The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1923-01-23
TAX PROBLEMS
|ENTER FREIGHT
| RATE CONTESTS
Borah Points Out That
Increased Assessment
Has Direct Bearing on
Carrier Charges.

/ Carrier Charges.
BOISE, Ida, jan. 23.-Variou
bodies meeting in Boise and oths
klaces recently in Idaho that hay
&taken up freight rates have bee
Interested in the reasons given b
Senator Borah in a recent speec
the senate, in which he called al
ention to the increasingly heav
SArden OF taxes which the railroad
Bave to carry and stated that som
$elief must come to them befor
teight reductions OF material dimen
kons could be expected. He said:
We discuss considerably in
| these days the question OF reduc-
| ing freight rates; and the reduc-
4 ton OF freight rates is an in
dispensable step in the recovery
OF our producing classes. because
at the present time the freight
rates are such as to take away
all possible profit from that which
they may produce. 1t will be yer,
tfiicult to reduce freight rates If
we continue in this country to
increase taxes upon the railroad
as we have for the Jas, four
] years. More than one half OF all
| the net earnings of the railroads
which | shall mention was taken
during the last year to pay taxes
lie mentioned the Santa Fe
hicago & Northwestern, c. NJ. &
Paul. Great Northern. Southern
5acific and Union Pacific.
TAXES JUMP SHARPLY
lie pointed out that in Idaho taxes
y railroads were $40 mile in 1916.
y, had risen to SASS a mile in 1920;
! Oregon from $3.50 to STOOL in
lat time; in Washington S772 to
POO The nationwide of this burd-
was shown by the statement that
BASS \ roads through the country
I'D their taxes increased in steady
hnual jumps from $6800.l2 per mile
Nlol6 to Sll79.05 in 1921. or in to-
i figures, from $ls7,1l3,372 in 1916
y t275sS82,150 in 1921. On these
lass railroads the taxes paid in
12l were almost three times as high
in 1911.
In the same time the total operat-
* revenues had only doubled. The
|ilroad taxation for 1922, now pay
|le. is estimated at S300O00.00O.
FThe interstate commerce commits
p was quoted as showing this
)rden OF taxation is not only ma
kn-wide but of long standing;
The large increase in operating
Expenses and in taxes were the
heif causes for the diminishing
Jet returns of the railroads upon
heir investments. OF these two
Expenditures the taxes were by
Var the more influential factor.
The commission with prophetic
ion added:
FThere is no reason to assume that
3 burden laid upon these carriers
the form of taxes will be less
the future.
Hit Producers
Senator Borah also points out the
Ct that these increasing taxes on
C railroads mean 'incrsasing taxes
directly levied, upon tbs producers
ID shippers OF the country. He said:
That (the tax burden) comes
back upon the producer. upon
the shipper. II is part OF the
taxes which he pays, ultimately
end inevitably. as much as il they
were levied upon personal property
or upon real estate. These public
utilities must collect this money
IRON but one source. and that is
from those who ship; so. as a
matter OF fact, it is another form
OF tax directly upon that class OF
people.
Opinion was expressed at the meet
& referred to that. Senator Borah's
statements disclosed that material
eight rate reductions are unlikely
the policy of increasing 'railroad
& & Wxf~r'''A'' shall be ''"''"-
The belief wssiaIsdlspressed most
,phaiieallx-ttat Hs.ss sne policy with
ference 10 other utilities, such as
ephone. power. etc. in wlstever
'm the increases might take would
4 only make reductions jn service