Omaha daily bee., 1902-11-02
APPEAL In TRACTION CASE
L'nooln Insists it Should Have the First
Lien on Street Railway.
PAVING CONTRACT GETS INTO COURT
Box Butte County Man Fined for
Shooting an Antelope in a Neigh
boring County without First
Securing a License.
PAVING CONTRACT GETS INTO coUR
CFrom a STAFF Correspondent

VI TOm a Oldh correspondent
LINCOLN, Nov. Especial. City At
torney Strobe today served upon the at
torneys of the Lincoln Traction company a
ninety eight-page brief in support Of the
city's appeal from Judge Cornish's de-
cision in the somewhat celebrated tax case.
This is the long-pending suit in which the
city seeks to foreclose upon the property
of the street railway company a lien OF
1884, 900 for paving taxes, due ever since
1887 and up to the time the company went
into the hands OF a receiver. Since the
latter date the taxes have all been paid.
The new owners Of the company, who de-
rive their title through the foreclosure OF
a mortgage of the New York Security and
Trust company, the first mortgage bond
holders, dispute the correctness Of tho
claim of the city and insist that they
should not pay for the taxes due from tho
Rapid Transit company, which was con-
solidated with the old Lincoln Street Rail
way company after the first mortgage had
been given. The road was made the VIC
tim OF a stock jobbing operation in the
early '90s, and the contest now is between
the city and the victimized first mortgage
bondholders. which should stand the loss,
II being claimed that the city. having had
an opportunity to collect the taxes. should
lose, as being the one most negligent in
the premises.
This suit has caused all sorts of trouble
in Lincoln. The traction company once got
the city to accept "a s65 ,000 compromise,
but DR.. Farnham enioIned this and II fell
through.
The decree OF the district court. from
which an appeal is taken, gave judgment
for an aggregate Of S2,l6s. 2l4.O1. OF this
the city got first lien for S57.116, taxes
due; the New York Security and Trust
company secured a second lien for S9O4 900;
the city got a third lien for $44, 208. 46 and
the New York Guaranty and Indemnity
company, second mortgage holders, for
s1.162.ss9
The city's chief cause Of complaint Is
that the court disregarded the evidence
showing that the Rapid Transit company
was consolidated with the Lincoln Street
railway before the mortgage was given,
and therefore the Rapid Transit taxes.
represented by the third lien as above,
should really come in ahead OF the first
mortgage. which gets a second lien. In
the present status OF the case. II thia
claim is successful, the Traction company.
TO get a clear title, must pay both liens.
Quarrel Over Paving.
btlOIe Juube FIosA TINS diAeIuooh NlNs
Attorney Strobe made his return to the
writ OF mandsmus asked by the Barber
Asphalt company to compel the mayor and
city council 10 award II the contract for
paving district No. Is, C street from Elev-
enth to Seventeenth.
The contract was awarded the Green
River company as the lowest bidder. The
Barber company offered TO do the actual
paving for less than the other, but the
Green River folks bid on all three. curb
ing. grading and paving, and by aggregat-
ing these the work would be done by the