Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-03-24
GIVEN RIGHT Of WAY
BILL TO TAX MONEYS AND CRED.
ITS OCCUPIES TIME IN
SENATE.
MERITS ARE PRESENTED
BEFORE LARGE AUDIENCE
Bankers and Others From All Over
State Gather to Watch Proceedings
Proposal to Make Law Effective at
Once-Saunders Makes Losing Fight
For Terminal Tax Sill.

Special to Times Republican.
Des Moines. March 24.-Tle bill or
moneys and credits occupied the time
of the senate yesterday afternoon in q
very Interesting and instructive dis
cussion on the latest form of the COM
mittee bill. The bill provides that on
all moneys and credits there shall be
levied Il straight mill levy in lieu OF
all taxes. based on the full value of the
same. This is To apply t. all moneys
and credits and all forms OF capital
except that which is in the stock of
banks and trust companies and money
used in competition Herewith on this
stock ana similar forms of capital the
ordinary local taxation is to apply on
an assessment Of 20 per cent Of the
value as against % per cent for other
forms of property. on the first part
of the bin the committee on ways and
means agreed. but on the latter there
was Disagreement which found express
sion in an amendment proposing 12ia
per cent in lieu of the 20 per cent pro-
posed.
On the floor the bill was amended by
adding an emergency clause to make it
go into effect at once. but also :, clause
so that as regards the assessment of
moneys and credits ii shall not apply
this year because that assessment is
already made As for the assessment
Of bank stock it is necessary that the
bill go into effect at once or this form
OF property VIII escape entirely for this
year. the decisions of the court having
left all laws null on that subject
Senator Smith Of Mitchell. presented
the merits of the bin for the committee
ana in half hour fully explained what
is Involved and why. 1t was an APP
preciativc audience for BANKERS and
others had gathered from all over the
state to look after this particular bill
and 70 urge its passage. The senator
presented il as at least one step in the
direction Of evening up the laws OF
the state so as to avoid the clumsy
pena,izing of those who take their capi-
tai to the cities or have the patriotism
to leave it in the state. Others who
discussed the bill We're Weber, De-
Wolf, Francis. Hammill and Ames.
The bill Was not finished Thursday
evening, but left as unfinished business
1t was regarded as of such importance
that other Very important measures
We're set aside for il.
Saunders Hard Fight.
.Altho it VS. hardly to be expected
that the Saunders bill for terminal
taxation of railroads would pass the
/, senate. the senator from Pottawattamie
made gallant fight for the measure
and presented an argument that was
hard to meet. He gave a brief history
of railroad taxation in Iowa and Show
ed how it was that the state finally
adopted the present inequtable and
Ubiquitous system of taxation by which
the railroad values are distributed
along the right of way on a mileage
basis with the result that the railroads
Of the state are under-taxed and the
distribution is bad. He stated that
originally the railroads We're taxed on
their shares Of stock at the principal
place Of business i'll the state, which
system gave all the tax to a few coun-
ties, and on discovery of this the cities
and towns commenced to tax the rail-
roads the property within their
/ limits. They made good in this and tbs
court upheld them. A crusade followed
50 that in the session of 1872 q great
change was made and the tax levied on
the gross earnings or receipts. This
was afterwards changed to the present
system. He pointed out that as a mat
ter of fact the present system was
, cleverly designed as a compromise but
was in fact a great victory for the
railroads for it placed their taxing val
ues where the tax is least-in the rural
districts. 1t was the device by which
| the late Judge y. NJ. Hubbard succeed :
| ed III fooling everybody and getting the
| best possible terms for the railroad $
| At the close of the session he gave a
| great Qualification banquet to celebrate
| his victory
| Senator Saunders showed by the fig
ures that railroads in Iowa are not
! For instance, in Wisconsin and Mime
| sofa they pay an average of $500 q, mile
| taxes, and in Michigan $3.50 q mile;
| while in Iowa they now pay only about
| s270 mile.
The complaint against the system
however. is that it takes values from
where they actually are and taxes these
| values elsewhere.
| There was not very much argumen-
against the measure, but there were
| twenty-nine votes in opposition. 1t wa:
| contended and with consistency tina
the railroad is 6 Uni. and that tn.
terminals would be as useless as thu