Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-09-24
CHARGE OF UNFAIR TAX
ON GEORGIA RAILROADS
is DENIED BY GAMBLER

LOUISVILLE, KY, Sept. 22.-Discussins
Taxation in the Southern States" be-
fore the third international conference OF
the International Tax association, Hon.
c. Murphey Gambler, member or the
Georgia railroad commission, denied that
Georgia had been intollerant toward rail-
roads, or imposed unreasonable burdens
upon them. Answering recent magazine
article to the contrary. He quoted at
length from statistics, showing how this
class of properly was taxed in Georgia
and other states, for the purpose of sup
porting his contention that the percentage
of assessed valuation in Georgia was not
professionally high.
Speaking of railroad taxation, Mr..
Gambler said:
Just here 1 may be pardoned for d.
crossing long enough to notice an article
in the National Magazine for August by
Garnault Agassiz, entitled Glorious Old
Georgia.
From this article, quote as follows:
Unfortunately for the state as well
as for the investor. the Georgia railroad
companies have not been given square
deal in the last few years. Take the mat
ter of taxation, for instance.
The total net earnings of all the rail-
roads in the state decreased over mill
the same year the physical values Of those
railroads for taxation purposes, which in
1902, when the franchise act was intro
ducGI, were placed at $50, 900, were in
crea,led from $50, 900 to $12S, 000.O 600.
:" Srhe first assessment Of the Atlantic
Coast Line under the same act was fixed
at $500 a mile. BY 1905 this assessment
had been increased to $1,000 and two years
later to $4,000. which means that the tax
alton of this one road alone was more
than quintupled in five years.
Heavily taxed, burdened by many I'M
necessary regulations, and confronted
everywhere with the spirit of antagonism
to corporate enterprise which in the last
few years has become so marked, the
Georgia railroads can not be expected to
do very much in the way of future in
vestment and extension. If Georgia is 10
be the state she can be. she will have to
be more tolerant in dealing with her
great corporations.
when Georgians are willing to deal
intelligently with the great public utility
corporations, when they are willing to en-
courage capital and immigration, then
and then only will be possible the greater
Georgia that has been the dream of three
centuries.
Had this writer tried to do so. it would
have been difficult to have given the
reader a more unfair or inaccurate state
ment of Georgia's treatment of her rail-
road interests The facts hardly sustain
single statement upon which he bases
his indictment of unfair dealing by the
state.
ct have already stated that prior to 1874
Georgia levied no ad valorem taxes on
railroad property for any purpose; that
not until 1889 were the counties authorized
to levy any and that not until 1903 were
their franchise properties taxed by any
authority, and there is in Georgia today
over S25. 900 900 worth of railroad property
entirely exempt from ad valorem taxation
under old charters. The tax valuations of
railroad property are arrived at by cap
italizing net earnings at 6 per cent,
whereas all other property, much Of
which is idle land and other non-income
producing property, is taxed irrespective
of lack of income from it or expense in
holding 1t.
THE total net earnings of railroads in
Georgia for the fiscal year ending June 80
1907, decreased 81, 600, 600 as compared with
1906 but their gross earnings showed an
increase of $500. 900. while operating ex-
penses were increased over 1906 more than
S. COX, 900, the percentage of operating ex-
penses to gross receipts being increased
to 1859, or about s per cent over the aver
age normal percentage. Net earnings
mean nothing unless the bookkeeping is
vouched for.
1.-THE total tax values of railroads in
Georgia in 1902, the year in which the
franchise tax act was passed, on which
taxes to the state were paid, was SS5,2l2,-