Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-07-14


Railroad assessments were boosted to
about actual value by the time Gov
ernor Cummins got thru with the boost
ing.
Railroads are not operated in Iowa.
and can not be, at 68 per cent Of gross
revenue.
The action of the executive council
last year in finding railroad values was
revolutionary and possibly illegal.
Method of distributing values as
adopted will greatly increase agitation
for terminal taxation law.
Not Entirely Agreed.
These are some of the things put up
to the state officials for consideration in
connection with the work Of the council
as an assessing board. However, the
railroad representatives did not agree
as to every point made. On some things
they differed as widely as they did from
the executive council.
But are the railroads of Iowa now
assessed for taxation at a rate higher
than their actual value? That is
question Governor Clarke is putting
squarely to everyone who appears to
protest against the enormous raise in
railroad assessments of last year. Most
of the speakers evaded or declined to
state. But they were sure that as COM
pared with other property railroad as
sessments are too high.
Baldwin Opens Arguments.
The usual number Of interesting col
loquies developed when the governor
called the sessions for the railroad
hearings. The general subject was
opened by w. w. Baldwin. He dis
| cussed the question of the application
of an arbitrary percentage as that of
operating expenses, and insisted it was
not right, tho willing to accept 1t and
abide by it If the formula called for the
actual operating ratio. He declared that
there are railroads in Iowa where the
actual operating ratio is IS to 30 per
cent and not 68 per cent. The Burling-
ton railroad has not been able to oper-
ate in the past five years for less than
"A per cent.
Mr., Baldwin commended that 1t was
the duty of the council. under the law
to apply a certain percentage to tho
actual value as found ana to scale down
such actual value so as to correspond
with the lower valuation on other
classes of property; and that In no
other way could the council really eff
feet equality of taxation. The governor
called attention to the fact that last
year farm lands were raised 33 1-3 per
cent in assessed value. But their
actual value has been going up much
faster than that" said Mr.. Baldwin.
Carr Reviews History.
Judge Carr, for the Great Western,
recited something of the history of
railroad assessments. He pointed out
that in the seven years Of the Cummins
administration railroad values were
raised for taxation purposes by about
$65, OOO, 900, and during the Carroll adj
ministration about 100000. But in
one year of the Clarke administration
they had been sent up over $50, 100000.
In other words, of the $126,000.000 raise
since Cummins went into office more
than third was last year alone. Either
there was something very wrong with
the assessments in the past or that of
last year. He declared his belief that
farm lands are not now assessed at
much more than SO per cent of real
value.
Judge Carr raised question as to
the reason for the higher rate on the
Great Western figured out from net
earnings, and said it was merely taxing
efficiency or better methods. The rail-
road Is no better, but it Is better man
aged, hence the better showing on which
the assessment was raised.
Other Railroad Pleas.
President FELTON,, of the Great West
ern, said their road had borrowed all
the money they could and put it into
improvements. He said operating ex-
penses of the roads are constantly in
creasing. He believed that the figures
produced in tho advance rate hearing
in the east would show that everywhere
there had been a great increase in ex-
penses and reduction in rates.
Mr.. Polleys, of the Omaha road, pre-
sented additional facts regarding the
showing as to actual land values in
counties of Northwestern Iowa as COM
pared with assessment. It showed that
the actual average assessment is about
So per cent of real value of lands sold.
Mr.. Dudley, Of the Milwaukee, made a
showing as to the actual value of that
property as compared with other prop
erty of the state and protested against
the increase in assessment
Other railroads were represented and
will be heard at length, the council
sitting today and probably day later.
tho not likely to sit tomorrow at the
time of the state convention.