Omaha daily bee., 1902-06-21
RAILROAD TAXATION IN KENTUCKY.

hAALhOhD AN H.
BY a decision Of the court Of appeals
the railroad corporations Of Kentucky will
be compelled 20 pay each year large sums
to the various towns and cities. Only re-
Gently the assessments OF the railways OF
the state have been increased from 80 20
100 per cent by the State Board Of Valua-
tion and Assessment, and under the decision
handed down today the same basis will be
employed by the cities and counties. thus
greatly increasing the fixed charges Of tie
various railways, and particularly the
Louisville & Nashville, which suffered an
increase OF 100 per cent, its franchise
being valued at $50, 900, 900, as against
$780, 00,0 900 heretofore. The decision was in
the case Of the Southern Railway against
Auditor Coulter and other members of the
State Board Of Assessment and Valuation.
It upheld the Judgment Of the lower court
Frankfort CKy.) special to Chicago Tribune.
This righteous decision of the Ken
lucky supreme court establishes n prece-
dent which sooner or later will be fol
lowed in every state of the union in
spite of railroad attorneys and tax bu-
reaus The railroads have always ex-
erted n powerful political influence in
Kentucky, but in spite of all of the
pressure they could bring the assess
ments have been increased by the State
Board of Assessment this year from
80 to 100 per cent.
1t will be noted that the assessment
of the franchises of the Louisville &
Nashville alone has been raised from
$4,000 900 to 100000 900. If the fran
.It1a e A., Il A,,gn-4II. @ NTaaI-gIIa Ill
road is worth $6O,OOO,OOO in Kentucky,
how much is the franchise of the Union
Pacific worth in Nebraska? How much
is the franchise of the Burlington worth,
and how much those of the other roads?
Up to this time these franchises, which
are worth not less than 100000, 900,
have escaped taxation altogether, but
that is not all. The tangible property
of the railroads has practically been eX-
empt from taxation for municipal pur-
poses.
Under the decision of the Kentucky
supreme court the property and fran
chlses of railroads will pay just the
same taxes in cities as all other classes
of property. That principle will in due
time prevail in Nebraska. Nowhere is
the discrimination more fragrant than
in the assessment at Omaha. Under the
assessment made by the state board
this year the west half Of the Union
Pacific railroad bridge, assessed for
$1,56S, will pay just $47.04 into the city
treasury of Omaha, when it should pay
at least $4,000 to $1,000. The Fremont
& ElkhOrn road for all it's property, in
Guiding right-of-way, depot grounds.
depots, terminals and property of every
description, is assessed at $12, 800, and
will pay 1887 in city taxes, when it
should by rights pay at least $1,000 to
$4,000. The Burlington passenger and
freight depots, depot grounds, terminal
facilities, sidetracks and equipment will
pay only 1922 in taxes for city purposes
i'll 1902, when they ought to pay at least
from $1,000 to $4,000.
When all the railroads and other cor
porations enjoying valuable special
privileges pay their share toward the
cost of state and city government, the
tax rate will be reduced proportionately
and property values will increase. In
the end the pays the freight.
The railroads levy the taxes ON the
products of the state and their own
taxes are included and collected before
they pay their assessments.