Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1904-09-19
THE STATE ISSUE
HON. GEORGE TURNER ON RAIL-
ROAD COMMISSION.
An Honest Assessment of Railroad Property in
This State Would Decrease the Taxes of
Every Individual, and Of Every Other Cor.
poration by 0ns.Third.

George Turner, democratic nominee
for governor, spoke at Brewster, Wash.
last week on the subject OF railroad as
sessments. He said in part:
"Fellow citizens, [ have given you
the rate of assessment on railroad prop
erty in this state for the several periods
since we have been state in the Union,
but | have not as yet stated the true
value Ct railways. | now propose to do
that and to establish my statements by
irrefragible proof. hold in my hand a
book OF statistics published by the inter-
state commerce commission for the year
1902, and the facts published therein are
derived by that commission from reports
which the law compels the railroads to
make to the commission.
''On pages 1926 and 1927 of this book l
find statement that the capital took
and bonded Indebtedness of the North
ern Pacific RAILROAD is $50, 100 per mile.
That amount plus any premium which
the stock and bonds may command in
the market, is the true cash value OF the
railroad pr mile for purposes OF taxa
ton.
II make this statement not on my own
authority alone, but on the authority of
the supreme count of the United States
That great court was required to pass on
the identical questions in the state rail-
road tax cases reported on page. 575 OF
the ed United States supreme court re-
ports.
"Fellow citizens, if the stock of the
Northern Pacific railway is worth par in
the markets have 1 not now established
by irrefragible proof that the actual cash
value of that railway IN this state for
purposes of taxation is $50, $50 per mile :?
For myself can see no flaw in the chain
OF proof or in the deduction drawn there
from.
Fortunately we are not required to
speculate concerning the market value
OF the stock Of that railroad. 1t is a
matter OF record what its owners and
others thought it was worth not SO long
ago. 1t was turned into the Northern
Securities company at valuation OF
81 Is on each dollar of its par value, and
this premium OF Is per cent. On its stock
brings the valuation OF it's road up to
S64 ,4O2.30 per mile.
"The statistical report shows the rea-
son why the stock Of the Northern
Pacific railway is at a premium and why
it may be at a greater premium. 1t is
one of the greatest railroads in the
United States, both in it's roadbed and
in its equipment, and in it's earning
capacity. The statistical report of tie
interstate commerce commission, at
page 439, shows the earnings OF the road
for the year 1902 to have been $42 .229 ,952,
and on page $50 that it's operating ex-
penses and fixed charges were $32, 81, 720.
Its net earnings then were $l0,047 .2322.
Out OF this surplus it could pay per
cent. on it's entire capital stock and still
have surplus OF $6,44S,0O4.
"This report from which I am reading
was for the year 1902. have not Il. e
later reports, but we know from news.
paper statements that the earnings OF
the road have been greater for 1903 and
1904, than they were for 1902. think
have read statement that it's net earn
ings last year were $14,00O,000.
"Now what is true of the Northern
Pacific railroad is true Of the Great
Northern railroad and the other trans
continental roads in the state. The
Great Northern turneI its stock into the
Northern Securities company at l.S5 for
each dollar OF It's par value. 1t is not
unfair to say that the value CT the rail.
roads OF all IT, csc companies is easily
1000 per milo. They have 3, l39 miles
of railroad in this state, and this, valued
at $4,000 per mile, gives total valua-
ton OF $2o3, 1856 900. Seventy per cent
Of that sum would amount to $142, 754 90
This last sum is the amount on which
in all fairness and justice, the railroad
ought to pay taxes in this state.
Let US turn to the last report OF our
state board of equalization and see what
sum the railroads paid taxes on last year.
| have it here, extracted from the official
report:
"In 1908 the total railroad valua-
ton in this state was $17 $3.50 257. In
other words, fellow citizens, railroad
property in this state valued on
identically he same basis as your
property and my property, escaped
taxation last year to the extent OF
Sl24,9l5, 243.
1.-The total valuation of all prop
erty in tn state was 1859, 149,312.
If railroad property had been as
sessed at its true value, the taxable
property OF this state would have
been increased one-third and the
taxes of every individual and of
every other corporation in the state,
would have been decreased by one.
third"