
| For the past three years the newspa-
pers have been full of accounts of the
| immense improvements made by our
railroads in the way of cbetter rolling
| stock, new depots and grounds, new
| shops. double tracks, etc. Millions of
dollars have thus been expended, but
| there has been no corresponding in
crease of the aggregate of assessable
railroad values. When ordinary private
! folk build new houses or barns, or make
extensive improvements and increase
the value of their lands or lots, they are
rot very long in discovering that the as
SCISSOR has been showing up their as
sessed valuation.
Those who defend our railroad assess
other property has declined in value,
thar oty,tr n fu1f %oNr hY,y.-
den than railroads. This do not believe
is the case. But whether true or not, this
is simply palliation OF our practice
and not a justification. We do not re-
lieve insurance companies of their spe-
cific taxes because otner property has
declined in value. Because there are
men in every community that escape
their just taxes no one ever proposes
cxcusing the rest of us from paying our
full amount under the law. There is a
trifle too much of this condoning delin-
quency because something or somebody
else is as bad or worse.
Equality cannot be attained unless we
have a definite statutory basis for as
sessment which is uniformly adhered to.
II we measure one road with a yard
stick and its rival with foot rule we
work an obvious injustice. We should
take one or the other and apply 1t. thru
out. a unit is, therefore, absolutely nee
essary. Some will argue that this is inn
practicable where so many elements
have to be considered as in railroad val
ues. The answer to this Is, first. most
Of our states do have such a unit rule
which they apply and 1t is high time
Iowa adopts one. Second, railroad bus
mess is not SO complicated that unit
rule cannot easily be applied. Gross or
net earnings, dividends. or the market
quotations of stocks and bonds are east
ly ascertainable and the application of
the rule is no less so as the experience
of score of states proves beyond ques-
ton.
With unit rule we abolish favorit-
ism. 1t relieves and protects officers
who want to deal fairly with the cor
porations assessed. The weak or small
Ter companies receive as fair treatment
as the strong. There would be no in
ducement or necessity for railroads to
interfere unduly in politics SO far as
the assessment of taxes is concerned.
When We come to decide as to the
best basis or mode for determining the
actual value of railways opinions will
differ widely and seriously. 1t is not pos
sible here to deal with the advantages
and limitations of all the various the
cries. The cost of production and the
cost of replacement are impracticable
as basis. First, because like the pres
ent law too indefinite; and, second. they (
bear no relation to the earning capacity |
of raod which alone determines it's
value. The general property tax which |
we now have is likewise to indefinite
and yet it requires vast knowledge of
the values OF the physical properties of
a road and of the forms in which Its
capital is invested. a knowledge that our
council does not and cannot easily pos
sess nor is 1t ever likely to contain men
who will have such a practical k-owl-
edge; and moreover, property does not
indicate the actual value of road
which, as stated, is determined by the
earnings or income. The gross earnings
basis alone ignores the varying expense
accounts of railroads.
Unless we adopt a fiat rate upon divi-
dends, gross or net earnings, which un-
der our constitution may be difficult,
we are forced to consider assessing rail-
roads in one of two ways. We may ar
rive at their stocks and bonds The lat
ter in measure is the same as the
former for thesvalue of stocks and bonds
depends upon earnings, actual or pros