Bisbee daily review., 1906-11-13
GOVERNOR kieeEv MAKES
 CONCISE ANNUAL REPORT.
(continued from Page Two)

(Continued from Page Two) CTS. and for all purposes of compari- son these valuations were found to have been placed upon the same great producers which in the year previous had been assessed by the local boards at a valuation of s3509,o 900 lower. The mines in question were not in fact worth any more than they were in 1905; in fact. to the extent of the ore which had been extracted from them meanwhile, they were worth less.
 This increase by the local boards were eloquent proof of the fact that the boards were at last needing an aroused public opinion. The board of equalization found, however, that valuations in some counties were still too low, and it ordered increases az Hegating S4,750,000.
 Graham county. in which a resolute assessor (Mr. John J. Birduo) had found the leading copper producers agreeing with him that the valuation fixed by the board of supervisors in 1905 was too low. was accepted by the board of equalization as the standard, and the increases ordered for the O
 CT counties were upon the basis or Graham county's valuation, so far as practicable. The increases ordered were as follows:
 Per cent Cocb,se county 400
 Gila County ..... =. =. 2oo
 Mohave County ..... 5o
 Yavapai County ... .. -. 33 To Yuma County .. -. ...... l0O
 The assessment of railroads is lodg ed solely with the Territorial board or equalization, and the board meets in June of each year for the purpose or fixing the value of railroads for taxa tion. As explained in my report of last year, there are two classes of railroads over which the board at present has no jurisdiction for Jaxins
 purposes, namely. the road for which the tax rate has been fixed by con Gress (the main line of the Santa Fe system} and tke roads which are ex- empt from taxation for varying terms of years under Territorial laws enact cd for the purpose of encouraging raH- way construction.
 The Territory is traversed by two transcontinental lines-the Santa Fe and the Southern Pacific. As the re- suit of enormous expenditure for bet terments both these lines are in fine
 condition. Ballasted roadbeds. the heaviest steel rails. and steel and con crete 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 he a material difference in the valua-
 ton of the two properties, so far as Arizona is concerned.
 But Congress has decreed that the Santa Fe shall pay taxes at the rate I of sl75 for each mile of it's line through the territory, which at the present tax rate in the counties trav- ersed by il would amount to a valua- tion of approximately s5.5o0 per mil' For nearly twsnty years the Southern Pacific, being under the jurisdiction of the Territorial board. had been assess ed at approximately ST 900 per mile. Obviously 1t would be unjust to as- sess the Southern Pacific at highe' 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 situation as we found 1t. We had no power to change the tax rate for the Santa Fe: we did have the power to assess the Southern Pacific, and it was uDdCniable that the Southern Pacific was not assessed in proportion to the assessment of the great body of miscellaneous property in the Territory. It was found that the net earnings of the Southern Pa cific were $3,759 per mile. Asssum- ing that investments in Arizona should earn ten per cent, the actual value Of the Southern Pacific ir this Territor! would be s37 .593 per mile. As mat ter Of fact. s37,599 is far below the value of the property as fixed by the market for its securities. The boarc accordingly raised the asssssssed val nations of the Southern Pacific to sll.' I 100 per mile. an increase of SS,sto per l milc over the valuation of the preced- l ing year.
 Other railroads over which the board has jurisdiction were assessed
 st considerably higher figures, the to ! tai increase of railroad assessments in the Territory amounting in round hs Il urcs to s2,5o0.oeo. The net results of the growth oi | wealth and the increased assessmenta
 Of all classes of property is an undls outed tax roll of sG2. .o0o 900 this year tss aeairst s4s .o0o. GOO iast year. To