Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-07-13
RAILROADS OF IOWA PASSING IN
REVIEW BEFORE ASSESS.
ING soARp.
SITUATION DIFFERS FROM
THAT or YEAR AGO
Governor Clarke Physically Fit For
Particip ation-Raiireads TO Make
Determined Opposition to Method Of
Arriving at vaIuations-Adeptsd
Last Ysar-spiey Sessions Promised.
.ecisl to rimes-Republica1,

Special to Times-Republican.
Des Moines, July 13.-Like the hosts
Of an ancient kingdom passing in re-
view before the tax satherers,' the
railroad companies operating in Iowa,
/ by and thru their representatives.. to-
day commenced their annual dress pa
rade before tho state executive council
sitting as an assessing board, that
they may be judged as to how much
taxes they should pay. The council
commenced 'sittings today and will
continue them thru three days, to
listen to representatives CT the rail-
roads, telephone lines. ETC., and all
others who may desire to be heard.
Following this, the council will as
sess the railroads and similar property
then direct the equalization OF personal
property all over the state, and finally
compute the taxslevy to raise the sum
ordered raised by the legislature.
The situation, in one respect, greatly
differs from that Of year ago. 1t viii
be recalled that on the 9TH OF July the
governor was stricken With q serious
ailment. He had not recovered Wnen
the council met to hear from the rail-
roads. He heard none OF the argu-
ments Of the railroad men. He par
ticipated later in the handling OF the
business in only q nominal way, and IN
fact he was far too Ill to give the
matter any real study. But this year
despite hard year.
Railroads to Fight.
The representatives of the railroads
are going to make, first, a very de-
termined opposition to the method OF
arriving at the relative value OF the
different railroads adopted last year.
They will claim that the method Is IL
legal. The council last year bore down
heaviest on net earnings, not the net
earnings as reported, but net earnings
based on an estimated average cost or
operation Of IS per cent to be deducted
from gross earnings This was not,
and could not be, under the law, the
sole element Of value fixing, but 1t was
largely controlling.
Now the railroad lawyers say this Is
all wrong. It was certainly never done
before. They claim that So per cent
for operating expenses is too low. But
it was the basis determined by the In
terstate commerce commission to be
fair. The railroads say it costs more
than 6S per cent of receipts to operate
| in Iowa. n
| Then the railroad people will insist
that the net earnings based Is con-
trary to Iowa law, anyway, and 1t
M <a1y 90
evidence of what the property should
sible to figure up value from the mar
ket price Of stocks and bonds.
To Follow Law.
On the other hand, the governor and
state officials believe that the law con-
templates taking into account all these
| various elements-gross earnings, net
earnings, perfection OF equipment
market value OF stocks and bonds,
character of the market territory. etc.
| 1t will be recalled thai last year
three railroads came near to going
into court to compel the council to re-
duce their valuations. The North
western claimed to have been very
much wronged by an excessively high
valuation. The Great Western filed a
protest and virtually a notice Of intent
to go into court, to have the assess
ment declared unfair, unjust, dis
criminatory and without warrant in
law" and that it was contrary to the
provisions Of the statutes. the con-
stitution of the state of Iowa and the
constitution Of the United States" The
Illinois Central did the same thing and
insisted that it had been valued $2,4SO,-
600 too high.
In view of these vigorous protests it
may be expected that the representa-
tives of the railroad companies will
say some spicy things to the council
this year. 1t is not known whether
any others will appear and discusss
assessments but the door Is wide open.