Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-07-13
SOME CONFUSING FACTS.


small amount of attention paid To
the arguments of railway attorneys In
the present assessment hearings before
ethe executive council will initiate the
public into the mysteries OF railroaa-
ing. 1t is now very plainly shown bS
figures which, of course, can never ile'
that Iowa railroads are not worth
more than $4,000 per mile, altho as
sessed .by the council at $4,000. These
figures are presented by the regular
attorneys for the roads and are
authentic.
A few weeks ago when Governor
CuHmins appeared before the senate
committee on rate legislation he adj
vanced the theory that the present
earnings of all the roads in the United
States would pay five per cent divi-
dends on over $4,000 per mile and he
then called attention to the fact that
since the earnings Of Iowa roads were
about two thirds as much per mile as
those of all the roads in the country
the Iowa property should be worth
about $4,000 per mile and yet, he said,
competent attorneys had told. him that
an assessment of $4,000 was too high.
From this Cummins dedllced that
much of the alarm spread among rail-
road employees as to the danger OF
wage reductions following government
regulation Of rates was mere bun
combe, since, taking the word Of the
railroad attorneys at face value, the
roads were now earning good income
on nearly twice that value. Then Cum
minis grew charitable and allowed for
reasonable amount Of overzealous
statement on the part of the tax hear
ing attorneys and gave it as his opin-
ion that railroad property was worth
legitimately some $4,000 to $4,000 per
mile less than Its capitalized earnings
vet about that much more than the
estimates of the attorneys at the tax
hearings.
Then came the "straigh." Of It, A
gentleman by the name O.. Thompson
holding responsible position as sec
rotary to the associations Of (railroad)
general managers presented a two
column argument in the Chicago Inter
Ocean setting forth the whole statis-
tical history Of railroads In this and
other countries to prove that railroad
property in the United States is legi-
timately worth an average of $4,000
per mile and should be allowed to earn
good dividends on THAI valuation,
hence rate legislation that would in
terfere with such earnings would be
confiscatory. unconstitutional and
against public policy. HIS argument
SO pleased the general managers that
the newspaper page was photographed
and reproduced in a beautiful little
pamphlet and sent broadcast over the
country.
When Mr.. Cummins read It he no
doubt wilted for it was clear then that
the value upon which railroad property
should earn dividends must be much
greater than he had estimated. When
he entered the tax hearings Of the exc
cutive council he had g. pretty clear
idea of what Iowa railroads should be
worth He could easily figure two
thirds of Mr.. Thompson's valuation
and establish $4,000 as the average
valuation in Iowa. Since farm land
and other property Is notoriously as
sessed at scarcely so Per cent of it's
real or actual value so per cent of $40,-
900 or $32, 300 per mile would be emil
nently fair for an assessed valuation
of railroads and this would require on
ly a slight Increase in valuation of IS
millions O.. whereabouts for the total
mileage in the state. But when Mr..