Daily capital journal. (Salem, Oregon) 1903-1919, 1905-10-02

net earnings per hlhe A"a %
wears. and capitalizing it from those
earnings at the rate Of interest paid
on its bonded Indebtedness.
Tax Rule Non Practical.
"But as this state has no laws re-
curing railroad corporations to fur
nish this information, upon which un-
der the rule Of the supreme court the
assessor alone could arrive at any reas-
onably accurate estimate Of the valua'
tion the rule is of no practical value.
"we doubt whether single as
SCISSOR or county board Of equalization
in Oregon has ever sought to get the
information on which TO base a correct
valuation Of these properties. In the
absence Of state board Of equaliza-
tion, or any law regulating valuation,
arbitrary and unjust assessments are
the rule. In some counties a disposi'
tion to harass railroad corporations by
unfair assessments is manifested, but
in most counties they are assessed at
ridiculously low values
"'Your committee considers the
present plan Of assessing telegraph
and telephone lines on the valuation
Of poles and wire per mile, as separate
items, inequitable and unjust. It
makes no allowance for the value Of
the franchise earnings or right Of way
Of such corporations.
More Uniform System Needed.
Now in order to have a uniform sys.
tenn Of taxation Of such property as
that under consideration, II seems to
us that it would be only proper for a
law to be enacted whereby a rate per
mile should be prescribed. That min
imum rate, It seems to us. should not
be under $4,000 for railroads, classi-
fed as hereinafter stated. In the
northern counties Of California, like
Siskiyou, Il appears that the o. & C. r.
was taxed in lS9l.lS96 at the rate Of
$4,000 per mile, but objected strenu-
ously at an assessment Of $4,000 per
mile in Oregon. II, therefore, thb
people Of Oregon should declare that
no railroad Of the first class should be
assessed at less than $4,000 per mile,
it could not, in the opinion Of the com
mittee, be successfully argued that the
people Of Oregon were arbitrary in
their treatment Of the railroad corpo-
ations.
"In this connection we wish 10 call
attention TO the fact that Oregon has
treated railroads more literally than
any other state. In the year 1902 rail
roads in Oregon paid sl56 taxes per
mile on their lines, while in Washing
ton they paid $9l5 per mile, and in
Idaho s944 per mile, and in Califor-
MIA s247 per mile, while the valuation
or assessment in Oregon was not quite
half the valuation made In Washing
ton and scarcely one-third that made
in California. Why there should be
that great disparity in assessment and
taxation Of this class Of property in
contiguous states is not apparent; and
We believe it will not be said that Ore
gon and her citizens have profted bv
this extremely considerats treatment
OF the owners Of this class Of property.
We DO not believe the ordinary travel.
er would say that the railroad facili.
ties and accommodations in Oregon
are today equal 20 those in the sister
states Of Washington aud California.
"Then, too, in the matter Of the de-
velopment Of the country and the de-
sire to accommodate the citizens Of
this state. We believe it will be ad.
mitted by railroad managers them.
selves that Oregon, her people and re-
sources, have too long been neglected
II seems TO US, as indicated above, that
II would be proper and fair for the
people Of Oregon TO say that all rail.
roads should be assessed at least slO-
900 per mile, and in the more popu.
lous districts that rate ought to Be in
all justice very considerably in.
creased.
"In order that the increase should
be uniform, it seems TO your commit.
tee that the increased assessment over
the minimum here suggested could be
liked by reference to the population
Of the different counties We think
that the state census could be relied
upon. Certainly any one would admit
that a railroad in Multnomsh or Mari.
on counties on account Of the greater