Omaha daily bee., 1902-07-15

the general government, the franchise
was that OF the United states government
and therefore could not be assessed by the
state. but the state had also granted rights
through their general laws to the Southern
Pacific Railroad company, and the supreme
court held that Il was the state franchise
which was being assessed and not the fed
eral franchise. This opinion was handed
down by Chief Justice Fuller. l read a
few s%entences:
The question here is not a question Of
the value Of the state franchise, but
whether that franchise existed, for II, In
1887. plaintiff in error possessed any sub
sisting rights or privileges, otherwise called
franchises, derived from the state, then
they were taxable, and the extent OF their
value was 70 be determined by the board
OF equalization.
So from that decision and from many
others l might cite to your honors. / be-
lieye II to be a truism that a franchise
is to be assessed as property. as much as
the ties or the locomotives or the terminal
facilities Of the railroad. Another rule Of
law, and constitutional law. too, which per-
tains to the taxing not only of railroad
property but Of all other property, is that
II must be equal and uniform and that
equality must extend to every part and
every division Of the state; It must be
equal as to its valuation and uniform as to
tue dHlOuub OF TAX pihCeQ upon II. II TWO per-
sons own a thousand dollars worth of prop
erty each and one is taxed at one-seyenth
and the other at one-tenth, that is not
equality and uniformity. They must both
be taxed the same and for the same value
Of property. 1t has been claimed by the
briefs and will undoubtedly be urged In
argument by counsel, that all they are
asking and all that they are seeking is
absolute uniformity in taxation so far as
the railroads are concerned, with other
property In the state, of equal value.
Now, there is a great difference between
the manner Of obtaining these values look
ing at 1t as a whole or as a unit. Here is
the assessment In this state of 1920, 900, 900
or 1926, 000, 900 worth OF railroad properties.
II is not all scattered over the state In
pieces. separate and distinct, as are the
farms, the horses or the cattle. 1t is not
owned by the million Of people within the
commonwealth. but II is owned by a few
companies. corporations held together by
the same ~powers-created for the very
same purposes-and that is what makes up
the large amount of value and that is what
we were asking this board to assess-this
franchise-this homogeneous property, not
the property scattered. as that of indl-
viduals. And when they seek to say that
they want taxes uniform and equitable.
then we say, What other property In this
commonwealth can you liken to yours3
There is and I presume there always
Will be a great disagreement with regard
to the manner Of arriving at valuations.
' No tax, I presume. that the human mind
can conceive OF will be absolutely equitable.
1t cannot be to individuals. It cannot be 70
corporations. All we ask is that they bear
their Just proportion OF the burdens OF
government. No more and no less. They
claim, l believe, that they pay 1910 pei
cent OF the taxes OF this state. Grant, for
the sake OF argument. that that be true,
and yet, II they have rs per cent or one
FOURTH OF the property in this state, con-
stituted as 1t is Of a homogeneous mass,
ought they not to pay accordingly
1t is asserted by these respondents tina,
the board assessed the value of the fran.
cnise this year. / believe I am within IN,
bounds OF truth when I say that never be,
iore In the history of the state of Ne.
praska has this question OF franchises eve,
Deen brought up before the State Board O.
equalization. 1t was an original mas.
tIon' SO far as this board was concerned. am
! yet what do We find? Their whole excus,
Is, why, the other boards did not" LIk,
Adam they say. "oh. Eve gave me IN,
: apple and I did eat" They assessaI
tne properties at the very same figure,
almost that were assessed ten or lively,
! years ago. II anything, they have loweret
me Vaiuation OF the railroad property ne,
mHe ! VIII call your honors' attention Il
Sne Inlng IN this book-in 1874 the Omaha
sessed $3.50 per mile. Here ,s a nIsoao
property 47.O5 miles long that was assesse,
eisnteen years ago at $500 a mile an,
Z curing those years was their property wort
as much as 1t Is today? Has there he,
r no increase In the population Of this state
e mas tnere been no increase In the yaluatio,
k " 'nat property since then? Has Their
b o ~. no increase In the terminal facllitie
8 OF tnat property since then? why. At tba
u time what did they havef What klnd .
[ uepous did they have. They had a sbe
mat they felt themselves was a dIsorao
n ana they kept 1t up until 1898. Then the
put IN a building. and from that day 10 mi
e .he property OF this Omaha & Southwestern
r naIIroao company has been assessed a
sO'0VV, ana for years back their propert
: mas steadily Increased in value and the az
e Is but a sample.
: The gentlemen may say, "whv wbs
5 Is II you want to assessH What e M
y Hanehise3" / don't know as I can deer
a franchise. believe I will Ieavs a. >
d the gentlemen who have studied that maj
Ter more carefully, but I know what
d franchise does, SO far as these railroads ar
concerned. The owners Of these roads cs
e SIT In their ofioes in Wall street ana tbo
3 can Issue bonds for millions OF dollars an
n tnen they travel through this commonwesIt
y ana see the cities and towns ana villa 90
q ana iarm properties. and they say. "Wh,
tnis Is a good business community out her,
TINS state Is wealthy and we have cot
II nave a tariff that will pay interest on q,
oonos That Is how a franchise operate
n we nave to have such a tariff as viii ma
ui'luenos upon our stocks. We will Ia
y H. not for one year. to pay of these hon
" ana these dividends, but for generat,or
Re YET 10 come" That Is a franchise an
E. they iay a mortgage and lien upop eve,
= single thing that comes into this stata Ar
tnat goes out OF 1.-THE hat that Won waa
Ine SHOES upon your feet, everything W
= eat or drink, everything that is created
ID TINS state is mortgaged to pay these div
ID uehas ana this interest. These responder
at say and their attorneys will claim N.
n. tney have assessed these franchises.
re Ihen they go on and say responder
81 said Edward Rosewater, representipg II
10 asistor herein, appeared before said boa
g, anu requested and demanded these r
,n sPonuehts as such board to assess n
"a franchises OF the corporations mention'
az Sne nrnaaYlt OF the relator. They ia