Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-05-16
BURLINGTON PUTS IN PLEA
Tax Commissioner Pollard Asks for q
Reduction in Assessment
HcL0S FRANCHISE VALUED TOO HIGH
Veterans Catherine at Lincoln for the
Convention of @. A. R.-AuHiliRry
Bodies Are Meeting at
same Time.
HOLDS FRANCHISE VALUED TOO HGl
CFrom a stan Correspondent.)

LINCOLN. May 15.-(special)-R d. Pol
lard, tax commissioner Of the Burlington,
and F c. Uhlman, tax commissioner Of
the St Joseph & Grand Island, talked TO
the State Board Of Assessment this morn
ing for a lower assessment on the property
Of these two corporations. Mr.. Uhlman
only talked for a few minutes and sug-
gested that his road was of little value
compared with other roads in Nebraska
and asked for a reduction from the as
sessment OF $500 a mile 20 $500 a mile
Mr.. Pollard surprised the board also by
speaking only a short time and only ask
ing for a reduction from sSs 80 to $4,000 a
mile On the stocks and bonds basis he
told the board II II was found his road
was worth $4,000 a mile and on the basis
OF the physical property II was worth $50.
90 a mile he thought 1t would not be a
bad idea to make the assessment in the
neighborhood Of $4,000 a mile. striking a
medium between the two ways of finding
the value.
The discussion Of the arguments and the
reports of the board this afternoon gave
rise to the belief that the Northwestern,
the Union Pacific and the Burlington will
be slightly raised II the sentiment ex-
pressed by Governor Mickey and Treasurer
Mortensen is the sentiment of the board.
Mortensen, however, may not stand for an
increase on the Burlington. though the
governor will likely be for 1t. According
TO opinions expressed It is safe to say they
will stand for an increase Of 100000 on
the Union Pacific. or about a 1900 rate
per mile. On the Northwestern these two
will insist on an Increase of about $4,000,
or about $500 a mile. and an increase Of
about $4,000 on the Burlington, or about
500 a mile.
1t is practically agreed now that the Mis-
souri, Pacific. the Rock Island, the st.
Paul & Omaha and the St. Joseph & Grand
Island will remain the same as last year
At that time the values were as follows:
TotalNA Assessed
Assessed Value
Value. Per Mile.
Missouri Pacific .......... .S2271.6l3 $40
g. Joseph q Grand Island 53o,ol5 $3.50
Last year the assessed value of the
Union Pacific was S11,53sS5s or $4,000 per
mile. The Burlington was assessed at
$50, 2S6,ss9 or $3.50 per mile.
Pollard Objects to Franchise vnIue.
In his discussion, Mr. Pollard did not
make any exceptions to the use Of the
stocks and bonds as a basis Of valuation
or Of the consideration of the net earnings
basis, out ne insisted that the Doard ue-
duct the arbitrary from the earnings. He
also called the boards attention to a little
matter OF franchise value. He said last
year the board found the tangible property
OF the road worth sls.212 per mile and the
intangible property worth Sl9,53S per mile,
showing tho board had added for the value
Of the franchise lOl per cent, making a
total valuation OF $Ss.1 $50 per mile.
In part, Mr.. Pollard said: Allowing for
the arbitrary Of 4-10 of one mile. we earned
in Nebraska net, IS, 1876, 1872 for the year
ending June 90 1905, or S2066 per mile,
which capitalized at per cent would make
our property worth less than $4,000 per
mile for 1907
Pollard asserted he was entitled to make
the arbitrary reduction because he said
none OF the other roads add anything of the
kind when furnishing statements Of earn
ing3 In Nebraska
Regarding stocks and bonds Pollard said
the bonds were. issued on specific portions
OF the road and the bonded Indebtedness
Of the company June So 1906, in Nebraska
amounted to only SO,470 per mile. The
bonded Indebtedness Of the system. he said,
amounts to $17O,512 100. less sinking fund of
S24, $50, 1886, leaving outstanding bonds to
the amount Of Sl45, s52 1864. The bonded
Indebtedness Of the road in Nebraska, said
Pollard, after deducting the sinking funds,
is S27.S62, 7O5.l AZ, or 1873 of the total.
The capital stock of the system amounts