The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-05-23
The Financier Discusses Kansas
Railroad Assessment.
Much Property Escapes Taxation
for Which 1t lis Liable.
OVER SIXTY MILLION.
That Is Total Upon Which the
Roads Pay.
Claimed Kansas Roads Pay
More Than Nebraska.

The Financier," one of the leading
financial papers of the United States,
calls attention to the fact that the as
sessment Of the property of the rail-
roads of the state of Kansas has been
fixed by the state board of railroad as
SCISSORS at a very low figure. It says in
one of its last issues:
| THE state board of railroad assessors
/ Of Kansas has just completed the as
| sessment of railroad property in that
state. The total is 6Os500.O00 which is
an Increase Of 100000 compared with
last year. The assessments in Kansas
/ are low Trunk lines, such as those of
/ the AtchisOn and Union Pacific are as
sessed at about 81, 800 per mile. There
are 10 independent systems reported on
| the tax list
Some computations made on the basis
| of the latest reports of the state board
of railroad commissioners and the state
auditor show that the railroads have
| over 500, 600 worth OF property
which is not on the tax rolls.
! This property should be assessed at
| $25, coo, 600. The total tax rate for all
purposes in Kansas is about $4.3S on
! each 800 of valuation. The railroads
are therefore escaping the payment,
| every. year. of 81, 533, 900 in taxes which
/ should come into the state, county,
\ township and school district treasures.
Instead of collecting this million and
! a half of dollars from the railroads. the
! state is making the farmers, merchants
and other private property owners pay
| it. The big railroad corporations es-
| cape.
The state treasury loses about 3d.
/ 600 year in the deal, as the rate OF
/ state tax is so cents on each 800.
/ According to THE Financier" the as
sessed valuations of Kansas railroads
/ has been fixed by the state board at
about $4,000 per mile. This estimate is
! somewhat too low. There are about g.
! 900 miles of main track in the state.
1 The total assessed valuation according
| to the report of the board which has
| Just closed its work for this year, is
! $50, 500 600. This is about Sc, 300 per mile,
! which is supposed to be about one-th1rd
/ of the real value of the property. Hence
the state board says that the value OF
| the railroads and their equipment IS
about 1901 per mile.
As a matter of fact. the report Of the
! state board of railroad commissioners
for 1904 shows that the average funded
/ debt of the roads which do business IN
! Kansas is $32,38S per mile.
If the capital stock is added to the
/ funded debt, the total liability OF each
mile Of road is $62,551 per mile.
/ Of course it is a very difficult mat
ter to determine what the actual mar
ket value of d railroad is, per mile.
But it is natural to suppose that the
road is at least worth the face value OF
/ the bonds, which constitute mort
gage uDOn 1t. lnGI6 may nc tlOA "a
! less water in the capital stock, but
there must be something back of the
bonds, though it of course does not
necessarily follow that a road IS bond
ed for all it is worth. In taking the
/ bonded Indebtedness of $32,3S8 as the
actual value of the roads per mile, a
conservative estimate on the real
| value is obtained.
/ The difference between $40, 400, the
value as fixed by the board OF rail-
/ fTn
age bonded debt, is $11, Every
mile of railroad in the state of Kansas
/ is therefore assessed at about $1z,OOO
/ less than it is really worth.
As there are $500 miles of main
track in the state the total value of
the unassessed railroad property is
S1O6, 100000. On a basis OF a one
| third valuation, the railroads should
be paving taxes on $35.600,00O more
property in Kansas than they are pay
IF is evident that 1.-THE Financier" is
justified in its comment that the ran
/ roads of Kansas are getting or easily:
| It is claimed that the railroads OF
/ Kansas are paying more taxes INTO tIle
state treasury, per mile OF ROAD, imam
are the railroads of any neighborlng
! states-Missouri Colorado and Ne
braska. 1t is stated that the Kansas
1 hoard of railroad assessors mad TINS
/ ,,aatter figured out for them, and were
! Guided. to some extent, by the amount
the railroads were paying IN nelSh-
bori,9a states If so, it simply shows
that kansas is not the only state
which is getting the worst OF II III Tie
assessment of railroads
what other states are getting out
of tho railroads in the form or taxes
cuts no figure with the Iax-payl
DeoDle of Kansas. If the farmers anu
small property holders OF the state arg
D11t+ine m S15O0,000 a year toWaTu
of Government WHICH,
ought to be paid by the pig rallI %. az u
/ ooEeoora+ions. it shows that there IS d
screw loose somewhere. me s1ae az
Iosrd Of railroad assessors should get
out of the tut, ana ..l L1lrSe 50 that
noent of Kansas rallfoaos 81 -
these big corporations VIII pay 'l 17ll
ine4 and equitable portion OF the
I taxes. So long as dlscre-'alLOS y
4 s1OO 600 600 exists between me -
/ Sas-a5 value and the real value OF lhe
4@a,,eas -aiIroads, and the railroads are
/ -,~ofi+iner to the extent OF SID SS'VVV
49, xtear nv reason of this d1Screp-
ancv. the people of kansas vii MAJ
uralIy have grounds Tor opJse te - ~
the actions of the state DOe'iU u
| road assessors. -.
The bonded debt per mile OF some ON
- +te raiIroads of the state is as 1oi-
1ovgs as shown by the report OF tne
s4ate board Of railroad commissioners
Santa Fe .,.,-.-.....-' - 5525S0 40
Rock Island .,,t,,e-r 36.2340O
Kansas ClLy 9oulAiei 92.169.26
NJ. K & l.. 3O.617.0O
Frisco Ia 57.O23.0O
Missouri Ftc,ii0 66,579.0O
on some roads the bonded aep Us Is
very much higher; the Kansas Oley
R EeIf IS s258.621 per mile; Leay v.ai1
l2 2e,s = terminal $342,857 per mile Il!
S M01 = of the branch lines Of the MIS-
| souri, Pacific are very hghtly Oolluei-
Terrific Race With Death
| .sr,ea+b was fast approaching" writes
/ z7si1ia Fernandez of Tampa, Fla, deserib-
! 80 his fearful race with death, as re-
] us - hart dizaasn