The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-09-08
Railways Said to Be Anxious
About State Politics.
Want CraddOck and His Taxa
ton Schemes Defeated.
TAKE HAND In FIGHT,
Railroad Attorneys Getting Sta
tistics for Publication.
Want Valuation Fixed on the
Earning Capacity.

1t is said that the railroad attorneys
and politicians of Kansas and other
western states are considerably agita-
ted by the entrance into politics of the
question of reform in the system of
railway taxation. Dispatches from
Washington indicate that effort will
election of w. h. Craddock. the Demo-
cratic nominee for governor, on this
ground
When questioned in regard to this
story. the attorneys for the Santa Fe
railway Drofessed to be much amused,
and said they had never heard of it, and
didn't believe that it would be neces-
sary for the railroads to assist in the
campaign to secure Craddock's defeat,
even if such a thing was desirable to
the railways.
The western railroads are also said to
be taking an unusual interest in the
legislative fights in Town, Kansas, Ne
braska and other western states. where
they fear that men may be elected who
will pass some measures for the in
crease of railway valuations for taxa
ton purposes.
A dispatch from Washington to the
st. Louis Globe Democrat says:
Legal representatives of some of the
western roads have. already started a
tistics which will support them in the
coming legislative fights. They have
made a request upon the census office
that the net earnings of the railroads
De uSeQ Dy the census department III
fixing the valuation of the railroads, in
stead of using the cost of construction,
as was done in the census investiga-
tons of 1890. The railroad representa-
tives urge, with much apparent justice
that the valuation of any investment is
fixed by its earning capacity. They as
sert that it would be manifestly unfair
to assess a manufacturing enterprise at
81 900 if the venture were a losing
proposition, even though it may have
cost more than 81. 900 900 to establish it.
1t is estimated that the adoption of the
net earnings basis of fixing the value
of railway properties would result in a
saving of at least 10 per cent. in the
taxes of the railways 1t is pointed out
that the majority of the western rail-
roads were constructed at an enormous
cost, when materials and labor were ex-
ceedingly high, and that the original
cost of the roads and the improvements
since made should not be subjected to
tax unless the roads are money
making propositions.
Investigation shows, however, that
the census department has no authority
in the matter. The law providing for
the creation Of the census bureau gives
That bureau authority to investigate the
cost, operation and other data in con-
nection with electric railroads and wa
ter transportation. All Investigations
connected with steam railroads are
made by the interstate commerce COM
mission. In the census of 1890 the in :
terState commerce commission collect
GU the udtd concerning railroads winch
We're published by the census bureau.
In that compilation the interstate com
merce commission used the cost of con-
struct1on as the basis of fixing valua-
lions by railroads The figures compil-
ed by the commission were turned over
to the census bulletins 1t is proposed
to adopt the same system this year. and
the representa- ions of the railroads. to
produce results. will have to be made
to the interstate commerce comm iSSiOn.
The census bureau is preparing to col
lect special data on electric roads and
water transportation, but will depend
upon the interstate commerce commits
roads"