Omaha daily bee., 1902-07-16

was no possible way by which any man
could get at the actual value or fair value
Of the Union Pacific railroad in 1898. The
stock Of the Union Pacific railroad had not
paid a dividend for several years. All the
common stock and all the preferred stock,
all of It, are paying dividends that has sent
that common stock to par and above it,
sending 1t to a premium.
Now, then, as to 1900 there was a diff
ferent showing. In 1899 and 1900 as a re-
suit Of that these railroad values ought to
have been increased immensely upon the
tax rell. But something occurred in 1900
though counsel may not be aware OF it
which added immensely not only to the
value OF the Union Pacific railroad, but the
value OF every mile Of railroad In Ne
braska and every mile of railroad west OF
! Chicago. The information that these cor
porations had done certain acts by which
they had immensely increased the value
Of their roads was not known to the state
board that made the assessment two years
ago. ] think / have given a fair consid-
Grafton to this question for several years,
but L am frank to say that this order was
personally unknown TO me, close track as
l aimed TO keep Of these matters. Wha.
has given value to these railroads, what
was the entering wedge Of the mergers
which have since taken place was a COM
mon agreement made in the city of Chi
cage under which they placed all territory
running from Chicago northwest Of st.
Louis and then down the Mississippi to
the gulf and taking all the territory west
of those lines throughout the United
States and putting them into a division
and issued a rate sheet, known as classic
cation No. 20, binding upon every railroad
operating within that territory.
' What was this general classification or
this order No. 297 II provided, as the
report Of the Interstate Commerce COM
mission now In evidence shows, a
reduction of 81 per cent on sew
enteen articles of and
an increase of a per cent on $40 ar
ticles IN common use that constituted the
bulk of the commerce of this country. The
average increase in the 257 articles was
more than 40 per cent, so az a result a
man who paid 800 freight before that
classification went into effect on the 25th
day OF January. 1900. had to pay $40 in
pIace OF $780, But as the Interstate Com
merce commission says that as the cost
Of carrying freight did not increase a dol
lar, Il simply added to the profits of the
railroad corporation. The result was that
they could pay larger dividends. they
could pay better interest on their bonds
and larger dividends on their stock. and
they got up a new plan, some criterion by
means Of which they could double II neces-
sary the amount Of the stocks outstanding
so as to pay dividends on twice the amount
while the rate of dividends would look only
half as high. THAI lie what has been at
the bottom Of the mergers. 1t is the pur-
pose to collect tribute from the people by
these increased railroad rates and at the
same time conceal the truth from the peo-
pie as to the rate OF interest they were
actually paying upon the amount the road
fairly represented. / do not know whether
counsel would call that moonlight on q
shovei;' that Is for the Interstate Com
merce commission TO say.
When the assessment Of two years ago
was made the state board did not know a
single thing about this immense increase
J In rates, which means an increase In the
value OF the railroad property. II was
not until their annual report was published
in the following year, year later-that
anybody, unless II was these gentlemen who
manipulated from the inside or some ship
per who happened to have paid the in
creased rate, that then knew about 1t.
II was not known to the public generally
or to the public of1cials until they had is
sued their annual statements In the follow
Ing year and until after the Interstate
Commerce commission had published It's
report. And as soon as 1t was o that
they had collected these Increased tolls
and thereby immensely increased the value
OF all railroad property In the country,
then the very next year, that Is, last year,
II was the duty of this board to increase
the assessment OF these railroad corpora
tions SO that their assessment would cor
4 Aa.n-,d nth .kha tuaraaan In fha actual
value Of their property. which they them
selves brought about, as the Interstate
Commerce commission says. by their own
Did this board make any EFFORT to hnd
out what 1t was that was causing this I'M
menses increase in railway values? Has
this board In this case shown any desire
to give this court information as to what
these properties are fairly WORTH Haven't
We. on the vital points here which affected
these railroad. properties, been met con-
staptly with .ob3ections2 Why. the two
or the three pieces OF evidence upon which
we, can rest this case with absolute safety
above all others, as showing that an In
crease should be made. are the Interstate
Commerce reports, Poor's Railroad Manual
and the market quotations on these stocks
evidences a majority Of which were resisted
~ the outset mere ana 4 want 10 ASK thls
court II this Is not information which thi:
tribunal, the highest In the state. ought tC
have from the servants OF the state. thu
respondents here2 II II was not for the
light we have thrown upon this transaction
would you have been able to tell the value
Of any railroad In the state Of Nebraska
We brought the information here. We
put t. In over the eaptious objection Of thes.
gentlemen. who are not here serving thu
commonwealth, but serving corporation
who are swindling the balance Of the PEG
pie OF this state in the matter Of taxation
Their conduct in tina respect, their failure
70 Inform themselves Of the value, theil
} conduct in this trial in failing to furnish Of
trying to furnish this court with the tru'
value OF the railroad property, their cap
! tious objections to the offered evidence. arr
proof that they have acted fraudulently II
. this matter. that they have been In eollu,
J sion with the railroad companies, and com
t mitted. as / said before. to exempting tn
bulk Of this property for taxation.
Now. let US take the Union Pacific rail
road for an example. / take the UnioI
Pacific hrst, because il Is the biggest sin
ner Of the lot. Mr.. baldwin in his brie
says that the amount Of the stocks out
D standing, not only Of the Uaion Pacific an
the Republican Valley. which Is q part of II
= but OF the Oregon Short Line, which the
couple with II, although II has 30 per cen
Of it's stock that II owns, but the orego