Omaha daily bee., 1903-05-20
ExPLASArIoNs ARE IN ORDER.


the Almighty after the morning and
evening of the sixth day, its members
are satisfied with everything they have
done and are taking a rest. Before
passing in judgment upon the work of
the state board, the people Of Nebraska
may want more light
The chairman of the board, Governor
Mickey. assures the people Of Nebraska
that the board considered in it's delib-
erations all railroad property including
the improvements made within the past
twenty years, the valuable terminals
erected in Omaha since that time as
we'll as the value of the roads based
on their capitalization and earnings. We
are assured also that the failure OF the
board to make any material change in
the assessment over that of last year
is due to the fact that the returns made
by the county assessors this year show
no material increase in the assessment
on lands over last year. These assur-
ances collide with stubborn facts and
the people of Nebraska will require a
great deal more explaining before they
are convinced that the board has acted
in good faith.
In the first place, the assessment of
last year and the year before last was
an outrage upon the taxpayins citizens
Of the state and could not be justified
or explained away on any rational
ground, except that the boards that
made these assessments were recreant
to their trust and subservient to the
railroads.
No amount of explaining could recon-
cile the people to the shrinkage In rail-
road assessments in the face Of the fact
that their market value and their earn
ings had doubled, trebled and even
quadrupled.
The returns made by the Union Pa
cifc for 1902, which form the basis of
this years assessment, show an In
crease In earnings from $4,711 per mile
to $5,404 per mile, or more than fifteen
per cent, mile for mile for the entire
system, including main lines and
branches An increase of fifteen per
cent in value for the whole line is equal
to an increase OF $1,470 per mile on the
main line and $525 per mile on the
branch lines. Had the board acted in
good faith It would have raised the as
sessment Of the main line of the Union
Pacific from $500 to $11,2TO per mile
and the Omaha & Republican Valley
from $500 per mile to $4,025 per mile.
But the board raised the Union Pacific
main line just 800 per mile and did not
raise the assessment of the branch lines
single penny.
If the increase of earnings had been
considered in good faith and the board
had reached the conclusion that the
branch lines of the Union Pacific were
not entitled to any part of the increased
earnings, the excess of earnings for the
system in 1902 over 1901 should have
been credited to the main line and that
would have raised Its assessed valua-
ton from $1,000 to $11,795 per mile.
That such an appraisement would not
have been excessive is conclusiveIy
proved by the assessments Of former
years. ~.
In the year 1889 when the net earnings
Of the Union Pacific were So, 43s per mile,
or very nearly the same as for the year
1902, the main line was assessed
for $11,440 per mile. In 1889 the
Omaha & Republican Valley railroad
showed net earnings of just 5000 Der
mile and yet was assessed at $1,000 per
mile. Can any member of the board
explain why that road with largely
increased volume Of traffic should have
been assessed for 1908 at $500 per
mile less than 1t was assessed thirteen
years ago?
The reduction of the assessment OF
the Burlington main line by $50 per
mile as compared with last year is
equally inexplicable. In 1890 when the
stock of the Burlington was in the mar.
ket for 90 cents the so-caled main line
was assessed for S11,SO0 per mile
Eighteen months ago the Burlington
4
stock-main line and all the branches
was converted into four per cent bonds
at 81 for every dollar face value of the
stock.
Can anybody tell why there should
have been any reduction In its assess
ment for this year2 In former years
the Burlington made a separate return
Of earnings and equipment. main line and
branches. This year they made nc
separate returns but reported theiI
gross and net earnings for the entire
system and the auditors blanks cover
ing its depot grounds, depot buildings
and rolling stock. were returned with
out figures for any single item.
What the people of Nebraska would
like to know and have right to know
is, how did the board make its figures fol
each of the separate branches of tn,
Burlington, how did it appraise III
tangible property and what value die
1t place upon each OF the separate linei
based upon earnings when 1t had no in
formation how much each branch hat
earned. When these slight dscrepan
/ piaq axnIafnad fbo v,oo,Io ..gI