Omaha daily bee., 1905-09-22
GOVERNOR in The TAX CASE
C.;sf Executive Of State Testi6eI in UhiOn
Pacific Suit
CONSIDERS ROADS ASSESSMENT FAIR
In Comparison with other Property
Valuation Mickey says Rail-
way was Not Imposed on
by state Board.
CONSIDERS ROADS ASSESSMENT IA

Governor Mickey was the only witness
to testify before Special Examiner c. W.
Pearsall in the Union Pacific tax case In
the federal building Thursday morning.
The examination was conducted by John
N. Baldwin. attorney for the Union Pacific.
Others present in the court room were: At
torney General Norris Brown, State Treas
urer Mortensen and Bob Clancy, Baldwins
Lieutenant known as tax agent OF the
Union Pacific.
The gist OF Governor Mickeys examina-
ton was relative to the organization OF
the State Board OF Assessment and Equal
ization for 1903 and 1904 and 10 how the
board arrived at its conclusions relative to
the assessment OF the Union Pacific. The
governor said in effect:
Il was first a member of the board in
1903 At that time the board fixed the val
uation OF the Union Pacific at 1882, ,SS2
When we assessed the road in 1903 the new
revenue law had been enacted. The old
law provided that all property should be
listed at its actual value. but II had not
been done, save with some exceptions
Properties were assessed at from one
fourth TO one-twentieth OF the actual value
We thought the Union Pacific assessment
a fair one as compared with other property
but the assessment was not made upon the
full or actual value. because Of the prece-
dent I'm assessing at one-fourth or one
twentieth
Railroad to Blame.
THE reason we assessed the Union Pa
ciic at a low rate was the fault Of the
railroad, which insisted on a low valuation
because It said that other property was as
sessed low and Il wanted It's property as
sessed equally low The land assessments
t,a aaV oil he Of
instance, land in Douglas county was as
sessed at one-fourth value and in Polk
county at one-hfteenth valuation. In 1904
the assessments were made under the new
law at actual valuation and assessable
value at one-hfth. The railroads insisted
that in 1903 they paid one-seventh Of all
the taxes Of the state which they did not
think was fair. We did not advance the
assessment in 1903 but did advance It in
1904 We made the assessment on our best
judgment which was fair in comparison
with other property. Our duty under the
new law was TO find the actual value and
assess at one-hfth. The assessment was
made according to the statements and
schedules filed with the board by the rail-
roads as required by law. We had also
other sources of information regarding the
railroad valuations and the total aggre-
gates were about the same as returned by
the railroad schedules and were corrobo-
rated by them"
Baldwin on Technical Points.
Mr. Baldwin then undertook 70 ascertain
from the governor his understanding of the
meaning of tangible and intangible property
Of the railroads. There was considerable
Misunderstanding as to the legal definition
OF tangible and Intangible property and this
matter was gone into at length TO the
technical meaning of the words tangible
and intangible. The governor held that
tangible property was visible property,
while intangible meant the franchise and
earning capacity Of the road and its
branches. The assessment was made upon
IA 676 0S2 "a of tangible and S2s 2 OH intangi-
bic property.
MIR. Baldwin insisted that there had been
an increase OF 114S per cent in the as
sessment Of 1914 over that OF 1903.
Almost the entire morning was consumed
in technical questions and inquiries to
how the state board reached its estimate OF
valuation.
Governor Mickey said:
THE best that the board could do was 10
estimate the value OF the railroad property
and the total OF $50, ,S7s.O4s was simply ar
estimated value and not an assessed or &C.
tual valuation This was arrived at by
comparisons with values fixed by other
roads and such information as the board
could CLEAN from all sources"
other state OmcIaIG.
Governor Mickey was excused from
further examination Thursday afternoon
as he had an appointment to attend the un,
yelling Of the soldiers monument at Forest
Lawn cemetery. and his examination vii
be resumed Friday morning.
State Treasurer Mortensen was called Il
the stand Thursday afternoon and his testi
mony was Of the same general character a
that given by Governor Mickey in the morn
ing The entire afternoon was devoted I,
the examination of Treasurer Mortensen.
State Secretary Marsh and ex-Land Com
missioner Folmer are yet TO testify, bu
neither has been called to the stand.