Omaha daily bee., 1902-05-18

unproductive property has been dumped In
and merged with productive property and
you Rave a very great dif1culty now in as
certaining which is which, the productive
and unproductive have all been put into one
pool. Now the Union Pacific has returned
an earning capacity for all it's mileage in
this state Of $4,000 per mile. That repre-
sents 4 ITO per cent on 800, 900 per
mile. II the road was worth 500, 900 per
mile and you paid S4,7O0 for the use Of
that road clear Of all expenses that would
be the value Of that road whether you
called II. the franchise or any other thing,
l don't care, but here the Union Pacific
has dumped into its system the roads run
ming throughout the states Of Kansas and
Nebraska and upon that every foot Of that
line is earning 100, whereas certain lines
are not earning one-half or one-fourth
Of that. while other parts are earning
twice that much. Now, how are you TO
tell which is which? You have only their
report before you; they have made a tang
ible showing Of earnings for the entire
mileage. You will have to do one OF two
things; separate those lines and pile up
the big earnings upon the main line, which
has earned the bulk Of It or tax all alike.
There is no doubt but what any road that
ANAAo " Nm OhOh6h " GApthStb ludl
its franchise is worth nothing and such
franchise cannot be assessed, but II It's
earning capacity has gotten to the point
where 1t pays a large dividend or reason
able dividend on its stock and pays In
terest on it's bonds 1t then becomes a clear
case, and there should be no question about
1t. 1t is just for that purpose hi the
constitution has expressly provided that the
franchise should be included with the prop
erty because these special privileges are
granted only a few corporations and they
should pay back to the state something
for h It has done for them. The state
OF Minnesota now is going to take 3 per
cent Of the gross earnings. When the IL
linois Central was chartered, Stephen A.
Douglas put In the land grant thai the H.
linois Central should pay into the state
OF Illinois 5 per cent Of its gross earn
. ings and the result now is thai the road
pays a colossal amount into the state Of
Illinois. I do not know how many millions
II pays. but It comes to q very large
| amount"
The Auditor: Some over $500, 900. l hav.
the reaort here"
what Proportion IL Just.
The Governor: Her is one thing that Il
botherlng me. but you in your figuring
and investigation have probably given 1
q great deal Of attention. The constitution
requires that all property be taxed so Al
to pay its equitable proportion OF taxes
Now, from your Investigation Of what 4
being done. what do you think the propert,
should be taxed at, hat iB, what percent
age? Would you say one-fourth. one
NTH, one-sixth or one tenth Of its actua
cash Value7 What have you found out fror
your investigation should be the pereeptas
that property should be assessed at?'
Mr.. Rosewater: Wei, of course. the lay
contemplates that 1t should be assesse
at its actual cash value or fair value o
what It would sell for In the market. N
one can tell that exactly; that is one Q
those uncertain things. II all property 1
Nebraska was thrown into the market a