Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1903-01-30
Rosewater Combats the Theory that
They Pay a Proper Share,
Ohm NJ BALDWIN MAKES APPEARANCE
His Effort to Dodge Committee Meeting
is Baflsd by 0mahans.
wlNToSH STARTS IN AT A LATE HOUR
Emphaticany Denies Mr.. Baldwin's
Argument Regarding the DIstri-
button of values of RaI-
road Property,
CFrom a star correspondentN

LINCOLN. Jan. 29.-(Special Telegram)
E. Rosewater, J. II. Mcintosh. John n.
Baldwin OF Omaha and e. NJ. Pollard OF
Cass county addressed the joint revenue
committee OF the legislature tonight.
Mr.. Pollard spoke hrst briefly outlining
certain ways OF improving the revenue
laws Of the state
Mr.. Rosowater dwelt upon the question
of revenue and taxation in its widest
scope. He traced the policy OF evading
taxes maintained by railways from the
earliest days in Nebraska He showed that
they evaded taxes on land by failing TO
take out patents on their lands. This was
notably the policy pursued by the Union
Pacific, the most favored railroad OF the
state.
Mr. Rosewater urged the revenue com-
mittee to define railroad rights-of way and
settle how much OF this property should be
assessed by the mile. This is a complicated
question and called for settlement. The
Union Pacific claims 200 feet OF right Of
way, while others we're as low as 100 feet
1t has become nearly impossible to compel
these roads to meet their obligations be-
cause of these conditions. Regarding the
alleged distribution ot terminal valuation,
Mr. Rosewater declared 1t is untrue and
challenged any railroad lawyer to d.sprove
what he said.
Imposed on by Railroads.
"You have never distributed anything"
he declared. Nebraska is shamefuIly i'm
posed on by the railroads in this respect,
worse than nearly any other state"
He successfully controverted the rail-
road argument by showing that they are
only paying about half the taxes in this
state they ought to pay They are paying
n N a,A
$50 900 900, he said.
On the question of franchises Mr.. Rose
water said: Assess the franchises sepa-
rately, not like this proposed Kansas bill
provides to assess them in with all other
property. ] conceive a franchise to be a
/ right OF sovereign power. How can you
assess that alongside Of an engine or a
| box car. / want 20 Impress on you that
when you frame this law you separate tho
franchise from tangible property and let
| the boards decide what these franchises are
worth.
Il have shown you that the railroads
are not paying all the state taxes they
ought to pay. They ought to pay 25 per
! cent OF the taxes and they actually pay
only ~ or 13 per cent. l defy any man
! in this house to show that / cent of taxes
! has ever been added to the railroads
taxes in Omaha by reason of or since the
/ establishment of their improved terminals
! These terminals are not taken into con-
| sideration They are utterly ignored ask
| you. Is that right? There is not a county
! in this state that has not lost from $780,
! 600 to S2000000 in taxes that should have
! been paid by railroads"
Mr.. Rosewater dealt effectively with the
! Omaha situation, showing the fallacy OF
/ the railroads claims that they are paying
all the tax there they ought. He said
( he would give $1,000 to anyone who could
/ show l cent taxes was taken away from
any county or district in the state by in
creasing omaha's city taxes.
! ]. II. Mcintosh explained he would give
an additional $500.
baldwin Pleads for Railroads.
John N. Baldwin was the next speaker.
He launched out by denying that he was
trying to dictate or influence legislation
and even denied his former intention in
which he endorsed the proposed Kansas
. revenue law.
Il am not" said Mr.. Baldwin, here to
say anything about whether the railroads
are paying their just share of taxes. We
are not denying that franchises should not
be assessed. That is not a vital question
now"
! Mr.. Baldwin then plunged into a tech
! nical discussion Of the theory OF railroad
taxation, using the Union Pacific system az
an example. In this connection he asserted
that his road paid taxes on its franchise
and declared IT paid all its Just taxes He
brought out the argument that the property
OF the road throughout the state is an in .
| tegraT part of the Omaha terminals. Dra-
matically he exclaimed: 81 am here to
meet these gentlemen on this proposition, -
HUW l.
the Union Pacific is distributing its taxes
throughout the state. neglecting to answer
the argument that the fair share OF city
taxes in Omaha for city purposes is not
paid. He denied that his road admitted
its Omaha valuation TO be SIS, ,OOO. 900. and
said the whole road in Nebraska could be
reproduced for $50 600 00O
Seventeen times Mr.. Baldwin fervnntIy
declared the Union Pacific is paying its
fair share OF taxation and when no came
to the eighteenth time he asserted that It
was paying more than its fair share its
contribution for all taxes in the state
being 100000.
When pinned down by a question TO show
how taxes in other counties would be re-
duced II Omaha taxed the Union Pacific
as contemplated In the bill, Mr.. Baldwin
was unable completely to deliver the
goods"
! In Answer TO Baldwin.
= Mr.. Mcintosh was given the foor by Mr.
Baldwin after IL o'clock, Mr. Baldwin hav-
ing consumed two hours. The committee
Z refused to allow Mr.. Mcintosh longer thar
4. twenty minutes, and six members voted [,
adjourn, refusing to hear him at all
' The speaker showed that Mr.. Baldwin
though asserting that this is not a cues
/. tion Of assessment. devoted his whole two
hours TO II as a question Of assessment
n Emphatically he denied the Baldwin argu
: ment OF distribution OF values and tLxe;
' and contended that increasing city taxes II
Omaha cannot possibly affect the property
' or taxes in a single other county IN thi
y state.
"All we ask Is thEt the railroads 90 be
q fore the same tribunal for fixing their loca