Omaha daily bee., 1903-02-22
CITIZENS UP IN ARMS
CONTINUED from First Page

the subject which the meeting was called
to consider. He said: 81 think there is a
misunderstanding as to the telephone COM
pany and it is only fair to show where 1t
stands. Under the new method it will pay
more taxes than at present. This is not
the bill the company wants put through.
1t desires to be placed on the same basis
as the railway and telegraph companies
and have it's valuation distributed in the
same manner over the state by the State
Board OF Equalization.
From a financial standpoint l think It
is wrong to estimate the value Of a fran
chise by the gross earnings. The value Of
the franchise can be best determined by
capitalizing the net earnings. The enact
ment of the proposed method would take
out Of taxing jurisdiction much property
that is now yielding revenue We. must re-
member that the bill applies TO the whole
state as we'll as to Omaha, and that 1t will
benefit powerful corporations in Lincoln
and elsewhere. l would favor the pas
sage by this meeting Of a resolution. de-
claring that the present system Of taxing
franchised corporations should be main
tanned"
Equitable MethOd of Assessment.
r. J. Mahoney spoke directly on the
merits Of the question. THE relative value
of the franchise to the tangible property
may differ greatly according to the kline
OF franchises and privileges, 1t accords," he
said. capitalization of net earnings pro-
vides an equitable basis for the taxing of
franchises, one franchise necessarily be-
ing of greater value than another because
Il is worth more. The earnings or both
the tangible property and the franchise
should be taken into consideration Jointly.
The valuation OF the franchise by gross
earnings is a purely artificial and arbitrary
means of estimating the value. there be-
ing no relation at all between the value
Of the franchise and the annual gross
earnings. The citizens ought to oppose
any proposition that closes the door to as
! certaining the real truth as 20 the value OF
a franchise"
IRE Has Strong Opinions.
The resolution was then introduced. Be-
fore 1t was adopted, w. G. Ure made a
brief speech, saying that while he did not
care to go on record as being opposed tc
the new revenue law, 1t seemed that the
more that matter was tinkered with the
worse It became. From a synopsis of the
new law 1t appears to me-" he said, that
provision is made to tax every dollars
worth Of property thai the farmer has
that the laboring man has, that the pro-
fessional man has, and that the real estate
the business man has, but to let the rail
roads and the franchised corporations &c
as nearly free as possible. l think the
whole bill is wrong and believe that th'
present law, adjusted so as to make fol
equal taxation of the railroads, is prefer
able. 1 don't think it is fair to drag the
property of the ordinary citizen out ant
tax 1t for all II Is worth and protect the
big corporations. l think condemnation o
the entire revenue measure should be ex'
pressed"
Adjournment was made with little for
mality, but there was a great deal OF pri
vate discussion after the meeting was owe
and declarations that the agitation would
not be allowed to drop until the proposed
changes had been killed.
Present Method is Legal.
The present method Of taxing franchise
corporations in Omaha is the one provides
by law and interpreted by the courts an,
is as follows: The real estate is take,
separately. The value Of the franchise |
determined by ascertaining the value Of tn
tangible personal property, and the marke
value Of the capital stock and bonds. I'll
remainder obtained from subtracting tn
tangible personal property from the valu
Of the stock and bonds is taken to repre-
sent the franchise. The sum OF the per
sonal property and the franchise is &C
cepted as the taxable value Of the cor
p~oration minus the teal estate.
II the gross earnings OF the corporation
for the previous year is taken as the valu
Of the franchise, and added to the tangibl
personal property and real estate to torr
a total taxable value for assessment,
means that Omaha will lose approximate
S. 1897, 420 in assessment value as con
trasted with the assessments as they no
stand on the books for 1908. This mean
$50, 374, calculated on a levy basis Of !
mills, which is about what the multiple
will be IL the increased railroad assess
merits remain on the books. From a va
riety Of sources The Bee has obtained un
official information to make the followin
comparative statement. showing approx
mately what the change would mean to tn
Ave public utility corporations:
Propose
Present Assessment
. Assessment. (Estinated
- Street railway. ..........S SIS, 100000 $2,0O0O
Gas company, ........,.. 2.540.0OO 1850
Water co~mpany........ 285O.OOO 1880