602 IOWA DEPARTMENT OF AGRICULTURE 



the same as in Nebraska, $905,000 more; if the same as in Kansas, $460,000 

 more; if the same as in New Jersey, $20,500,000 more. The average taxes 

 per mile of line paid by Iowa railroads is less than in any other state in 

 the northern part of this nation, excepting only South Dakota. They are 

 higher per mile of line in North Dakota, Wyoming, Vermont, and all 

 these northern states. 



Further, this letter was sent to the governor of this state: 

 Hon. George W. Clarke, Governor of Iowa, Des Moines, Iowa. 



Dear Sir: In accordance with my statement the other day to the 

 executive council, I am enclosing two copies of a summary of replies to 

 letters concerning the per cent of taxes paid on the earnings from town 

 and farm property. 



These percentages have been computed from figures submitted to me 

 covering eighty-seven representative town properties and seventy-eight 

 representative farm properties, scattered throughout the state. The 

 method of selection was as follows: Letters were first addressed to the 

 state representatives, county treasurers, and principal bankers, in nine 

 representative counties (three southern, three central and three northern), 

 requesting the names of a few representative owners of farms, renting 

 for cash in their respective localities. Similar letters were written, re- 

 questing the names and addresses of owners of town properties, in nine 

 other representative counties, similarly distributed over the state. Each 

 person was written whose name and address was sent to me. All replies 

 that could be used are included in the summary. 



These figures show that the taxes paid make an average percentage of 

 14 per cent on the gross earnings of farm property; and, further, the 

 taxes paid on town properties make an average percentage on the earn- 

 ings of town property of 14.9 per cent. A technical objection to this 

 average percentage is that in a number of instances the earnings and 

 taxes from several properties were bunched, which would thereby deprive 

 each property of its individual effect on the final average. But a glance 

 at the series will disclose that this would have no substantial effect on 

 the final percentage, which is approximately correct. 



Comparing these taxes to those paid on a few of the principal railroads 

 In Iowa, we find, whereas the percentage of taxes paid to the gross earn- 

 ings from the representative farm properties in Iowa is 14 per cent, and 

 from representative town properties it is 14.9 per cent, the percentage of 

 taxes paid to the gross earnings on the principal Iowa railroads range 

 from 3i{. to 4% per cent. 



The owners of town and farm property in Iowa are paying several 

 times as much taxes as are the railroads, in proportion to their earnings. 



This information is very instructive on the proposition as to whether 

 the town and farm properties of this state are bearing their proper portion 

 of our taxes. At first, I thought the percentage on net earnings would 

 be of some significance. But when it was stated at the hearing by all the 

 principal railroad companies, that not one of their branch lines had any 

 net earnings, that method of apportioning taxes would, of course, mean 

 that no taxes whatever would be paid on over one-half of the railroad 

 mileage in the state of Iowa. I challenge the justice of their method of 

 bookkeeping, on the mile-pro-rate basis. It is contrary to the recom- 



