The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-08-18
HAS
new idea FOR
ASSESSMENTS
Would Base Valuation of
Railroads of State on
Their Earnings

Bismarck, N. D., Aug. 1s.-Rail-
road properties in North Dakota are
experiencing an abnormal increase
in value as result of the activities
Of Chairman Frank e. Packard OF
the state tax commission. Last week
Chairman Packard advised the state
board of equalization that the as
sessed valuation of North Dakota
railways was too low by fifteen per
cent. The board boosted the valua-
ton to the extent suggested and in
vited the railways to come in Aug.
% and talk 1t over. Today Chairman
Packard came in with a new. idea
which is that the assessed valuation
of railways on basis of earnings
and with the earnings and assessed
valuation of North Dakota farm
lands as a criterion should be 20 per
cent higher.
The difference in the assessed VAL
uation of important railway. proper
ties between the totals fixed by the
state board of equalization in 1915
and the values which Chairman
Packard now asks the board to
adopt are as follows:
1915 1917
Great Northern $50. 152.O4s $2s.S4S, s3S
Northern Paci-
fic 80. -. 16.1S2,ss7 25,44s, 4sS
500 Line 49,. 10,759,145 1924 14
Milwaukee Line 3,494.698 4,463,017
Midland Con-
tinental 80. 2ss.Os4 26s.s1s
Farmers Grain
Co. -. 2SS,lSl 34S,71T
CHI ago &
Northwestern 125,9S9 1918
Changes are made in a number OF
cv1 liar Y1rnrnrffoC "a totals hAfrcr
for 1915, $5L340,543: recommended
by Chairman Packard for 1917, $73,-
$40 ,4S7.
Submits Statistics.
In a voluminous report Mr.. Pack
\ ard advises the state board that he
arrived at his conclusions by capital
izing the net earnings at six per cent,
! which he declares is higher net
rate than farm lands of North Da-
kota earn. Farm lands in this state,
according to the tax commissioners
| figures, exclusive of unearned incre-
ment, earn a trifle less than five per
cent on the assessed valuation. He
submits statistics to show that the
CORPORATIONS of the state earned an
average of 1909 per cent on their
capital stock during the last year.
| He finds an earning of 1921 per cent
| for financial and commercial insti-
buttons; 11.25 per cent for public
service properties; SIS per cent for
| industries and manufacturing enter
prises; 1892 per cent for mercantile
establishments, and 81 per cent FOR
miscellaneous enterprises.
To Consider Plans.
The state board of equalization is
prepared to consider Chairman Pack
ards latest recommendations, but
members are beginning to wonder
where some Of the states enterprises
will get off If the practice OF arriving
at assessed valuations by capitalize
ing the net earnings is adopted. Many
farmers elevator companies in the
state last year showed a net earning
of 100 per cent on their capital
stock, which would boost the as
sessed valuation of a $4,000 elevator
to about $50. 900. IL the Packard plan
of assessing were adhered to- A net
earning of $4,000 per annum for a
| farmers elevator company capitaIiz-
ed at $4,000 to $4,000 is by no
means exceptional.
Some light may be thrown on this
matter next Wednesday, when the
railways operating in the state have
their day. In the meantime the state
board will devote it's attention to
county auditors. who are to appear
before the board and explain their
assessed valuations Thursday, Friday
and Saturday.