Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-05-10
GAS OFFICIALS KNOW LITTLE
Their Testimony in Tax Case Throws No
Light on Valuation.
DESIRED BOOKS ARE IN PHILADELPHIA
lawyer McIntOsh's Questions Fail to
BriRe Any Satisfactory Informa-
tion Before the Board
of Equalization.


-Four men interested in the Omaha Gas
company, either as officers or stockholders,
or both, have thus far testified before the
Board OF Equalization and the examination
has occupied a day and a half, yet the en-
tire volume OF the information they gave
could be printed on a Columbian postage
stamp. Only one point OF vital Importance
was brought out and that had to be ad-
duced piecemeal, partly from the testimony
Of President Murphy and partly from that
Of George w. Barker, a stockholder.
Neither Of these men would testify to the
value Of the franchise, but nevertheless
this point is in evidence. 1t came about
in this way:
Mr.. Murphy testified that the value Of
the compsny's property. including the fran
chise. is $4,000, 900. Mr.. Barker testified
that the value Of the company's property,
exclusive OF the franchise. is $500, 900.
This makes the value Of the franchise
81. .O00, 900.
Mr. Barker said he thought the franchise
was worth as much to the city as it is to
the company, since the city would be sorely.
embarrassed without gas
Nearly every objection made by Attorn/
Pritchett of the gas company, designed
keep the truth from coming out, bI'
Councilman Hascall to his feet wit =:
speech in support OF 1t, and once : :
afternoon he went so far as to make
lection himself to one of Mr.. No SsE
questions
Clabaugh was recalled to the =
terday morning and his examina~ by
Attorney J. H. Mcintosh was resumed. fhe
brunt of the forenoon's hearing fell on the
question Of the reorganization Of the Omaha
Gas company, which occurred in 1897. At
that time its name was changed from the
Omaha Gas Manufacturing company to the
Omaha Gas company. The new concern as
sumed 100000 bonded Indebtedness of the
old and sold s1,7S7.OOO of bonds to raise
funds wherewith to reconstruct and enlarge
its gas manufacturing plant. making the
S2,0S7000 Of bonds now in existence. The
purpose Of Mr.. McIntoshs questions was to
ascertain II possible the valuation placed
upon the property at that time, but he met
with Indifferent success.
PrItchett Loaded with objection.
Mr.. Mcintosh was hampered in the in
quiry by-a great avalanche OF objections
interposed by Attorney Pritchett. repre-
senting the gas company, most Of which
were sustained. According to a rule made
Karr of the council to pass on all OBJ
jections and from these rulings the council
may appeal II It sees At. Most OF the OBJ
jections are based upon abstruse legal
points governing the admission of evidence
and President Karr Is not a lawyer His
private system seems to be TO sustain three
objections and then overrule the fourth.
Thursday City Attorney Connell sat behind
his chair and coached him on questions OF
| this kind, but the attorney deserted his
post after Councilman Zimman'e objection
TO the arrangement, and President Karr's
| only assistance now comes from an occa-
sional cue given by Mount or Hascall. Sec
retary Clabaugh, except that he is troubled
somewhat by hyperaemla Of the recollection,
makes a good witness. His answers are
laconic and economical
There Is still a persistent rumor floating
about that the street railway company has
agreed to have its assessment fixed at
t1,3O0OO0, the figure proposed to 1t by the
tax committee Of the Real Estate exchange
a week ago. though the report cannot be
confirmed. The company's assessment by
the Board of Review last January was
$3.50 900. II is also reported that the street
railway company has sent its books to
Ashtabula to be rebound, though all the
officers Of the company deny this.
The board was called to order for the
Friday morning session at 1910 and Sec
retary Clabaugh returned to the stand On
the table beside him lay a pile OF old
| books that looked as though they had been
| rescued from the dust and cobwebs of the
| lumber room. Mr.. Mcintosh resumed the
| examination.
Ibid you bring the books Of the company,
Mr.. ClAbaugh, as you were subpoenaed to
| DOR
| mo, SIR"
''Why not?''
Because the books are not here"
"You brought some books. did you notf'
| "Yes, sir"
| what ones did you bring?"
We'll, the sundries sales ledger is here. -
What does the sundriss sales ledger
showY"
''It shows the sales of gas stoves and tx
tures.''
Ibid you bring the consumers ledger?
mo. because there Is a sworn statement
OF what the consumers ledger contains nov
in the once Of the city comptroller, and
thought that would do"
what does the consumers ledger show p
THE Aumber and names Of the con-
sumers and the amount Of gas they con.
| sumo"
Have you here or in tho Omaha once
Of your company anything purporting "a
show the assets and liabilities OF the gas
company"
mo, air."
"or showing the status of the business
at any stated timer
II think not"
when was the last statement OF this
kind issuod?'
I'm 1897 think"
"was this for the new or the old com.
pany3"
The old company"
Then. are We 20 infer from your
answer. Mr.. Clabaugh. that the omahl
Gas company has never issued a state
ment as to its earnings or as to the condi
ton Of it's property"
Company Had Issued Statement.
Mr.. clsbaugh said he didn't intend tha
such an Inference should be drawn from hi
answers. There had been a statement IT,
sued showing the earnings Of the company
when was this made?"
"In 1900, think"
Have you q copy OF that statemen
about your once where you could md it?'
Perhaps"
well. then. / shall ask you to prOdue