Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-07-15
THINK RAISE UNFAIR
Problem of Railroad Assess
ments Brings Up the In
crease of Last Year
DENY POLITICAL NECESSITY
DENY POLITICAL NECESSITY

SdtiTodu Attorneys Gay nat ny No
: Possibility Can a Further Increase in
the Assessments This Year Be Justi-
fied-State Board Of Control Prepar-
ing Biennial Report.
Special to Times Republican.
Des Moines, July 15.-The state ex-
ecutive council today took up the prob
lem of railroad assessments and COM
menced a hearing of the representa-
cross or enter Iowa and are subject to
taxation here. Representatives of the
Heading railroads were present, includ-
ling w. w. Baldwin for the Burling-
ton, Carroll Wright for the Rock Is
Hand, Judge j. C. Cook for the Milwau-
kee, james C. Davis for the North
western and NJ. c.. Woodruff for the
Great Western. The council had be-
fore 1t the tabulated returns from all
A
| a glance what each system and each
! branch has done the past year and as
compared with other years. From this
| 1t was seen that the mileage had in
creased 2S5 miles to a total for main
| line of 9.621. At the same time there
was increase in gross receipts to $56.-
| 466.305 and Il decrease in operating
expenses to S39,333,202. making the net
earnings on Iowa business $17,134,102
| or $1,S07 per mile. When the council
met last to make the railroad assess
ments 1t did not have before it the
real estate and other assessments
| for the year, because assess
ment of railroad companies prior to
| this year was made in March and not
in July. The total Of railroad assess
ments of the previous year had been
about $47,000,000. 1t was found that
the net increase of business on the
Iowa roads in 1901 over 1900 was ST.
219,293. The assessment of the rail-
roads was increased by, $4,500.000 to a
total of $51.500.000. This year the re-
ports of the companies show that the
total increase in net earnings for the
year 1902 over 1An1- utns- co. 20, .o,oS, oi
sr7oout harr What the increase was last
year The problem for the council is
to determine how much of an increase
to make this year, if any, and how to
distribute 1t among the various COM
panies. Last year strong effort was
made with much force that land as
sessments instead of being at 25 per
cent of their sale value as contemplated
by law We're in fact about Is per cent
of their actual value This fact was
recognized by the council but despite
this the railroad assessment was
raised, and generally there has been
no complaint of the increase made
last year.
The argument of the railroad at
torneys and tax commissioners for the
companies this year is that the assess
ment of last year is excessive, was
not warranted at that time. is not war
ranted now, can not be sustained or
any just ground, and that While there
should be some readjustment of val
ues as between the different systems
and branches there should not be any
addition to the gross assessment of the
railroads.
One Of the leading railroad repre-
sentatives stated in regard to the stu
alton this year and last: 1T will not
do to say that the state officers raised
the assessment last year because of
increased earnings or because 1t was
necessary TO get it UP to what the law
contemplates. / know that the assess
ment as 1t stands today is excessive
and unfair. For instance. 1 know a
branch line in southern Iowa that was
purchased outright for $4,000 mile
and 1t was valued at $4,000 per mile
by the council last year. l might give
many such instances. What really
happened last year was that the polit
ical exigencies of the day demanded
an increase in railroad assessment and
the council simply had to do it. We
all understood this at the time and
We're prepared for the increase. The
legislature had closed and we had just
gone thru a long agitation on the sub
ject and it was up to the executive |
council to do something. and the coun
ell proceeded to do it. But the assess
ment was excessive and should not |
have been made. Now no matter what |
may be the condition of other assess |
ments it remains fact that no in
crease in railroad assessments can by !
any possibility. be justified. If you |
should capitalize earnings at per cent /
you would not get an assessment on the ]
whole railroad systems of the state
equal to that which has been placed |
there by the executive council. Now
the only question before the coun-
ell today and the one that will in my
opinion, decide whether there shall be
any increase or not, relates wholly to
there is any political necessity
raise. If, by reason Of the higher farm
land assessment already made there IS
IL political demand for a corresponding
increase in the railroad assessment,
we may expect some increase; but
if the council considers railroad prop
erty apart from any other and on its
merits alone there will be no raise"
In the discussion of real estate as
sessments before the state board of
a suggestion was made by I
one attorney as to the only method he
could suggest for arriving at actual
values in assessments. He declared his
belief in the efficacy of the system in
vogue in New Zealand, where the land
owner signs an option to the govern
ment on his land and this is put down
as the value thereof. If man puts his
value too low, he is liable to have his
land taken away from him at any time
when the government can dispose of it
to advantage. The assessor has no ],