Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1915-08-22
STATE MUST ADD
FIFTY M|LL|0NS
TO TAX ROLLS
Shrinkage in Revenue from
Oil Inspection of
100000.
DURAND'S VALUATION IS
ATTACKED BY RAILROADS.
Owing to Decreased Income
Forced to Raise 100000
More Annually.

Confronted With the problem Of
raising 100000 more to run the state
government for the biennial period,
the State Board of Equalization yes.
terday heard the representatives of
the various railroads upon the values
to be used in taxing their property.
While no member of the board is in
a position to say just how the raise
in valuation of taxable property is to
be spread. it is imperative that $780,
100000 be added to the tax rolls to
yield the necessary 100000.
Additional income needed has not
been necessitated by reason OF any
serious increase in the cost OF state
government, but is due almost wholly
to the loss of revenue from oil in
spection. The state, since the com.
panies litigated the fees charged for
years has been deprived of $4,000
year for a period Of years. This
creates shortage in income of $780,
900 for three years.
This revenue must b, made up from
other sources. Tho members Of 9
boald of equalization are making an
exhaustive study into the valuations
of u4e various taxable property and
it will be a week or two before any
definite decision Is arrived at.
Farm Land Taxation.
Representatives Of the railroads
yesterday laid particular stress upon
the low tax valuation Of farm lands
in proportion to their value. The
Great Northern has had agents busy
in the thirty counties, through which
that road operates, to ascertain BY
examining recently recorded deeds
the actual selling value Of farm lands.
Including buildings they have found
that the valuation for taxation pur-
poses is only about 1876 percent Of It's
actual value while taxation on rail-
road and other property is in excess
of 20 percent running in some in
stances as high as 24.20 percent.
All the railroads resented further
increases in their valuation for taxa
tiOn purposes unless other property
in the state was compelled to pay the
same percentage on the valuation.
James Maher, tax commissioner OF
the Great Northern. made the chief
argument for the railroad interests of
the state. He took issue on many
points with DR.. E. Dana Durand. for
mer director Of the United States cen
slls, but now p ofess0r in the Uni
versity of Minnerot:, who was en-
gagged by the tax commission to pre-.
sent plan of assessing the railroads.
He declared that the unit rule of
arriving at valuation as applied by
DR.. Durand was economically un.
sound and not upheld by precedent
or the best tax experts.
Durand An Rmateur.
When questioned by the members
Of the Board of Equalization, DR.. Dur
and admitted that he had never ap.
peared before a state taxing board
and that this was his first appearance
as tax expert. He also admitted
that his methods at arriving at the
taxable value of the three chief rail-
roads in the state was necessarily
rough at best. On only one point did
DR.. Durand refuse to yield and that
was that six percent should be taken
when a railroads commercial value
was being computed from capitah-
zation OF its earnings. Representa-
tives Of the railroad insisted that
seven percent should be used.
Both Mr.. Dllrand and Mr.. Maher
were at wide variance upon the sys'
tenn to be used in computing the
value of a railroad for taxation pur-
poses. MIR. Maher contended that a
number of factors should be used
while DR.. Durand sought to resolve
the computation almost strictly upon
the commercial value Of the railroads.
He arrives at this value by capitaliz.
ing the gross operating earning ca.
pacity at six percent.
Mr.. Maher exploded this theory by
citing court cases and precedent to
show that seven percent should be
used. 1t was also shown. that In al
most each instance DR.. Durand had
used abnormal factors in which to ar.
rive at his values. His figures had
been SO worked UP that there was an
apparent effort to fix the values arbf.
trarily and then envolve a system OF
COulDuCdLlUu Wu1CH WAOA oPPAAOW
would produce those values regardless
Of the actual factors governing the
situation,
Childish Figuring.
In arriving at the valuation of the
Milwaukee for instance. Mr.. Durand
took the stand that the value per
mile Of this road should be fixed by
anplying the average mile valuation
placed upon the Great Northern, Nor
thern Pacific and 500. He defended
this merely on the ground that it was
a convenient method Of computation.
This aroused the ire Of A. s. Dud-
ley of Milwaukee, appearing for the
St. Paul road who declared hotly that
Mr.. Durand had taken a partisan view
of the matter and sought to impose q
Continued on page two.)