davidaulloa/AmericanStories huggingface dataset:
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
pby.icaI Property Test.

Let us examine and apply these tests to
railroad property In this state. Here we
have the returns Of one OF the great rail-
road systems of the country which show
the total mileage OF the system to be
1900 miles, of which about 1000 are In
Nebraska. The return enumerates every
item of physical property owned by the
railroad company in the state, including
its trackage. Its right-of-way, its bridges.
Its rolling stock its lands, its equipment,
etc, together with the value thereof,
sworn to by the tax officer of the railroad
company. In addition 10 this return is an
itemized statement of that portion OF the
physical property OF the company in the
state OF It's right-of-way and subject to
local assessment. and also the value OF
such property. likewise sworn TO. II the
physical property test were the only test
then It would be the duty of the state
board to deduct from the value OF all the
physical property the value OF that
locally assessed, and the remain
der would be the value Of the property to
be assessed by the state board. The return
OF the company referred to showed the
value of the physical property subject 10
assessment by the state board to be. about
$4,000 per mile in Nebraska The value
OF the physical property so fixed by the
company reflects neither the cost of the
property nor the cost of a reproduction OF
the property. nor the value of the physical
property in the markets, but reflects alone
the value Of the physical property in the
Judgment OF the company itself. which, by
express provision of the statute, is not
binding, upon the state board. Very slight
consideration can be given to this test OF
value, for the reason that the railroads
themselves and the courts recognize the
fact that the value OF the physical prop
erty, disassociated from the franchise OF
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21

difficulties recognized THE legislature
undertook in the 1903 act to provide ways
and methods by which some Of these diff
culties might be overcome. In the first place
IL provided that the governor, auditor,
treasurer, secretary of state and commits
sioner Of public lands and buildings should
constitute the State Board of Equalization
and Assessment and conferred upon said
board express power to ascertain the value
of railroad properties in the state. except
machine and repair shops, general office
buildings, store houses, and real and per-
sonal property outside of the right-of-way
and depot grounds, the property excepted
to be valued and assessed by local asses
sors 1t next provided that each railroad
company or corporation owning. operating
or controlling any railroad or railroad SER
vice in this state should. by its proper
officers, make a return under oath to the
State Board of Equalization and Assess
ment of all its physical strength or tangible
property. The extent and character Of the
return is very fully described and set out
in detail In the first six paragraphs of
Section 81 of the act.
In brief. the requirement upon the rail-
road is to return every item of physical
property owned by 1t in the state. including
its trackage of every character, the ma
terial and value OF all its buildings and
their location, Its right-of-way, its bridges,
its rolling stock. the number. class and
value of all its locomotives, passenger cars,
dining cars. express cars, mail cars. bag
gage cars. grain cars, box cars horse cars
and every kind of car owned and used by
It: the number of ties in the track per
mile the weight of the iron or steel rails
per yard used in the main or side tracks,
the joints or chairs used In such track the
kind Of ballasting. the length of time the
iron or steel had been used and how long
the road had been built. Not only these
items of property must be returned by the
railroad company. but the value thereof
must also be sworn to- While the law au-
thorizes this return. It expressly provides
that the state board shall not be bound
by the value put upon the property by the
railroad in such return.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21

The second test is the stock and bond
method This method briefly stated, is that
the value of a railroad property may be
ascertained by finding the value of it's
stocks and the value of its bonds, which to-
gether represent the full value of the en-
tire property wherever situated. 1t needs
no argumnt to sustain the proposition that
the total value of the stocks and bonds Of
railroad corporation is the value of every
item of property and asset Of such corpor-
alton. The difficulty in ascertaining the
value of a railroad by this method is the
difficulty in finding the value of the stock
The bonds of the company have a recently
stable value, reflected in the market quota
lions, and their value is a mere matter of
computation, but with the stocks the con-
clifton is very different. The market quota
lions are often entirely unreliable, because
they represent frequently a conflict between
spectators who are dealing in stocks, not
as purchasers or sellers in good faith, but
merely for speculative purposes. And again,
1t sometimes hapens that the stocks have
no quoted market value at all. being with
held from the market by the owners for
reasons and purposes unknown to the
public. Such was the fact and is the fact
today in this state as to one Of the largest
railroads operating here with a stock Issue
of more than 100000 shares, no consid-
cradle part of 1t is or has been offered on
the markets. of the country since 1901. So
that the state board found itself driven
to other sources than the market from
which to learn the actual value of the
stocks of this particular railroad. But in
the case OF the railroad used by way of
illustration in this paper, the stocks had
a varying market value and have had for
several years. The stock issue Of this rail-
road amounts to about $20S, 100000. and the
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
Always Loaded.

