Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-05-09
ROADS ON BARGAIN COUNTER
Tar Agents Mark Them Down for Benefit
Of ststs Board Of Assessment
THREE LINES GIVEN HEARING WEDNESDAY
state Railway Commission May Net he
Able 20 DO Anything with Freight
Rates UntiI After Juiy
Fourth.
From q etaF CorrespondsntN

hnhtlaHIltllA
railroad tax agents who were here to ex-
plain their reports. answer questions and
put In a good word for reduction or
against an increase this year T. A. Pol
ieys Of the Omaha road delivered the prin.
cipal address: s. l. Highleyman repre-
scented the Missouri Pacific, and Frank P.
Crandon and Carl c. Wright spoke for
the Northwestern.
While speaking particularly in the inter
est Of the Chicago, ST. Paul. Minneapolis
& Omaha road. Mr.. Polleys dug deep into
the assessment Of railroad property in gen
eral. considering as he went along the
value Of other property in Nebraska He
quoted extensively from Prof. DAVIDSON, the
eminent statistician" Of the state uni
versity and head OF the Nebraska Agri-
cultural college. who. though his figures
had been criticised by The Omaha Bee.
Mr. Polleys said had been sustained by
the census report. In conclusion Mr.. Pol
leys said he believed he had established the
following;
l. General property other than railroads,
in the state Of Nebraska is not being as
sessed in the year 1907 at more than % per
cent of its true value.
3 Even by use OF the unreasonably high
values announced by census bulletin q
in 1900 for all railroads operating property
in Nebra ska and allowing adequately Tor
the Increase In value since leH II Is i'm.
possible to work out the full commercial
value of all railroads operating property
i'm Nebraska in 1907 at more than SSD0, 900 000,
Of which 20 per cent would be only NI5,-
900. and yet the aggregate value at which
such railroad property was assessed by
this board in 1906 was nearly S240,000OOO.
3. Whether OF not railroad property as a
whole shall be placed by the board this
year into proper relation with general
property, other than railroads, by sub
stantial reduction in the aggregate rail-
road assessment of the state. II will still
he hoard
the aggregate railroad assessment among
the several railroads Of the state that each
shall bear its proper portion and no more
than its proper portion Of such aggregate
assessment.
II the asgTes91Stss, r sbS
equalized and apportioned among the sew
eral railroads OF the state, the assessed
Omaha company will not substantially eX-
coed 90 per cent Of the average assessed
value per mile fixed for all railroads OF
the state considered as a unit.
Mr.. Polleys worked out the value OF the
Omaha road on the stock and bond theory;
combined gross and net earnings and the
capitalization Of the net earnings with
the following result:
Stock and bond value. Ss2,59o,sSl or 1885
Combined gross and net earnings value.
$50 5Ss, 3Se or sf7,O6s per mile.
Capitalized actual net earnings value,
81. OO7. go or S4S,SS3 per mile.
HighIeymen DOdEes Questions.
8. L. Highleymen took seat and dis
cussed the Missouri Pacific in that St. Louis
fatherly way OF his and sidestepped grace
fully number of questions asked him by
Governor Sheldon and other members OF
the board. Especially was this true when
the governor asked him what constituted
operating expenses and he said an expert
should be called in to discuss that ques-
ton and again when he was asked IL It
were mot true that his freight rates were
higher in Nebraska than in the other states
through which his road ran.
Really. now" he exclaimed, throwing
up both hands. don't ask me about freight
rates. That is really out of my line and 1
have all the trouble l can look after"
Mr.. Highleyman, however assured the
board he had no grievance against Ne
braska or the board. for his road had been
fairly treated, except. of course, its as
sessment was really too high" But he
said his road had the confidence OF the peo-
pie. for with all the talk against railroads
not a word had been said against his road
Il trust the people every time" he said
"and you politicians will find that the best
| plan, too" he advised with a smile
The speaker assured the board steel was no
/ nlBltE INV IMAM i've years d6Ot NnuuBu ne
was not sure what the Missouri Pacific
could be reconstructed for. when IT was
suggested such a thing would be appreci-
ated in some parts of the state. The tax
agent told the board his road was merely
a neighborhood AFFAIR, especially from su-
perior to Prosser, and was run only to ac-
commodate the neighbors out there and II
had never paid.
c. c. Wright. although on the Omaha
| city payroll as a city official. was here as
a railroad attorney to get the assessment
of the Northwestern road reduced He
devoted great deal of his time to dis
cussing proper distrfbutive value BY any
method employed 10 find the value of a
railroad system he said Nebraska should
be entitled TO not more than $1,000 10 S2S-
900 and at the outside at $4,000 mile.
The Northwestern is now valued at Ss2 500
a mile. For the system Mr.. Wright said
II was over $4,000 a mile Mr. Crandon
will talk to the board tomorrow. at which
time the Union Pacific win be on hand for
a hearing.