Omaha daily bee., 1902-09-21
RAILROAD TAXATION 4 CAMPAIGN
ISSUE.

ISSUE.
The people of Nebraska who had
looked to the supreme court for relief
from railroad tax Sinking have reason
to feel sadly disappointed over the re-
fusal of that tribunal to issue its man
date to compel the reassessment of the
railroad property by the state board.
To men not Yersed in legal hair splitting
the conclusions OF the court are unin-
telligible and inexplicable.
In granting the prayer Of the Omaha
Real Estate exchange to compel the
Board of Equalization to reassess the
properties OF the local franchised cor
porations on the basis of their value
measured by the market price of their
stocks and bonds and prOportionate to
the assessment ratio Of other taxable
city property, the court established a
precedent in line with decisions rendered
by supreme courts of other states M
by the United States supreme court. 1t
was natural to presume that the princi
pies laid down in the decision in the
Omaha tax cases would apply in all es-
sential respects to the railroad tax case
instituted by the editor OF The Bee.
How the same court could consistently
hold against the Omaha street railway
and Omaha water, gas and electric light
ing companies in the month Of April
and hold in favor of the railroads in u
case involving identically the same issue
in September is a mystery we confess
We cannot fathom.
In the Omaha tax case the court over
ruled the findings of a referee who had
taken testimony ON the facts. In the
railroad tax case the judges of the SUI
preme Our heard the testimony in per
son, but ignored it, although in the
higher court of public opinion that tes-
timOny cOnclusively established the fact
that the railroad franchises had not
been assessed and that even the tangible
property of the railroads had been
grossly u~ndervalued.
Two of the three members of the state
board admitted ON the stand that they
had made no effort 20 appraise the road
way, improvements or rolling stock
separately or that they had made any
rational inquiry into the value of these
assets or sought to arrive at any ra-
tlOnal basis of assessment by the earn
ings of each system, as is done in every
other state. They admitted that they
arrived at their conclusion concerning
the value of the roads by the assess.
| mpnfS of nraViOTG UnnpS and TftapIu
regardless of the new improvements,
additions to rolling stock and enormous
increase in earnings and market value
Of their securities. Even if the tangi.
BILE property had been assessed cor.
rectly, the admission of Auditor Weston
and Treasurer Stuefer that they did not
attempt to assess franchises because
they believed they a no legal right Il
do SO is brushed aside in the ruling OF
the court, which says in so many words
that in its Judgment the members of the
board did assess the franchises, although
they did not know they were assessing
them and thought they had no right t.
do SO, and made no effort to ascertain
what the franchises were worth.
Advocates and friends OF tax reform
will not be content to drop the issue be
cause the court has refused to come t
their assistance. The taxpaying citi
zens OF Nebraska will not tamely submi
to inflated tax rates Oh their property
for the benefit Of the railroads, who's,
property il assessed this year at $26,
100000. when it should by rights be US
sessed at more than $50.OOO,OOO and wa
assessed at nearly $30,O0O,O00 ten year
ago. with a mileage go miles less thai
now.
2 Having ~relegated the whole question
Of railroad taxation tc the people, tn,
; issue must be met sQuarely at the bal
lot box, not on party lines but On broa,
lines OF justice and equity.