Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-05-15
ROADS BELOW VALUE
Nebraska TrHnspOrtstiOn Lines Escape Their
Just Share of Taxation.
STATISTICS SHOW TIE DISCREPANCIES
Unequal Assessment Proven by Figurss Of
fered the State Board.
DISCRIMINATION BETWEEN THE ROADS
Valuations Previously Reported Show Some
Remarkable DivergsnCiss,
E, UosEwATER PRESENTS PEOPLES CASE
Reasons for Raising Assessments on
Nebraska Railroads Given to the
state Board of EQuaIira-
tion at Lincoln.
(From a STAN Correspondent1

| tFrom a STAN CorrespondentO
| LINCOLN, May 14.--Cspecial.) )-Astound-
Ing revelations in the valuation and assess
ment Of railroad property in Nebraska we're
called to light by z. Rosewater In an ad-
dress before the State Board Of Equalization
today. Mr.. Rosewater was accompanied BY
E. w. simersl, both appearing TO protest
against the under-vsluation OF railroad
property.
At the opening Of the session II was an
nounced that Mr.. Rosewater would make a
presen tation regarding the valuation Of the
tangible railroad property, while the ques-
| tion OF considering franchises in determin-
ing the valuation of the intangible would
be discussed by Mr.. simeral. The board
wac asked at the outset whether or not It
| Intended to take the franchises of the va
| rfous roads into consideration. Auditor
Weston said the board had been proceeding
under the tacit agreement that Il had no
! right to consider this side OF the question
and after some general discussion Il was
| decided to make no ruling until after the
presentation OF the argument.
Mr.. Rosewater began by detailing the re-
markable discrepancies in the valuation Of
! the railroads as determined by the board
In recent years. He spoke for nearly an
hour during the morning session, or until
recess for noon was taken. At the sYter-
was followed by Mr.. simeral. All members
OF the board. Governor Savage, Auditor
Weston and Treasurer stuefer, were pres
ent throughout the hearing.
Tax on the Dee BuiIdinr.
In the general talk which followed the
formal argument Mr.. Rosewater was CUES.
tioned again regarding the taxes paid by
the Bee Building company. In response to
these Inquiries II was asserted that the
company had paid over 10000 in taxes
within the last ten years. instead Of $50 900.
which were the figures given by Mr.. Rose.
water from memory when he was before the
board on Monday. Another inquiry brought
forth the suggestion from Mr.. Rcsewatsr
that the railroad valuation as Determined
by the board should be about IL per cent of
the real value. including both tangible ana
intangible property.
The board adjourned at the conclusion of
the hearing, taking no action, either on the
question OF considering the franchises or
on the general proposition OF under-ya
tion.
MT Simeral argued from a legal stand
point citing numerous authorities as we'll
as the recent decision Of the supreme court
all OF which he contended showed plainly
that the franchises should be considered
In reckoning the valuation for purpose OF
taxation.
Mr. Rosewater's Argument.
In presenting his case to the board Mr..
Rosewater said:
gentlemen Of the Board: For MANY
years there has been an Impression among
the people OF Nebraska that the railroads
OF this state were not bearing their due
proportion OF the burden of taxation. The
legislature has vested the power Of assess-
N
department Of the state, and they are the
supreme tribunal-or have been up TO date
in hxing the valuations for assessment
OF the various railroads, telegraph and
other corporate properties. Tn TO the
present time, however. so far as / know.
the various boards have only given a hsar.
Ing to the representatives Of these oo,-
porate interests, and the interests that
are much greater, representing as they do
hve-sixths OF the taxable property of the
state have not appeared and have not had
their hearing.
Il desire. first, to call attention TO ths
various discrepancies in the mode OF as
sessment that has prevailed up to this time
and to the injustice that has been done
TO other taxpayers by the mode OF assess.
ment which has heretofore obtained.
When came down three days ago WAS
amazed to md that there was no record Of
any Of the elements that make up the
total valuation Of a railroad. Nothing IN
the auditors once, excepting the total OR
aggregate value OF each road. and the
grand total OF the valuations of all the
roads for assessment purposes Now. the
ordinary assessor is expected when he
values real estate or improvements on real
estate TO view that property and arrive
individually, as his own conclusion, a. to
Its relative value to other property. But
the grand assessment board OF the state
does not take the trouble OF viewing the
property they are to assess. but takes In
lump takes In wholesale, the statements
or reports made by the auditors or oficers
OF the various companies and arrives in
some manner cannot tell how-at a con-
elusion OF the valuation OF these properties.
what Roads Return.
Il find upon examining the records that
most OF the companies do not return Apy
valuation. Some OF them do, and It Is very
remarkable that the managers Of those
roads disagree radically as to the valua.
tion OF properties that had a nxed and
tangible value in the market, or should
have a standard In some manner
Il will call your attention. for instance.
to the return OF the Union Pacific railway.
In 1895 It returned i42 engines at 3I.i25
each. In 1902 II returned 1877 engines
at valuation Of 900 each. In 1895 the
Omaha. St. Paul Minneapolis returned
its engines AZ valuation Of SIS .000 each
This year II returend its engines at a
valuation Of 81 900 each. Here is a dis
crepancy as between one to four or one TO
hve between two railway systems as to the
value OF property that should be pretty
thoroughly known.
Now. / contend that in the year 1885
the cost Of all railway equipment was very
much lower than IL was In 1901 or is IN
1902. In fact. II Is we'll known that both
labor and material have gradually ana
steadily been going up and IA some In
the c0at NJ uaarhiuaKv d fror.