Omaha daily bee., 1902-07-16

NhlOThs
The questions involved here are Of 90
much importance that IL should be the duty
Of all parties Interested to furnish the court
all possible light upon the tranaction pos
sible.
I think the first thing to be considered,
and, In the end, the main thing. is whether
or not the railway companies of the state
are paying a tax in proportion TO their
property ownership. First. we will have
TO ascertain the general rule Of assessment
Of property In the state. Our basis here
Is not founded upon imagination; II is
founded upon the public records; 1t is
founded upon the testimony In this case.
The returns made by the assessors and
county clerk Of Douglas county certify that
FOR all county and state purposes the prop
erty Of the county is assessed at one-sixth
Of Its fair cash value. As to the assessors
and county clerk Of Lancaster county, we
have their certificate that the property 10
this county Is assessed at one-hfth Of its
fair cash value. These are the two heavy
taxpaying counties OF the state, and the
lowest valuation is 0ne-sixth OF Its fair
cash value.
We do not need to stop with these coun-
ties. Thirteen counties returned that
their property is assessed at one-fourth OF
It's fair cash value, nine counties at one
third Of its fair cash value, four counties at
one-sixth OF its fair cash value, two at one
seventh OF it's fair cash value, twenty-one
at one-hfth Of its fair cash value; one re-
turns one-eighth OF its fair cash value and
the others ranging from one-hfth to one
tenth. with two exceptions. Not a county
IN Nebraska returns Its property at less
than one-seventh Of It's fair cash value, and
only four counties out OF the ninety-three
IN Nebraska return at less. than one-sixth
Of Its fair cash value.
So am within the bounds of truth; my
statement here Is conservative, as, based
upon this testimony, that property, gener.
ally speaking, in Nebraska Is assessed at
one-sixth of Its fair cash value. That is, all
we expect these railway companies to do
hs to pay. that same rate Of taxation. We
expect the State Board Of Equalization to
assess the railroad property at one-sixth Of
It's fair cash value. The relief }yought here
should be awarded. II It be true that the
franchises and other intangible property OF
these railway companies have been omitted
from the tax list, II they have not been as
sessed, then It Is the duty Of this board to
reassemble and assess that property which
they have by their act exempted from taxa
tion. II, upon the other hand, they took
into consideration the franchise, and IL they
made the assessment so low that It is a
fraud upon the taxpayers in the state, then
that assessment so made by them Is utterly
void in law, and 1t is their duty to reassem-
BILE and make a new assessment Of the prop
erty, So that II either one of these things
has occurred. or IL both OF these things have
occurred, 1t is the duty OF this board to re-
assemble and make a new assessment Of the
. property.
What is a franchise? It is asked, and what
is Its value? 1t may be defined more easily
by Illustration or by negative than by an
Affirmative answer. Here was the Union Pa
cihe railroad in the hands Of receivers but
D few years ago. with a bonded debt much
less than the bonded debt Of today. Yet
that road was finally to come to sale, and
that corporation was to go out OF business.
Ind it could no longer pay dividends upon
Its stock. with the result that the stock
went to as low as a few cents on the dollar
per share. The reason was that the franz
chise was practically taken away from that
corporation, rs right to levy tolls prac.
tically ceased to exist. But Just as soon as
that corporation was reorganized, Just as
BOON as there was new life given to II, Just
rs soon as It had the right to take tolls upon
the grain and upon the cattle and on the
Z product OF our mills, and to take toll for
carrying passengers, and to levy tribute not
only on the crops and manufactures of this
year. but for the years and ages to come,
whether under public or private control,
Just so soon as II became that in perpetuity,
they might collect and levy tribute upon
trade between the Occldent and the Orient,
rs soon as that occurred this franchise gave
hfs and tremendous value to the common
stock Of the Union Pacific, and today, in
etcad Of being worth IS a share. Il is worth
and can be cashed on Wall street before
noon tomorrow for s107 a share. That Is
what a, franchise is-the right to collect
tolls, the right to levy tribute. the right to
make rates and increase rthem at viii. II
Is In perpetuity; 1t is because It lasts for
the ages to GOMEZ because 1t Is in itself the
very means by which they collect tribute
and dividends and pay interest on their
bonds. whether they represent value or Teps
resent water; whether they represent value
in dollars and cents. or whether they arr
s conceived in iniquity aud born In fraud. az
l propose to show the bonds and stocks OF
the Union Pacific railroad were TO vwo-
thirds of their extent. -
Now we can get some things by com.
parison. Back in 1874 the lines Of rail-
roads IN this state, which were but streaks
Of rust IN comparison with the transporta-
tion lines today. were assessed at $40. 095 q
mile. II the same ratio had been main
tanned between the lands. both improved
and unimproved. this year as was main
tanned between the railroads and the i'm
VIONNu AnQ unllHA0NN1 AAhOd u Ctio1h
IN 1874. the assessment OF the railroad
corporations would have been over $40. 000.-
lOo-more than $40, 900, 900 more than 1t lie.
And that assessment ls not fair to the
people OF this state because II goes upon
the assumption that lands in Cheyenne.
lands IN Sioux and in Dundy counties are
worth as much per acre as they are worth
In the eastern part OF this state. because
we all know that in 1874 the assessed land:
were practically confined to the eastern
one-third Of the state OF Nebraska. Sc
that upon that showing alone and assun
ing that lands clear out In the arid region
II where they don't raise a crop one year IN
I'VE. and are Just as valuable as in Nemaha
otoe and Richardson counties-even n W,
take that as the basis these respondent
here have exempted from taxation at leasi
$40, 00o. zoo OF property that ought to hav'
gone upon the assessment rolls.
They say that this assessment is similal
TO what II was in prior years. / am herr
70 say that ] believe that all the priol
assessments upon railway property In Ne,
braskA we're too low. and ! am here 4
point out 20 your honore so clearly tina
no man can doubt Il that there is no com
parison between these assessments and tn
assessments OF the present year, In 1894