The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1903-05-27
RAILROAD
ASSESSMENTS
Discussed by the Tax
payers League
COMMITTEE OF COLUMBIA co.
They Say That a Valuation of $4,000
Mile Would Be Just and
Equitable.

To the Columbia County Tax Pay
er's league.
We, jOur committee, to whom was
assigned the duty of securing data
as to the value of the railways in this
county, beg leave to report that the
first item we discovered in connection
herewith was that it was a very
complicated and difficult task. and
that with the very best information
obtainable, in the short time allotted
to us in which to prepare this report.
only approximate valuations could
De placed thereon.
However. we have secured some
figures, which are undoubtedly cor
rect, and which will serve the purpose
Of this league IN supporting its de
manG Tor higher valuation Of the
railways for taxation purposes.
We have statistics Of railways in
the United States, prepared by the
interstate commerce commission, pub
Nshed in 1901. and the preliminary
report of the commission on the in
come account of railways, for the
year ending June LIST. 1902, the latest
published statistics from which we
take our figures. These figures are
made from the sworn reports Of Off
Gals of the several railways, and may
be accepted as substantially correct.
The tabulatiOn and deduction there
from are made by the statistician of
JNe commission, dhd are nIceI5 ar
RANGED ana MAKE very ll-Ie!tS tIll5
feaolng.
The Oregon Railway & Navigation
company has now in operation some
thing over a thousand miles OF road.
and has a capitalization OF 500 500,
as follows: $Z0,242,SVo OF bonds,
11,000.000 Of preferred stock, and
$24 100000 OF common stock; little
over $4,000 per mile. In making an
estimate Of t. actual value of this
capitalization - is necessary TO re-
fer to its incoG.a. and expense &C
count, also Cull.lt valuations placed
on the bonds an stocks in the mar
kets Of the world. and where quota
tons are not available, to estimate
their value from the income they
produce.
The latest quotations We have been
able to secure on O. R. & n bonds was
sale made in January Of the present
year at slO1, reported in the invest
ment guide of Henry Clews & Co., Of
New York, which shows that at least
that part Of the capitalization is
worth par. We were unable to get
any late quotations on any of the
stock. either preferred nor common.
and must base our estimate Of its
value on the reported earnings.
We find in the preliminary report
of income account OF railways for
last year. that its net income over
expense of operation (Which Includes
maintenance of equipment and Way)
to be S4536,2o2, from which was paid
interest On its $11,O00,00 Of preferred
stock. and other items not specified
amounting to $50, leaving a sur
plus Of $3,o50,5S2. This amount if
applied on its common stock would
make it net over y per cent. interest.
So much that none of its surplus was
applied to dividends on It's common
stock. Such a healthy condition Of
the treasury should give the common
stock a substantial value.
Ii we are to judge by present cOndi-
TONS the current year viii show a
substantial advance in the earnings
over the last year.
However. amy railway system
must not be Judged by its earning
capacity in any one year It's true
value depends not alone on the cost
of its physical property. tracks, yards.
terminals. buildings. engines. cars.
etc. but it also depends on its traffic.
competitive and commemorative and
the extent and vitality of an establish
ed Transportation business The
Oregon Railroad & NAVIGATION com
pany occupies a peculiarly favorahla
field: il covers the finest secti1ns Of
our Inland emDirp and its traffic j.