Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-09-19
Tax Evasion by the Railroads Receives Ju-
dioial Oountsnascs.
FRANCHISES TAXABLE THOUGH NOT TAXED
Must Be Taken Int Consideration ~ Well
a. Tangible Property.
MARKET VALUE AN IMPORTANT FACTOR
Opinion of Court In Eject says A.
sessment f. All RiEht, but DO
Not Do it That way
Again,
trrom q staff Corresnondent.N J

(From a Stan Correspondent
LINCOLN, Sept. ls.-(special Telegram)
In sixty-page opinion fled this morning
the supreme court denies the application
for a mandamus asked by the Bee Building
company against the State Board Of Equal
ization. The court holds that as the board
is legally constituted a special tribunal for
the purpose Of assessing railroad aud tele-
/ graph property II Is clothed with quasi ju-
dicial powers, and when II has once acted
on sufficient information and expressed an
honest judgment as to valuation It's judg-
ment cannot be controlled by the writ Of
mandamus, which is a writ TO compel action
and not to correct action.
The court holds that in the case at bar
under the evidence the inference is not
warrantable that the respondents acted with
improper motives and fraudulently in max.
ing the assessment complained of, with the
wrongful intention OF discriminating in
favor OF the railroad and telegraph COM
panies whose property was assessed. An
assessment may be treated as fraudulent
when well known rules OF valuation are dis
regarded, where reliable and pertinent in
formation is declined and an arbitrary as
sessment at grossly inadequate hguret
| made.
The court holds, however, that the Board
OF Equalization must include and assess the
value Of franchises with the tangible prop
erty, but that where 1t assesses the prop
erty OF a railroad as a unit and considers
the purposes for which It is used, the fact
that It is earning an income and exercising
the rights OF such corporation, such assess
ment would include the intangible property
also and be an assessment of its franchise.
ia this case the franchises were assessed.
1t is held, too, that the market value OF a
| raj IA
factor to determine cash value of the prop
erty represented by those stocks and bonds.
and that the earnings is evidence OF a most
important character in determining the true
value of the property, is one of the chief
elements that give It value and should be
considered in making the final assessment.
syllabus .or the Case.
Following is the syllabus of the oplnlont
state of Nebraska ex rel. The Bee Build
q "a Ing Company ct ~ against Ezra r. saw
age, Governor, ct al: Original;
L. Pleading construed and held to present
an issue OF fraud I'm regard to the man
ner OF making the assessment complained
2, 1t is the duty OF the State Board of
Equalization to value ana assess for pur-
poses OF taxation all railroad and telegraph
properties Of all kinds within the state,
with the exceptions mentioned In sections
80 and 40 of the revenue act.
3. In assessing property for taxation the
dominant idea of the organic law is that
needtul revenues shall be raised by levy
ing tax on property by valuation In such
manner that every owner of property sub
ject to taxation shall pay taxes In proper
4. The word properly as used in the
constitution is a generic term and includes
whether tangible or intangible.
,. While the revenue act provides for the
assessment tor tax purposes OF all prop,
take judicial notice of the fact that for
general ,T reyeenue purposes tho standard
low the actual cash value Of the property
8, In observing the constitutional rule Of
uniformity, property which escapes taxes
altogether cen not be taken into account
of property actually listed, returned or
assessed on which taxes are levied
49,, =; The state Beard Of Equaiization. in
properties should include in its assessment
the value Of the franchise with the tangi-
bic property assessed.
, what to Consider.
s. In the assessment Of railroad and tele-
! Zation may consider not only the returns
required to, be made by sections 80 and 20,
but also all other informa ton of a reliable
! character obtainable, which may tend to
, establish the true value Of the property
9, The provisions Of section 80 Of the
, revenue act requiring the assessment OF
therein named, at it's actual value, after
I deducting therefrom the value of the real
estate and personal property OF such cor
poration assessed as such, are not applic-
able to the assessment made by the State
Board of Equalization. of the properties
10. Sections 80 and 90 of the revenue act
embrace the legislative plan and method
OF assessing railroad and telegraph proper
ties which are complete within themselves
and capable OF enforcement independent OF
the provisions of section 30.
II, In assessing railroad and telegraph
property. II is the duty OF the State Board
of Equalization TO secure all reasonable
J to the value OF the entire property OF each
corporation assessed and assess such prop
erty as unit or as one property
IL In determining the value OF the prop
erty assessed, Il IL the duty Of the board
| 10 consider all factors having the elements
OF property whether tangible or intangible.
which enhance the value OF the corporate
estate and value such such property for assess;
thereon shall harmonize with the constitu-
tional rule OF uniformity.
i3. Where railroad and telegraph prop
critics are situated I'm more than one state,
II is necessary TO consider and determine
situateS as an entiretY and theS dtsrTf1s dstsrn1s
, what proportion of the whole property s
situated and used In this state and subject
, 20 taxation therein, the relation such part
, bears to the whole property as TO its value
being the basis on which the assessment
is to be made
stocks and Bonds.
Il. The market value Of the stocks and
bonds of a railroad corporation Is an im-
portant factor with other pertinent in
, lorna ton by which to determine the fair
cash value Of the property assessed which
is represented by such stocks and bonds.
IS. The earnings OF railroad company
Is evidence al most important character
. in determining the true value OF the prop
erty from which the earnings accrue and
is one OF the chief elements which give
value 20 the property and should be con-
sessment purposes OF the entire corporate
property which Is assessed.
. l6 Where the property OF railroad cor
poration is assessed by the State Board OF
T EuualEation az a unit and In fixing the
value thereof the board takes into con-
sideration the fact that the property Is
being used for effectuating the objects OF
. the corporation, Is earning an income In
the transportation OF passengers and carry
. ing OF freight for hire, and that such cor
poration Is exercising the rights, powers
and privileges Of corporations organized
. for the purpose OF engaging In business
common carriers. such assessnent 50 mado