Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-07-17

| $4,000 per mile of main line, the earn
1ngs per mile being s16,963. In 1901,
with earnings Of $17,412, the assessment
was but S11,25O. The gross earnings
are larger, but the assessment is re-
| ouced.'
| The heavy assessment on the Cripple
| Creek road was cited as an Illustration
| Of discrimination.
| "The taxes on railroad property III
| the United States increased from $751;
100000 to siS.00,000 from 1880 to l9ol.
| This was an increase of SAG per cent.
In this state the increase was ll.S per
cent. Considering the increase In mile
| age. we have actually gone back In rall-
road taxes. Yet year by year these COR
rorations have been putting in better
ments, double tracks, new bridges ana
the like Still they are unwilling to pay
taxes on these betterments.
In response to questions by Governor
| Cummins, Mr.. Campbell entered into
some details as to just how he would
go about to assess Il railroad. He de-
clared he would go back to the days OF
Larrabee and Gear. 1t could be as
sumed that these great 1owans had
made an assessment that was approxi-
mately correct. Taking this as a basis,
he would proceed TO the assessment.
considering present conditions. gross
earnings now as compared With gross
earnings then, and physical condition,
and thence drawing his conclusions.
4 Carroll Wright pointed out the taxes
collected in Iowa last year We're about
s19.OOO,00O. OF this the railroads paid
about 81 500, 900, or a twelfth. He asked
| il this was not fair share Of the taxes
for the roads to bear NO. not by %
per cent" said Mr.. Campbell.
| In the course of the hearing yester-
cay morning Governor Cummins eX-
| pressed his views and dissented strong
lily from Mr.. Dudley who held the cost
OF reproduction was the maximum
value that could be put on road for
assessment, and also discarded the the
Dry of capitalization of net earnings.
Governor Cummins' Views.
In the course of an address by Lloyd
w. Bowers of the Northwestern, Gov
ernor Cummins said:
II believe that in determining the
value of railroads in Iowa for taxation
this council is required to find the COM
nercial value, the exchange or barter
value If you please. In that sense the
question must be determined relatively.
There can be nothing absolute. The
commercial value in this case means
the relation which railroads bear to
horses and cattle. to corn and oats, to
diamonds or articles Of wearing APP
parel
1.-The question then for us to discover
is that relation which railroads bear to
the medium of exchange. A property
that will sell for S100. that is, that for
which 500 can be obtained and pock-
eted in exchange, is worth just that
much. Railroads are. therefore, worth
just what they will sell for, because
when once sold the money which is OBJ
tanned for them can be used in the
purchase of those things of equal value.
be they what they may. Therefore, it
seems to me that when we come to the
question of determining the taxable
value of this class of property we must
take into consideration those things
which will help us to determine the
price for which it will sell.
Therefore, when coming to the di-
rect question of what value shall be
placed upon Iowa railroads. it seems to
me that the proper inquiry is what
these roads will sell for. If they will
sell for more than the cost of repro
duction they are worth that much. If
they will sell for the amount of capital
ization they are worth that much In
asmuch as this is not class of prop
erty which can be sold on the market,
we must put ourselves in the position
that man coming to buy railroad
would do. He would look at the physi-
cal condition, the location, the condi-
tons of the country thru which the
road passes, the history of the prop
erty and its earning capacity in the
past.
Prom all of these things the sup
posed buyer or buyers would reach a
conclusion as to the value of the road.
The council should do the same thing.
Therefore, / dissent from Mr.. Dudley's
theory that the cost of reproduction is
the maximum value of railroad prop
erty. Nor can I see the justice of his
belief that the value of railroad prop
erty may not be enhanced by its capi
%,I: 49, l,,o