Omaha daily bee., 1902-05-18

us dcNuhi Nalues TallrOad property shOuiu
be assessed the same7"
Mr.. Rosewatef: Eyes, no more; no less.
That Is the law"
The Governor. "I would like to ask my
question again. From all the information
you can get | would like your opinion as
to what percentage Of the actual cash
value Of railroads, provided We have the
actual cash value Of the railroads now,
that is, including stocks and bonds. what
percentage should we appraise these roade
at for the purposes Of taxation to be equi-
table with the other property over which
we have no control, say during the year
1eO2?'
MIR. Rosewater: "I should say not lees
than Is per cent. Is OF 16 per cent, and
that would probably be giving them the
beneht."
The Governor: AT Is or Is per cent Of
the actual value7"
Mr.. Rosewater: "Yes, sir"
About actual value"
The Governors: Providing we could ind
the actual value. Now, then. speaking Of the
acutal value, providing we take the stocks
and bonds outstanding on the market az re-
turned. II we assess those at is or 16
per cent--15 or 16 per cent Of the sum
Of the stock plus the bonds. Would that
be risht7"
Mr.. Rosewater: THAT would be about
right. But 1 would not take the stocks at
their market price. There Is q difference
between price and value. TIL value OF a
thing is what It costs to- reproduce IT. the
price depends upon the law Of supply and
demand. In the market the price OF stocks
might be way UP beyond their actual value
because they are a gambling element and
they may be run up for gambling pur-
poses, so l would not assess the stock
exactly at the price 1t is running In the
market. 1 would discount that and see
what the stock sold for at the lowest rate,
say within a year or so, and take the low
est rate as being the probable value OF that
stock. The other is simply the gambling
value, and that you canno take. The
Union Pacific now is selling at a premium,
but that does not show 1t IL worth It,"
The Governors: Take, for instance, the
Union Pacific. You say that represents
now 500 900 per mile?"
Mr.. Rosewater:' Yes, sir"
The Governors: Now, on your basis that
should be assessed at $4,000 or $1,000 per
miller"
Mr.. Rosewater: mo, sir; that would be
assessed then at about SIS, 900 a mile"
The Governors: when, as q matter OF
fact, 1t is assessed at $9,soo?"
Mr.. Rosewater: Yes, sir; that part of
It Is assessed at that"
The Governor: Now, the B.. & M, you
say, is Of less value. 1t is assessed at
about sec, 900 valuation per miller"
Mr.. Rosewater: There is just this diff
ference between the B. & M. and the
Union Pacific"
- The Governor: w have It assessed at
nearly twice what It would be at your
figures"
Mileage and Valuation.
Mr.. Rosewater: II know, but you must
remember that the Union Pacific
assessment only represents the All
miles Of the road that they have
returned between Omaha and the
western boundary Of the state; the
other part Of their road. which has more
mileage than that, is assessed way below
that. about $4,000"
The Governor: You contend that all Of
these branch lines are worth 100000 pei
mile, the same as the main line7"
Mr.. Rosewater: well, 1t has been stocked
that way and bonded that way. Theil
stocks and bonds represent the agsre-
gate" -.-,e &.
The Governor: From the best informa-
ton we have it IL. about $45. 900 per mile
instead Of 800, O00."
Mr.. Rosewater: az have taken ny esti-
mate here Of is per cent from what I have
been told here. l haven't seen the returns
from any counties"
The Governor: 1--WE have them from ever!
one.'
Mr.. Rosewater: 81 haven't seen them.
can only say, IL that is the average. ther
that would be all right; 1t may be is Of
may be less"
The Auditors: 1.-THE assessors in Saunders
county agreed to assess the real estate a.
o~ne-tenth."
Mr.. Rosewater: Then the lines in saun.
ders county should be assessed that way
or else you have got to strike a balance
Here you have 5000, 000, 900 Of property
Saunders equity may have $4,000, 900, ant
that leaves the 1921, 900, 900 that is at
different rate, so you have got to strike
balance somewhere, but don't knov
where that would be. Now, you spok,
about the Burlington. You must remem
Der that while the Burlington has no
issued as much stock as the Union Pacin,
their stock is worth 200 cents on the dolla
and they have traded that for 4 per cen
gold bonds, and their stock must be rate
1t hat because It sold for that In cash; the.
took cash or took the bonds"
MT. Ager: You would not assess II q
200 per cent?"
Mr. Rosewater: ~ would ASSESS II q
whatever II came to within the year."
Mr.. Ager: Suppose the crop failedf"
Mr.. Rosewater: THAT stock will no
drop any more It has been converted int
bonds"
Mr.. Aver: take some other road"
Mr.. Rosewater: 'If We had a drouth her
this year there would be a drop in the stock
OF all the roads"
Mr.. Ager; would you then drop tn
taxation7"
Mr.. Rosewater: II would reduce 1t when
ever they didn't have the value. You mus
treat them the same as other property.
property drops in Omaha or Lincoln the as
sessment must be reduced and the roaI
should have the same rights as an indlvid
uaI, but l would not give them anymor
or any less"
The Governor: 81 will guarantee tn
railroad companies will be satisfied IL W
assess them at Is OF 1e per cent"
Mr.. Rosewater: "If they are satisfied W
will have to be because the law Is tina
they will have to pay their share Of taxeI
no more or no less"
The Governors: Your property at 800,
900 is only assessed at $1,000"
Mr.. Rosewater: mo. 1t was assessed a