The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-05
FLARES BACK
AT CRITICS0F
RAILROAD TAX
Deputy State Tax Commits
siOner Says Nonpartisans
Made Bigger Reductions
CITES COMP A RIS o N $
High Railroad Taxes in North
Are Held Barrier TO
Lower Freight Rates

The valuation Of railroad property
in North Dakota was reduced by the
Nonpartisan league administration
from 1919 to 1921 a total of Sl3, 1872
S7S while it was reduced by the
Nestos administration from 1921 to
1923 total of but $2,s29, 264, accord
ing to figures of Lyman A. Baker,
deputy state tax commissioner under
both administrations.
The railroads are paying greater
percentage cf taxation under the
Nestos administration than they paid
under the previous administration,
according to. Mr.. Baker. While the
railroads percentage of total tax in
1929 under the Nestos administra
ton was 1880, it was 1921 in 1919
under the Frazier regime, according
to Mr.. Bakers declaration. Explain
ing the railroad tax situation Mr..
Baker said in part as follows:
THE assessed valuation of rail
road property as assessed by the state
board of equalization for the years
1919 to 1923 is as follows:
THE assessed valuation of railroad
property as assessed by the state
board of equalization for the years
1919 to 1923 is as follows:
l9l9-S2lS, 563, 362
S2l6,210,605.
l92l-S205, 400,4S4.
1922 $204 ,357,7T4.
1928 $500, 57l ,22O.
Starting with the year 1919 a re
duction has been made in the assess
ed valuation of railroad property
each year during the last five years.
From 1919 to 1921 the former ad-
ministration reduced the assessed
valuation of railroad property Sl3,-
l62,S7S.
From 1921 to 1923 the present
administration reduced the asses sed
valuation of railroad property 81
S29,264. The assessed valuation of
railroad property as fixed by the
state board of equalization in the
year 1928 is approximately y mil
lion dollars in excess of replacement
value of said property new as found
by appraisement by the valuation
department of the Interstate Com
merce Commission. The assessed
valuation of railroad property is
approximately SO million dollars in
excess of the deprecated value of
railroad property in this state as
found by the valuation department.
of the Interstate Commerce Commits
sion. The valuation of railroad
property as made by the Interstat,
Commerce Commission, according t
Senator LaFollette who has devote,
many years to the study of railroad
valuation, is approximately so per
cent higher than the actual value
Accordingly the present assessed val
uation of railroad property in thi
state is in the neighborhood of 10,
percent in excess of actual valu,
according to this claim.
I'VE do not have complete infor
mation as to the total tax burden il
this state >for the year 1928 nor in
formation as to the taxes levied i,
this state for the year 1928 nor in
formation as to the taxes levied OF
railroad property. The total genera
property taxes levied and amounts
paid by railroads and the ratio o
railroad taxes to total taxes Levied
during the last four years is give,
herewith:
Total Railroad Railwa,
Year Taxes Tax Tax Rat
1919 28,219.804 4,OlO,43O85 14.2
1920 28,899,l39 4,366,44661 l4.6
1921 31,422,054 4,643,0828l l4.7
1922 3O,411,3 1893 4,653,2lO.42 1873
The railroads paid a greater pro
portion of taxes in this state il
1922 than in any years during tn
last four years, also a create
amount in dollars
The state of North Dakota is tax
ing railroad property higher than i
Is taxed in any of the northwestern
states in proportion to the value O
the property within the state. 1t i
also taking greater proportion O
gross income in taxes than adjoinin,
states. For Instance: in the stat
OF Minnesota gross earnings ta
amounting to percent of gros
earnings is imposed by the state il
, lieu OF all other taxes. In North Da
kota we do not have gross earning
property in recent years in Mort
Dakota has amounted to gros
earnings tax of from 10 to IL per
cent. Partly as a result of owe
valuation of railroad property j
this state it is practically Impossible
ii to secure reduction in railroa
freight rates. The fact that Mort
Dakota is taxing railroad propert
higher than other states through
which North Dakota roads operat
must; be taken into consideration il
the adjustment Of interstate freigh
rates.
I'm the year 1919 as result o
the classification and exemption law
Il passed by the 1919 legislative as
sembly there was tremendous shift
ing around Of the tax burden in TIL
state. The assessed valuation {
4 ss = Z. - .,r