Omaha daily bee., 1902-08-15

- $500 - 80 ~ AMAAA0nD
tax bureau has endeavored TO convince
the people Of Nebraska that the state
debt, which now exceeds 100000 in
spite Of the constitutional limitation Of
100000. is a mere fiction. The tax
%bureaucrats have repeatedly called at
%tention to the fact that the books OF the
state treasurer show a larger amount Of
delinquent taxes than would pay the
entire state debt
According to the latest bulletin the
state debt on May "a, 1902. Is figured
at $l,910,909, while the delinquent taxes
due TO the state on the same day aggre-
gated ST. 8 ,06S. 'If delinquent taxes
were paid" exclaim the AK bureau
Gratis, there would be a surplus in the
state treasury" Railroads" they add.
pay all legal taxes when due"
The word legal is the string by
which the railroad tax bureau seeks to
excuse the systematic practice Of the
railroads to put of paying delinquent
taxes for years under fimsy pretexts Of
illegality. After standing on the books
for eight or ten years the railroad a
agents usually come in with a PROPOSE
ton for a compromise by which their
delinquent taxes are scaled and large
blocks repudiated.
This has been their practice not in
n county but in scores OF counties
traversed by Nebraska railroads where
penalties and interest have been exacted
from farmers, merchants and home own
ers, while the railroads were released
from their obligations. In Douglas
county, for example, a so-calIed settle
ment was made only last winter with
the Union Pacific, but the city treas
urer's books still show that road to be
delinquent in special taxes for over
$4,000.
The talk about paying the state debt
by collecting In delinquent taxes is,
however, n delusion and q snare. The
S2.783O6S due the state on May q rep
resents in large part taxes for 1902
which have doubtless been paid by this
time. 1t represents also more than
s 1,000,0O0 of taxes Of which not 10 per
cent can be collected by any process.
It represents taxes ON lands that have
been washed into the Missouri river, on
lots in paper towns Incorporated during
the territorial wildcat period and the
scores Of towns built on the map then
and since that never had any existence
in fact. It represents thousands upon
thousands Of lots In towns that have
been converted again into cornfelds and
would not sell for the taxes, although
at one time or another they commanded
speculative prices. 1t represents, more
over. taxes levied upon thousands of in
dividuals and firms that have become
bankrupt, gone out Of business, removed
from the state or died insolvent.
In other words, the delinquent taxes
represent the accumulated profit and
loss account of the territory and state
Of Nebraska for the period Of forty
eight years. The bulk Of all real estate
in Nebraska worth having has paid
taxes ana win continue to pay taxes.
though personal taxes cannot be counted
an asset after they have remained de-
linquent more than i've years. The
railroad tax bureau may figure out to
its own satisfaction that the state debt
can be easily wiped out by forced col
Of delinquent taxes, but no level
headed business man would venture to
guarantee payment Of one-tenth of the
state debt out Of taxes delinquent more
than three years.
The worst effect of the delusive teach
ings of the railroad tax bureau Will
manifest itself when the next legisla-
ture comes to vote appropriations. 1t
was the railroad tax agents and attor-
neys who persuaded the State Board OF
Equalization to cut down the levy for
1902 100000 below the estimated ex-
penses for the relief Of the railroads
and also for the purposes Of befogging
the people and laying the foundation
for the claim that Nebraska railroads
are already assessed too high In pro-
portion to other property, when as a
of fact their unassessed fran
chises alone are worth more than their
tangible property. The inevitable out
win be a deficit Of from 100000
to. 100000 for this year, which must be
met by an increased tax levy next year
on a constantly growing burden OF inter
est ON an increasing state debt.
But what the problem Of delinquent
tax collection has to do with railroad
differentiation and tax shirking win
to be explained by the bureau in
another bulletin.
DISTRESS IN THE COAL REGION.