Omaha daily bee., 1902-07-16

gible or intangible, is assessed against the
Chicago, Burlington 4 Quincy. So that
when they come to reassess here, II your
honors shall see At to award the writ, II
will be their duty not simply to assess
these dead corporations but to assess this
entire property as a live, going concern
with a valuable franchise, as a dividend
paying road, not these fifteen dead corpora
lions, but the Chicago, Burlington &
Quincy.
Something has been said here Of assess
ments In other states and l believe we have
the assessment from Missouri offered in
evidence. The railway assessment in Mis-
souri,, at any event, Is about 1920 a mile.
1 don't know as this amounts to very much
one way or the other, or proves very much
because in the end the test is whether these
railroads are paying their fair share OF
the taxes In proportion to the value OF
their property when compared with other
property In this state. The Union Pacific
has a half mile In Missouri and for that
half mile It Is assessed $3.50, 900. Why, that
one-half mile is assessed at as much in
Missouri, in fact more than all the termi-
mails in Omaha and for twenty miles west of
1t on the Union Pacific, although 1t Is only
a branch. For some Of the smaller roads
1t may be said that they earn on q smaller
basis. That is truey but when you get the
net earnings and when, as counsel seem to
claim, that the franchise was considered,
have you considered the franchise and net
earningsT Not at all. the net earnings are
simply one guide to the value OF the prop
erty, but, as pointed out by Judge Miller In
the T. B. & w, case in Illinois, q road may
lose money for two or three years, but 1t
may have a bright future, II may be In q
territory which Is developing and growing
and in the future II may pay large dividends
and be profitable to the owners, and when
that condition exists the franchise has a
value that should be taxed.
n so It Is with some OF these roads
here, as l have illustrated In the case Of
the Union Pacific. Suppose the Union Pa
cihe charter was to expire on the first day
Of January next. The Union Pacific railroad
would earn just as much money this year as
ever. The earnings would be Just as large
but what would the stock Of the Union Pa
cihe be worthH It would be worth just what
1t would cost to duplicate the property, be-
cause of the, known fact that the franchise
was about to expire, just as 1t expired be-
fore. And the stock would go, as 1t did be-
fore, down to "a or IS a share where some
people thought they ought to take It In for
Tue purpose OI BCllluk Oh u lh1iuO IN NhO
new organization. That Is all It would be
worth. So the fact that II earns money,
while that Is one guide and a very i'm
portant guide In determining the value Of
a going, living concern, yet II is not the
only guide. But the capital stock. the fair
value plus the bonded debt capitalizes the
whole thing and you get the value OF the en-
tire property including the perpetual fran
chlse.
One more thought that / wish TO urge
and then I win leave the balance Of the
time TO my associates, and that h the
question of the assessment of property
within the cities Of Omaha, South Omaha
and Lincoln, II In the Judgment of the
court it properly arises In this case.
think with one view OF the case Il might
arise; in another view Of the case II might
be determined to have that case left for ar
gument In a subsequent case. / think,
however, It could be disposed Of in the case
mere.
The constitution provides In the revenue
section for ordinary taxation. and then by
section 9. article TX. It provides for munich
pal taxation. and is as folIowsi-
The legislature may invest the corpo-
lagos with power to make local improve
ments by special assessment, or by spe-
ciai taxation OF property benenteu. for
all other corporate purposes, all munici-
! pal corporations may be vested with au-
thority TO assess and collect taxes, but
such taxes shall be uniform in. respect
to persons and property within the Juris-
diction of the body imposing the same.
The court will notice that the provision
relative to municipal taxation is very diff
ferent from that relative to general taxa
tion which refers to state and county tax
alton. where the, constitution by its express
terms leaves the manner Of determining
that entirely to the legislature. And under
that power the legislature has the righi
and It is proper that It should, for county
aud state purposes, because the counties
are only portions OF the state carrying or
the same general business; that is, having
to help bear some OF the expenses, such Al
looking after the insane and unfortunate
UNFOLDING the criminal laws, maintaining
peace throughout the state. II is the coun'
ties that do all these things, It is not the
municipalities; so for all these purposes
all the counties are mere subdivisions Of
the state subdivided for the convenience o.
the people. But as to these municipalities
there Is a different rule. They do not ex'
ercise these powers OF the state, they do
not enforce the criminal laws; that burden
10 not placed upon them, but they hav'
burdens Of a more serious character. and
the trainers OF the constitution having thai
in mind, provided that for property within
the municipality authority might be giver
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