Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-11-30
COUNTY OFFICERS TESTIFY
Men from Out in State Say Land Assess
msuts Are Too Low.
BROUGHT IN BY THE UNION PACIFIC
Tax Commissioner scribner of Rail-
road COntradicts statements Made
by Governor Mickey in Tar
suit Hearing.

The Union Pacific Railroad company has
gone out into the state and brought in
county officers 20 testify in its tax suit be-
fore Special Examiner Pearsall II being
the Intention of the road to show by these
officers that land and property other than
railroads were assessed at less than the
real value
Wednesday afternoon these witnesses
testihed: w. W. Wright, county treasurer
OF Gage county; J. r. Plasters. county
clerk of Gage; Marion Newman, former
county Judge OF Saunders; oscar Hanson,
county treasurer OF Saunders.
Hanson had looked up the 1905 assess
ment instead Of the 1904. with which the
suit deals, and asked that his testimony be
withdrawn which was done Wright said
the assessment Of Gage county land was
about 10 per cent below the real value OF
the land. the average assessment being
st5.55, which was returned as the real value,
while he believed the actual value of tho
land was over $50 an acre Plasters thought
the land was valued by the assessors at
about 80 per cent of its real value. New
man said Saunders county land was re-
turned at about So per cent Of its real
value. On cross-examination, however
each witness admitted he was not familiar
with the land in all parts of his county and
each admitted that while some Of the land
was assessed too low other lands were as
sessed too high.
Tax Commissioner A. w. Scribner of the
Union Pacific was on the stand all the
morning. Attorney General Norris Brown
appeared for the state and John N. Baldwin
for the railroad. The hearing, conducted at
Union Pacific headquarters. will be resumed
Friday and on Monday Tax Commissioner
Curtis Of Wisconsin will be a witness.
seribner COntradicts Mickey.
The testimony of Mr.. scribner was in
contradiction to the statements made by
Governor Mickey given some months ago.
The witness absolutely denied the state
ment made by Governor Mickey that he
CScribner) had said the buildings of the
Union Pacific had been insured at three
tourths of their value and the returns
were based on this valuation. Scribner
said the Union Pacific did not insure its
buildings and that they were returned at
full value
In the matter OF deduction, which Gov
ernor Mickey testified had been made in
accordance with the representations Of the
railroad Mr.. Scribner said the board had
refused absolutely to allow for the deduc-
lions asked large part of the testimony
u the witness was in effect that the State
sideration, in its compilation of the stocks
and bonds, property entirely outside of Ne
braska and out Of the jurisdiction of the
board
On cross-examination in the matter of the
earnings of the Union Pacific witness was
asked whether, IL any portion of road
earned more than another IT was not more
valuable. In answer Mr.. Scribner said the
road does not make all the earnings, but
the earnings are largely made by the en-
ployos and investments in other lines and
by the feeders which bring business into
Nebraska. The earnings were only par
TALLY attributed to the road.
Under present conditions" said the wit
ness, lit is fallacy to value part of the
road by taking the value of the gross re-
ceipts less the operating expenses.
Tells what Governor Said.
While the board was figuring on the
value of the railroads we called the atten-
tion of the members TO the fact that other
property would be undervalued and we
were assured by Governor Mickey the total
valuation of the state would be $780, 100000.
The governor denied this in his testimony,
but he said It. nevertheless"
THE board arrived at its valuation Of
the stocks and bonds of the road in the
following manner: The figures of the
board as furnished me show the members
took the value OF the Union Pacific stock
as per. schedule az $l75, S2S5Ss; bonds. $751;
$4,000, and other Indebtedness unsecured.
$S5SS,479, making a total of $Sss, 474,O6S. 1t
deducted from that the operating depart
ment property locally assessed in Nebraska
only, about $1,2OO.OOO 1t divided that by
the mileage. which gave $50 ,O62 per mile
The board made no deductions for the
ownership of Union Pacific bonds in North
ern Securities or Southern Pacific and
other securities and land grants In Ne
braska. Wyoming. Utah and locally as
sessed property in other states. The stock
held In the Northern Securities and the
Southern Pacific amounts to about 1882 0OO,-
600 and in addition about twenty-five other
corporations amounting to $35OO0,OO0. This
property should have been deducted"