Omaha daily bee., 1902-07-17
DROPS RAILROADS A HINT
Governor 0ummins Suggests Physical Value
Of Roads is Not All Of Property,
ARE WORTH WHAT THEY CAN BE SOLD FOR
Iowa Executive Council and Railroad
Attorneys Having n Session over
Assessment-Governor
Appoints Judge.
From a STAFF Correspondent

rum u stan COAAOSPohhShtJ
DIES MONIES, July 16.-(Special. jim the
hearing Of the State Executive council to-
day on the assessment Of railroad property
there was an interesting passage between
Lloyd w. Bowers, general solicitor for the
Chicago & Northwestern, and Governor
Cummins Of the council, in the course OF
which the governor made a clear and
pointed statement of what is running
through his mind as to the course OF reason
ing the members Of the council must pursue
in arriving at the essential thing OF the
taxable value Of the railroad property lying
in Iowa.
"My idea OF the way we should arrive at
the value Of railroad property" said the
governor, and l say this because l would
like the discussion to be on this point, Is
that we should consider not the physical
property alone, but the commercial value
Of the whole property. We should arrive at
the business value of the railroads-what
they are actually worth to men who W
and operate railroads, what purchasers OF
railroads would be willing to pay for rail-
road property. II in arriving at this con-
clusion it becomes necessary to not only
include physical property, earnings, profits,
location and business opportunities, the flu
ture and the prospect or fear OF dangerous
competition. and also that we should cap
italize earnings that include the results Of
the ordinary labor OF those persons who are
necessarily employed in the operation Of
the company, then all these elements should
be considered; but We dare not say THAI cost
Of building or of reproduction must be the
limit Of value on property Of this kind. A
railroad may be worth a great deal more
than 1t cost or a great deal less. lnasmuch
as there is no market proper for railroads,
We can only place ourselves in the light OF
a possible purchaser having the money with
which to buy and the inclination, and con-
slider what elements we would regard as
fixing the value Of the property. In short,
we must find out the value of the property
as 1t would appear to a business man for
business purposes"
Railroad Attorney Objects.
The announcement came from the gov
ernor in a way to give a new turn to the
discussion, and Mr.. Bowers, attorney for
the Northwestern, devoted some time to
discussing this phase Of the case. He con-
tended that the danger of having a road
parallel the one under consideration makes
1t essential that the value be not placed
very high above cost Of reproduction Of the
same property. He commended also that you
dare not capitalize the business, for that
would include much that is not a part OF
the property.
In answering the question why the ratio
Of operating expenses to gross earnings Is
greater in Iowa than elsewhere, Mr.. Bow
ers presented statistics to show that this Is
not true, but on the contrary, whereas the
ratio for the entire Northwestern system Ia
61,2 per cent, 1t is only 81 per cent in Iowa.
The figures usually given are deceptive. But
rates In Iowa are lower than in any OF the
states where the Northwestern operates
and the transcontinental rates affecting
Iowa are lower than in other states.
Mr.. Bowers denied emphatically there wat
any collision etween the railroad attorneys
This afternoon Frank T. Campbell, for
merly Iowa railroad commissioner, deliv-
cred al extended argument to show that
railroad companies pay proportionately less
taxes In Iowa than In most states of the
union, that while they are on the same
basis as railroads in New York and Penn
s~ylvania so far as earning capacity is con-
cerned they are on an Arkansas basis in the
natter Of paying taxes. He commended that
In the matter of earnings the Iowa railroads
have shown a constant increase per mile
through the years and that they are as
sessed lower now than in other years. He
spoke for nearly two hours and presented
a mass Of facts and figures bearing on the
subject.
Appointment of a Judge.
Governor Cummins this morning APP
pointed George W. Dyer of Nevada, Story
county, to be a Judge Of the district court
In the Eleventh district to succeed Judge
w. s. Kenyon, who has resigned. Mr..
Dyer is an old and well-known lawyer OF
Nevada and Is personally well known to
the governor. There were a number OF
other candidates urged upon the governor.
He will hold only until the election Of his
successor In November. F.. D. Evans of
Webster City has already been nominated
by the republicans to succeed Judge Kenyon
and the appointment was rendered to him
by the governor. but he could not arrange
his business affairs so as to accept the APP
pointment now.
Named Camp at Atlantic.
The camp Of the Fifty-hrst Iowa at At
lantic the latter part OF next week has been
named Camp Davidson in honor Of the pop
J ular Captain Davidson Of Muscatine, who
lost his life in the Cuban war. The date
for the governors inspection at Camp Day-
idson has not yet been fixed. The gov
ernor will go to Cedar Falls on Monday for
inspection at Camp Rudisill, but may moi
have time to go to all the e-ncampments
The report at the adjutant generals once
In regard to Camp Rudisill is that all the
twelve companies are represented. will
about 700 men, including the a from
MArshalltown.
To Meet In st. Louis.
The lowe commission on the Louisiana
Purchase exposition will meet in st. Loui
tomorrow and several Of the member
passed through Des Moines today on thei
way to st. Louis. 1t is expected tina
the location for the Iowa building vii