Omaha daily bee., 1906-05-15
PLEAS FOR UNION PACIFIC
Tar Commissioners scribner and OlancJ
a Appear Before Stats Board,
OBJECT TO THE STOCKS AND BONDS BASIS
Clancy sse<s 90 Defend Company for
Refusal 90 Pay Last Two Tears'
Taxes-Payment for schools is
Too Heavy, He says.
CFron a stan Correspondent

lFT0m a Stau correspondent
LINCOLN. May Especial This
was the Union Pacific day before the
State Board of Assessment. For over
two hours in the morning X ]. Clancy,
acting tax agent for this corporation,
stacked up statements and figures 10
Anvince the board his corporation had
been over valued during the last few
years and demanded a reduction, while
in the afternoon Tax Commissioner Serb
l ner, who has been i'll for the last year,
4 again made his appearance and talked
briefly. owing to his health Mr.. Scribner
was not present at the board meeting
4 last year. During the morning Tax Agent
Mul1tGan OF the Rock Island took few
minutes time to tell the board his road
was satisfied as the assessment now
stood.
Clancy made the big argument of the
day and from a railroad standpoint the
board members admitted he did we'll.
What effect the argument will have, how
ever. when IL is studied by the members
when not under the influence of Clancy's
oratory, the members did not say.
Clancy argued against the use Of the
stocks and bonds as a basis for finding
the value OF a railroad unless the proper
deductions were made-the road to decid
the proper" deductions. He opposed the
use OF the net earnings theory for valu-
ing the road in Nebraska, unless the
board eliminated the earnings on through
trafic. Gross earnings, he said, was of
no significance. as on local business
brought in on branch lines the expense
was in many instances greater than the
charge made.
He defended the action of the Union
Pacific In bringing it's injunction suit 10
restrain the collection of it's taxes. He
-
trict had been injured by reason of this
suit. Had the money been paid under
protest, he said as many newspapers de-
manded, and then suit brought to recover
the people would not have been benefited
as the money would have been kept
locked up In the treasures of the various
counties until the litigation had ended
on the other hand he said, IL the rail-
road lost the suit, II would pay the
various counties 10 per cent interest
While the money in dispute was now
drawing 10 per cent, providing the suit
Is won by the state, he said, the various
school districts, IL they are in need Of
money can borrow money at less than
per cent
Moreover in fve Of the twenty seven
counties traversed by the Union Pacific
paid, while all but four counties have
taken the amount rendered, leaving buj
small per cent Of the taxes unpaid.
clancy objected to high valuation be
cause. he said in the western part of the
state the road paid nearly all of the schoo
! tax and in these counties, by reason Of
, mat. the levy was high. On this subject he
said:
In the twenty-three states and territories
west Of the Mississippi river the average
In the state OF Nebraska the averaE,
taxes per mile Of the Union Pacific fol
~, SS was Nl2g %, or an amount more thar
IN all the transmississippi states and terri
tories.
Stocks and Bonds Basis.
Clancy argued against the use or the
stocks and bonds as a basis OF valuation
because, he said. the value of these was
not fixed by the income. but was subject
to change for various reasons. For in
stance. he said. while the nearest physica
property OF the Union Pacific was 500 mile,
away from the San Francisco earthquake
there was a decline in the market value o.
the common stock of ten points, making
its market value s15,OOOO 900 less than before
the disaster.
He filed with the board a detailed state
ment showing the total stocks and bondi
OF the Union Pacific and auxiliariei
amounted to $5Ss, 7O9Os4. less deductions o.
bonds I'm other companies land assets
water line property and property assessed
locally, making a total of S252,67LS26 lef
the Union Pacific stocks and bonds value,
at $685.. 634,76s
Discussing these figures. Clancy said:
Main line mileage. 5,5l730 miles; per mile
$6Oso5 AS has been stated, however, tn
stocks and bonds also cover in addition
1c6.T miles Of double track, 25S miles o
water lines and a large amount OF othe
property locally assessed, and a proper ap
portlonment would, therefore, greatly re
duee the average value per mile as givei
here.
OF the physical property valuation Clanc
said:
In the value OF the physical propertie
of the Union Pacific in Nebraska there
no appreeiable change from last year. Max