Taxation of public service corporations [ch. 168] this act was extended to telephone companies. Gov. Pingree started a movement to extend this system to railroad, express and car companies. In 1899 [ch. 19] an act was passed creating a state board of assessors to assess railroad, express, telegraph and telephone companies on the total value of their property including the franchise at the average rate of state and local taxation. Within 45 days after the passage of this act the state Supreme Court made a decision which by implication declared the act void. The decision declared unconstitutional the similar act of 1881 applying to telegraph and telephone companies, holding that the tax imposed was not a specific tax and that taxation at an average rate was not within the uniform rule prescribed by the constitution. In consequence of this decision a new act was passed ['99 ch. 179] taxing telegraph, telephone and express companies 3% on gross receipts from business in the state in lieu of all other taxes. Railroad and depot companies continued as formerly to pay a state gross receipts tax varying from 21% to 5% according to receipts per mile. A resolution to submit to popular vote a constitutional amendment authorizing assessment of corporations in the manner declared unconstitutional was defeated at the regular session of 1899 and Gov. Pingree summoned an extra session which met Dec. 18, 1899, specially for this purpose but the resolution was again defeated. By the use of that potent lever, political necessity, the governor was finally successful. On the eve of an impending state and presidential election he again summoned the legislature in special session and Oct. 15, 1900, the desired resolution was passed. It was ratified by the people in November by a vote of 442,728 to 54,757, thus showing the popular strength of the demand for "equality." To carry out the amendment an act was passed in 1901 [ch. 173] similar in aim to the law of 1899. It provides that the state tax commissioners shall ex officio constitute a State Board of Assessors. It is the duty of the board to assess the property of railroad, depot, express and car companies. The term property is defined to include all property real and personal and all franchises, "said franchises not to be directly assessed of public corpora but to be taken into consideration in determining the value of Taxation the other property." Property not used in the exercise of the service franchise continues to be subject to taxation by local assessors tions only. The companies are required to furnish information concerning physical condition, shares, bonds, earnings, etc. The basis of assessment of interstate railroads is the milage of main track within the state as compared with total milage. In determining the cash value of the property of express companies the state board determines the actual value of the entire amount of capital stock and bonded indebtedness and deducts the value of real estate and personal property not used in the express business. A part of the remainder, proportionate to the milage of route within the state, is taken as the value of the property of the express company within the state. In assessing the property of car companies, the state board ascertains the average number of cars used in the state, "such average to be determined by dividing the total number of cars so used by the total number of days on which the cars were used." The cash value of this average number of cars is then assessed. The property of corporations assessed by the state board is taxed for state purposes at the average rate of taxation throughout the state. No part of the tax collected is appor tioned to the localities. In North Dakota also the movement to substitute ad valorem for specific taxes has made substantial progress. The constitution of 1889 requires the assessment of railroads by the State Board of Equalization at the actual value of property and franchises, but previous to 1901 telegraph and telephone companies were assessed by local assessors; sleeping car companies paid an annual license tax of $100 per car, the aggregate sum for any one company not exceeding $5000; and express companies paid an annual license tax of from $5 to $50 for each station, varying with the population of the place in which the station was situ ated, and were also locally taxable on their personal property.1 By an amendment adopted in November 1900 the constitutional provision relating to railroads is extended to telegraph, tele 1 McCrea, R. C. Taxation of Transportation Companies, U. S. industrial commission report, 9:1069. Taxation of public service corporа tions phone, express and car companies. 1901 ch. 26 puts this amendment in effect. The value as fixed by the state board is apportioned to the counties on a milage basis. In the general revision of the revenue law passed by the Colorado Legislature of 1901 the method of taxing the property and franchises of transportation and transmission companies is considerably altered. Under the old law railroad, telegraph, telephone and car companies were assessed locally on real estate including stations and other buildings but not track and personal property. They were also required to make returns to the State Board of Equalization on the basis of which the franchise, roadbed, track and rolling stock were valued and the value apportioned among the counties for the levy of general property taxes. The new law increases the authority of the state board and restricts local assessment to property not used for railroad, telegraph