Omaha daily bee., 1902-07-13

statement was true OF not7 A.-No. l did
not.
o.-whst was the amount he gave9 A.
He said II netted $1,000.
o.-Netted sg.O0O7 Ayes. sir.
6 o.-And capitalized. what would that rep
resent What Investment would that rep
resent at 8 per cent? Al guess you can
figure that out.
OIL am asking you? A.-weil. s per
cent on $3.50. 900 would be $1,000.
o.-One hundred and Atty thousand dol
lars7 Ayes. sir.
$50 that that would indicate that the
building and ground L. worth far more than
SOS 900, does IL not7 Al thought they
had no cause OF complaint.
Q.-Isn't that a fact7 Answer my ques-
tion. please. A.-Well, ! would consider 1t
worth more than that; yes, sir.
Q.-You would consider II worth more
than sos, OOO7 AT an Investment on s
per cent; yes, sir.
- Q.-six per cent is a fair return on ar
investment now, is II not? Ayes. sir.
$50 that anything hat will pay, or an
investment that pays s per cent and which
shows a net return of 5000 10 worth $780,
O00f A.-Why, the way you put your prop
osltion l would have to say yes. l would
not consider the property worth every cent
In that shape because depreciation has to
be taken into account in an investment OF
that character. and something must be
taken of. When 1 assess property / am
required to look for the depreciation on the
original cost Of the property.
Q.-As a matter OF fact. did you take into
account the earning capacity Of this build
- - -fIea A Il, oArAAufhnNs vas air
Q.-Is It not a fact that you simply con-
sidered the cost of the lots and the actual
cost Of construction A.-Well, l inquired
of the proprietor what the building cost
before l placed a value on It, and l placed
Il $40, 900 higher than what he said II cost.
Q.-Is not that the manner In which you
have assessed ell the realty in this city that
you have not considered the earning ca
pacity? Am many cases there was no
earning capacity.
Q.-But In ali cases in which there was
an earning capacity. did you, or did you
not. consider It? A.-That was one ele-
ment in fixing the value, the earning ca
pacity.
Q.-why did you not apply 1t in this par
ticular case? A.-well, just as one ele-
ment; yes. sir.
Q.-You did consider It? Al knew
something Of the rentals; l knew something
about the bank rooms.
OWN you please tell the court why
there Is such a striking disparity between
the assessed valuation and that valuation
upon which the property earns a dividend!
Al did not have full knowledge OF the
rental value of the property, but when
placed the property at more than 1t actually
~cost-higher for the ground by $1,000, and
higher for the building by 1 1000, than II
actually cost two or three years ago, !
thought / had assessed that property pretty
b fair.
OILS cost any criterion Of actual value
A.-Well, when people buy property for
less than my assessed value they always
insist that hx the value at its cost.
Q.-The situation Of a building has a
great deal to do with its value, hasn't 1t?
Ayes, sir.
Q.-The fact that a building cost a GER
tain amount of money two or three years
ago would be no test Of its value today
higher than cost.
Q-You only added $4,000 more than ac-
tual cost? Ayes, sir.
Q,-Yet you knew that the building was
earning $4,000 net? A.-No, I did not know
that.
o.-wasn't II your duty to learn that,
Ayes, probably you might say so, blu,
my duties we're so many / could not fulhl
them all.
Q.-You did get a statement of that kind,
you say, from the attorney. Was that be-
fore or after the appraisement? A!-Af
the assessment before the Board Of EQuali'
Eation this year.
Odd you try to procure Information o.
that kind before7 Al made some genera
inquiries about rentals; yes, sir.
Q.-General inquiries? A.-On the
ground floor, but ! did not know the cost
Of running the elevator and the cost OF the
steam heating plant and anything Of thai
kind.
Dwell, tina WAS practically the same
method that you applied to the ascertain
ment Of realty values generally, wasn't It
A.-well. the method I have explained to
you, that l took into account several things
the market value Of the property, the
selling value of the property. the cost Of
construction and rental value-ali OF those
things enter into the assessment Of prop
erty.
Dwell, you did not consider the renta
value In this case, did your Al made
some inquiries as l stated, as to the rental
values OF the FIRST floor. but l did not know
In that case anything about the cost o.
heating and elevator services which wen
into the expenses Of the building.
Q.--You are acquainted with the Lincoln
hotel here. are you not? Ayes. sir.
Q.-What is its assessed value for thil
Year, A.-About sos 900; 1t cost SIS. 600.
Q.-How many lots are there? Alive
lots, twenty-five feet each.
Q.-Twenty-nve feet each? Ayes, sir
Q.-Those lots are very valuable fol
their situation, are they not?- A.-No, moi
very.
Q.-Not very3 A.-No, sir.
Q.-What do you mean by that? A
Well, thsy are in an undesirable part Of tn,
city.
o.-They are In an undesirable part O.