Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-04-24
oRPoRATIoN FRANCHISES ARE TAXABLE
Plain Rule for Getting at the Value Laid
Down by the Court
NO DEDUCTION OF DEBT PERMISSIBLE
Statutory Provision on This Point ia De-
olared Unconstitutional.
NEW GUIDE FoREoUAllzNG ASSESSMENTS
values Found Too Low Must n.
Brought Ia the Basis Adopted tor
Entire Community by
the board.


At o'clock yesterday sfternoon "a, .u.
| preme court Of Nebraska handed down An
| opinion granting the writ OF mandamus
| asked for by members Of the Omaha Rea!
! Estate exchange to require the city coun.
! cH TO reconvene as a board OF equallza.
| ton and reassess the street railway, the
gas, water electric light and telephone
companies
In this opinion the recommendation OF
the referee is not conCurred In. The opin-
ION covers every point and II a clean vic
tory for the Real Estate exchange The
court announces that the section of the
statute which permits the subtraction Of
Indebtedness from the actual value OF
corporations property In order to obtain
what is assessable is unconstitutional. null
and void. 1t is also laid down that the
BOARD OF Equalization Is not prohibited
from acting because the actual cash value
has not been used as basis for assess
ment, but, the court says the board must
take the percentage of the actual cash
value used as basis by the assessor and
see to 1t that property falling below that
figure is brought up to It, rule is also
laid down for determining the value Of the
Intangible property OF the corporations.
syllabus and Opinion.
Following is the syllabus and full text OF
the opinion
State of Nebraska ex rel shriyer q
morton against Myrou ID. Karr ct all
porating metropolitan cities. 1t is the duty
OF the city council, sitting as a board of
equalization. upon proper complaint duly
hled, to hear evidence consider questions
OF comparative values and equaize assess
ments.
2. Section l, article TX, Of the constitu-
ton REQUIRES that franchises Of corpora
uons snail be assessed for taxation without
deducting corporate Indebtedness from the
value of such franchises.
3. That part of section 32 of the reve-
nue. act which requires the assessor to
deduct the amount OF the corporate in
dsbtedness from the actual value of the
tional and void.
4. When capital stock Of corporation
in the sense in which the words capital
stock are used in the statute 81 found BY
adding the value Of the franchises OF the
: corporation TO the value of its tangible
value OF the real and personal property
l which are assessed such and the re-
; mainder is the value Of the capital stock
5. The statute requires that all property
he assessed at its fair value but this does
not prevent the Board of Equalization from
equalizing assessments when property in
general in the city has been assessed at a
certain percentage of It's fair value and
upon complaint that the property or fran
chise OF person or corporation is assessed
at less proportion OF its value than the
percentage Of value employed as a basis for
assessing the property in general In the
city, the board may equaliEe assessments
: by raising the assessment complained of
to the same proportion of value at which
property In general in the city is assessed.
The REALTORS obtained an alternative writ
OF mandamus from this court directed to
the respondents as members of the city
council and Board Of Equa alization OF the
. city of Omaha to compel them to reconvene
act upon the complaints of the relstors
l alleging inequalities in the assessment OF
made return and answer to the writ and a
referee was appointed by this court 10 hear
and conclusions of law.
b -, Upon the i nling &C. Of the referees report
s ing of fact and to his conclusion that the
costs ought to be taxed against the re-
spondents, and the REALTORS filed exceptions
TO certain OF his conclusions Of law.
Allegations of ReIators.
5 1t is alleged in the alternative writ that
| said tax commissioner duly completed said
assessment roll for said 1902 city taxes and
= duly transmitted the same TO the city coun-
G art for ro 9qgsli1SbtI0T gS that by said
for equalization the personal property OF
n said OMAHA Street Railway company was
| company at S575.0O0 of said Omaha Gas
{ company at $4,000. OF said Nebraska Tele-
| Omaha Thomson-H Houston Electric Light
. company at $ll7JOO: that no valuation or
; | assessment whatever was placed upon or
made against the franchises in said city
E | of any one of said corporations. but said
several franchises We're omitted from said
assessment except as to said electric light
| company, as aforesaid, although each and
| ali OF said franchises are and then were OF
great value, that of said street railway
, company having fair cash yalue OF. to-
. wit s4OOooOO, OF said water company
i | 100000, OF said gas company $1,000 OF
said telephone company 81 10000 and OF
said electric light company $4,000. at said
| 1902 assessment, was made upon property
e generally in said city, except the property
Of said public service corporations, on a
basis of 40 per cent OF it's fair cash value;
that said assessment upon the property OF
b said hve corporations was and is about 10
. | per cent of the fair cash value OF their
property and franchises will hereinafter
:. THAT the rela tors duly filed written com
: | procure an equalization OF the assessment
% the property, and franchises OF said
$ corporations, and that the board adjourned
}. without duly hearing and considering these
. c5mplaints
r The referee In his report, after stating
at some length the facts found by him from
70 the evidence In regard TO the action OF
o That the action OF the Board OF EIuaiila,
y tion oyerruiing the complaints, hled upon
did not estop the REALTORS with reference
TO their hve complaints and was IN ne
sense a matter OF adjudication which for
plants Of said reiators Upon said IN,
n complaints md further that the action
ing OF the complaints by REALTORS was 4
sanction OF the sufhcenCy OF said com
plants I'm form and substance and that
; the conduct OF Hascau, Mount Trostler
l. Whitehorn and Kari, who alone have an,
l. swered In this case, was capricious. wiltul
and arbitrary with respect 10 the com
Ia plants filed by the relatOrs and that
Re thereby said relators were deprived of ia,
- right to have reviewed the proceedings o
y the said Board of Equalization with refer
d ence to. their above Complaints BY err'l
re proceedings for the want OF a ANAL iude
:, ment, and that therefore. irrespective o
. the hnal result OF this action. because o
NJ other considerations hereafter 20 be se
In forth the costs OF the case should be tRNes
against said Isaac 3 HasCAll. David II
le Mount, Simon Trostler William r. White
a horn and Myron y. karr ana tudgmen