Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-05-16
TAX ON FRANCHISES
Reasons Given for Assessing the Intangible
Property Of Railroads,
STOCKS AND BONDS REPRESENT VALUE
Physical Property Not All that Should
Appear on the ROllI,
MILLIONS NOW ESCAPE TAX COLLECTOR
Securities and Shares of All Companies
Ought to Be Listed.
MILLIONS NOW ESCAPE TAX COLLECTOR
LAW IN PREMISES MADE CLEAR
n. w. simeraI Presents Argument to
state Board OF Equalization ON
Points Involved in Pend
inR Complaint.
(From Q staff CorresrondentN

| the address of e. Rosewater before the
State Board Of Equalization, arguing for an
! Increase in the valuation OF the physical
| property Of the Nebraska railroads. e. w.
simeral made an argument in favor Of list
ing and assessing the franchises of these
corporations. At the close Of Mr. SimeraTs
address the board took a recess until today
| and today was in session but a few mo-
ments, an adjournment being taken until
| tomorrow morning to allow the various
railroads to make answer to the arguments
| advanced by Mr.. Rosewater and Mr.. Sim
eral. Auditor Weston explained that this
| continuance was not requested by the rail-
| roads and that, in fact he did not know
whether or not they intended to make any
reply. but he said the board agreed that an
opportunity should be given them to do so
| II they desired.
In presenting the matter to the board,
Mr.. Simeral said:
II should like to make a statement and
also a request. There are two points
which we desire to take up, one Of which
Mr.. Rosewater will deal with alone, being
the tangible property Of the railroads.
That, Of course, is something that has
always been assessed. And l am going 70
take up the question OF the intangible
property or the franchises, and the duty
| OF the board to assess the franchise and
OF course 1t would limit the argument or
| perhaps not necessitate my saying any
thing at all, II you gentlemen would inti-
mate or let the record show as to whether
or not you propose to follow the course
heretofore taken by all the boards and not
assess the franchises of the roads. II you
take that course l have nothing to say.
Mr.. Rosewater covers the balance and l am
not posted on those questions that he is.
| fha Ofh hoa
up the question as a matter of law ex-
clusively. that is. the question as to the
duty Of the board under the law to assess
| the franchise as a part of the road II
| such be the case then l should like to be
| heard"
Views of Governor and Auditor.
BY the governor: Personally ] want to
assess everything in the state that we can
assess. 1 want to see money enough, II it
is possible, to run all the Legitimate ex-
penses of the state"
| BY Mr.. Simeral: 81 feel that as fur as
am concerned that there is but one ques-
| tion before you. would suggest II II is
| agreeable to you you might pass a resolu-
tion or have the record show that you
either do or do not assess the franchises;
then we will know where we are"
BY the auditor: 81 know there has
| nothing been put upon the record as yec
regarding the assessment Of the franchises
OF the railroads, but believe It has been
the opinion Of the board and that the opin-
ion has been tactly acted upon up to the
present time that we had no power to
assess the franchises, and as far as am
personally concerned that is my view In
| the matter. We are not a board created
by the constitution and endowed with pow-
| ers independent of the Legislature We are
simply authorized by the legislature to do
| certain specific things In regard to the as
| sessment of the railways and my view of
the matter is that We cannot transcend the
powers that are specifically conferred upon
us in regard to railway assessments The
statutes require the railway companies to
make certain reports to the auditor and the
franchise is not included in that report The
statutes say more. They say that the
Board OF Assessment in making I'D the
value Of the railways shall take into con-
sideration the report that the railways are
required TO make, and II does not give this
board the power TO go beyond that report in
making uD the valuation. Furthermore, the
statutes do not require the railroads OF the
state to furnish this board with the data
from which the value OF the franchise could
be estimated. Under the rule as laid down
by the supreme court in its recent decision
OF the Omaha tax cases. and In view OF
the matter 1t is my opinion that the board
cannot 20 into the subject"
Not "A Matter of Record.
Mr.. sImerai; May ask II you would
have any objection to having your views
made a matter OF record so that we can
have a record that is specihc7"
The auditor: 'I am only one OF the board,
but as far as my views are concerned / am
not unwilling to have them made a matter
OF record"
Mr.. Simeral: 81 mean as a board. VIII
you pass a resolution TO that effect?"
The auditor: "I am only one of the board,
and am speaking for myself individually.
understand"
Mr.. simeral; but do you not believe
that under the law that you have the right
to assess franchises?"
The auditor: That is my view of the
matter"
Mr.. Simeral: Then II the other members
OF the board are OF the same opinion or a
majority OF them are OF the same opinion
that Is all that would be necessary"
The governor: "As far as am concerned
I do not know whether we have the right
or not, but II II can be shown that we have
the right TO assess franchises then We
ought to do It, but do not know whether
we have or no. / am willing to learn ana
willing to hear anything that you or any
one else has to say on that subject"
The auditor: Certainly. l am OF the
same opinion as far as that is concerned p
Mr.. simeral: Certainly / understand
that. But my idea was this. OF course here
Is the position In which we are placed
What l want is to be able. II necessary 70
present the matter TO the supreme court
and ask them 10 determine whether under
the law II is the duty Of the board 20 assess
franchises Now. In order to DO that Il would
require action/on your part 20 say whether
you are going TO or not"
The governor: We'll. I am not pre-
pared 10 say now whether we are OF not"
Mr.. Simeral: There Is no hurry about
that, but would like f0E the board 70 pass