REPORT

OF THE

RAILROAD COMMISSIONERS.

To His Excellency, JOHN YOUNG BROWN,

Governor of Kentucky:

The Railroad Commissioners, in compliance with the law, submit their report for the year 1892, being the thirteenth annual report of the Commission.

The present Commissioners were appointed and qualified on the 24th day of May, 1892, and this report embraces but about six months of their actual service in and knowledge of the affairs of the office.

The new organic law of this State, adopted and promulgated in the year 1891, makes the Railroad Commission a constitutional body, and requires that the successors to the present Commissioners shall be elected at the November election in 1895, for a term of four years.

During the six months of service of the present Commissioners various complaints of shippers have been heard, and most of them satisfactorily adjusted; a thorough inspection of nearly all the important railroad lines, their rolling stock, depots and terminals has been made, and the valuation of the railroad properties for taxation fixed.

The latter undertaking was attended with unusual difficulties, and its conclusion delayed, owing to the change by the General Assembly of the revenue law, the new law taking effect November 11, 1892, after this Board had been engaged upon the assessment some weeks, and the Attorney-General giving the opinion that the Commissioners should be governed in the completion of their labors by the new law.

The opinion of the Attorney-General in this matter was obtained by the following correspondence:

OFFICE RAILROAD COMMISSIONERS,

FRANKFORT, Ky., Nov. 18, 1892.

HON. W. J. HENDRICK, Attorney-General, Frankfort, Ky. : DEAR SIR: The Board of Railroad Commissioners met at its office in Frankfort on the first Monday in October, 1892, as provided by law, for the purpose of beginning the annual assessment of railroad property. Not having yet completed the assessment, and in view of the recent legislation upon the subject of railroad and railroad bridge properties, which became a law on the 11th day of November, 1892, we respectfully ask your official opinion, first, as to which act of the General Assembly should govern this Board in the assessment of railroad and railroad bridge properties for the year 1892. Second, what character of bridges are included in the term railroad bridges which should be assessed for taxation by this Commission? The reports of the various railroads to the Auditor, as well as to this Board, from which the assessments are now being made, were made as of date July 1, 1892.

Yours truly,

C. C. McCHORD,

Chairman Railroad Commission.

FRANKFORT, Ky., November 25, 1892.

HON. C. C. McCHORD, Chairman of the Railroad Commissioners, Frankfort, Ky. :

DEAR SIR: In response to your communication of the 18th inst.. I desire to say that, in answer to your first question, I have concluded that the act of the General Assembly that should govern the Board in the assessment of railroad properties for the year 1892, is the act which became a law on the 11th day of November, 1892.

Your second question has given me great trouble in coming to a conclusion satisfactory to myself, but, upon consideration of the entire act of November 11th, and all the authorities I

can find upon the subject, I am inclined to the opinion that the character of bridges included in the term "railroad bridges" are bridges owned and operated by railroad companies. This would exclude independent corporations owning bridges whether or not the railroads were operated from these bridges, and tolls taken from railroads, in common with other persons, natural and artificial, using the bridges.

Very truly yours,

WM. J. HENDRICK,

Attorney-General.

REPORTS OF THE RAILROAD COMPANIES.

The Commissioners were primarily greatly delayed in making the assessment by a failure of a number of the railroad companies to promptly make the reports required by law. Many of them were several weeks late, and a few have made no reports whatever, except to the Auditor. The Commissioners are loth to insist upon an enforcement of the penalty which has been fixed by the statute for such negligence, but are resolved to avail themselves the coming year of every means of obtaining such information as is necessary to intelligently and properly arrive at a correct valuation of the vast interests placed in their hands for assessment.

In this connection it should be said, furthermore, that many of the reports made by the railroad companies are incomplete, important inquiries made in the blanks furnished by the Commission being ignored. To have returned these reports and demanded that they be made more specific would have delayed the collection of the taxes, and, except in special cases of the grossest negligence, this was not done, though a vast correspondence was conducted with the chief officers of the companies with reference to essential details; but it is proposed by the Commissioners to hereafter demand a literal fulfillment of the requirements of the law in this respect.

It is remarkable that with the larger companies, upon which naturally greater work devolved in making reports to the Commission, there was the least trouble. The chief officers of these

corporations showed a most cheerful disposition to afford the Board all the information that could be desired. Their appreciation of the importance of this duty is highly commendable, and it illustrates the wisdom of their management.

The greatest defects in the reports were found in those required to be made by the railroad companies to the State Auditor of the length of their main track, and a description and valuation of their "other property" in the common school districts, as required by the Statute, approved April 2, 1890. From a large number of companies no school district reports were received whatever. Others made only partial returns. The law requires the county school superintendents to report the boundaries of the school districts to the railroad companies. In cases of omission, the railroad officials claimed that the county superintendents had failed to send them the necessary boundaries, or that the lines described were so vague and indefinite, and of such ancient date, they were unable to locate them. A number of school superintendents whom the Superintendent of Public Instruction (who was most diligent in aiding the Commission in this matter) reminded of their duty, replied that they had repeatedly furnished the necessary boundaries to the railroad officers, It was manifestly a mistake to divide the responsibility in this matter. The law should be amended, requiring the railroad companies to ascertain, in their own way, the information necessary to make proper reports as to school districts. It is again noteworthy that upon the larger systems of railroads, covering hundreds of miles, the school district reports are fairly complete, while some of the smaller companies claim they are unable to give any such information. This is a matter of too great importance to the common schools of the State to be allowed to pass over another year without remedy. However, the number of school districts that will realize taxes from railroads this year is materially increased over last year.

INSPECTION.

Beginning in the month of August and throughout September the Commissioners were engaged in inspecting the railroad lines preliminary to the work of valuation and equalization. The