Daily capital journal. (Salem, Oregon) 1903-1919, 1908-07-06
RAILROAD
COMMISSION
HAS TASK
TO DETERMINE PHYSICAL vAL-
UATION OF RAILROAD PROP
ERTY IN THIS STATE FOR PUR-
POSE OF TAXATION.

pNNplS VI OleSOh III iut lace Is
while Washington has 1000 miles of
steam railroad under construction,
not mile is being built by the Har-
riman system in this state, the worl;
that was begun on the Drain and
Coos Bay line has been entirely
stopped and the steel rails hauled
away.
That the Hartman system has
been treated literally and fairly by
the people of oregon is shown by the
light taxation of those properties
that has prevailed. But even that
Is changing, as In the past seven
years valuations of farm lands have
been increased about 800 per cent,
while railroad property is assessed
six times as high as 1t was seven
years ago.
To get at the true valuation Of
the railroads of the state, and also
to ascertain the true valuation of
their lands and stumpage and put
them on the assessment rolls is
ta2k now undertaken by the peo-
pie of this state.
II is believed to be a fact that
the Hartman lines in Oregon can
more money than in any other state
in the Union, and the people want to
know why not a mile of new con-
structlon Is undertaken by the sys-
TEN that has a practical monopoly Of
transportation in oregon?
Conservative men fear II there Is
not more of a policy OF reciprocity
shown by Hartman towards Oregt
there will be radical legislation II
not confiscation as far as the courts
will permit. At any rate the farmer
and merchant who is assessed on the
full cash value of his land and mer-
chandise will not stand to have rail-
road property assessed at one-half
It's true value, and at the same time
have the great railroad kings bsat
none OF the burdens of developing
the neglected areas OF this state.
The convention that has been
called at Coos Bay In August Will
ask for a showdown and renew the
battle for a square deal for Oregon.
A Salem special TO the Portland
Journal has this to say:
The Oregon railroad commission
has undertaken the gigantic task OF
determining the physical valuation
OF all the railroad lines in this state.
Only four states-Texas, Minnesota,
Wisconsin and Washington--have so
far accomplished II. but nearly all
are coming to the conclusion that 4
must be accomplished before the
railroads can be fairly dealt with In
exercising the rate-making power.
The supreme court OF the United
States has determined that the rail-
roads are entitled to earn fair
profit on their investment. The
problem is, however, how these IN
vestments are TO be determined. IN
the case OF Smythe v. Ames the su-
preme court endeavored to lay down
what must be considered in making
an estimation of the valuation of
railroad.
I'm order TO ascertain that value
saws the court, the original cost OF
construction, the amount expended
in permanent improvements, the
amount and market value OF us
bonds and stocks, the present rs
compared with the original cost OF
construction, the probable earning
capacity of the property under par
ticular rates prescribed by statute
the sum required to meet the operat-
ing expenses, are all matters for con-
sideration and are 10 be given suea
weight es may be just and right In
each case"
The cost to the Washington state
commission was approximately $780,
600. The work has just been COM
pleted under the supervision OF an
expert who was paid an enormous
price for his services. The resul'
is regarded as quite satisfactory ana
the work will be foundation and
guide for the oregon commission
to follow.
In states where the physical char
.oristio. are similar 10 those In
oregon and Washington the task
OF determining railroad work Was
comparatively easy. II is state OF
praries and plains. In oregon the
mountainous topography renders II
necessary TO determine each mile
separately. For example the cost
10 the Northern Pacific in building
its roads over the mountains from