The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1906-10-22

that when railroad companies and
other public service corporations put
inflated valuations upon their prop
erties, fcr the purpose Of extortion
they ought to be taxed in the same
proportion. The Santa Fe lines IN
Missouri are assessed for taxation this
year, exclusive of buildings, at S19.-
379 per mile, and find upon very
careful investigation that Henry Asp
did not have anything TO do with the
Missouri valuation 1t did not meet
with his approval, Ct course. bat he
was so blsy in Oklahoma that he al
lowed the Missouri people to make
their own assessment He has taken
particular care however. to see that
the Oklahoma board OF railroad as
SCISSORS did not follow the pernicicus
example set by Missouri.
The question of taxation is one that
concerns every citizen, whether he be
a property owner or not he man who
lives in a rented house pays the tax
on that house to his landlord in the
shape Of rent. and the poor unfortu-
nate without wife or home, who lives
in boarding house. is no better off.
Every citizen must bear in some form
or another his share cf the burden.
and whenever discrimination is shown
in favor of the corporations it adds to
the burden OF the citizens
Railroad properties are not always
worth the figures at which they are
capitalized, nor are they so worthless
as their tax returns sometimes indi.
cate. capitalization seldom repre-
sents actual cost, neither does actual
, cost always Indicate actgal value. 1t
is a very rare thing indeed Tor the
capital stock of a railroad company
to represent an actual Investment OF
money. A. "A usual thing the bonded
debt. usually represents the actual in
vestment, with occasionally a judici-
Gus addition cf moisture for adhesive
purposes. syndicate profits and a.
forth, and the stock issue usually rep,
resents fictitious valuation that the
patronizing public are squeezed to pay
dividends upon. Prosperity" in
railroad finance, means a sufficient
volume of traffic or the charges high
enough to pay dividends on watered
stocks, and hard times may mean
nothing more than the ability to pay
operating expenses and interest upon
the actual investment. Value Is
relative term: in it's commercial sense
it is based on productveness. II earn
ing capacity is an element to be con
{ sidered in estimating the Commercial
value of a railroad property why no
use the same basis for arriving at III
5 taxable value? Consider, II yo'
? please, cost OF construction, but con
, sider also the just earning capacity
rhe Santa Fe line from Seward t
5 Cashion cost for construction less pc
: mile than the El Reno and Westen
2 from Guthrie TO El Reno. The Sant
Fe branch. being part OF a great sys
/ TEN. and used as a buffer 70 choke OF
! the competition of another great sys
e tenn. earns over $4,000 per mile eac
1 year The El eRno line does not quit
Z pay operating expenses and interes
on it's bonded debt, aud both pieces q
property are assesse for taxation q
: about the same yalue,-if anything
z the El Reno line rays cn the highe
y valuation. This is unjust The il
+ tangible element the franchise value
b the productiveness OF one property,
q a great deal higher than the other. n
/. system of taxation for public seryic
n corporations can be devised that wi
be fair and equitable in It's operation
y that does not take into considerable
l. its franchise as an element Of valu'
l. OF course. these views may not pleas
J. Mr.. Asp. That is hardly to be e.
2 pected the trust magnates who ow
o the Santa Fe railroad would not lik
+ il; the gentlemen who have cleane
d up over siOO,OOOO00 OF what Tol
Il Lawson calls made dollars" in les
s. than ten years by the increase
S yalae OF Santa Fe common" woul
!. not like IT, There are S102 00O,O 600 {
n Santa Fe common stock outstanding
a just a few years ago. II had no mark,
a value whatever. Il Is selling today q
r. the New York stock exchange
/. above par That selling value
e based absolutely upon its earnir
% power. and nothing else and that
y the basis npcn which the people
a Oklahoma should estimate the taXab
a value OF the Santa Fe railroad, and
D. every other public service corporate
e in the state
q / want to say that the question
IS corporation control Is no partisa
II question Il is a question upon whi'