Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-07-17
ARGUMENT GREW WARM
Yesterdays Hearing on Taxation
Before Executive Council a
Warm One.
Gov. Cummins Clearly Defines
His Position on Valuation
of Railroads.
Frank T. Campbell Argues in
Favor Of Assessment on the
Gross Earnings.
ecial to Times-Republican.

| Des AIoines, July 17.-Yesterlay' s
hearing on taxation before the execu-
tive council proved particularly inter-
esting. Frank L. Campbell, of Des
missioner, argued forcibly for marked
| increase in the railway assessments.
Governor Cummins distinctly defined
his position on railroad valuation in a
brief statement brought out during Mr..
Bowers argument.
The governor asserted that railroads
like all other property are worth what
they will sell for and that the price for
which they may be sold should receive
consideration in determining the as
sessment.
| Mr.. Campbell insisted that gross
earnings of railroads is the proper basis
from which to figure assessments. With
this must be taken into account the
value OF physical property of the road.
"When the lands of Iowa." continued
Mr.. Campbell, ARE put at the value
fixed by Mr. Baldwin, they will have a
ever heard of. l believe the railroads
of Iowa are rot paying their just share
! of taxation and that they should have
their assessment raised % per cent.
They are assessed lower than they We're
in $780, 1875, 1876 and 1856. BY actual
computation the percentage of assess
ments to gross earnings is less than 1T
was then. The average assessed value
per acre of lands in Iowa is $36 That,
| you must remember, includes every
acre of the entire state, bottom lands,
hillsides and all lands in the state of
Iowa that are assessed.
IF you are going to take fictitious
values in considering farm lands you
must also consider the fictitious values
injected into Wall street stocks"
Here Carroll Wright interrupted to
inform Mr. Campbell that from records
of sales in a number of counties he
had found farm lands averaging about
$50 an acre. Mr.. Campbell admitted
the correctness of this, but held there
was fictitious value in this.
Frank P. Cameron of the Northwest
ern secuted the claim of a fictitious
value as absurd and wanted to know
where it came in.
Of there We're a change of admins
tration," said Mr.. Campbell, and times
grew worse, farm lands would go to
S35 and in some cases lower. Values
in farm lands in Iowa now are strong
momentarily. They are speculative
values, caused by the influx of farmers
from Illinois and the east. This i'm
petus in the price of Iowa lands is only
temporary. No man believes Iowa lands
will continue indefinitely to bring SIS
per acre. When the state puts down $50
per acre as the average, it has got a
higher assessment on farm lands than
any state bordering on Iowa, unless it
be Illinois"
"The local freight rates In Iowa are
higher than any of the interstate rates."
continued Mr.. Campbell, ito illustrate,
the Iowa rate on grain to the Mississippi
pi Is ga cents, yet the rate thru to New
York is but 10 cents. The local freight
rates in Iowa are too high. They have
shut UP our packing houses and COM
PEELED our manufacturing industries to
leave us one by one and go to the
greater centers to the east. 1t is true
the local rates in Iowa are lower than
in some of the surrounding states. But
in some Of these states the local rates
are mere tigureheads. That is not the
case in Iowa. Here we have fixed Yates,
no rate wars, the roads have steady,
paying revenue. I don't believe they
want their rates disturbed. They
should by reason Of the tremendous inn
provements in facilities for handling
freight be reduced % to 40 per cent. We
are tied down by superannuated rates"
On the subject of operating expenses
in Iowa Mr.. Campbell stirred up Mr..
Crandon Citing the Northwestern, he
stated that it had put million dollars
into betterments in Iowa every year
and charged the Improvement to oper-
ating expenses. Mr.. Crandon angrily
| denied this. Mr.. Campbell then read
4 from the report of the interstate COM
merce commission to substantiate his
statements. He read from the report
| to show that in group of several
states, of which Iowa was one, $685.
$40 had been taken the past year out of
net earnings, put into improvements,
and charged up as operating expenses.
I'm the matter of taxes" said Mr..
Campbell, "the state of Iowa stands at
the bottom. 1t is up with New York
and Pennsylvania in earnings and down
with Arkansas, Florida and Georgia in
taxes. Thirty states of the forty-four
receive higher taxes per mile from rail-
roads than Iowa. In California the tax
per mile is S247, in Iowa 1859, in Colo
RADIO $245.20, in Delaware S22S, in Ida
no $o16.S2, in Illinois 1913 and in Indi-
ana $4O2. Even bleeding Kansas With
the western half of her territory des-
ert, taxes her railroads $255 per mile
against $3.50 in Iowa. Kentucky re-
ceives s24O, Louisiana s2S5 and Mary
land $3.50. And in Massachusetts, that
rock ribbed home of the corporations,
which, with the possible exception of
| New Jersey, no state is more friendly
to corporate influences, the tax on rail-
! roads per mile is $1,411.93. And in Iowa
| it is $3.50. Think of that, gentlemen. III
the other end of the capitol the eXer-
lions of the railroads are put forth to
| secure increased rates, and at this end
| Of the building they want assessments
lowered. There is more property in
vested in railroads in some other states
hut there is no place in the United States
where the wealth of the return on the
Investment is SO great
Mr. Campbell claimed that the as
| sessment on the Iowa roads have been
| lowered within a year and the weak
roads that are unable to have repre-
sentation before this council have by
| some process been made to bear more