Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-07-31
1TATe MAY HAVE DEEM VICTIM
or shREwoNEss OF NAIL.
ROAD ArroRnEys. j
SNOW PRovERrv ON IOWA
DusiNEss pEselTE PROPERTY
Manner Of Distributing Values for A..
easement Purposes Also surrounded
With Mystsry-v Based on
Branch Lines and Not on Whole
Property Of Various Systems.
Special to Times-Republican.

Des Moines, July 31.-Has the state
Of Iowa been for years tho victim Of
the superior shrewdness of the at
torneys for the railroads in the matter
Of assessment, showing as to earnings,
distribution Of values, ETC.? Two very
large and interesting questions have
been raised before the council. It will
not be surprising If the state officials
bring forth startling changes because
Of these questions.
The first relates to the showing of
earnings Of the railroads. There has
long been considerable mystery as to
how the railroads have always been
able to show SO much poverty on Iowa
business amidst such general prosper
ity. The key has been found. The
railroads do not report to the state
tho same distribution Of earnings to
the branch lines that they make in esti-
mates for their own use.
The other relates to the manner Of
distributing values after found for tax
alton purposes. Main lines and branch
lines are treated as separate railroads,
assessed differently. and the values dis
tributed accordingly. while apparently
there is no warrant for this in law and
each company should be treated as a
whole. The change to this system would
affect taxable values all over the state.
As to earnings Of lines in Iowa the
state executive council long ago adopt
ed rule that shipments partly In the
state and partly outside should be as
to the proportion Of the haul or carriage
by actual computation. This is In ac-
cord with the custom established many
years ago. 1t applies also to dividing
earnings as between branch and main
lines. 1t IS all on the mileage basis.
But Mr.. Thorne put 1t up 20 the council
that as a matter Of fact the railroads
do not divide on the mileage basis when
doing business among themselves or
with each other. Formerly, the main
line gave to the branch line so or even
60 per cent Of the earnings for the
business, regardless Of distance. More
recently the division is on the basis Of
25 per cent Some years ago COM
mittee Of the North Pacific directors
reported in favor Of more branch lines,
basing It on the theory that branch
lines pay, since they bear the cost of
getting the business and that division
on a mileage basis does not show real
conditions.
Iowa Basis on Mileage.
Yet In Iowa, where great deal more
than half the mileage is reported as
branch lines.s.the basis is on mileage
This system results in making a poor
showing for most of the Iowa roads
It explains why more than half the
mileage Of the Burlington, for instance,
is reported as suffering an annual loss
A revision of the rules as to manner
Of computing the earnings of branch
lines as compared with main lines
would work wonders in the annual re-
ports Of the railroad companies in Iowa
If systems were to be treated as a
whole, instead Of piecemeal. the value
shown would be enormously increased
The code seems also to mean that
railway systems shall be treated as a
whole. especially in the distribution of
values. 1t provides for reports as to
mileage Of side tracks, branches etc.
but not separate reports on earnings
and business: then it is also provided
that the distribution Of values for tax
alton purposes shall show "the length
Of the main track within the county
and the assessed value per mile Of the
same as fixed by ratable distribution
per mile Of the assessed valuation Of
the whole property"
But the distribution has always been
not according to the valuation Of the
whole property but according tc
branch lines and divisions separately.
To make the change suggested would
place every mile Of each OF the systems
on an exact equality with every other
mile. Townships on the main lines
would get no more value than those on
branch lines.
These two questions which along
with the demand for an assessment in
accordance with the showing as to
commercial value of the railroads, are
causing members Of the council no end
of worry.