Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-01-21

constitution, any plan is available
which destroys the discretion and
judgment of the assessing board and
it's right to give due weight to all the
elements or factors which, by com.
consent of the business com.
murltS enter the question of value.
therefore do not advocate change
in the law which would take away
from the executive council the duty of
expressing its honest conviction, after
having sought and obtained all the
information accessible to it. do how
ever, believe that there are amend
ments to the law which, If made,
would greatly facilitate the work of
the executive council and render its
conclusions more just and certain. The
three great factors to be taken into ac-
count in determining the value of
railroad are; first It's physical condi-
ton; second, it's gross earnings, and
third, its net earnings. Passing the
first, concerning which the executive
council has now abundant authority to
acquire all the information that exists
relating to 1t, come to gross earn
ings. With respect to railroad that
begins and ends in the state of Iowa,
there is comparatively little difficulty;
but with respect to a railroad which
owns or operates system extending
through two or more states, the as
certainment of the gross earnings of
that part of the property lying within
this state is most imperfectly provided
for. Very much tho larger part of the
railroad property in Iowa is owned and
operated by companies with lines ex-
tending through other states and their
property In this state Is used as part
of system. The business done upon
these railroads is divisible into four
classes; first, that which originates
and ends in the state of Iowa; Sec
ond, that which originates in Iowa
and terminates elsewhere; third, that
which originates elsewhere and ter
inmates in Iowa; fourth, that which
neither originates nor terminates in
Iowa, but is carried over some part
of the state. 1t is manifest that with
regard to all the business save that
which originates and terminates in
the state there must, in order to as
certain the gross earnings within this
state. be established basis of divi-
sion; and that l believe should be the
work of the legislature and not of
the executive council The basis of
division being known, it is then clear
that in order to do Justice there must
be uniform system of accounts kept
by the railway companies so that their
reports will furnish the same informa~
ton, computed in the same manner,
from each company. The executive
council has no authority to SO require,
and the remedy Is in the hands of the
general assembly. With such amend
ments, and with faithful reports, the
assessing board could ascertain, with
reasonable accuracy, the gross earn
ings of a railroad property in this
state.
With respect to net earnings, the
inadquacy of the law is still more ap-
parent. have much. reason to be-
| lieve that phrase, met earnings" has
different meanings with the various
railway companies. What should be
deducted from the gross earnings, in
order to arrive at the net earnings.
ought to be declared by statute; and
such uniform accounts should always
be kept by railway companies as will
enable them to make their report upon
common basis. With net earnings,
as with gross earnings, it is palpable
that with respect to those railway
companies which have systems doing
business in two states or more, there
must be some rule adopted for the
division of the cost of maintenance
and operation. The rule must be
equitable, and should be prescribed
by law. With the gross and net earn
ings thus ascertained many of the
obstacles in the way of just assess
ment would disappear.
am heartily in accord with the
proposal to make railroad assessments
in July instead of March; that is to
say, at the time when the executive
council has under review the assess
ment of other kinds of property I
favor such change in the law for two
reasons: First, because it will en-
able the executive council to have
more fully before 1t the general basis
OF assessment of other property, and
to put the railroad property upon the
same basis; second, because the time
between the coming in OF the re-
ports from the railway companies and
the time at which the assessment must
be made, is inadequate for the work
that must be done. The executive
council should have the amplest op-
portunity, rot only to examine the
reports themselves but If such reports
fail to disclose all the information
which the executive council should
have in order to fully and fairly dis
charge its duty, it ought to seek that
information from other sources. My
final thought in this connection is
that the executive council should have
the power to employ, il necessary, an
expert accountant and acquire through
further inquiry the facts which the