Senator Blackburn's fondness for speech
making is matter of common knowledge
At one time he was on an outing trip with
some friends along the Kentucky river.
when a few dozen residents OF the neigh
bOrhood Joined the senator and his com
panions. The food provided could not have
been more satisfying to the appetite and
there was plenty OF liquid refreshments az
well. blackburn, however. did not seem 20
be onjoy ing himself One OF his friends.
noticing his moodiness, asked him what wns
the matter IT don't like this crowd"
Blackburn responded. why. joe" his
friend demonstrated. there's not a man
here who wouldn't die for you" Il know
that" returned Blackburn. TITS not the
quality I'm obJeeting TO. but the quantity.
The crowd is too big for an aneodote and
not big enough for q speech"
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
Get. a Truant wife's Cash.

Because the man who eloped with his
wife placed the fortune which he subse-
quently accumulated in her name, d. E.
Douglass, a prosperous farmer residing six
miles from Sioux City. has become pos
sessed of wealth.
Fourteen years ago Douglass wife de-
serted him and Joined @. s. Porter in Call
fornia. Porter had formerly boarded with
the Douglass family and had been ordered
out by Douglass, who discovered he was
making love to Mrs. Douglass. Douglass
did not attempt to pursue the clipping
couple. He learned that they resided to-
gether in California as man and wife and
were rapidly accommodating a fortune.
Four months ago Douglass learned his
wife was dead. He consulted a local at
torney and upon his advice went to Cali
fornia TO search for the property. In the
end he located Porter at Los Angeles He
found that his wife had left property val
ued at $4,000. which Porter claimed as a
legitimate inheritance.
II seems that Porter. who was a truck
driver in Omaha when he met the Doug
lasses, had elected to keep his property in
his wife's name, or, to be more exact, in
the name OF Mrs. Douglass, because there
was an outstanding judgment against him.
So far as the court records showed Porter
had no interest in the property which his
industry and management had accumulated.
1t all belonged to Mrs. Douglass.
Douglass employed an attorney at Los
Angeles and has just succeeded in having
the courts decide that the estate left by
Mrs. Douglass rightfully belongs TO him.
Douglass has just returned TO his Sioux
City farm bearing copy OF the decree of
the coure~and bona fide evidences OF title
TO $4,000 worth OF Los Angeles property
that formerly stood in his wife's name.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
Rule well Established.

