The Red Cloud chief., 1902-08-15

Some complaint is made in cities regarding
the manner in which State Boards of Equalization
are obliged to distribute the values of railroad property
throughout the various counties, not allowing cities
with great terminal facilities and fine depot accorino-
dations to assess that property locally within the
cities, but obliging its value to he distributed along
the lines of the road in accordance with a mileage
basis.
The principal reason that this is done is the fact
that it is the law; the Board of Equalization is direct
cd in its action by that provision in the law relating
to revenue, Sec. 40 of the Statue. After providing for
a system of returns to be made by the railroads of
Nebraska each year, the following provision is plain
and explicit:
"As soon as practicable after the Auditor has
received the said return, or procured the information
required to be set forth in said return, a meeting of
the State Board of Equalization, consisting of the
Governor, State Treasurer and Auditor, shall be held
at the office of the said Auditor, and the said Board
shall then value and assess the property of said cor
poration at its actual value for each mile of said road
or line, the sane Of each mile to be dete,nined BY diaTd-
ing the SIM Of the uhoe vaipation BY the number Of miles
Of such road or line"
Now, does this manner of distribution of railroad
property injure the cities having these terminal
facilities2
In the first place, the terminal facilities would be
of no vuue to the railroads were they not taken in
conjunction with the balance of their property. The
distribution of property in this manner is a general
rue duopteu Dy MOST Oh u Stdtes OF NJ Union, anu
in a great many instances, suits have been inaugur-
ated attempting to separate this value, and assess the
same within the localities where located, but courts
have universally decided that this would not be the
proper way of making such an assessment. Exactly
such a case as this was made in the State of Colorado,
taken to the Supreme Court and decided within the
past few years. The assessor in Arapahoe County
desired to assess the terminal facilities of the rail-
roads centered there within that county, not giving
credit for this valuation to the outside counties.
The people of the State representing the outside
counties took issue on the matter and it was decided
that this value should be distributed throughout the
State, and this was a case in which the railroads
themselves would have been benefited 1y the change
proposed, from the fact that thr rate of taxation in
\ the Comfy of Arapahoe is less than what it j. in the
I outlying counties.
IN every instance where the terminals of railroads
are located in cities, the railroads are a benefit to the
! cities much greater in proportion than the cites are a
benefit to the railroads. The terminal cities and the
: railroads should work together in the development
and assistance of the counties tributary to these places.
The distribution of value in accordance with the law
assists the poorer counties in carrying on their schools
aud making those necessary improvements which in
duce settlers to locate there, and III return for this
assistance their future business and interests natur-
ally assist in building up the terminal localities as
we'll as the railroads. While at first glance, this dis
tv.bution of property would not look fair to Omaha,
for instance, the citizens of Omaha certainly should
know that almost any city in the State would gladly
trade positions with that city, in case the railroads
would do as much for their locality as they have done
for the City of Omaha, The distribution of valuation
of terminal facilities along the lines of the railroad,
thus helping the whole state in the future, is a help
for Omaha as we'll.
While it. might be popular in Omaha to advocate
a change in this system of distribution, it certainly
would create an antagonisma against that city through
the whole state, and would run counter to the general
rule regarding railroad taxation. In case railroads
were obliged to accede to such a propositions, any
thinking man would know at once that the great
shops, the yard facilities, the car repairs and ali of the
features that make up this value, would naturally go
to those cities that would make it an object for the
roads to construct at their respective places.
For the purpose of increasing the population of
their localities, cities would gladly forego this tax, as
an inducement to the railroads to locate such institu-
tons there.
In Wisconsin, neither cities nor counties receive
tax from railroad corporations; it all goes to the state,
bnt this pond ha,dy be fofnIar in Nebraska, shr,e he
railroads in many instances Pay from 50 10 rs fr eeni
ofhe ia.es collected IN the counties along Mci, roads.
1t has been charged that the State Board OF
NJ EQUALIZATION has for years pursued a haphazard
method in fixing the assessed valuation of railroad
property for state and county taxation, and that such