Daily capital journal. (Salem, Oregon) 1903-1919, 1905-10-02
The Development League Meeting at
Eugene the Beginning of New Era
The Committee Taxation Recommends ak on OroSS
Earnings, but Asserts Railroad Property Should be
Assessed Only its Fair Proportion OF Taxes

the rate laws Of a number OF states.
Tho laws Of Wisconsin, Washington,
Iowa and Texas, and the commission
bill before the last legislature have
been eonsidered,in detail, and all have
some provisions that would be Of prac-
teal value. but many that we are not
prepared to recommend for adoption
at this time in this state.
"owing to the physical conditions
Of our state and the problems Of devel-
opment involved, the legislation Of no
other state on this question is wholly
adapted to Oregon's needs. Oregon
does not stand alone, however, in de-
manding the protection Of the law
making powers vested in the people
We find universal interest in this sub
ieet. It will be the vital issue before
the next congress, states like Wiscon.
sin and Washington are vigorously
putting in operation comprehensive
measures taking the control Of rate
making out Of the hands Of railroad
managers, and these communities are
not suffering from paralysis Of busi.
ness or stagnation Of industries.
''The committee begs leave TO re-
port progress and asks further time TO
consider and complete the report,
which will be submitted at the next
meeting Of the league and to the peo-
pie at as an early day as possible" "
J. A. Carson, Of Salem, submitted
the following report from the commit
tee on tax laws, Of which he is chair
man;
"The subject Of taxation is always
one Of difficulty and embarrassment,
particularly when the property under
consideration is used for railroad, tel
egraph or telephone purposes Such
property has not a ready market; it is
seldom sold The ownership Of such
property Is changed more frequently
by reorganization Of the corporation
owning the same than by outright
sales. At the outset your committee
approached this subject with a desire
to DO absolute justice and 20 avoid
any imputation Of radical action, and
throughout the investigation conduct.
ed by US, we believe that this spirit
has controlled us.
Corporations Assessed Lightly.
"It cannot be successfully denied
that corporations operating railroad,
telegraph, telephone and express lines
have not borne their just proportion Of
the public burdens in the way Of tax
alton upon any individual or official, 1t
appears beyond question that this
class Of property has successfully
evaded the payment Of its just proper
tion Of the public taxes. It is not nee
essary TO stop here TO enumerate the
means by which this has been accom-
plished.
"We realize that it would not DO 20
assess this class Of property upon its
cost Of construction. The earning ca
paeity Of the property ought to be
and really should be the controlling
feature in fxihg its assessable value,
but unfortunately Oregon has no law
requiring reports Of earnings to be
made.
"The through OF trunk lines Of rail
roads are assessed variously. In some
counties, Umatilla, for instance. the
railway is assessed at the rate Of sls,-
600 per mile Upon appeal 20 the su-
preme court Of Oregon, the regularity
Of this assessment, was sustained.
(See O r. 4 y. CO. VS. Umatilla
county, decided July 8. 1908, and re-
ported in Vol. 81, page $50, Pacific Re
porter)
"In the earlier ease o. & C. r. R.
Co. vs. jackson county, decided June
20, 1901, and reported in Vol. IS, page
COS, Oregon Reports), the supreme
court said that an assessor in determ-
ining the assessment Of railway
ought 20 consider;
"(a) the cost Of construction.
"(b) the cost Of replacement.
900 It's connections with other
roads and advantages in a commercial
way for commanding the carrying
trade.
"(d) It's rental value.
"(e) its net earnings, and
go the market value Of its stocks
and honda
"ln the same case the court held
that the value Of a railroad for the