The citizen. [volume] (Berea, Ky.) 1899-1958, 1912-12-12
soEstl's REPLY TO PRES. SMITH

rOae tOmThny IN kentucky Tor taN1
ton, with his sworn statement on the
same subject on sle In the Unite
States court a. Frankfort since 1905
In the McChord railroad rate case,
when he swore that the value Of the
tangible property OF the l.. 4 N. Rail.
road Company In Kentucky In 1905
was s7o.5ss, tstsl
AND notwithstandlng which sworn
statement Of It's very president. the
Kentucky Railroad Commission as
rsssed that property IN 1871 Al only
500, l7o.377. although since 1905 the l.
q N. railroad has added 22s miles OF
road TO it's system In Kentucky. &C.
duired much real estate, generally i'm.
proven and greatly enhanced the value
~ the road largely Increased lite
equipment Of cars and engines, and
added TO It's gross annual earnings
from s3s.6ss .seo2s In 1905 to s56.tl5.-
o5o2l In 1911. Which statement OF
the president OF the l.. q N. Railroad
COMPANY will the people believe
that ot Nov 10. 1912. made In q letter
addressed 10 the editor OF the Louis.
willie Courier.Journal. or the 1906
sworn statement made II . court OF
justice7
The Real Question.
The gu. stion 10. what is the value
OF the l.. q ". Railroad Company's
property In Kentucky today Is II. or
10 II not, sufirient TO Justify . total
assessed valuation OF S7<.5ss.4S In
the lisht OF the foregoing facts. and
n the L. q y. railroads sworn state
ments and reports. with which it's
~esidcnt Of necessity 10 acquainted
which have been made TO It's stock
holders. the Interstate Commerce
Commission. Poore's Manual the K',
lucky. Tennessee and Alabama rai
road taxing boards. are worthy at al
OF any measure OF confidence ard be
l!ef, then there can be no doubt that
t7t,59S. t5l. the sum total OF the 1911
assessment OF tangible property for
taxation and the 1912 so-ca'led fran
chise assessment. Ia not unreasonable
urfsir. or unjust The State Poard o.
Valuation and Assessment did no.
have access IN the books Of the l..
n Railroad Comrsny 10 learn thor
It's own record value OF lite system o.
kentucky President Smith has those
bsefs. ast I challenge him 10 give 10
the psblic t..s truth a. to whether or
not the record shows the total valve
OF the L. q N. railroad property in
~ n
Sleo.ooo. coo.
Quotes From Letter.
7 EN- this connection. I desire TO quote
from President Smiths letter:
'Fffth-The report OF the State
Board OF EaualIraton. page 10. shows
for the entire state OF Kentucky a.
s<ooS3 acres, and on page IS places
their eaualized valuation for taxation
Including Improvement. at 3s4s.33s,
es<, or an average assessment OF
Sl<3S per acre for land and improve
nents'
1T 10 believed Of all men that prob
ably oRs-hsf Of the acreage Of Ken
lucky has NO earning capacity what
svsr-that one-half OF the other hall
10 occupied BY people who are wear
Ing II and themselves out In heir
struggles to dig from II their daily
bread. which verify they do earn by
the sweat OF their brows. 10 II pos
sibls that the President OF the l.. 4 n
Railroad Company has Given himself
% long to the greed Of gaining divi
dsads for his conpany's stockhelder,
40 to be insensibls a. to what belon ~
TO humanity, In the name OF com
mos honesty among men. I ask. II
there any element OF human kindness
or fair dealing in making comparison
such as I have above quoted, with
President Smiths Hastodon OF earn
lag capacity. the L. 4 N. Railroad sys
TEN in Kentucky. which, II Its owl
sworn report OF earnings In Kentucky
BY II, made to the Kentucky Railroad
Commission for the year 1911. 10 to b
believed. show II achieving . 9 pei
cent net earning. on q valuation o.
Sii7.245. 800. while the sum total Of III
tangible and franchise assessed valua
ton for this year 10 only s7+.bss+5l
Colonel stones statement
president Smith shows by above
quoted comparison the position OF hi
corporation TO be Just what Its chic
counsel. Col. Henry l.. Stone. proved
II TO be by his manly. frank and truth
full statement. which ! quote below
from l.. 4 N. testimony given befor'
the Board Of Valuation and Assess
nsnt in July. 1912. page eel:
"'Mr. Rich addressing Col. Hsnr!
L. Stone. chief counsel for the l.. 4
Mr.. RJ-Did not your road take n
opposite position before the Alaban,
aad Tennessee Tar Conmissieners7
"'Coi Stone (asgriiy) Il don
know: We try TO get rid OF all thu
taIss We caa.'
my contention 10 this: The L. q N
railroad In getting rio OF all the taIei
II eaa, leaves thereby q greater bur
Gen or the people than they In law o.
morals should bear. AID therefore II II
that the L. 4 N. should be compelled
no longer to get rid Of but rather L
pay its Just proportion OF the taxes.
THE president OF the L. q N. rail
road complains In his letter that hi
compsny's attorneys were not permit
ted 10 see the record Of the facts ans
figures upon which the 1912 assess
msnt OF his railroad was based. On
NJ TIA attornevs Mr. Robert rlemir :