Omaha daily bee., 1903-02-14
- q Why the Roads Prefer to
d O1 NdAAA OdA1S Let Well Enough Alone
Franchise values Vow Escape.

stantially the arriving at the valuation In
a theoretical way.
Franchise values Vow Escape.
Now then, OF course. IL that should be
done here and then hat principle be ex-
tended TO Nebraska and Kansas. why the
result would make a great deal OF differ
ence in the matter Of our taxes.
Now, I will only take your time for one
moment longer to show you why. so far as
the Burlington is concerned. the applica-
tion Of these theories, the trial OF the ex-
pertinent, going from the information which
has been laid before you, that II you apply
these principles II will be demonstrated
that railroads have been robbing the state
Of Wisconsin Of 81, 900, 900 a year. II you
apply those principles It will make a tire
mendous amount OF difference 10 us in
states like Kansas, and Wyoming, and
Montana that Is, taking a valuation based
upon the stock and bonds and carrying that
value on a strictly mileage basis TO those
states, regardless OF the value OF the prop
crty.
They say We have got the property there;
we will tax the property; but when we go
20 Kansas or TO Wyoming or 10 Wisconsin
the suggestion is that we will bring that
PAbpfAAg AAluAkh lut hAuNh duu DOnu theory
here and tax IL on a basis of the value
o. the property, as obtained per mile by
the stock and bonds. and that would in
crease our valuation in Kansas from what
it is now, S1.124,OO0, to over S16.O 900. 900.
and would increase our taxes from "a, $50
20 $685., 600, and in Wyoming the change
would be from S32, 900 TO 1886. 900. and in
Montana from $17, 200 to about 1872. 900.
Problem Alike in All states.
The very same principle applies that
substantially Is used by the commission in
reaching the conclusion that the railroads
in Wisconsin are not paying their fair rate
81 taxes, because that is all worked out in
their report. The rate is worked out and
the valuation is worked out. and. taking
this as the condition and the probable out
come OF this agitation, I simply wanted
to call your attention to the fact Of the
results, as they appear upon the property
Of the Burlington road in other states.
w are now paying-I do not know
whether all OF you appreciate how much
what percentage OF their net earnings the
railroads are paying in taxes in Wisconsin.
! think they are paying about 1lh per cent
in taxes OF their net e~arnings-llh pei
cent On all their net earnings In the state
"' Wins S"lu III 'aAes. we pay out OF the
Chicago, Burlington & Quincy this yeaI
81, 100000 taxes on between sixteen and sew.
enteen millions OF net earnings. or nav
nearly 10 per cent taxes now all over the
country.
Just pardon me with being impressed
with the gravity OF the situation. that this
principle shall hud foothold by law in Wis.
consin and be carried into these Other
states, What do you suppose tie railroads
are going TO be Obliged 10 pay in the mat
ter Of taxes: There Is no reason why tina
should not be carried in Kansas and Wy
oming, and 20 Nebraska and elsewhere IN,
saIue as in Wisconsin. and hat inhIencel
you, because, II you diminish our revenue.
IL diminishes our opportunity to make i'm.
provements and do other things We ough
TO do ia the state OF Wisconsin"