Omaha daily bee., 1902-03-12
RAILROAD TAX BILL PASSES
Decisive Vote in the Senate for Revision Of
Assessments,
HOUSE STANDS BY CIRCLE ON BALLOTS
ElkiBs ard case InvestIgated-
Favorable Report on Appellate
Court BiII-Unitsrians In
Conference.
HOUSE STANDS BY CIRCLE ON BALLOT
IRON a star corresponden,.l

From a stan Correspondent
DIES MONIES, March 1l.-(special.)-The
FIRST piece Of general legislation which has
attracted state-w wide attention came up for
consideration In the senate this morning.
being the committee bill for revision Of the
law relating to the manner Of assessing
railway property. Senator Lewis Of Page
county, chairman Of the committee charged
with the duty Of preparing this bill, called
It up on special order and spent the entire
forenoon presenting in detail the argu-
ments for the measure. He presented an
array of statistics showing that railway
property In Iowa is not assessed proper
tionate to It's value, either when compared
with other property in the state or with
railway property In other states. There r. a
general belief prevalent In Iowa that under
our present law railway property Is as
sessed and taxed too low. This bill was
prepared as a remedy. The present law is
a modified form OF assessment on gross
earnings, but the assessing body is also
authorized to take into consideration net
earnings and the physical condition OF the
property. He commended that neither OF
these elements may be taken as absolute
in determining the actual value Of the
property, nor can any group Of them be
considered SUFFICIENT. The pending bill
seeks to amend the law by requiring that
the assessing body shall take into con-
sideration, besides the items in the present
law, the market value of stocks and bonds,
and this value shall form the chief basis Of
the assessment.
Basis of Earnings.
The companies base their earnings on
stocks and bonds and why not, he asked,
have the state take this as the basis for
taxation? Yet Senator Lewis declared he
was not quite prepared to vote for an alb
solute stocks and bonds bill. The commit
tee bill makes publicity rather than stocks
and bonds the FIRST essential. The council
must make public its proceedings that all
taxpayers may know what is being done at
the time OF assessment. This bill gives
discretion to the assessing board. This "a
right and II is necessary under our consti-
tuition. There cannot be any halfway dis
erection. 1t must be lodged in the council,
and this bill destroys the star chamber
methods Of arriving at conclusions which
have prevailed In Iowa. We had better pro-
coed along the line Of evolution than to at
tempt revolution in Iowa. He advised the
extremists to come together on some mid
ole ground. A law too stringent would lead
to a %revulsion Of feeling and a revolt. Do
We want discord in Iowa the next two years
and a legislature made up Of extremists
He advised the railroad lobby to remain
away and not to defeat the bill, because 10
do so would mean a stronger bill two years
from this time.
inequality of Taxation.
In the COURSE OF .&his remarks Senator
e gave the following brief showing of
the inequality OF taxation in Iowa as COM
pared with surrounding states:
Ihs total eaualized valuation of Iowa is
Taxes levied in the year 1901, $40. 72S, 100.
Railway valuation in Iowa. SH,67i,2 5s.
. In order to bring the valuation OF Iowa
states Of Illinois. Minnesota, missouri Ne
braska and Wisconsin would require an
increase over present. assessment Of
oS per cent on basis of average tax
per mile, equal.,,................$2 7, 31, $50
36:2 per cent on basis Of gross earn
ings per mile, equal. Il, 03e, ZOE
2s;S per cent on basis of net earn
ings per mile, equal.........,..... A,O27,1 rs
An average on the three compari-
This Increase valuation Of Iowa wa ~ ,iSS;Sls
, property at S1s per cent rate would make an
increase OF railway tax as follows:
on gross earnings SSs'' SSS
On net earnings basis ...."....,,.. 1901 $50
An average on the three COMPARE
According to the census Of 1890 the ratio
OF assessed to true valuation in Iowa is
III per cent. The same in the Ave named
ststes averages 26s per cent.
per cent higher than the average Of the
states named.
Deducting from the increased vaiu-
IS per. cent Of the s47,o1ii., S5s al which '''Oi
railways are assessed. .......,.... san, $50
Actual shortage OF assessed valua-
uon iowa railways,..............,.$l0 $40, 9e3, 233
Senator POrter's Amendments.
The senate held an afternoon session for
the sole purpose OF continuing the discus
sion Of the assessment bill.
Senator Porter offered two amendments
having for their purpose making II man
datory on the executive council to make the
assessment on the basis Of stocks and bonds
and that alone. and to require that in max
ing a report on the work OF assessing the
council shall publish a statement showing
what Is the value Of the stocks and bonds
Of the companies whose properties are being
assessed. In a discussion Of the proposed
amendments Senator Porter commended that
there should be no halfway measures
adopted. but that the bill should go the
full length Of providing for assessment on
the basis Of value Of stocks and bonds.
Passed by Decisive Vote.
The railway assessment bill occupied the
entire day and was finally passed by q de-
cisiye vote. The amendments offered by
Porter were all voted down. He spoke
earnestly for his amendments and insisted
that without such amendments the bill
would not accomplish what was desired, the
raising Of the assessments OF the railroad
property In Iowa.
Senator Junkin Of Montgomery county
closed the debate in a feeling address, in
which he referred to the fact that the rail-
roads had sent to the city a strong lobby
to try to defeat the measure and this was
| a e | |