Omaha daily bee., 1902-05-16

/ by IeENtnE a tax bN valuation. so that
every person and corporation shall pay a
or its property and franchises, the value
legislature shall direct.
Nov It says that The value Is to be as
certRined in such a manner as the legisla-
ture shall direct. How is that value to be
ascertained by this board? BY an investi-
cation Of the facts. Are there any facts
which the law requires to be set before you
In order that you may ascertain the value
Of the franchise? On page 77s OF the COM
piled statutes for 1901 it says Capital stock
Of corporations, bridge, express, ferry, gas,
manufacturing, mlnirg, savings bank, stage,
steamboat. street railroad, transportation
and all other companies or associations In
eorporated under the laws Of this state ex-
cepting insurance companies
what Has the Board DoneF
Every year the corporations present to
this board their net earnings, the amount
OF their capital stock, and why is that done?
Has II ever been utilized by this beard?
Has It ever been referred to for the pur-
pose Of taxation by this board? There is
some reason for this statute being in here,
and, as l maintain, It is only for the pur-
pose OF assisting you at arriving at the
value Of the franchise.
will IL be said that the railroad COM
pany is not q transportation company? The
provisions Of this statute take In all cor
poratloDs and associations Incorporated
under the laws OF this state except in
surance companies. 1t is the universal rule
Of law that where a particular exception
Is made nothing else is included except
that particular exception. When It ex-
cludes insurance companies all other COM
panies are taken into consideration and
| Tntta H., Nowa1 Tkt. -A-.tz- .zta- 49,
corporations shall In addition to other
properties required by this act to be listeo.
make out and deliver to the assessor q
sworn statement OF the amount Of It's cap
ital stock, setting forth particularly, first,
the name and location of the company or
association, the amount Of capital stock
authorized and the number of shares into
which the capital stock is divided, the
amount Of capital stock paid up, the market
value, or II no market value then the actual
value Of the stock. the total amount Of all
indebtedness for current expenses from
such expenses the amount paid for the
purchase or improvement Of such prop
erty.
Now that, as you will observe, has been
held unconstitutional they cannot deduct
Indebtedness of the company.
Property Must he Listed.
Sixth. The assessed valuation of all this
real and personal property, which real and
personal property shall be listed and val
ued as other real and personal property is
valued and assessed. Under this chapter
the aggregate amount OF the fifth and
sixth item shall be deducted from the aR-
gregate value Of the shares Of stock as
provided by the fourth item and the re-
mainder, II any, shall be listed by the as
SCISSOR In the name of the company or cor
p%oration as capital stock thereof, In all
cases OF failure or refusal of any person
to make such return or statement It shall
be the duty of the assessor to make such
return or statement from the best informa-
tion he can obtain.
Section 80 says that the board shall
take into consideration the number OF miles
and the right-of- way, super-structures
thereon, main and sidetracks, depot build
ings. depot grounds, section and tool
houses, and the personal property neces-
sary for construction, repairs, etc. You
cannot stop there; you have 10 70 further.
You have got to see II there be any other
provision Of the law which says that 1t is
your duty to value the franchise, and we
find this provision in section 80, which pro-
Vides the method by which you are TO
acquire knowledge Of the franchise. Now,
let me call your attention to this decision
OF the supreme court Of Nebraska. will
refer to It as the Omaha decision. It has
not as yet been reported. The syllabus
says: That part OF section so of the
revenue act which requires the assessor
to deduct the amount Of the corporation
Indebtedness from the actual value of the
shares OF stock to determine what shall be
assessed as capital stock is unconstitutional
and void
United States Supreme Court Opinion.
"As read this decision, It means simply
this: That section 80, SO far as It requires
the Indebtedness OF the corporation to be
deducted, is void, because 1t is not allowed
In the assessment Of the property Of in
dividuals, and therefore 1t could not be
allowed to corporations, and 1t is the duty
OF the assessor to assess the property and
the franchise, both. There is a very inter-
esting case upon this question in the SUI
preme court Of the United States, decided
by Justice Brewer; I will call your atten-
ton TO 1t. 1t is the case Of The Adams
Express Company against The Ohio State
Auditor, a decision upon a rehearing. vol
ume 1865. United States Supreme Court Re-
ports. page 1875. as follows:
But this contention practically ignores
the existence of intangible property, or,
at least. denies its liability for taxation.
In the complex civilization OF today, a
large portion OF the wealth of a commu-
nifty consists in intangible property, and
there .is nothing in the nature OF things
or in the limitations OF the federal con-
stitution which restraints a state from
taxing at its real value such intangible
property, . IL matters not In what
this Intangible property consists-whether
privileges, corporate franchises, contracts
or obligations; y is enough TINT 1t Is
property which. though intangible. exists,
which has value. produces income, and
world. To ignore this intangible property
or to hold that Il is not subject to taxa
ton at it's accepted value. is 20 eliminate
from the reach OF the taxing power a
large portion OF the wealth OF the coun-
try.
In the city % New York are located the
heacqua rterE OF p cooperation whose cor
porate property is confeessdiy of ne value
OF Sl6,O00,OO, a value which can be real
ICED by its stockholders at any moment
they see fit. Its tangible property and rs
business are scattered through many
states. all whose powers are Invoked 10
protect its property from trespass, and
secure IL in the peaceful transaction of It's
widely dispersed business. Yet. because
that tangible property Is only SI,OOO, 900, we
are told that that Is the limit OF the
taxing power of these states. In other
words, IL asks these states 10 protect
property which TO IL Is of the value of
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