Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-07-16
UNCERTAIN As TO WHAT COURSE
TO TAKE IN REIMBURSEMENT
OF TAXATION.
RAILROAD REPRESENTATIVE
PAYS RESPECTS TO COURT
Must Officials Follow State censtitu.
tion az Interpreted by Courts, or Obey
the Order of the court?-Thorne Ex-
podes Bomb in Railway Camp
Figures Do Not Correspond.

obey in regard to the assessments AMI
adjustments of assessments of Iowa
property?
Is the state constitution, as inter
anty of equality for all, to govern;
or is court order to be taken as the
higher law which must be obeyed?
The executive council came bump up
against these questions in the hearing
on railroad assessments. W. w Bald
win raised the questions. He paid the re-
spects OF the railroads to Judge Bren-
nan and his order 10 the council as 20
how 10 exercise its discretion in the
making of assessments.
IF You want TO know what l think
about that order he said. L will say
that l do not think these state officials
sitting here would undertake TO tell
Judge Brennan OF his duty in any
matter involving his discretion: and
Judge Brennan ought not to under
take to tell them what to do in mat
Ter which involves the exercise of their
discretion
Reviews Assessment History.
In view of the fact that two OF the
three members Of the council present
have had no previous experience In as
sessmect work, James c. Davis, for the
Northwestern, gave a brief resume ot
assessment history. When Governor
Shaw closed his term, Mr.. Davis said.
the railroads OF Iowa were assessed
at about $3.50, 100000 and at that time
agricultural lands were assessed al
from s36 to s37 an acre. With the
Cummins administration the council
commenced 10 move up the railroad as
sessnaents in order to secure equality
as between classes of property. This
increase of railroad assessments con-
tinued until last year the aggregate was
1855, 100000 or an increase in eleven
years OF II per cent. But the net earn
! ings of the railroads was about ST.
| 000, 900 last year or the same as eleven
years before; in other words, il re-
| quired a business of $4,000 last
year to earn as much as on s54.ooo.ooo
| eleven years before. The railroads Of
Iowa last year earned about 6is per
| cent on the taxable value. But farm
lands are worth al least 800 an acre
and are not assessed at half that
value.
A good deal was said during the
hearing about the physical valuation
of the railroads which is being under
taken by the interstate commerce com
mission. The opinion was expressed
| that 1t would be absolutely of no value
as a basis for taxation. The repre-
sentatives of the railroads made much
of the theory that the basis of value
for taxation is not necessarily the basis
Of value for rate making.
Contention Of Railroads.
| ". W Baldwin, for the Burlington
presented clearly the railroad side o.
the issue as between different classes
Of property He declared the Burling-
ton has about go miles of good road
in Iowa and 1000 miles Of very poor
road. On this 1000 miles or twenty
three branches. there is no profit. He
could give illustrations showing what
some of these branches actually cost
since it has been assumed that an!
property is worth what it sells for If
the market. The Fort Madison road
had been in the hands Of q receiver
ard did not sell for enough to pay the
costs OF the receivership. Another line
Ion which there is loss OF s6SS veal
PER mile cost $4,000 a mile and is as
sessed at $4,000 a mile. The his
tory Of the Atlantic road WAS giver
to illustrate how railroad property de:
preciates.
In regard TO the valuation Of the
stocks ne figured out that on this has;:
the Burlington lines in Iowa are worth
s27 zoe mile and are assessed a
SIS, 900 q mile. He quoted from Gov
ernor Cummins as 10 what retur,
ought TO be made on railroad prop
erty. fixing it at per cent, ana
showed that the Burlington earns
per cent on s26,700 a mile.
Mr. Baldwin read from the Brennan
decision and showed that TO conform
- =. in shirt it would De necessar.
TO give due regard to the highest las
Of the land. the constitution, and Sc
to it that all classes of property bea
equal tax burdens. If the council is Il
arbitrarily raise valuation to full mar
ket value Of all property the burdeI
will fall mostly on the owners of rea
estate.
The railroad companies having pre-
scented their side Of the case, showins
the necessity for reduction in thei
assessments in order that there Nigh
be compliance with the law. and tina
railroad assessments are and hav
been all along far above what the.
should be, the turn came for some in
formation on the other side.
Thorns Expiodes Bomb.
Clifford Thorne threw a bomb int
Z the camp, so to speak, by presenting
the council with figures that did no
fit in we'll with the statistics presente
: by the railroads. Some time ago tn
q Iowa League of Municipalities aslSe
n him to prepare and present to tn
r council a compilation of values a
o shown by the actual sales on the mar
a ker OF the shares OK steel: which ren
;resent the railroad values. AS this
: q matter in which the public is deepl
e interested he presented to the counc
n yesterday the result OF his investiga
i ton into this phase of the subject.
# The value Of the railroad property
II Iowa is found % be ct least 100000
e 900 greater as shown by the actu:
q market sales Of the stocks and bond
than that upon which assessment
3. made
If the railroad companies paid
{. fo~a L. saxas ner mile as much as
paid per mile on an average in all Il
: northern states from Maine to the Ps
az