Ever since Judge Miller of the supreme
court of the United States, in 1875, held. In
delivering the opinion of that high court
that no fairer method could be devised to
ascertain the true value OF a railroad than
to find the total value of its stocks and
bonds the interests opposed to that rule
have consistently and uninterruptedly en-
deavored to so shape and confuse their
stock and bond issues as to make the appli-
cation of the rule unsatisfactory, IL not
impossible. The language of Justice Miller
is as follows:
1t is therefore obvious that when you
have ascertained the current cash value of
the whole-funded debt and the current
cash value of the entire number of shares,
you have, by the action Of those who, above
all others, can best estimate II, ascertained
the true value OF the road all Its property,
It's capital stock and its franchises; tor
these are all represented by the value of
it's bonded debt and OF the shares of It's
capital stock.
That rule stands today unreversed and
unmodifed, and repeatedly approved by the
supreme court of the United States since
its first enunciation by Justice Miller In
deed 1t is difficult to find any good reason
why the rule should be abrogated. If the
stocks and bonds of a railroad company
are on the market, a purchaser can become
the owner of the railroad by going to the
ana DuylnE STOCKS ana DOnuS, anu
when you own the stocks and bonds you
own the railroad and own 1t all. The pro-
vision of the statute is an authorization
for the state board to ascertain what the
stocks and bonds of the road can be bought
for on the market, and having ascerta!ned
that fact, to be guided thereby in their
judgment of the value OF the road for taxa
ton purposes. No safer or fairer method
has or ever will be devised by the legisla-
ture and the courts to solve the difficult
problem that confronts the board burdened
with the duty of assessing these corpora
tions, capitalized and bonded into hundreds
of millions of dollars. The value of this
test Is that IL includes the franchise of the
company as well as It's physical property.
The franchise is the right of the company
to use and operate its physical property
for railroad purposes with the power of
eminent domain and the power to exact |
freight and passenger tariffs from the pub |
lie. The franchise has a value in many in |
stances very much greater than it's physical |
property. dependent not alone on the brains
and ability OF the management of the conf
pany, but also upon the location, situation, |
environment and earning capacity Of the
road.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21

large touring automobile containing
man and his wife in a narrow road met
hay wagon fully loaded The woman de-
clared that the farmer must back out, but
her husband eontended that she was I'M
reasonable.
But you can't back the automobile so
far" she said, land l don't intend to move
for anybody. He should have seen us"
The husband pointed out that this was
impossible, owing to an abrupt turn in the
road.
81 don't care" she insisted, II won't
move II we have 10 stay here all night"
The man in the automobile was starting
to argue the matter. when the farmer. who
had been sitting quietly on the hay in
terruoted.
Never mind. str" he exclaimed. I'm try
TO back out I've got one Just like her at
home "-Philadelphla Ledger.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
Net Earnings Test.

The net earnings test means the cap
italization of the net earnings of the
road at a given per cent. Six per cent
is the rate approved by the courts when
this method is used. The courts and the
public place high estimate on this test.
The reason why 1t is fair and reasonably
safe is that 1t is based on the fundamental
principal that whatever property is worth
for the purpose of income It 10 worth for
the purpose Of investment or taxation. II
the income from a piece Of property pays
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
Right Of the state ponrd.

" Is clear. therefore. that the state board
has tire right and II is by law made Its
duty, to fix the assessed value OF railroad
properties In the state on consideration or
three distinct and separate tests of value;
~, the value tested by the tangible or
physical property Of the railroad; Co. the
value tested by its stocks and bonds; o.
the value tested by its net earnings To
leave out OF consideration either OF these
three factors would be in direct violation
of the letter as we'll as the spirit OF the
statutes The sufficiency or controlling
force of either test Is necessarily left to
the discretion OF the board, but that discre-
ton must be exercised in good faith and
with honest intent. and the result-that is,
the final judgment of the board-must re-
fleet a consideration OF all these factors
named In the law and which go to de-
termine the value
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
Touching the Right Spot.

Baron Bramwell once appeared for the
crown in a case in Wales. The counsel
for the defense asked permission. as the
Jury was Welsh, TO address its members
in their native tongue. AS the case was
simple the baron made no objection. The
Welsh berrister said only a few words.
The baron also was brief but he was
somewhat surprised at a prompt verdict
OF acquittaI. What was IT," he afterward
inquired. that Mr.. l. said to the jury"
"Oh. he just said, This case, gentlemen.
lies in a nutshell. You see yourselves ex-
actIy how ii stands The judge Is an Eng
lishman. the prosecuting counsel is an
Englishman. the complainant Is an English
man. But you are Welsh, and am Welsh,
and the prisoner is Welsh. Need l say
more? / leave It all TO you"
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
He Drew His sword.

