Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-09-15
ASK A CHANGE IN
RAILWAY TAX LAW
CONTINUED from Page one.)

Continued from Page One)
1.-THE method of arriving at the val
uution is also not beyond question, UNI
der the present system, as will be seen
from glance at the facts as they actu-
ally exist and are manipulated by those
corporations. The code of Iowa says
that in each year the several corpora
tons shall furnish to the executive
council i'm Des Moines q sworn state
ment of the following. among other
things, relating to their business:
"1she whole number of miles of main
line of railway: the amount of real
estate and estimated value: the total
value and amount of rolling stock; tho
total earnings and total operating ex-
penses, and the net earning of the en-
tire road and that within the state
"All this is to be sworn to, and is
relied upon by the executive council az
being correct and as containing the true
value of all the property. And yet we
have discovered that they have been
returning lots and parcels of ground In
Cedar Rapids at $37. which you could
not buy at $500; other lots, worth
$4,000 and $4,000 on the market. are
generously returned at from 500 to
Sl5O each. And the general average
would not be one-tenth of their actual
value.
ut was thought by some. and among
them myself that we had found a flaw
in the present law, in so far as special
charter cities were concerned, and that
they could assess railway property on
the same basis as private property, but
the supreme court is divided on this
proposition. and while Davenport won
Cedar Rapids lost. My plea today,
however, is not for this method IN spe-
cia1 charter cities alone, but for the
Observation-Disclosures in all cities. Some
thing will certainly be done with refer
ence to the taxation of this class of
property by the next legislature IN
special charter cities. Why not make
this subject a common cause by all
cities alike and insist upon the legls-
lature giving US a law that will allow
all cities and towns to assess all rail-
way. interurban railway, telegraph,
telephone and express companies upon
all physical properties found within
their corporate limits, and also upon
the main line of their right-o f-way for
it's actual value
"The remedy that would suggest Is
that new law should be passed, re-
quiring that the executive council
should find the value Of the main line
per mile, exclusive of improvements.
and that this valuation should be used
on the right-of-way, but that all other
Nc Il
valued and assessed in precisely the
same way as the property of indi-
Viduals"
The Railway Side.
In his reply Attorney W. w. Bald
win, of this city. speaking for the
railways, reviewed the methods en-
ployed in making assessments of rail-
ways in Iowa since the early history
of the state and contended that the
present method had been found to be
the only satisfactory one and that to
make assessments on thd full valua-
ton of the railroad and then assess the
full valuation of railroad property in
cities, would be in effect double taxa
ton. He said in part:
"The railroads OF Iowa in the past
per cent OF their net income in taxes.
In 1896 and 1897, when the income was
small, they paid as high as IA per cent.
Do you think that that is less than a
fair share Of the taxes?
II had occasion some little time ago
to look into the assessment of business
interests and business properties in the
city Of Burlington. There We're per-
haps six or eight large business estab-
lishments mercantile and manufac-
turing, which were assessed uniformly
$4,000. I have good reason to know
that those properties, none of them
were worth less than 100000. and if
you looked into the question of pro-
portion of taxes which they paid. ac-
cording to net income, you would not
find that they paid per cent The
railroads are paying 10 per cent Of
their net income in taxes.
I'm Danville township, in this county
there are 81 miles of the Burlington
railroad. The valuation for the single
track of the 90 in Danville township is
100000. The company pays taxes on
that valuation in Danville township as
sessed at 25 per cent of this actual
value. Do you think that the railroad
is worth that?
'"That is $4,000 per mile. How does
that come? Because of the value Of
the terminals at Burlington and other
cities. and the earnings. No one
would find any such value as
$4,000 per mile in Danville township
"The value of the terminals Of the
90 road in the city of Chicago Is
more than the value of all the main
line in Iowa.
you will never get the people of
Iowa to abandon that system for the
benefit of few cities"
Mayor Caster. of Burlington, was
elected president and Des Moines Sc
lected as the next place of meeting.
In addition to the president, the fol-
lowing officers were elected: Vice
president, r. S. McNutt of Muscatine;
secretary treasurer, F. G. Pierce, Of
Marshalltown: trustees. J. A. Walter,
of McGregor, and c. D. Huston, OF Ce-
dar Rapids: finance committee. j. p.
Lockyer. of Cherokee. ]. c. Miner of
Belle Platne, and J. F. Leech. Of Nj.