Omaha daily bee., 1883-01-09
TAXING THE CORPORATIONS

The bold tevaeion of taxen by the
corporations doing business in Ne
bra3kl, hos resulted in a loud demand
from every portion of the state for tho
passage of q law which will compel
them to boar their just proportion of
the burdens of tax stion. Thu feeling
OF the people on this question was
plainly expressed at the last election,
and the present legislature Rtands
bound to their constituents to make o
radical reform in the methods by which
railroad property Is assessed in this
state. Tho board of equalization has
proved q failure. 1t played easily
into the hands of the corporation
attorneys from Its first organization,
and became at once the legalized in
strument by which the railroads
evaded their just obligations to the
state. The method of taxing the cor
porations differs In different states.
In Pennsylvania the state derives an
annual income Of over q million dol.
lars from a tax imposed on the gross
receipts of railroads doing bust
ness within it's limits. A bill
proposing the same method
is now under consideration in the
Legislature Of Missouri, and a similar
measure is to be introduced in the
Nav York senate. ANY method which
will provide q means OF arriving at a
fair assessment valuation of railroad
property wo7ld be preferable to the
system now in operation in this state.
Statistics published by THE BEE
have shown that the railroads of Ne
braska shirk from one-half to
vo.thirds of their taxes upon
the shoulders of the people.
The Union Pacific, whose market
value has been quoted at Sis, 600 o
mile, pays taxes on an assessment of
S11, 35S per mile. The Burlington &
Missouri, whose roadbed equipment
and franchises are valued at over $50, e
600 per mile Is assessed at q trife over
$40, 900. Every other railroad in the
state evades it's taxes in q like proper.
ton.
1t will be the duty of the legisla'
ture to draft and pass such q law as
will relieve the people from the un-
Just burden of taxes placed upon their
shoulders by tsx-sharking corpora.
tions. There Is no reason why the
property of the railroads should
not be assessed at the same
rate as that placed upon
private property. Taxation Is imposed
for the protection of property through
the maintenance of o state govern
ment. No property owners are &C
quick ss the railroad managers
to call for the protection Of the
law whenever their investments are
threatened. But in addition to The
| value of their road bed and equip
{ ments, the corporations possess tran.
: thisls which under the constitution
= arc subject TO taxation. These fran
4 chisos are valuable as an element il
, their income producing power, whiel
= is the true gauge Of the value of th.
a property and appliances of corpora
, tions. Any basis Of assessment whicl
omits the franchises OF corporation
. will fail to meet the requirements o
g tho law or the expectation OF tn
people.
r la taxing the corporations the legia
lature is bound to exercise strict Just.
i Ice. But it cannot be just to tn
l. people of Nebraska If it neglects I
d frame such a law as will take into &C
n count something more than the tangi
10 BILE property of the railroads. Cor
j. porate property must be taxed on tn
l. same basis as other property, but |