From time immemorial," said Judge
Asher Carruth of Louisville, southern peo-
Pile have been lavish in bestowing titles
l think there is something in the southern
temperament WHICH explains this I didn't
start out on this, however. for a philo-
sophical disquisition, but rather to tell how
certain Kentucky gentleman established
valid title to the rank of colonel. He went
TO Cincinnati once with friend who en-
Joyed many acquaintance in the Buckeye
metropolis. and who introduced him to
every one as Colonel Brown. Everything
went along smoothly until finally one Gin
cinnatian asked Of the introducer:
Il suppose your friend. Colonel Brown,
was in the confederate army.?'
mo, sir, he was not
well, then, he fought on the union
slider
You are wrong there, too.
oh, see now; he got his title by serv-
ing in the state militia
No, he never entered the militia
Then. how in thunder did he get to be
a colonel?'
He drew sword, sir, at a church
fair Washington Post.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
Refteration.

Uncle Joe Cannon is sometimes too
homely and direct and harsh In his COM
ments," said a young journalist according
60 washington Life. II was not at all
pleased with the remark he made to me
while I was speaking at the banquet.
OF course, l am an inexperienced speaker.
I can't rattle of words like the veterans
of the senate and house. / began, II I
remember:
Gentlemen. my opinion is that the gen.
crafty of mankind in general is disposed
to take advantage of the generality Of
Here Uncle Joe interrupted me.
"'Sit down, son. he said. You are COM
ing out of the same hole you went in at I"
New York Tribune
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21

u=sk1 Grafton OF the problem Of railroad
taxation. To Attorney General Norris
Brown was assigned the topic. Railroad
Taxation in Nebraska" His paper in full
follows:
The right OF the state to tax railroad
properties within its borders is found in the
constitution. Section 1, article TX. of the
constitution, provides
The Legislature shall provide such revenue
as may be needful by Ievying tax by val
ton shall pay a tax in proportion to the
value OF his, her or its property and fran
chises, the value to be ascertained in such
manner as the legislature shall direct.
II will be observed from this provision
that all property in the state is subject to
taxation by the state on a valuation basis.
The provision is specific that that valuation
shall DE ascertained in such manner as the
legislature shall direct"
Agreeable to the warrant OF the constitu-
ton referred to- the legislature of this state
In 1903 repealed the entire revenue law and
In its stead enacted measure providing
the manner In which the value Of all prop
erty IN the state should be ascertained for
taxation purposes. 1t is unnecessary for
the purposes of this paper TO examine the
new revenue act with respect to the as
sessment of property other than railroad
property further than to say that the act
In question provides in detail the manner
and method of listing every item Of prop
erty, whether It be physical or intangible
whether owned by an individual or a cor
poration. II also contains provisions for
complaints as to valuation, hearings
thereon before the equalization bodies and
for direct appeals to the courts in the as
sessment of property other than railroad
property.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
DimcuIty of the Problem.

The problem Of ascertaining the value
Of railroad property in the state is a
most difficult one. The difficulty is appar-
ent when 1t is remembered that the great
railroads traversins Nebraska also oper-
ate In and through the adjoining states
1t therefore becomes necessary for the state
board when It assesses railroad properties
to ascertain the value OF a portion OF a rail-
road. That problem has been before the
courts, as well as the assessors of rail-
road properties, for many years. and It's
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21

did furnish, a statement as to its net
earnings in Nebraska. While the state
ment showed that some of the branches
OF this company were operated at a loss.
still the net earnings of the entire sys-
tenn within the state were shown to be
IS. 3S2, 33153 or an average sum per mile
OF 1,5s6.s2. This sum capitalized at 4 per
cent would indicate the value Of the road
In Nebraska to be. per mile, $l3s17O.50; at
8 per cent the value would be Sill. 336 40;
capitalized at per cent every mile of the
road in this state would have a value OF
So, 1908.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21

One day the post traders new stock had
arrived, and Mrs. B was invited to the
opening A display of common prints at
70 cents yard and other goods at similar
values did not tempt her to buy. However,
as she was about to leave the store. she re-
membered that she needed some needles
Asking for a paper, clerk handed them to
her. Inquiry about the price brought tho
reply, "One dollar" For moment she
was rendered speeches., but, recovering
herself, she simply repeated, "One dollar!"
By this time the trader himself. who had
noticed the transaction, had approached
and came to the rescue OF the clerk; Yes,
madam. one dollar; it may appear high to
you, but you must remember the freightY'-
Harper's Magazine.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
One on the. Auto Men.

