Omaha daily bee., 1902-07-15

He places the funded debt as s147 600, 900
and the capital stock at $212, 200, 900,
figured at 1872 per cent. Now the Great
Northern & Northern Pacific took over all
the stock of the c., B. q Q. and 1t is now
out Of the market entirely. You do not
find 1t quoted. Here is the report made
to the directors. Here is the report made
to the directors of the Northern Pacific
FOR the year 1901 on this question. 1t
says:
q Purchase Of Burlington stock: The Great
NORTHERN Railway company and the North
ern Pacific Railway. company have Jointly
the capital stock Of the Chicago, Buriingo
ton & Quincy Railroad company, being 500
per cent Of the total authorized issue. Sna
In payment for same have issued their
joint collateral trust bonds and secured
to the amount of $215, 154, 400. Further bonds
may be issued for acquiring the residue
of the stock. The bonds are dated ana
draw interest from July l, 1901, and mature
July /, 1921. and may be redeemed on the
first day OF January or July after January
/, 1906, at 105 per cent, with accrued inter-
est. and draw interest al the rase OF : ipndd
July l of each year on coupon bonds, etc
The shares of the Chicago, Burlington &
Quincy stock thus acquired have been de-
| posted with the Standard Trust company
Of New York as trustees under collateral
trust, under trust iudenture. to secure the
! above bonds. A contract has been entered
into between the Great Northern and the
| Northern Pacific defining the rights and
out Of the acquisition Of the stock. They
i paid 200 cents on the dollar for every snare
of stock they got,
So we find the actual sale OF every single
solitary bit of the Chicago, Burlington &
| Quincy stock for 200 cents on the dollar.
Yet what does General Henderson figure 1t
att Why, this property he would figure
| 90 ~ month tn ~ p1aca npIv ahnut S0Q 000
a mile, and from that up to $500 0 a mile.
But you have to add the stock and bonds,
and when you do 1t you will find that
he is not correct, for its 2,416 miles in the
state Of Nebraska are worth about 5000
per mile, according to a conservative cal
culation. And one OF the best pieces OF
testimony we have in this case is fur
nished by General Henderson on page 4s
of his brief, wherein he says:
The Chicago. Burlington & Quincy Rail,
road company was one Of the railroads
subject to assessment In Illinois, ana lts
property was by that board assessed al
$S,91S per mile for the year 1901; The ratio
Of assessed to total value IN !rd Inc b rs =
fore, OF the Chicago, Burlington & Quincy
Railroad company, as fixed by the board,
was $44, $50. Taking the same basis for the
line in Nebraska, which is absurd, rela-
tive conditions considered and compared.
the assessed valuation In Nebraska would
l " Wins per AbASl hROh n eo -
cent.
But while that is true upon a ratio Of 10
per cent, upon the ratio of what other
property is paying throughout this state II
would be at one-sixth-37,4s1 per mile. II
makes all the difference in the world as to
the rate.
Here is another strange thing I would like
to have counsel explain: General Mander-
son, in his brief. figures the Chicago,
Burlington & Quincy road at S,s42 miles.
According to their annual report you cannot
find, to save your life, even taking in the
railroad bought here the other day-you
can't find over 5000 miles.
Mr.. Kelby-Look again.
Mr.. simeral-Yes, l will look. Look al
your annual report, and your annual report
gives as the total number Of miles Of your
entire system. including Iowa. Illinois. Mis-.
souri,, Nebraska, Colorado, where you will
7,9s2.6 so miles, but what does their railroad
tax shirkers say? / will get that. Thai
is the B. g. M. railroad-that is, everything
west OF the Missouri river-3,S00 miles
Chicago, Burlington & Quincy, Missouri line
and everything east OF the Missouri river
1000 miles. Can you make more thai
1900 miles out Of that?
Mr.. Kelby-I can; yes, sir.
Mr.. Simeral-Well, then you will have h
figure different from anything l can find Il
your annual report.
Mr.. Kelby-No,
Mr.. simeral-If you have lost some in tn
shufie, IL you have a lot more cadavers 10
assessment purposes, perhaps you can hn
It, but II you have live railroads which ar
making dividends, which have a frsnohis
upon them, you can't find more than 1850
miles TO save your life in any Of your re