Omaha daily bee., 1902-07-20

method Of procedure which has OBJ
tanned here ever since we we're q territory,
doing an Injustice to the state and an es-
pecial injustice to the poor.
Now, the foundation of the law Of this
case is found In two sentences. The law
branch OF our argument was prepared by
MT. simeral and = part Of It has been
presented to your honors. These princi-
pies are found In the language FIRST Of
Judge Brewer and secondly In the language
Of that other great jurist, Justice Miller.
We hnd that In half q dozen or more
states these questions have come up. They
have lately come up in Ohio, Massachu-
sets. Pennsylvania. Illinois, Indiana and
Nebraska. and where they have come up.
where the question Of the assessment OF
these great estates has come up. not before
special tribunals like these. boards of
equalization that are in most cases not
only willing but anxious to be h~umbugged,
but whenever the question has come up
before q judicial tribunal the assessment
OF these properties has been doubled. In
the Kentucky case the franchise alone Of
one corporation was raised as a result
from $50, O00, 900 to $50, 00o, 300 and unless
the assessment Of these roads Ii doubled
in this. state 1 shall feel that our work
has been In part q failure.
Now. what did Justice Miller sayf "Th
current market value Of the funded debt
and Of the stock is the best criterion OF
value" Now the market price settles the
value. There is a great machine down
east called the New York Stock exchange.
Hundreds OF millions Of operations are done
there weekly and 1t Ia right there through
that great machine, that we ind out bet
ter than any other way, says his great
jurist, the value Of these quasi public COR
porations with their great franchises
franchises which are truly q part Of SOW
ereignty and which in this state have
been a very great and undue part OF SOW
~ereignty.
Justice Brewer says: what q railroad
is worth for income and sale 1t n worth
for purposes Of taxation" That Is az
iomatic; the heart Of Il II outside and
we see t.; we know II u true. This court
has spoken along the same line, so we
have felt no doubt whatever as TO what the
law governing this case 10.
Now, ] intended to go At some ength
into comparing the tive answerS-one pre-
pared by the attorney general and the au-
thor Of the other unknown. That hrst
pleading says tina on the 14th Of March,
two days before the assessment was pro-
mulHhItQs LnG U01Au - ~ aRNA $500
| tion of the tangible property. That was
the day when they had that great bearing
there, with Mr.. Rosewater and Mr.. Simeral
protesting n expounding to them the
very law which we are expounding here
quoting from your honors' decision and
from Justice Brewers, and arguing 1t thor
oughly, as shown by several olumns OF
the newspaper testimony that Is here.
That hearing came up. such a one had
never come up before; something had oc.
CURED; for thirty years they have read that
statute literally; reading Il literally II
meant the physical property. They have
never assessed in this state anything but
the tangible property and nobody has ever
insisted they should. Most Of them didn't
know Of that provision of the constitution.
That franchises should be assessed was en-
phasized by special mention In the eonstitu-
tion. Recently, It was brought out, brought
to this court and by this court expounded.
Then what happened? Why the sun OF
Austerlitz arose. s.. ". p! After that, no
board had any right to do what the other
boards had done.
Two or three weeks after that decision
was announced-it was read with great sat
i~sfaction all over this state-this board sat.
This proceeding was born Of that decision.
They had that letter which goes into the
details OF the prices Of stocks and the in
crease In value Of these properties In late
years, by Mr.. Harrington. II was sent
to the governor Inc read TO them, petition
ing them and protesting, but. your honors,
1 doubt that they aid anything more than to
give It the laugh in the secrecy Of that
chamber where they worked; that star
chamber where they held that session with
the representatives OF these railroads-in-
GLIDING Mr.. Bentonl
"IE executive session"-tha is what they
said they were in-"executive session"
everybody else excluded, behind closed
doorsl When the assessment was chal-
lenged by one who had the courage to
touch the button, they threw tho doors
open and all the world knew what took
place there. Whoever heard of that meet
Ing of these railroad ofacials. sitting
Jointly with the executive board in exscu-
tive session?
Now, then. that Is what the nrst answer
says: THE physical property had been
assessed" The second answer "horssd'
! entirely around. Before that, the case
had been tried before the board by the
tax commissioners I wouldn't say all ILL
natured word against them; they were doing
their duty as best they knew how. but they
were not lawyers. they were trying the
issue before the board before that. and
they said mo. why you have no authority
to assess the franchise. No, YOU cannot
do that" That was their burden.
But when the matter got out from the
hands OF a. tribunal that was ready. willing
and anxi0ut to be h~umbugged and before a
judicial tribunal the lawyers said. "for
Gods sake. we cannot maintain any such
position as that; that answer must be
changed; II we have to go down there In a
body and take them by the threats. they
have got TO change that" That amended
answer does show thai they did not assess
the franchise separately from the physical
property" How could they have considered
Il any other way2 For they had already
arrived at the value of the tangible prop
srty, although II was not announced; they
had not lost jurisdiction of the matter.
Their record was still open. 1t makes no
difference In the valuation OF this prop
eFty and l say IL once for all, whether you
piecemeai this great transportation prop
erty and assess item by item. every bit Of
rolling stock and every pin and every line
and every franchise separately. or whether
you say It Is one property and we will
assess 1t all together. It is just like . fur
nished house and lot. You can take an in
ventory Of all the furniture, the value Of
the house, the value Of the lot separately
OF you can value them all together. There
is nothing In this talk about the franchise
and separation Of the franchises; there ID