The Leon reporter. (Leon, Iowa) 1887-1930, 1903-10-08
RAILROAD ASSESSMENT
How the Republican State Officers
Help the Railroad Corporations
History on the Subject.

the people of Iowa gave to the railroads
of the state 100000 acres of the land
within the limits of the commonwealth
to aid the construction of these great
highways, it savors of ingratitude on
their part to continually resist bearing
their just portion of the burden of tax
alton. 1t is not generally known that
100000 acres were given to the rail
roads as subsidies in the early years of
the states history, but reference to the
acts of the Legislature and Governor
Larabee's book, entitled the "Railroad
Question:, published several years ago,
will furnish proof conclusive of the
statement. Governor Larabee asserts
that not less than 100000 of the 3D.
100000 acres in Iowa were given in the
shape OF land grants. One of these
roads, the second to build through the
state, was given 100000 acres. This
land if sold at an average of SO per
acre representing a gift of SS,000000,
nearly enough to construct the entire
4
and equip it with rolling stock for oper-
alton. Not satisfied with this munifi-
cent generosity, but inspired with a
spirit of colossal greed, these companies
have within the past fifteen years capi-
talized the properties by the issuance
OF bonds and stock to the amount of
S6OO,S4S,00O in the aggregate. or about
S63,OOO per mile of the 1896 miles in
the state. This latter statement can be
easily verified by reference to the last
annual report of the Board of State
Railroad Commissioners. Yet for forty
years, by the grace of complaisant re-
publican officials, notably the executive
council, composed of the governor, sec
retary of state, auditor of state and the
treasurer of state, by whom the railroad
assessments are made, these corpora
tlons have escaped contributing to the
public revenues anything near the
amount of taxes they should. While
they base their passenger and freight
4 rates ona capitalization of $4,000 per
mile, an accommodating executive coun-
i Gil, composed wholly of republican
state officials, value these properties
at S23,324 per mile and tax them on
one-fourth Of their amount, or S5.S31,
Approximately one eleventh of their
capitalization.
But how is it with the farmers? Dur
ing the year 1901, the farm lands of the
state We're valued at S35.32, per acre, a
sum that came near verging upon the
actual value measured by the returns
upon the investment. For several
years state revenues had been running
behind. Attention was cited to the RI
diculous valuations placed upon the
railroad property of the state, and a
demand made that it should be increas-
cd to its actual worth and assessed on
one-fourth OF that sum. What happen-
ed? Taking quick advantage of fleet
ing boom in land values created by specu-
lauors, representatives of the railroads
declared their properties were taxed in
proportion to farm lands and demanded
il the railroads increase for txatior
the farmers of the state should be cor
!. respondingly increased
Again an accommodating execui i've
council responded to the cry of the rail
) road corporations. With what result?
An examination of the valuations of
!, farm lands completed by the executive
, council will show that these lands were
boosted from an average of S35.32 to
} S4l.12, an average increase per acre
; throughout the state of $3.50 or about
IL per cent above the value of last wear.
Now how much We're the railroad prop
critics of the state increased? First
they were valued at about $4,000 per
mile or less than one-third of their cap
itali1ation, upon which they were secur-
! ing from to 10 per cent. They were
assessed for taxation, on cne-fourth
Iof the valuation or $4,000 permile. Last
year they were increased from $4,000
per mile to $4,000, and are now taxed
on one-fourth of this sum, or S5,324 per
mile. Valued originally at one-third of
their actual worth they We're taxed on
+ one-fourth Of onc-third of their capitali-
zation. The executive council of which
Governor Cummins is the chairman,
raised the valuation $4,000 per mile,
which makes them taxable upon about
33 per cent of a one-third valuation,
actually about IL per cent of the actual
value, compared with % per cent good
and strong, on the farms of the state.
To understand the favoritism shown the
railroads of Iowa in the matter of tax
alton it is only necessary to scan the
following comparative tables, taken,
each from the reports of the railroad
commissioners of the state named. The
table shows the annual amount of taxes
paid in the aggregate by the railroads