The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1910-11-01

iiHSi Ue rOnHlucltulI DIN loi iftdt buHi-
moss which Is done within the state,
domestic or intrastate business, the
property Of the railroad outside Of
the state Is immaterial In my affl-
dayit IN the tax case, i especially say
that the valne put upon railroad
property In Oklahoma Is based upon
d consideration Of both the tangible
and intangible property. and Of the
Income Of the road. and all It's uses,
franchises, rights and contracts and
property OF all kinds whatsoever: In
other words The rule BY which rail.
lroad property must be taxed In Ok
lahoma Is to consider the Santa Fe
railroad as one unit from Chicago to
| San Francisco TO value II as unit,
a separate entity, and then to take
such a proportion OF the whole as
the miles in the state Of Oklahoma
bear to the whole number of miles
owned or operated by the railroad.
That Is the method required by the
law Of Oklahoma; II Is the method |
followed In stating my opinion OF its
value for taxation It VIII appear al
once uhat In such a consideration
very valuable property must be con.
sidered which Is not In Oklahoma
and has no bearing upon the domes-
Tic state business done within the
state Of Oklahoma. For instance,
there are enormous terminals at Chi.
cago, San Francisco, Los Angeles,
Galveston, also at Topeka. Kansas
City, there are enormous shops, coal
properties in Colorado. there Is a sur
plus Of thirty millions of dollars that
should be in cash, and there are 9TH
er valuable rights that have no bear
ling upon the question Of what prop.
erty Is used when fixing rate for
transportation from one point In Ok
lahoma to anoth, point In the state.
The wharyes at ,salyeston, the shops
! at Topeka, the coal rights in Colora-
do, the thirty millions of dollars sur
plus in the very nature of things
cannot In any way enter into the
value Of the track when going from
Guthrie to Oklahoma City The ques.
ton In the rate suits was what is
the value OF the property OF the rail-
roads which Is used when transport
ing property within tho state of OK.
lahoma. The civil eridneers of the
Santa Fe road had maie a detailed
estimate of the value OF that property
located in the state of Oklahoma, and
the civil engineers for the katy
had done the same for that road.
show in my affidavit that those civil
engineers of the road had valued the
Katy at something less than $4,000
per mile on the average and the civil
engineers OF the Santa Fe at about
$4,000 per mile on the average. That
was what those men who had knowl.
edge of the physical value of those
roads In Oklahoma thought they were
worth. Therefore If had taken their
figures as the basis of the value OF
the property used in Oklahoma for
domestic transportation, certainly
could not be criticized by the roads
bore In mind the fact. however. that
Governor Stubbs, of Kansas, had tes
titled before the Interstate Commerce
commission in Kansas City, about
four years ago, and he stated the
average value OF the railroads OF
Kansas were worth about 5000 for
main line and $4,000 mile for
branch lines. without equipment, and
therefore concluded tnat the aver
age value Of such roads In Oklahoma
according to that point of view must
be about S25,O00 mile with full
equipment. | also bore in mind thai
Mr.. Nudge, the vice president ant
general manager of the Rock Island
who for 20 years held very prom
inent position with the Santa Fe. haC
testified in Oklahoma In January
1907, that when the Rock Island was
reconstructed in Oklahoma IL wOnl,
be worth about $4,000 a mile. and
bear In mind that Mr. Nudge was try
ing to fix high value upon its re
construction. 1t must therefore be ap
parent that the value OF $4,000 a mil,
for the Santa Fe and the Katy In Ok
, lahoma, when one considers the prop
: erty used in the transportation o
J domestic business in the state of OK
: lahoma, was a large, not a small
valuation. | expressly stated in m.
affidavit that the property of the NJ
X. & T., the A. I. & s. f. and the G
G. & S. f. companies, was not o
greater value than the sum of s25
900 per mile for both state and inter
state business that is that that proI
erty In the state OF Oklahoma whicl
was used for both businesses did no
have value greater than the hgur
| have given. There Is property II
the state of oklahoma that may hav
been used for interstate business tha
was not used for state business whicl
should be added but what | had il
mind was the value of the propert
in the state used for domestic bus
ness that was the subject the cour
was investigating, that is the rate
made by the corporation commissio
for business done within the state
and not rates made for the transpol
tation of property from one state L
another, which Is matter wit
which the corporation commission hl
nothing to do. ! find that other nel
sons agree With me that propert
may have a different value for ti.vf
tion than for regulation The 81
preme court of the United States i
the case of Wilcox against Co1sol
dated Gas company, 2l2 u S.. e,
pressly stated that If the gas con
, pany in New York was charging Sl0
, for gas when II should charge 5
cents, that for that reason the prol
erty OF the gas company In New Yorl
, as long as II charged Sl.OO, SHOULD fc
ltavaffon ha vpltau MANY million