An Irishman who was VIGOROUSLY i'm
pecunious has discovered new way to
achieve some of the Injuries OF life This
is how he explains II: whist, man, don't
say a word about It. / found everybody
wanted 10 sell an auto for q good price
to some innocent. so just hung round tho
garage at every hotel ] stopped at and
pretended to be as green as the Emerald
Isle, and gave out that I wanted to get
a secondhand machine and would not 20
to a dealer. AS did not know anything
about a machine, and he might rob me.
have had forty-nine rides seventeen
luncheons, five dinners and about forty
cigars. good. bad and indifferent, but divil
a machine have bought yet"
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21

THE Girl He Left Behind Him." The
book not being In. he made the customary
deposit. and In due course received a no.
tiication. This the members wife re-
ceived-to her alarm. at first for II read
as follows:
mr.. Blank Is informed that The Girl
He Left Behind Him is now In the library
and will be kept for him till Friday morn
Ing next."-Success Magazine.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
Fouud Her.

There is a public library In Baltimore
that has a regulation by which any mem
boz wanting particular book which Is not
'fn" can, by paying small sum- secure
the next turn. and. upon the books coming
In. the librarian sends him a notification.
In this connection an attaehe Of the
library tells of an amusing incident. A
member desired a copy Of a novel entitled.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21

bond issues with the stock and bond issues
OF other railroads not subject to the jurs-
diction of this state, and thereby confuse
the real facts necessary to be known in
order to apply the stock and bond test pro-
vided for In the statute.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
DEAFNESS CURED AT LAST
Wonderful New Discovery for the Positive Cure of
Deafness and Head Noises.


with this how long nE or deep seated the deafness
trouble and yoehear better
people
Tor
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21
Valuation In Nebraska,

So the result Of the consideration Of
these three factors, severally indicative of
the roads value, may be summarized as
follows:
Value per Mile.
1-Physical property test..............$ 20, 900
SStock and bond test....,............. 1920
S-Net earnings test...,......,.......... $1,000
These sums averaged-a method some
times followed where the statute author
ICES more than one test OF value-would
give an average value per mile Of about
s62.5oo But the state board making the
assessment of this railroad in 1904 fixed the
value in Nebraska at $4,000 per mile. al.
lowing a most liberal discount. one sum.
Client to cover every possible deduction al
lowable under the law.
Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-21

FIRST the cost Of its maintenance, repairs,
improvements, insurance and taxes and
gives the owner a surplus-another name
for net earnings-the property is actually
worth the sum reached by a capitalization
Of the surplus at per cent. II the surplus
is $1,000 the property Is actually
worth s18,66s.6s, because 1900 rs 8
per cent on that sum, and the
capitalist looking for an investment will
pay such sum for the property because It
will yield to him, after paying all the ex-
penses enumerated, 9 per cent interest on
that sum. In my opinion the courts have
been too liberal In authorizing capitaliza-
ton at so high rate. Especially Is this
true in recent years. for the reason that
capital everywhere Is seeking opportunities
10 invest in property which will return
per cent net on the investment. II In the
illustration used Of property which yields
net income OF 1900 we capitalize the
earnings on basis Of per cent. the value
would be $4,000; or at 8 per cent II would
be $4,000 And so In the application OF
this test to railroad properties, nearly all
Of which are per cent plants, paying
per cent interest on their bonds and 4 per
cent dividends on their stocks. It would
seem that q per cent capitalization would
be entirely fair to the railroads. And
when we speak Of the net earnings Of a
railroad. we mean the earnings which re-
main after all expenses Of operation, re-
pair. maintenance, taxes and insurance are
paid. The cost of operation includes the
sums paid for damages arising by reason
of accident, so that there Is no claim left
unpaid against the company on account
Of any of the items enumerated; the earn
ing Is the net earning in the strictest ana
fullest sense.