Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-07-12
Highness of Railroads Operat-
ing Expenses a Feature Call
ing For Special Attention
EXPLAIN INCREASED EXPENSE
Fuel One of the Chief items Respon-
sibIe for the Situation How to
Treat Earnings on Leased Lines,
Puzxler for the Assessors. = Other
Interesting Questions.
Special to Times Republican

Special to Times Republican
Dies Moines. July 12.--The annual
hearing of the representatives of the
railroad corporations by the state off,
Cials preliminary to the assessment of
the property has commenced, but it
other years. The fact is that the whole
ground has been gone over SO well in
recent years that it would be a waste
of effort to do so now. Every member
OF the present assessing board consid-
cred the whole subject we'll last year.
To-day there appeared before the as
SCISSORS Messrs. Frank P. Crandon tax
commissioner for the Northwestern
and N. c. Woodruff, tax commissioner
for the Great Western, and some
Others. Yesterday A. S. Dudley, tax
commissioner for the Milwaukee, spoke
at length. These are all men who make
Z study year in and out of the whole
matter of taxation and assessment.
They are able to discuss every possible
VHdSt I'll Lie SUBJECT -udiiu, ditu ttss
they go over the reports from their re-
spective companies they add much to
tile information sought by state off,
sNais.
Only one feature of the reports this
rear called for much special attention.
why are the operating expenses so
high? With increased receipts for 1903
the companies nearly all report de-
creased net earnings. 1t all lies in the
increased cost of operation. Some have
declared that while wages have in
creased smaller number of men were
employed. and this more than offset
the higher wages. The railroad men
deny this. But one of the chief items
OF increased expense the past year was
that of fuel The price was substan-
TALLY 20 per cent higher and the cons
panies claim they used more of 1t be-
cause of the bad weather. The foods
of last year caused u great reduction in
net earnings. for the cost Of repairs
goes into the expense account. In one
way or another the Increased expense
of operation was explained away with
fair satisfaction.
Another puzzler for the assessors Is
how to treat earnings on leased lines.
The companies In their bookkeeping,
put the leased line business in with the
business of the connecting lines Ifsthis
rule is followed IN assessing. then some
taxing districts viii get credit for busi-
ness done in far distant parts of the
state No solution of the problem has
as yet been pointed out.
interesting Questions.
Some interesting questions were
4. II, c. 80 !
delphia, general manager for the I'm |
ion Terminal Company. of Sioux City. I
which owns the union depots and |
tracks. Mr.. Josselyn, though a resi- /
dent of Philadelphia, was former res
fdent of Des Moines, living here when I
he was Rock Island dispatcher num- |
Der of years ago. He contended for n |
low assessment on the Sioux City un-
ion depot, because the owners are not |
only out interest on their investment I
but under the contracts 1t is operated I
at an actual loss. In other words. 20 /
get the companies to use it at all the
depot owners had to make contracts
which cause an actual deficit He
stated that the present owners had In
the property nearly s2.0oo,OOo. 1t is
assessed at less than 100000. The
take 100000 for the property. Most
certainly not" he replied, "for we an
ticipate that some time it will sell for
more" He disclosed that there are
prospects for at least two other COM
panies going into the depot within the
next year, and when they do it will be
a paying property. The discussion de-
veloped the fact that the Des Moines
Union Railway, which owns the union
depot in Des Moines. has contracts
which provide for an equal distribution
of the expenses of operation between
the companies and thus the company
can never have any net earnings The
whole question Of how to arrive at the Fl
proper valuation of terminals is there |;
fore difficult one for the state Off
GERS.
Freight Lines.
The assessment of freight lines ana
refrigerator lines and similar concerns
is one which Is puzzling the state as
sessing board The reports from these
companies are not at all satisfactory,
though perhaps little better than last
in the state and their officers claim
they have no actual knowledge Of the
fact that their cars enter the state
At most the state Will get very little
from this source of revenue and 1t IS
regarded by state officials as hardly
worth the bother of making the as
sessment.