Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-09-01
RAILROAD TAXATION IN OHIO
Corporate Property Escapes It's SHARE
of the Burden on the
People.

Ordinary property owners in Ohio are
taxed on from 40 to so per cent of fair
market valuation of their homes, their
farms. their shops and thier merchandise
Wide departures from that rule are COM
mon, but the average is probably about 50
per cent.
Larger taxpayers often escape with "a
much smaller valuation, relatively to the
actual value Of their property. 1t is bet
ter worth their while to scheme for the
lowest possible valuation. They know
more about tax-dodging. Often they are
corporations which have men trained and
highly skilled in dealing with tax assessors
and boards Of review.
In this dubious art the railroads GER
tainly stand well to the front. They 90
not pay taxes on 20 per cent OF the true
market value OF their property in Ohio. In
same cases the proportion is not more than
10 or 10 per cent. -.
The total valuation of the railroads OF
this state, for taxation purposes, is a little
over $14S. 100000 In 1906 It was under $685.
10000 The larger figures mean only about
$4,000 a mile. roughly speaking. for the
$500 miles of track. in round figures, in
Ohio.
That means $4,000 mile for everything
the railroads own. II includes their depots,
machine shops. roundhouses, ONCE build
ings, piers, docks, yards and rolling stock.
1t covers their icehouses, coal, bridges
everything which they possess in Ohio.
Their costly rights Of way through big
cities are a part Of their property.
Manifestly the true valuation is enor.
mously greater, and the assessed value Of
their property is neither 80 per cent, 50
1 - -.kl.
1t is nearer 10 per cent.
| Consider the evidence of the stock mar
ket. The capitalization of the railroads of
the United States is not far from fifteen
billion dollars, for some 226,0O0 miles of
track Taking stocks and bonds together,
the securities outstanding average about
$50, 900 to the mile. This is four times the
assessed valuation per mile in Ohio. II
makes the Ohio tax valuation % per cent
OF the true market value OF the railroad
property.
Rather. 1t would be 3 per cent II the
railroads were capitalized at only their
actual value and II the average for the
| country were the true average for Ohio
| Neither condition exists. The railroads
are capitalized above their cost and above
their earning power. Their true value II
less than the sum of their stocks and bonds
They do not pay well enough to make the
average market value OF their watered Sc
curities equal the face OF the bonds and tn,
stocks. On the other hand. the railroads
of Ohio are far more valuable and more
productive than those of the country as 9
whole. mile for mile.
This last fact more than offsets the over
capitalization, in calculating the true value
OF Ohio railroads from the average capt
talization Of the whole railroad system Of
the country. on the mileage basis. Th'
railways OF this state are worth more thar
the average capitalization of the railroads
Of the entire country, In proportion Il
their track mileage. The railroad lines IL
Ohio could probably be sold for at leas
$4,000 a mile.
Clearly the railroads do not come any
where near paying their fair proportion o
the taxes levied In this state They ar
greatly undervalued for taxation ant
greatly ACKNOWLEDGEMENTS Leader.