Omaha daily bee., 1902-07-13
RAILROAD TAXATION IN COURT
Full StenOgraphiC Report of Hearing in Mandaruus Case by Nebraska
Snpretne COnrf..Rm4A

NOAAAuuaAANh VI NAAAN "
Tor Charles Weston, member Of the State
Board Of transportation, under redirect ex-
animation BY Mr.. Harrington:
Q.-That IL, you mean from the way they
returned II to you and the way II had been
returned in the past you considered you
had to follow on the same lines7 Alt Is
incorporated that way. and | don't UNDER
stand that we can make an assessment any
different.
Q.-How did you know It was your right
and duty to aesess all Of this property TO
the Chicago, Burlington g. Quincy as the
owner OF the road?
Judge Baldwin, object, as incompetent
and immaterial and asking a witness to
duty. (overruled.)
Al didn't know that. The property
schedules Of these different corporations
were returned to us by the B. & M. and
certified to by the auditor Of the B. q M.
In Nebraska.
Q.-Now you had before you a state
ment from the Union Pacific railroad as to
the amount Of mileage It owned in Ne
braska, hadn't you?. Ayes. sir.
Q-1,020 miles? Ayes. sir.
Q.-You say that you had the reports
there showing that the Union Pacific had
1920 miles in Nebraska. With that knowl-
edge how many miles belonging to the
Union Pacific did you assess in Nebraska?
Ave assessed that mileage under the
respective corporation. 1t is returned to
us under the heading Of different corpora
lions and that Is the way we assessed 1t.
Q.-But you had before you the state
ment Of the Union Pacific showing that the
entire road, 1,020 miles. belonged to that
company, didn't you? A.-That includes
the mileage Of the different corporations
and our Judgment was that we had to as
sess separately and independently thr
mileage returned by each corporation, and
that is what we did.
Q.-That Is to say you assessed the main
line Of the Union Pacific and you assessed
the physical property Of these branch lines
which It owns, in the name Of these de-
funct companies? A.-The Omaha a
Republican Valley, the Kearney & Black
Hills, etc.
Q.-These dead roadsf Ave assessed
them under the names Of the corporations
as It has been done for twenty-five years
past.
Q.-You knew, didn't you, that the earn
ings from these 1920 miles all went
straight to the treasury OF the Union
Pacific company? Al didn't know that.
but l presumed 1t to be the fact.
Q.-But the statement they made out
showed that the earnings went there, and
that In the preceding year the Union
Pacific railroad. after paying operating ex-
penses and everything else. had earned
$500. 900 Of net earnings in Nebraska on
this 1920 miles, didn't it, Al don't re-
member the figures now.
Odd you figure out what that made
the road worth on the Union Pacihc's own
basis? A.--No, sir.
mia vou know that the TJnton pacific
road was based upon 4 per cent for its
bonds? A.-No, sir.
Cor 4 per cent for its preferred stock?
A.-No, sir.
Q.-And that Il was paying 4 per cent on
its common stock7 Ave did not take
the stocks and bonds into consideration In
respect to any Of the roads.
Q.-Do you think you could at this time,
Or are you prepared to state to the court
what this Union Pacific railroad is worth a
miller A.-No. sir, ! don't think can.
Q-Do you know how you could figure II
out so as to tell the court what IL is worth
per mile? Al suppose l might a an
approximate estimate Of the cost in a few
moments II l had some way to get the In
formation.
&, Q.-Now, speaking of the main line Of the
Burlington, Mr.. Weston. you have beer
over the Burlington railroad pretty we'll
have you not? Al have been over II
considerable; yes, sir.
Q.-Now, you assessed 1s1 miles OF MAR
line, didn't youG Al think It is 1s1.
Q.-Don't you know the main line ex.
tends more than 400 miles across the state
A.-Well, It depends on what you call the
main line.
Dwell. the line running from Chicago
to Denver? THE line doing the through
B. & M, business from Chicago to Denvel
probably extends over 400 miles across thu
state.
Q.-And yet you take that portion OF 4
running from P~lattsmouth to Hastings anC
that little branch running of to Kearne!
and you call that the main line. and thei
you take the balance Of the line from Hast.
ings to Denver and treat that as a sort o
a side line. do you? Al understand W
assessed the different portions of the sys
tenn under the original Incorporation.
Q.-Without any reference to whether 1
was main line or side line? Ayes, sir.
Q.-Don't you know that the B.. & NJ. II
Nebraska. as we call It, has been out o
existence twenty-five years? A.-No, sir;
do not.
o.-You didn't know that that was tu
dicially determined here that 1t WAS dea'
twenty-five years ago2 A.-No. sir.
Own you take all this mass OF ties
timony and tell US what the earnings Of tn
Oxford and Kansas line have been for tn
last few years? A.-No. sir. l cannot. MI
Pollard said since there has been a chang
: IN the ownership or management of tn
{ Burlington system that the accounts Of tn
road were kept By divisions and not b
the separate interpretations and that for tb
last year OF two, or for the last year, a
any rate. that they could not return tn
earnings except by divisions. I think tina
Yves his statement made at the time.