Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-08-09
Gathered in the By,oays
tBy ora williams.l


Ds Moines. Aug. s.-Turnng from
the main highway to the byways It Is
interesting to note the changes OF
dozen or more years in public senti-
ment in one state.
Who would have supposed for in
stance. that following the fierce fight
and bitter contentious Of state officials
and others over assessment matters,
there would be such a revolution that
in fifteen years or less the things that
were denounced anarchistic would be
as absolutely right.
Putting 1t another way. who could
have foreseen that in a dozen years
all Iowa should acQuiesce in the ideas
which when put forth caused the be-
ginnings Of the progressive movement.
and the opposition which forced a par
ty split which grew to national import
ance should all disappear!
That which the state executive coun-
Gil has done. and done unanimously.
and done without a single harsh crit
icism from any source. is substantially
that which was demanded by John
Herriott, state treasurer, when ne was
a member of the state executive coun-
ell. And John Herriott had great
deal more that is usually known with
forcing the break which made the pro-
gressive movement necessity IN
Iowa. 1t will be recalled that prior to
1900. when the progressive movement
eliminated in the election of two pro-
gressives to the state executive coun-
ell. there had been the fierce conten-
tons over the manner of making as
sessments. 1t was John Herriott's de-
mand for a square deal in taxation
matters and especially in the matter OF
taxation Of railroads tina, caused the
coming together OF the square dealers
a year later the movement was SO
st-eng it demanded and secured per-
manent and forceful leader drafted
from private life.
TIE demand OF a dozen years ago
was that there should be newer ana
fairer basis for fixing railroad vaiua-
lions for taxation purposes. For many
years there has been little but guess
work. The meager reports the rail-
roads made were Of small use In de-
termining actual values. Two ways
were suggested for getting at Vaiues
more in accord with what is right
one by finding what the railroads are
really selling or finding out what they
are worth from dividends and proflts
The projection into the discussion OF
these two ideas caused storm. The
progressive individuals who suggested
such innovations were bitterly de-
nounced 1t was said they were rail-
road haters and that alone. Compute
ton on gross receipts was declared &c
be better. And that Idea prevailed.
Blu, time has changed. The reports
tina, railroads make now nave some
meat in them. A grea. many things
have been laid bare in dozen years
that were hidden in the past.
And this year. 1913. the people OF the
state OF Iowa accept as good and right
a valuation Of railroads based primar'
fly on the net earnings capitalization
theory. Nobody kicks.
Il will not be fully appreciated per-
haps for several years that in th'
month Of July jus, passed there wa,
worked out a revolution in taxation
and assessment methods OF far reach
Ing consequences. This Is what wal
done on the railroad assessments
From reports as returned in the pas
five years the state assessing boart
figured out what was the average
gross income for each of the systems
in Iowa or on Iowa business. assuming
that there was proper division o.
state and interstate revenue. Tina
gave a pretty fair idea Of the income
OF the railroads. NoT the. net income
was not ascertained by deducting thu
reported expenses. but II was secured
by deducting IS per cent OF the gross
receipts and then making further de-
duction Of average taxes paid. INT
IS per cent is an arbitrary percentage
based on information as to what
according to the interstate com
merce commission reports. has beel
| the average relation OF expense
| to business done. The net income ar
rived at in this way was taken to b.
Z per cent of the value Of the proper
ties. That is such a simple and fai
| way Of getting at 1t that 1t seem
strange that il should not have beel
| adopted long ago.
And II was done without dissent u
| the council and nobody seems read
| to attack it in print yet. But it Is tn
acme of progressiveness.
+! One note Of dissent has been heard
Attorney James c. Davis, OF tn
Northwestern, has stated that with IN
main proposition he has no quarre
and that the railroads will not den
the fairness of the method OF arrivin
at valuation. But the railroad peop
do feel tina. aloH: WITH this com pasa
ton there should have been consic
Grafton of the physical condition
each property as in some measure a
Offset. In other words, the enormol
expense of upkeep and improvement
and the excessive liability to Wea
should have been put up against TT
comfortable profits of the bushes
And there is some justice In II
complaint. But the railroads haI
never furnished any Information
that phase Of the case. II an error va
committed it Is one easily remedied
the future.
But what would Judge Hubbard ar
lJ. w. Blythe be saying about 1t
, alive? What a chance 1t affords Il
renewal Of controversy between Sna
and Herriott? And how it must r
call to A. B. Cun1mins the vicious q
talks to which he was subjected 4
. doing all he could to make pODS1D