Omaha daily bee., 1906-01-14


The people of Nebraska have cause
for self-congratulation over the decision
rendered by Judge Munger in the United
States district court dissolvlng the in
junction to restrain the collection Of rail-
road taxes for 19O4-19O5 levied in the
various counties under the assessment
OF the State Board of Equalization. The
case involved not merely the collection
of the respective amounts of taxes
which the Burlington and Union Pacific
had arbitrarily refused to pay into the
respective county and municipal treas
uries, but the basic principle of railway
assessment and taxation under the con-
stitution and laws of Nebraska.
Judge Munger's opinion discloses Il
profound study of the vital issues In
volved, an impa rtal consideration of the
facts in the case and n righteous inter-
probation Of the law governing railway
assessments in conformity with the de-
cisions rendered by the highest tribunal
in the land. Preliminary to an express
sion Of his own views Judge Munger re-
cites the frivolous, irrelevant and imma-
terial allegations embodied in these petit
lions of the railroad attorneys praying
for an order of court to enjoin the col
lection OF taxes alleged to have been ex-
cessive and illegal.
1. Because the Board of Railroad AS
1Nr r1n1ttfninnc anH
inundated by popular clamor and the
party press from an impartial discharge
Of its functions, when as n matter of
fact, the boot was on the other leg.
From the opening to the close of its SEES
sion the board was harassed, bully
ragged and pursued night and day by
railroad lobbyists, tax agents and rail-
road attorneys who exercised all their
persuasive powers to induce the board to
re-enact the criminal farce that had for
years been annually perpetrated by sue
ceeding assessment boards in the ap-
praisement of railroad property.
2 That the board in fixing the value
of railway properties considered and val
ued the franchise they had received by
acts of congress. This absurd objection
is not merely brushed aside by Judge
Munger as groundless. but on the con
trary he affirms the right and duty of
the board to take the value of franchises
under consideration in the appralsement
of railroads whether they were origi-
nally granted by congress or the state.
3. The objection raised by the railway
attorneys to the consideration of the
value of the interstate traffic over Ne
braska railroads as part of their aggre-
gate earnings within the state, is dis
posed of by Judge Munger in the dec
laration that 1t was the right and duty
ton of the local traffic the value of the
through traffic in making its estimates
Of the whole traffic within the state for
the purpose of computing the earnings
of the respective railroads.
4. The court dismissed as untenable
the assumption that the railroads were
over-valued by 20 per cent in ratio with
the assessment of other property by
pointing to the well-established principle
that the boards of assessment and equal.
ization are clothed with discretionary
power which cannot be attacked and re.
viewed in the manner proposed.
8 and @. The complaint of the railroad
attorneys that the stocks and bond value
divided by the total number of miles IS
not the proper basis for estimating the
true value of railroad is not well
grounded, but. on the contrary, repeated
decisions of the supreme court have pro
nounced this mode of ascertaining val
ues of railroads for taxation purposes as
fair and equitable.
In reaffirming these principles clearly
and boldly Judge Munger has enunciatet
the cardinal principles Of equitable tax
alton for which he is entitled TO tn,
J thonlyc Of ouorv 10 VINO of Nabro,I,o