Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-07-13

estimate of the average actual value
Of land would be from s110 to $3.50 an
acre; probably 1920 an acre would be
very conservative estimate. AT a
selling value of S120 per acre the as
sessed value, as fixed by the councn
in 1913, was SO per cent Of the actual
value Of the land. If the fair average
selling value Of land in Iowa is $11o
per acre, the assessed value, as fixed
by the council was 60 per cent OF its
actual value. If these statements are
true, then the railroad property OF
Iowa, in order that its assessed valua-
ton should be equalized with the land
valuation in the state. should not be
assessed to exceed IS to 80 per cent OF
Its actual value.
Road Valuation Excessive.
1.-THE average value per mile of the
railroads Of Iowa, as fixed for the pur-
pose of taxation by the executive
council, for the year 1914 was $3l,472.
If this represents, as in the case OF
farm lands, 55 per cent Of the actual
value. then the assessment of the rail-
roads is based on an actual valuation
of S57,22l per mile, or, of the basis is
so per cent of actual value. then the
actual valuation is S52.4o3 per mile.
when 1t is considered that very
large proportion of the railroad mile
age in Iowa Is branch line, much Of It
operated at a loss, it is quite evident
that the present valuation of railroad
property is excessive. The four large
lines operating in Iowa, the Burling
ton, Milwaukee, Rock Island and
Northwestern, own and operate 7,o31
miles Of Iowa railroad. OF this aggre-
gate $500 miles. or practically 60 per
cent, is branch line, while only S1,535 is
main line.
Capitalization of Net Earnings.
'In 1913 the executive council, with
out hearing from the railroads upon
the proposition, adopted a method OF
valuation known as capitalization OF
net earnings. In arriving at the
amount of net earnings in Iowa ar
arbitrary estimate of the percentage OF
operating expenses was taken, based
as we understand it, upon the ex-
perience Of some railroads in the
United States, and the operating ex-
penses were arbitrarily fixed at 81 pei
cent of the gross earnings.
1T was clearly demonstrated at the
i hearing before the executive council II
| ing expenses was unfair to the rail-
roads of Iowa, and that. by reason OF
the sparsity Of population, excess o,
| branch over main lines, short hauls
| no large cities that create great cen
| tiers of distribution, and many othe:
| reasons, the operating expenses were
much above the percentage as fixed by
| the executive council.
"In statistics prepared by Slasor
| Thompson, who is recognized as an &C
curate and reliable expert, GOVERNS
some 245,o00 miles OF railroad in the
United States the ratio Of operating
expenses and taxes to gross revenue
for the year 1914, was 1888 per cent
| In the year 1904 this ratio was 1921
showing an increase in 10 years of SO:
| per cent.
| Declares Valuation Too High.
According to the reports Of the rail
roads made to the state Of Iowa, the
gross earnings for the calendar veal
ending Dec. 81, 1914, were ss9.95o.
2156o The operating expenses fol
this same period in Iowa were se6,.
s57.72424. The taxes paid by the rail-
roads in Iowa for the year 49,
amounted to 1855, 1926. This made