The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1910-07-28

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these lots was sss.ss7. the ratio be
ing al.1O per cent.
Commissioner Polleys. using the
assessment Of farm lands referred
Ito above, says.
"If the assessed value Of acre
property must be multiplied by an
under the statute, you should be able
to multiply the assessed value Of
railroads by Az and produce a sum
not than their fair value. Can
you do 1t? The. average assessed
value o fall railroads in the state in
1909 was $7,737 per mile. This
multiplied by Az gives $34,817 per
mile-a valuation manifestly absurd
for railroads now making gross earn
fngs of only about $1,000 per mile"
Commissioner Polleys goes on to
say that under the rulings Of the
courts, the railroads in South Da-
kota would be entitled to an earning
of at least as much as the average
interest rate, which, he says, is at
least 2 per cent in South Dakota. To
pay seven per cent on last years.
assessed valuation, he says, would!
require net earnings Of $2,45O per
mile which he asserts cannot possib-
ly be made till the gross e%arningsI
reach $1,000 per mile, or double the
average gross earnings of the South
Dakota railroads at the present time.
There should be nc discrimination
against railroad or other corporations
in South Dakota in fixing assessment
for taxation. Neither should there be
discrimination in favor of them.
Commissioner Polleys makes an i'm
pressive statement which seems to
show that the provision of the South
Dakota constitution that the prop
erty Of corporations shall be assess
ed in the same ratio as the property
of individuals, has been violated He
gives, however, only a part Of the
lands of the state although he COM
pares their assessed and real value
with the assessed and real value of
all the railroad property in the state.
Perhaps the average value of farm
land for the whole state as compared
with the average assessed value,
might not show so much difference
in ratio from the figures for all the
railroad property.
But. assuming that the farm fig
ures quoted by Commissioner Pol
legs, are representative of conditions
throughout the whole state, they
may prove either that the farm lands
are assessed too low, or that the rail-
road property is assessed too high.
agree absolutely with the rail-
road company that the ratio should
be the same with each class of
property. That is the law and the
law expresses simple justice. Natur-
ally the railroad company is not urg-
ing that the valuation of farm lands
be raised, for that would take away
its argument for a reduced assess
ment.
The railroad company threatens to
go into court IL its assessment is not
reduced. We hope the company does
that very thing, but we very much
doubt it If the company should set up
in court a valuation for purposes OF
taxation, the STATE would be permit
ted to 8 it as q basis of figuring
the earnings that the company should
be allowed and from the earnings,
the rates 1t should be allowed to
charge. When 1t is remembered that
the average capitalization of the
railroads OF the United States is $57,-
900 per mile, a capitalization upon
which the railroad companies have
undertaken to earn returns for
bond holders and stock holders, the
railroad companies will be slow to
object to an assessment for taxatio2,''
on a valuation Of $4,000 per mile.
The railroad companies cannot pre-!
vent an authorized physical valua-
ton. They can only postpone 1t. And
when that valuation is made, 1t will
no longer be necessary for authori-
ties to guess at values either for tax
alton or for the purpose of regulat-:
Ing rates.
I5sss%WSs5
It is written Of the late President
q un nf tho Monnn rorfo 4hn4 r..