Omaha daily bee., 1903-03-13

pOnuS or mortgage Indebtedness, WnlCh
total amount Oess the value of all machine
and repair shops, general office building,
store houses and also all real and personal
property outside OF right Of way and depot
GROUNDS, as enumerated in section IS OF this
act shall be the whole or face value OF
the property of such railroad company or
corporation for the purposes of assessment
and taNation.'
The effect Of the amendment Is to COM
bine the market value Of railroads with
their bonded and floating indebtedness as
representing the tangible property and
franchise valuation.
LoOmis Has Another.
This amendment was offered by Loomis
Of Dodge, as amending that part Of the
Caldwell amendment relating TO section SO:
To ascertain the actual and assessed
valuation OF al the taxable property Of any
such company or corporation. the said state
BOARD shall ascertain and determine the
market or fair cash value of the shares OF
capital stock, and the market OF tair cash
value Of the debt, excluding from such debt
the Indebtedness for current expenses,
which shall be added together, and the
aggregate amount so ascerJained shall be
taken and held to be the value of the tax
able property, Including the franchise of
such company or corporation. In case the
company, covered by the same capital
stock and indebtedness. shall extend into
other state or states than Nebraska, then
the SAID board shall ascertain What per-
centage Of the total mileage of such COM
pany, so covered by the same stocks and
Indebtedness. is within this state, and the
same percentage of the total value of such
stocks and indebtedness shall be taken and
held to be the actual. value of all the tax
able property, Including franchise OF such
company within the state. From the valu-
alton so ascertained the said board shall
deduct the actual valuation of all the real
estate of said company or corporation
which is locally assessed and 20 per cent
OF the amount SO remaining shall, be taken
and held to be the assessable valuation or
the property of such company or corpora
ton for the purpose of taxation,
If the capital stock of any, railroad COM
pany or corporation shall be found to have
no market or actual value then the board
shall proceed. on the best information OBJ
talnable, to ascertain the actual value OF
all the tangible property and franchise OF
such company OF corporation.
jortty of its capita stock, shall be owned
by any other railroad company and its line
OF road within this state shall be opeI atcd
by such other company in connection with
its road or system, then, the mileage or
right of way of such company shall be
valued and assessed to such owning, and
operating company as a part of Its right OF
way and SYSTEM, and shall not be separ-
ately assessed.
At this time a conflict arose over which
amendment should be considered first
Loomis and Perry wanted the Loomis
amendment to have precedence and the
chair at first ruled that unless Thompson
withdrew his motion to consider his amend
hlthN hAo oOh @AfS
he yielded and gave the Loomis amendment
precedence.
Loomis offered this amendment:
II move to amend section 81 by striking
out the word February in the first line
and inserting IN lieu thereof the word
May Also in lines 4 or 5 to strike
out the words and figures .'31st day Of De-
oember' and insert in lieu thereof the words
and figures Both day of March
ALSO to strike out all of line 20
and insert in lieu thereof the following:
"'Four-The total amount OF all secured
and Unsecured Indebtedness. except for cur
rent expenses of operating the road.
"'Five-The location and actual valua-
ton Of all it's reai'sestate and personal
property in the state that is Locally as
sessed. sc16' &C.
d" Such schedule shall be made in con-
formity to such Instructions and forms as
may be prescribed by the State Board Of
Equalization anda'Assessment.'"
Perry onERaiIroad Taxation.
The Thompson amendment was finally
given precedence and the house took a
recess after s O'Clock until 7:30.
The evening session began about g. o'IIock
and a substitute emotion by Perry pre-
vailed, giving him the floor in discussing
the Caldwell amendment. Perry made an
able defense Of this proposition. He de-
MED the charge that this amendment pro-
posed to tax the indebtedness of railroads,
but said 1t proposed to tax their preferred
stocks, and held that bonds were pre-
ferred stocks. He drew attention to a
statement made that because certain re-
publican members advocated the method of
taxing railroads proposed in the Caldwell
amendment they were deserving the ma
A--EA - - "a - 81
lists. He said 1t was not a party ques-
ton. He read from the last state plat
forms of both parties to show that the |
Caldwell amendment was not drawn from
the fusion platform, He insisted he did
not want to impose unjust taxes on rail-
roads, but did want to force them to pay
an equal proportion Of taxes with other
taxpayers. Mr.. Perry said his method was
not new. 1t was in vogue in other states;
1t was sanctioned by supreme court de-
cisions and advocated by eminent econo-
mists.
81 don't suppose there is a member in
this house who has not been told by rail-
road lobbyists in the last three days that
this method is unconstitutional" said the
speaker. He then read from an opinion
by Chief Justice Miller in 1875 to sustain
the validity of his method, and asked II
the 1uslonlsts mad put that In their plat
form in 1875. hen he read from the Ne
braska constitution. showing that It pro-
yided for the assessment and taxation of
franchises and showing that the legislature
was precluded from relieving railroads OF
taxation either for state or local purposes.
What amount a railroad is valued and held
at. that amount 1t ought to be taxed on.
Our purpose is not simply to raise more
revenue. II it was. we would raise the
levy.
Thompson Opposes Plan.
Thompson Of Merrick replied to Perry's
speech and defended his own amendment.
II am absolutely in favor Of the railroads
paying every dollar of taxes they ought to
pay, and no MORE" said Thompson. He
wanted franchises taxed, but said the
methods proposed did not contemplate a
correct franchise tax, He said IL taxing
gross earnings of street railway and other
utility corporations was not the right way
to get at the franchises Of those concerns,
neither was the same method right in re-
lation to the railroads. He said the Cald-
well amendment actually would enable rail-
roads to eyade their just taxes. He de-
MED Perry's assertion that CaldwelI's
amendment was not a partisan measure.
He insisted 1t was a part Of the fusion
platform.
Nelson Of Douglas followed Thompson.
taking Issue with certain remarks of the /