Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-06-07
After Executive Session with Members Of
the Board New Answer is Filed,
DoOGES ON QUESTION OF FRANCHISES
By Implication Says They We're Considered
in Making Assessment.
EARNINGS PART BASIS FOR VALUATION
IntimStion that Railroads VIII Com
tend This IL an Assessment of
the Value of the Fran
chises of the Roads.
CFrom a stan Correspondent

tFrom Stan Correspondent)
LINCOLN, June Especial lin q doc
ument filed in the supreme court this aft
| ernoon the state Board OF Equalization sets
! forth that in fixing the railroad and tele-
| graph valuation OF the state it took into
consideration and did assess the value OF
| all the properties OF the various corpora
tions, and that In making up the vaiua-
ton or assessment it examined and con-
! sidered the returns made by the COM
| psniee, together with reliable inform alton
! obtained from other sources. II is further
| represented that the board did not believe
that under the Law defining its powers and
duties it had authority to value and assess
! extra corporate franchises Of the COM
panies separately and apart from their
| tangible property.
| The showing is made in the case institu-
! tuted against the board by The Bee Build
| ing company and is in the nature Of an
| amended answer to an alternative writ OF
mandamus. This alternative writ REQUIRES
| the board to reconvene and reassess the
railroad and telegraph property, and to in
! clude the franchises In the valuation, or TO
! appear in court and show cause why u
| does not do The attorney general filed
| an answer to the writ last week in which
| he gave the court TO understand that the
| board had declined to either value or as
| sess the franchises Of the companies The
| reason given for the declaration was that
| the board doubted that It had authority to
assess anything but the tangible property.
Result of Conference.
The action OF the board in filing the
| amended answer was the result Of a con-
| ference with representatives OF the vari-
| Gus railroad corporations The meeting
was held in the governors ONCE, begin
ming at 1O:SO and lasting until nearly 1
| o'clock this afternoon. The amended ans
wer will take the place OF the original doc
| ument. which will either be withdrawn or
/ allowed to die in the court fiies.
The railroad representatives came to
plead for relief from that section OF the
| attorney generals original answer which
| declared that the board had declined to
| assess the franchises OF the corporations.
They contended that the board had con-
sidered and assessed the franchises, not
outstanding the attorney generals state
ment to the contrary.
| There is a wide difference OF opinion as
| to what constitutes a franchise" said one
OF the attorneys. I'VE want the board TO
show TO the supreme court that 1t took
into consideration the returns of the COM
panies as to tangible property, that II con-
| sidered the earnings and revenues Of the
companies and in fact, all reliable infor-
nation that could be obtained regarding
the valuation. Then we will present our
argument to the supreme court as to what
| constitutes the franchise. We insist that
| the franchises have been assessed, but that
is for the court to determine"
The particular clause OF the attorney
generals first answer which aroused the
railroads follows:
What Roads Objected To.
court that at the time said Z. Rosewater,
| representing the relator herein, appeared
| manded these respondents as such board
| TO assess the franchises of the corporations
they had, and stiIi have. doubts as to
| whether they had the legal authority under
the sections of the statute referred to to
value and assess the franchises OF said
| corporations, and for the reason that said
and powers it declined to comply with said
tive .V'' 1''1 '''''''- % ''' : ''' e'''''A'
Those who attended the conference were
Governor Savage, Auditor Weston, Treas
urer stuefer. comprising the State Board
OF Equalization; John N. Baldwin OF Coun-
ell Bluffs, representing the Union Pacific;
j. E. Kelby of Omaha. representing the
Burlington; Ben White OF Omaha repre-
senting the Elkhorn and Omaha roads; J.
w. Orr OF Atchison, representing the Mis-
souri, Pacific: Frank Ransom representing
the Pullman company; Attorney General
Prout and several railroad tax commits
sioners. The deliberations were behind
closed doors.
The meeting was entirely unexpected TO
outsiders Auditor Weston said he was
notified by the railroads at o'clock last
night that they wanted q hearing this morn
ing. but insisted that he knew nothing Of II
before that time. Mr.. Baldwin and another
attorney arrived at the state house q few
minutes after 10 o'clock and went directly
to the once Of Auditor Weston. Mr.. Kelby
had already arrived in the department.
The three attorneys then went 10 the exs
ecutive department and without waiting to
be announced entered the governors pri-
vate once. They were Joined a few min
utes later by Ben White and Treasurer
Suefer, who came in together and later BY
Auditor Weston, Frank Ransom and Mr..
Orr OF Atehison brought up the rear Of the
procession. The attorney general was later
summoned.
stuefer Did Not Understand.
Treasurer stuefer said this afternoon that
E he was unable TO say what had transpired
J | at the meeting. The lawyers talked over
legal questions and l cannot tell you what
they are. because don't understand them"
replied Mr.. stuefer In response to an in.
quiry.
Auditor Weston exhibited more knowledge
Of the proceedings. however. and declared
that the board had agreed TO the fIing of
an amended answer. which would show IN
detail what the board had done. II am
stiI Of the same opinion regarding the
duties and powers Of the board" said he.
The hearing this morning was not for the
purpose Of getting a reconsideration, but
simply TO have an answer filed in the SUI
preme court which sets forth the facts
! Briefly stated, the action OF the Board Of
s Equalization today amounts 70 this: The
s new answer sets forth that the board, in
8 fixing the valuation Of railroad and tele-
: graph property took into consideration all