Omaha daily bee., 1903-03-12
DIsTRIBUTIOH THAT DOES NOT DIS
TRIBUTE.

snare.
The railroads of Nebraska constitute
integral parts of several systems that
have been merged and capitalized ms n
unit The Burlington system, for ex-
ample, includes from twenty-five to
thirty railroads, chartered in Illinois,
Iowa. Nebraska Missouri and Mime
sofa, under various names. Some Of
these railroads, like the Atchison & Ne
braska, were competing lines. Others
are lines constructed by the original
Burlington company under different
names. All of these railroads are
welded together and operated under one
general management. The stocks of
these various companies have been ex-
changed for Northern Pacific and Great
Northern per cent bonds at 200 cents
on the dollar regardless of their original
value. In other words. the Burlington
system has become one and indivisible
both in its capitalization and operation.
and, therefore, under the unit system
should be assessed as one property and
pay taxes for every mile of it's line in
proportion Of the total mileage to the
capitalized value Of the system.
The Burlington system in Nebraska
comprises 2,416 miles of road. and the
proportion this mileage bears to the ag'
gregate capitalization Of the entire sys-
tenn constitutes its value for taxation.
A correct and honest distribution Of the
value of the Burlington system on the
mileage basis would entitle each county
and school district to have its exact
pro rata of the total value of the capi-
talization in proportion to the number
Of miles of Burlington railroad in the
county or school district under what
ever name it may have been originally
chartered.
But under the present method of dis
tribution in Nebraska the Burlington
system is subdivided into fifteen rail
roads, each having a different mileage
valuation, without reference to the cap
italization of the system. 1t has been
the custom of state boards to assess the
| 191 miles of Burlington road from
Plattsmouth to Kearney as the main
line and credit 1t with the bulk Of the
traffic, although everybody knows thai
the main line of the Burlington does moi
terminate at Kearney, but extends
westward from Hastings on to Denver
while another main line extends to 6
| hn ~
Billings. While the main line is pre-
sumed to extend from Plattsmouth Il
Kearney. 1t is not credited with thu
valuable terminals at Omaha, which ar,
all presumed to be distributed to the so
called Omaha Southwestern road, tina
figures on the map as a road fifty mile
long, but In fact is as much a part o
the main line as the line from Platts
mouth to Lincoln. The upshot of al
this juggle is that only five Of the Soutl
Platte counties are credited with mai
line valuation, while the other thirty
eight counties are credited merely wit
branch line assessments at from $3.50
to $4,000 per mile.
What is true of the Burlington is tru
also of the Union Pacific. The UnIol
Pacific system is capitalized as a uni
at more than 100000 per mile. 1t
stocks and bonds cover the entire sys
tenn, whether 1t was formerly incol
| porated as the Omaha & Republica
Valley road or Black Hills line, and b
rights the, value of the whole system 1
Nebraska should be distributed on a
absolutely equal mileage basis instea
of being distributed ms now at $3.50
per mile from Omaha to the Wyomin
line, and one-third of that valuation I
the counties traversed by the Omaha
, Republican Valley road.
: Under the present jughandle assess
, ment system the terminals at Oman
are presumed to be distributed to til
counties OH the line from Omaha I
t Sidney. whereas they should be di
| tributed over the entire system on e,
r actly the same value per mile as tn
t line from Omaha westward. In ii
: language of John N. Baldwin, under IL
( unit system of taxation. Each mile {
the line that contributes to the buildiu
up of the terminals in Omaha. shoul
have an equal proportion OF the valr
OF the terminals for taxation purposes
: This would be honest and sound di
; tribution for state. county and scho
district taxation. Every attempt
D separate the trunk lines from the ba
: ance of the system is simply an inge
Il ious scheme to ,nullify the principle
uuificatiOn in order to exempt a lar!
percentage of the capital represent,
u by railroads from its just share OF tax
e tion. This does not, however, cover Il
IL taxation of railroad terminals and II
- prOvements for municipal purpos
II which cannot he distributed, but shou
III he assessed the same as any other ella
u of property.
Aspects OF THE LABOR SITUATION