Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1901-01-14

] . - ia SfaEH %
M;Iaane in state 1902. So
cross earnings 81, 257, 55f. 81
Expense of operating 12,I52,oo9.zl
Taxes 1,549, 434.87
rons If FREIGHT 4,o55, $50
Passenger earnings $1O,349,II 1870
/ People killed 20
paorIa injured 37o
The forthcoming report of Railroad
Commissioner Rice contains in addl-
| ton to the usual array of figures two
| important recommendations; one con-
| corning railroad taxation, the other re-
garding the reorganization of the rail,
road commissioners department. Mr..
Rice after reviewing the history Of rail-
road taxtion at some length draws the
conclusion that the fairest method OF
assessment would be upon the net earn
ings computed upon the mileage basis.
In his recommendation that the rail-
road department be reorganized he
asks for more clerical help.
Of taxtiOn he says in par:
sIn the early days of railroad build
| ing, taxation was little thought of, and
in many western states charter ex-
Eemptions from taxation were granted,
Ifrom%Mhich much litigation resulted.
The state of Illinois was wise in
granting a charter to the Illinois Cen
trail railway company by including a
provision in the charter that in lieu
of the many benefits granted the
company pay to the state each year
seven per cent. of it's 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
| its cash value; that is, at what the as
T SCISSORS say is the cash value, the at
tempt being made to adapt the general
| property tax to railway property. In
| Michigan, Minnesota, and our own
state, the tax is levied upon the gross
earnings, although recently the consti-
tuition of Michigan has been amended
so as to authorize a tax upon value
oasis as other property is taxed.
"The tax upon gross earnings, while
easily ascertained and thus free from
the difficulty encountered in ascertain
| ing the value, is open to the economic
| objection that it discriminateS against
he companies which have heavy oper-
| ating expenses with small profits, and
| in favor of those who have smaller
| earnings with larger per cent. of
| nrof+. apd ;c a leo oman RI Tho mo NJ ~ I
| objection that it is difficult to adjust
| the rate of tax upon the earnings so as
to produce seeming equality of tax
alton as compared with the property
| tax upon other property.
"On the other hand, where the tax
is upon value, that is, upon the states
share of the entire value, as above ex-
planned, there are obvious difficulties
in determining that value. The SUI
preme court of the United States has
| sustained the rule of valuation of
adding the value of the funded debt
| 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 deul
II at par or below and adding thereto
the market value of the shares. There
is difficulty, however, arising from the
| Huctuatlng market value of the shares.
In most OF the states enforcing the tax
upon value, there is no fixed standard
! put the assessment is left to the iudg-
ment of the assessors, and their find
ing, as rule, is not renewable by the
courts.
Assessment of the road bed Dy
| 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 a state by state board,
who apportion the same to the differ
| ent counties and cities along the
| line. The local property, however,
not directly connected with the road
| bed is usually assessed by the loca
assessor. This apportionment oil the
value of the entire roadbed in a
/ state of the different counties and
-ciC1OO dCCOluluS W mIlCdSO, IL open
to the objection that it discriminates
against the cities where valuable
terminals are located. as that value
1-is-dfstributed through all the counties
along the line. This assessment by
state boards secures uniformity of
valuation, as between the counties
along the line Of the road, as to the
| roadbed and rolling stock, but it is
found practically impossible to Sc
cure uniformity with other classes of
property. s.~
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 underval
uation is so common that in some
states it is recognized by statute
and in the state of Illinois the nrac