Omaha daily bee., 1902-06-18
AND IOWA RAILROADS
State Council OODtsmplstes Increase in the
Rate Of Assessment,
RESULT OF LONG PUBLIC AGITATION
Northwestern VIII Bear Bulk of Pro-
posed Increase with Burlington
Coming in for Next Great
est share.

state executive council today for the hrst
time this year. II was decided to devote
the next thirty days to a careful and ex-
haustive study OF the subject. Adjourn
ment was. taken. with the understanding
that the meeting is to be resumed from
time to time for discussion of the assess
ment. Under the new law a conclusion
must be reached and the assessment as
determined certified to the county audi
tors Of the state not later than the first
Monday in August.
An effort will be made to fix the assess
ment before the republican state conven-
tion in held. July 80. Republican managers
believe that 1t will look better than to hold
the convention first and make the assess
ment afterward. The assessing board is
composed Of Governor A.. B. Cummins, Sec
rotary w. b. Martin, Treasurer G.. S. Gill
bertson and Auditor F. F. Merriam.
1t is conceded on all sides among the
railroad managers as we'll as political man
ayers, that there will be an increase in the
assessment this year. The present assess
ment is $47,071, 25s, which, under the Iowa
law, is one-fourth OF the actual value, so
that the property OF the railroads in Iowa
Is valued for purposes of taxation at S1SS,-
25s,032. This assessment was made in
March, 1901. The assessment of all prop
erty in the state, including railroads, made
last year, was 1858, 462, els, representing a
total value Of 81. 233, $50, 472.
Repeat the Nebraska Plea.
The railroads protest against paying ad-
ditional taxes. They insist that they are
doing their full share when they pay one
thirteenth Of all the taxes-state. local,
school, Unsolicited in Iowa. In 1901 they
paid 5 1,509,3 $40 of the total taxes collected,
amounting to $40, 726, 7S9. 1t was on this
basis that the railroads successfully cam
paigned the last legislature and prevented
the passage OF laws which would have re-
quired the council to increase their as
sessment 80 per cent.
The managers are concerned chiefly as to
the amount of the proposed increase. Ru-
mors have ioated about political circles
that Governor Cummins has determined to
stand for an increase Of SIS 900, 900, or
about 80 per cent, in the assessment of
railroads Of the state. While this rumor
is known to. have no foundation so far as
such an opinion or view having
emanated from the governor is concerned
the railroads are uncertain as to his position
and fear that he will urge a larger increase
than they regard as just or essential.
Undoubtedly the railroads would not OBJ
iect to an increase Of 81, 800, 900 or SO, 900, 900.
This they have reason to expect, and with
such a proposition they have no quarrel,
viewing the remarkably prosperous year
they have had. Moreover, their principal
objection to an increase in a larger sum is
not so much to the additional taxes they
would have to pay on the immediate as
sessment, but in times OF panic they can
not expect a corresponding reduction, for
no politically created executive council
would have the courage to reduce the tax
alton of the railroad corporations OF the
state, however hard the times.
Railroad taxation agitation has been car
ried on in Iowa for several years. 1t started
In March, 1898, when. Treasurer, of State
John Herriott protested In the executive
council against the distribution OF the as.
sessment among the railroads, insisting
that the Chicago & Northwestern was ia.
vored. Nothing was heard Of this protes'
until the next year, when 1t was repeated
That year Mr.. Herriott proved that he wal
Directing to the distribution OF the assess
ment and not to It's amount by hmsel
moving to make 1t practically the sum o
the year before. In March. 1900
he again protested, and at thi
time went into the newspapers of the stat,
charging Governor Leslie NJ. Shaw, Secre
tary of State G. L, Dobson and Auditor o
State F.. F. Merriam with grossly f~avorini
the Northwestern railroad at the expens,
Of the Chicago, Rock Island & Pacific an,
other roads.
Sentiment of Iowa Republicans.
The question entered into the campaigl
Of that year to some extent. A decide
current in the republican party was towar
: a higher and more equitable railroad as
, sessment. In part this feeling was re
anopaiblo fOr.tbn nomination 80 Caarafar
Z Martin and Treasurer Gilbertson. but o
the same ticket with them was Audito
q Merriam and the convention endorsed tn
. administration Of Governor Shaw.
Mr.. Herriott and Mr.. Dobson went out c
4 office the first OF the year 1901 and Messr:
Gilbertson and Martin took their places a
9 the council table. By unanimous vote tina
year the council decided to increase tn
assessment slightly more than 81. O00, 00t
although an increase Of 5000. 900 was frs
suggested by Secretary Martin and after
e ward withdrawn.
$ OF the increase. however, over 40 pc
q cent was on the Northwestern. This wa
on account of the enormous earning
n shown by its main line. They are almol
; twice as large as the earnings Of any otht
IS trunk line in Iowa, except the Burlington
q The agitation continued and assumed
T. DltIer FORM during the campaign precedlL
the republican convention Of 1901. A larI
number OF county conventions denouncS
the executive council for It's railroad al
sessment and demanded increases and mo-
equitable distribution. There Is no dlspu
!; over the fact that the movement was in Il
l. interest OF the candidacy Of Mr.. Cummln
:. who was successful. But the platfor
adopted by the convention which nominate
" him was silent on the question.
d one of CummIns' Laws.
H. During the succeeding campaign N
Cummins expressed himself on the que
ton. insisting that the people should n
70 elect him governor unless they had fai
In his integrity to do that which he T
garded for the public interest when he h
considered the subject. In his inaugur
- address he referred again 10 the questi
" and suggested three or four methods OF q
u c%ertaining the value of railroad propert
nc emitting all mention OF the stock and DO
oil theory Of determining railroad values.
s' Another law was passed on suggesti
Us OF Governor Cummins giving the executi
a council the right to require certain info
ne nation as TO the business lone by the ra