Graham guardian., 1906-11-23

the increases ordered for the other
counties were upon the basis Of
Graham county's valuation, so far
as practicable. The increases or.
dered were as follows:
Per cent
Cochise county 400
VIA county nty..........2 200
Mohave county .. so
Yavapai county 381s
Yuma county 100
The assessment of railroads is
lodged solely with the territorial
board Of equalization, and the
board meets in June of each year
for the purpose of fixing the value
OF railroads for taxation. As ex.
planned in my report of last year
there are two classes of railroads
over which the board at present
has no jurisdiction for taxing pur-
poses, namely, the road for which
the tax rate has been fixed by
congress (the main line of the
Santa Fe system and the roads
which are exempt from taxation
for varying terms of years under
territorial laws enacted for the
purpose of encouraging railway
construction.
The territory is traversed by
two continental lines-the
Santa Fe and the Southern Pacific.
As the result of enormous ex.
penditure for betterments both
these lines are in fine condition.
Ballasted roadbeds, the heaviest
steel rails, and steel and concrete
bridges are chief improvements.
Both lines carry a great traffic:
the securities of both command
high prices in the markets. and
there is no apparent reason why
there should be a material differ
ence in the valuation of the two
properties, so far as Arizona is
concerned.
But congress has decreed that
the Santa Fe shall pay taxes at
the rate of sl75 for each mile of
its line through the territory,
which at the present tax rate in
the counties traversed by it would
amount to valuation of approx.
mately $500 per mile. For near.
ly twenty years the Southern
Pacific, being under the jurisdic
tion of the territorial board. had
been assessed at approximately
81 600 per mile. Obviously it
would be unjust to assess the
Southern Pacific at a higher rate
than the Santa Fe, if the board
had the power to assess both; but
the conclusion was unavoidable
that we should deal with the situ-
alton as we found it. We had no
power to change the tax rate for
the Santa Fe; we did have the
power to assess the Southern Pa.
cific, and it was undeniable that
the Southern Pacific was not
assessed in proportion to the
assessment of the great body of
miscellaneous property in the
territory 1t was found that the
net earnings of the Southern Pa
cifc were $3.50 per mile. Assum-
ing that investments in Arizona
should earn ten per cent, the actual
value Of the Southern Pacific in
this territory would be s37, ,599
per mile. As a matter of fact,
S37 500 is far below the value of
the property as fixed by the mar
ket for its securities The board
accordingly raised the assessed
valuations of the Southern Pacific
TO $1,000 per mile, an increase of
$3.50 per mile over the valuation
Of the preceding year.
Other railroads over which the
board has jurisdiction were assess,
ed at considerably higher figures,
the total increase of railroad as,
sessments in the territory amount.
ing in round figures to s2,500,O00.
The net results Of the growth
of wealth and the increased as.
sessments Of all classes of proper
ty as an undisputed tax roll of
S62,000,000 this year, as against
S4S,0O0,000 last year. To be sure,
the tax roll was nominally s57,-
goo, 900 last year after the board
of equalization had ordered the
several increases; but as already
explained, certain counties, follow.
ing the advice Of district attorneys
and attorneys for the mining com
panies, refused to carry the order
into effect, and owing to technical
errors in the boards proceedings
its orders were imperative 10 the
view of the supreme court, al
though the power of the board in
the premises was upheld by the
court.
The effect OF the new policy is
already manifest in all the ooun.
ties in the form flower tax rates.
Arizona at last, / am warranted
IN saying, is entering upon an era
of more equitable assessment Of
property for taxation, and conse.
quently, an era Of moderate taxes.