The Montgomery advertiser., 1907-04-19
WESTERN ON
 THE CARPET Assessment Put Over by
 the Board. FEELING AT THE HEARING Attorney Steiner Declines to Be
 Sworn. Close Questioning of Omcials of Road By Governor Conner as to Dis crepancIes Between Real
 and Tax Values.

considering the tax returns oI Aiapahh yesterday, had by far the Hveiiest ses- sinos of the series. The session was not exactly hot, but the participants in the meeting were at times annoyed and the annoyance several times bid fair to become exasperating, but 1t never did and the meeting passed on smooth Iy enough when one or two lively 1n- dents had run their course
 The big road up for consideration yesterday was the Western or Alaoa- ma. It was represented by Auditor M. H. Smith, Attorney R. l.. Steiner and R. Hit, Private Secretary to Presi- dent c. A. Wickersham. After the val ue had been discussed pro and con, af- tor the tax statement filed in the Audi tors office and the allegations contain ud in the Injunction proceedings hled In the Federal Court had been reviewed, the Board postponed definite action In fixing the taxes of the Western until April 2. when some other officials of the road will be present.
 Perhaps most feeling was shown Tn yesterdays hearing when Major Stein CT protested that he had the right to uppear before the Board without being sworn. In the beginning of the hear ing Major Steiner declined to take an oath, saying that he was not present as a witness and that he had no testi- mony to give.
 Mir. Hit was giving evidence before the Board as to the amount Of taxes that the Board of Arbitration Of Geor- gia required the Western to pay, when Major Steiner suggested that perhaps the Governor was misunderstanding statement of MT. Hitts-
 You will have to be sworn, Major. Put up your hand" said the Governor.
 But, Governor" began Major Steiner.
 You will have to be sworn," repeat ed the Governor.
 T am here as an attorney I have the right to be here in that capacity and l insist on my right. am here as an attorney and not as a witness ana I win be heard as an attorney. de- c1ared Major Steiner.
 All right. Major, what have you to say?" said the Governor.
 With Auditor Smith on the stand tes- tifying 1t developed that the Western of Alabama had d total of l30 miles of main line in Alabama extending from Selma to West Point. It was paying taxes on that property at $1S,0o0 mile. The road had securities on 1t of s34,9166 a mile. The stocks paid fn- terest of 1-2 per cent and the bonds approximately 1.2 per cent interest.
 Asked as to the ownership of the stock of the company, MT. Smith said that 15,000 shares were owned by the Central Trust Company of New York, as Truestee, and 15,o0o shares were owned by the Louisville and Nashville Railroad Company.
 Figures on the Value.
 The companys assessment sheets submitted to the Board gave in the value of the part of the road between Montgomery and Selma at $10.000 a mile and the value of the road between Montgomery and and West Point at $15,0OO a mile. The same assessment had been returned last year, but the Board raised 1t to $1S,000 a year. The road between Montgomery and West Point was laid with 80 pound rail while that from Montgomery to Selma was laid with 50 pound rail.
 Asked as to the actual value of the road, Mir. smith said there was no way of ascertaining It's actual value unless by the reports of the Chief Engineer. who had made an exhaustive examina- tion of the road ana made a note of each item and its value. According to the Engineers statement the cost of reproducing the road would be $4.435,- 149.
 The officials were asked what value had been put upon the road in the court proceedings. The reply was:
 The same as that contained in the Engineers statement, $33.000 a mile"
 Further testimony showed that in Georgia the property of the Atlanta & West Point. which was a continuation of the Western, Was assessed at $14,. 1000 a mile. On the same kind of property Alabama levied an assessment of $1S,- 900 mile. but Georgia assessed a franchise tax of $S,543 a mile and Ala bama. untt this year, had no franchise tax. The Georgia tax. moreover. in- cluded all real estate which in Ala bama is given to the county assessors.
 Tho Governor asked how. if the Geor- gia arbitrators fixed the physical value of the road at $14.OOO a mile. the off cials could come into Alabama on line that was practically the same and say in court proceedings that the actua! value of the road was $33.000
 MT. Smith replied that the taxation values had been given in according to taxation custom. a custom that had been followed by both private indivld- uals and corporations. He had not tes- tified to the physical value of the road because he knew nothing about 1t. He had only recently become Auditor of the road and in preparing his assessments he followed the assessments of the road made for the previous year.
 The Governor. however. repeated his question several times and dwelt upon 1t at some length. For perhaps half an hour the point involved in the question went back and forth over the table that separated the officials of the road and the State officials. At length Auditor Brandon arose with a protest.
 Purpose of the Hearing.
 We are losing sight of the purpose nf the hearing" said General Brandon Ut has assumed the aspect of a court hearing to pass upon the .Aerits of tho legal contest waging in a court of law. We are here to fix the taxes of the road and will ask that the Board return to its task.
 ''We now have the information that the physical value of the road. accord. ing to the statement of one of these witnesses, Is fixed at $33.000 and wO have other information on the value of the road. and I am of the opinion that the Board is taking too wide a range and spending too much time on this phase of the hearing"
 Treasurer Seed explained that the Governor wanted the officials to recon cile the conflicting statements In one of which they fixed the value of the road at s15.000 mile an dthe other at $33 900 a mile and that we assess 1t Q, maybe les than half those figures.
 At this point Major Steiner came in with a suggestion.
 Understand that there is no written statement or record here that the en- gineer of the road valued its physical