The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1902-08-12
RAILROADS SECURE A REDUc-
TioN IN ASSESSMENT.
!
FIRST FIGURES TOO HIGH
Main Lines Now Placed at $4,000
= Per MiIe-Branch Lines Low
cred in Same Ratio.

noon the state board announced tha;
It would reduce the assessments o
the main lines of the roads previous
ly assessed at $4,000 to $4,000, or {
reduction of 20 per cent. This ap
piled to the main lines of the North
ern Pacific, Great Northern, Butte
Logan line, Montana Central Mon
tana Union, Oregon Short Line anC
Butte, Anaconda & Pacific. The Pony
and Red Bluff lines were reduced 2(
per cent. Reductions were also made
in the Stuart branch, the Sand Cou
lee, Bitter Root, Occur ,d'Alenes
Marysville, Park branch and Rocky
Fork. The Jennings line of the Great
Northern was reduced from $3,5S7. &c
per mile to $4,000.
G. S. Fernald, representing the
Northern Pacific railway lines made
the opening and the most extended
talk to the board today He said that
if the valuation fixed by the board
stood, his railroad would pay about
1920 per mile in taxes, which was
considerable in excess of last year. S
taxes. Arguing from the standpoint
Of at tax upon the gross earnings of
The road, he said this would be tax
Of over per cent of the gross earn
ings, CT more than was exacted by
any Of the states along the line OF
the road, which taxed the road accord
ing to it's gross earnings. In Mime.
sofa the railroad paid 3 per. cent upon
it's gross earnings. This would make
$3.50 and 5000 and bring about a ma
terial reduction in the valuation per
mile, if followed here
r. w Wilkinson of the Great North
ern confessed that he had been con-
siderably surprised by the boards ac-
tion, and was rather at a loss to un-
derstand it if consideration was had
of the roads earning capacity He
did not believe the board wanted to
take large part OF the earnings of
the railroads in taxes.
Mr.. Wilkinson said that it seemed
to him that between 31a and per
cent, or in other words a valuation ,of
$4,000 per mile for the Montana Cen
trail, would be fair valuation.
In regard to the Great Northern,
figures as to the per mile earnings in
Montana were hard to secure, as the
interstate commerce law did not re
quire the road to segregate the state.
The road did net earn as much in
Montana as the Montana Central,
which was known to be the best pay
ing road in the state If the assess
ment stood it would mean that the
Great Northern would be taxed 51s
per cent on an earning capacity of
81 per mile, as compared with a tax
cf 1926 per mile last year. The speak
er said that a $1,000 per mile valua-
ton would be about per cent upon
the gross earning basis, and he hoped
the board would not exceed that
I. Parker Veazey of Great Falls ad-
dressed the board chiefly in behalf
Of a reduction of the Great Northern
He did not attempt to en-
bark in figures, but confined himself
to the equity feature of the case. He
asked the board to consider the case
rs new one without considering last
years conclusions, and attempt to ar
rive at a basis of fair valuations.
Mr.. Veazey said that he had always
told eastern people that Montana
was governed by conservative officials,
who had the interests of the state at
1eart, and he hoped that reputation
should be maintained.
After the railroad men had finished
heir arguments, the board went into
executive session. Secretary of State
Hays moved that the valuation of the
main. lines be reduced from $16,OOOI
per mile to $4,000. This was second
ed by Attorney General Donovan.
Treasurer Barret, as a substitute, NOV
ed that the valuation be reduced 20
per cent on the main lines. This was
seconded by Auditor Calderhead, and
On the vote carried, Governor Toole,
Auditor Calderhead and Treasurer
Barret voting aye. The 20 per cent
reduction makes the valuation per
mile $12,800. reduction of $4,000 a
mile as compared with the assess
ment made a week ago. In a state