or telephone business. The county assessors meet annually at the state capitol and elect of their number 13 assessors to constitute the State Board of Assessors. The assessors from counties of the first class elect 1 member of the state board, from counties of the second class 2 members, from counties of the third class 3 members, from counties of the fourth class 5 members and from counties of the fifth class 2 members. It is the duty of the State Board of Assessors to assess property of railway, fast freight, express, telegraph, telephone and car companies, but property owned by railway companies and not used for the convenient and proper operation of the railway is assessed as heretofore by the local assessors. Street railways are also exempt from assessment by the state board. The corporations affected are required to furnish the State Board of Assessors information concerning physical condition of property, shares, bonds, earnings, etc. The basis of assessment of interstate railroad, telegraph and telephone companies is the proportion of milage within the state. The basis of assessment of express, sleeping car, palace car and fast freight companies is the proportion of the total railway milage within the state over which the company does business to the total railway milage wherever situated; but the State of public corpora Board of Assessors may make deductions for property in other Taxation states or territories not connected directly with the operation service of the corporate business. Each county may assess and tax a tions part of the total value of the property of each railway, telegraph and telephone company proportionate to the milage within the county. The framers of this law stated their great aim to be the securing of equality and uniformity in taxation. All corporations are to be assessed on the total value of their property of whatever kind. In arriving at the value of the property owned by any corporation, foreign or domestic, not only its tangible property, whether it be within the state, or partly within and partly without this state, shall be looked to by the assessors and State Board of Equalization, but its intangible property, such as special privileges, rights of way, franchises, contracts, rights and obligations, shall be considered, that is to say: the entire business, plant or enterprise, of such corporation shall be valued as a unit, and every element, subject or consideration wherein the use is in inseparable combination with a whole, of which it forms a part, and which gives to the corporation property an added value for the purposes of income or sale, shall be considered in fixing the value for taxable purposes. In Indiana ['01 ch. 81] the existing method of taxing railroads on actual value by a state board has been extended to electric roads, and in Missouri ['01 p. 223-25] this method has been extended to telephone companies. A few states have revised and increased existing taxes on gross receipts but none have substituted that system for the ad valorem. In taxing railroads 34 states at present levy taxes on actual value of property, or of property and franchise, as determined by a state board, but 3 of these states supplement this with a tax on gross receipts. In the taxation of telephone, telegraph, car and express companies, specific taxes of various kinds are much more common.1 For a brief summary of existing legislation on the subject see McCrea, R. C. Taxation of Transportation Companies, U. S. industrial commission report, 9:1045. JAMES RUSSELL PARSONS JR M.A. SECRETARY UNIVERSITY OF THE At the Paris exposition of 1900 European educators expressed the opinion that the educational exhibit of the United States was not only admirable in sections and detail, but would if viewed as a whole show a surprising unity in American education, with a more complete correlation of parts than they had ever before imagined. This unity not only appears to a careful student of the American system but is one of the evident objects toward which yearly legislation more or less consciously tends. Legislation in 1901 showed significant tendencies in organization and supervision. Relations of districts, towns and counties underwent changes in many cases, with a tendency toward consolidation of minor subdivisions. Supervision of teachers and school officers tended as in previous years toward further centralization. Attendance requirements were made more rigid in some states. State and local provision for the support of schools showed a liberal increase. Specially noticeable were the extension of secondary education, the multiplication of free libraries and the increase of instruction in agriculture and the mechanic arts. The consolidation of schools took several special forms. In Indiana1a a law was enacted to the effect that on petition of the majority of voters in a district, trustees might consolidate schools in the same township. In Kansas permission was given to districts with the consent of the county superintendent to close their own schools and pay for the transportation of their children to other schools of their selection. Several other states enacted laws specifying that districts or townships in which schools are suspended or abandoned may provide for the conveyance at public expense of children to and from other schools, as has been done for some time in New York. Pennsylvania granted permission to townships in which districts were consolidated to establish high schools with courses of not less than two years. a Superior figures refer to notes on p. 83-84. |