Omaha daily bee., 1906-01-14
MUNGER so DECIDES BURLINGTON CASE
Federal Judge Denies Injunction to Pre-
vent Treasursrs frem Collecting.
RULING APPLIES ALSO TO UNION PACIFIC
Taxes for 1905 as Well as 1904 Affected
BY This Decision.
ROADS NOT CERTAIN AS TO AN APPEAL
Courts Action is Triumph for
the state In Fight which
Begun over n Year
AGO.

hegun over n Year
AGO.
Judge Munger OF the federal court decides
the railroads of Nebraska must pay their
taxes. Such is the essence OF his decision
in the Burlington case, which has been
fought for the state by Attorney General
Brown. This decision will apply also to the
Union Pacific and to the collection of taxes
for 1905. as we'll as 1904, of both roads.
This suit for an injunction against
the collection of taxes for the year 1904
on the basis of valuation fixed by the
State Board of Equalization and Assess
ment Another suit. Identical In character.
had been brought with relation to the taxes
for 1905. and the Union Pacific, as well as
the Burlington, had instituted the same
suits
The total assessment for the Burlington
and Union Pacific for the two years
amounts to s2O56.4S2 Together they have
rendered sl,44s,6SO The Union Pacific ten.
dered or paid s256OoO in 1904. when its as
sessment was SS4sOOO, and $2I5OoO, when its
assessment amounted to $SS5,
General Manderson, general solicitor for
the Burlington said his road had paid In
1904. $444, 710.Is in taxes to the state and
A72,97024 in 1905, and that the amounts in
dispute were, 1904, s2l6.SO2. and 1905, s215.000.
The penalty on this is 10 per cent; that Is
II the railroads finally lose they must pay
10 per cent.
"Inasmuch as the county warrants draw
7 per cent. the counties will clear per
cent, which is pretty good interest on
their money these days." remarked Gem
eral Henderson ''Of course the decision
as to the 1904 taxes will apply to the taxes
of 1905. hence 1t means a decision for both
cases. We have not yet seen the full text
of the decision and cannot say what we
shall do as to further litigation. The fact
that the case is one in equity will not
prevent us from appealing
Injunction is Dismissed.
Judge Munger handed down a memoranda
opinion in the United States circuit court
Saturday morning in the case of the Chi
cago, Burlington & Quincy halfway COM
pany, as complainants against F. c. Bab-
cock, treasurer of Adams county and others,
as ssxsalsl2lhe sipaz 3lulssia aet
| for the respondents and dismisses the in
junction asked for by the railroad to re-
| strain the county treasurers of the state OF
Nebraska from enforcing the collection OF
the delinquent taxes assessed against the
railroad for 1904, by the State Board of
Equalization and Assessment A like suit
| in all particulars was begun at the same
! time by the Union Pacific Railroad COM
pany.
| The suit was begun November 30, 1904, the
! injunction being asked for on that date, the
| taxes becoming delinquent on the follow
4 ing day, December /. The property of the
| railroads would thereupon become amenabe
| for seizure for the delinquent taxes by
process of execution and distress warrant.
A temporary injunction was granted and
the hearing continued from time to time
and finally order was issued for taking
/ testimony in the case before Special Exam
iEer Charles w. Pearsall. These hearings
have been had from time to time and an
enormous amount of testimony has been
compiled. Similar suits were filed in Novem-
Der last regarding the railway taxes of 1906
| by the same complainants The same case
| came on for final argument before Judge
Munger in December and the opinion just
filed is the result
Text of the Opinion.
Following is Judge Mungers opinion In
full:
This is a case brought to enjoln a por-
tion of the taxes levied against complain
ants property in various counties of the
state. Right to the relief asked is based
enjoined is invalid for the reason that the
State Board of Equalization and Assess
ment at its meeting in 1904 made an illegal
assessment upon complainant's road, for
the following reasons:
Il. That prior to such meeting political ms.
political parties and party press. by dis
cussion and party resolutions. vociferously
asserted that the railroads OF the state
were tax shirkers and did not bear or pay
their just proportion Of taxes. and de-
manded that the members of the State
Board of Equalization and Assessment in
crease the assessment of railroad proper
ties; that by reason thereof the members
OF said board were coerced and through
fear and desire for future political sue.
cess. permitted their reason TO be over
thrown. and. without exercising their own
individual judgment. arbitrarily made the
assessment and valuation complained Of
80. That the said Board of Equalization
and Assessment, In fixing and determining
the value of complainants property. con,
sidered and valued it's franchise from the
congress of the United States.
''3 That said board. In fixing the valua.
ton OF complainant's property for assess.
ment within the state. took into considera.
tion earnings OF complainant's property
upon business Interstate in character. which
had neither origin nor destination within
the state of Nebraska.
- That said board in valuing complain
! ants property for assessment valued tn,
} same upwards Of 20 per cent higher thar
! the relative value of all other property
subject 10 assessment within the state.
IS. That the value OF complainants prop
erty. found by the said board for assess
ment purposes, is In excess OF its real ant
true value.
'6. That said Board OF Equalization ans
Assessment, in determining the value o.
complainants property, ascertained tn,
value OF the stocks and bonds upon tn,
, whole system OF eomplainants road. al
vided the same by the total number o
miles fixing the amount OF compla inantt
property in Nebraska at the amount thu
ascertained Of the total value per mile o
the system multiplied by the number o
) miles OF rnad within the state OF Nebraska
} W thou deCuct the a. r. "A Valia5.o termi