Omaha daily bee., 1902-10-23
THE QUESTION or TIE HOUR.

THE QUESTION OF The HOUR
The question Of the hour in Nebraska
is tax reform. Compared with that is
sue all others pale into lnslgni6cance,
The constitution Of Nebraska expressly
prohibits the state from contracting
debts to exceed in the aggregate 100000,
except for the purpose Of repelling In
vasiOn, suppresslng Instructions, or de-
Tending the state In war, but the state
debt today exceeds $1,000, 900, is increas-
ing steadily at the rate of 100000 a
year, and will so continue until the state
compels the railroads to pay their full
share Of the expenses of government.
The most fragrant wrong perpetrated
upon Nebraska tax payers under it's ex-
listing revenue system is the assessment
Of the railroads at less than one-twelfth
OF their true value based upon their
earnings and capitalization, while the
bulk Of all taxable property in Nebraska
is assessed at one-sixth of Its value.
The effect of this discrimination against
the rank and file Of property owners is
strikingly exhibited by the table of com-
parative railroad assessments that ap-
pears on this page.
The figures presented are carefully
compiled from official reports Of the
state auditor, the bulletins recently Is
sued by authority Of the railroads, and
the reports to their stockholders pub
lished within the past year. These doc
uments afford conclusive proof that the
aggregate true value of railroads in Ne
braska based on net earnings after de"
Quoting operating expenses, betterments
and taxes paid exceeds $312, 100000.
An inspection Of the table herewith
presented shows just how much each
county has lost by gradual reduction Of
the railroad assessment within the past
ten years, the aggregate a-pportionment
of railroad assessments to each county
for the year 1902 and what the aggre-
gate assessment should be II the rail-
roads were assessed at one-slxth Of their
value based IN net earnings. The ap-
praisement of railroads that have not re-
ported net earnings, which constitute
less than one-sixth of the entire railroad
mileage in the state, Is based upon the
value Of their tangible property. The
citation Of a few figures should suffice
to impress every citizen of Nebraska
with the imperative necessity of a rad
ical change In railroad assessment.
For example, the total assessment of
railroad property in Adams county for
the year 1902 is $685.. 521.60, assessed at
a fair valuation it would be s. ,~2S4,396.11.
The railroad apportionment in Buffalo
county aggregates $649. 324.OO for 1902;
a fair valuation would have given Buff
falo county $1.S5S, 764. The aggregate
railroad apportiOnment for Butler county
is $491,1 when by rights it should
have peer $1,O52, 712. The aggregate
railroad a~pportionment for Cass county
is $685., 614.20, when it should have been
S1,141,147 90. The railroad assessment
in Clay county ten years ago was $685.
1920. This year It is $645,51O;'if as
sessed ut a fair valuation 1t would have
been $~774,44S. The assessment of Coli
fax county for 1892 was $332,94 this
year only $272.494. A correct apportion-
ment would have given Colfax county
Sass, 800. Dawson county was credited
with railroad property assessed at
1858, ops ten years ago, this rear only
S49S, S01. A correct assessment would
have given Dawson county $1,214,446.
Gage county was assessed ten years ago
S76O, 10, with thirteen miles more rail-
road 1t was credited this year with
$763.O42 when by rights 1t should have
been credited with $3.50, 1856. Further
comparisons would be superiuous.
In order to make these proofs more
convincing still If such thing need be,
The Bee will print within a few days a
detailed exhibit by counties, the mileage
of the various railroads in each county,
present assessment per mile, true value
Of the railroad property within each
county based on net earnings and rate at
which each railroad should be assessed
per mile.
1t remains only for the voters Of Ne
braska, and especially the taxpayers, to
see to it that the candidates OF all par
ties shall be committed to revenue law
revision and railroad tax reform.