Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-05-10
RAILROADS OBJECT TO TAXES
Insist Lines Are Ovsrva'usd in Comparison
with Farm Property.
UNION PACIFIC AND NORTHWESTERN HEARD
Several File List Of PasshoIders, but
Lists Are Not Complete Enough
TO satisfy the Railway
ComHission.


The Union Pacific and the Northwestern
had their innings before the state Board
Of Assessment today. General Attorney
Benjamin T. White and Frank p. Crandon
representing the latter road, and Tax
Commissioner A. W. scribner the Union
Pacific. During the time between the
hearings the Pullman Car company as
sessment was taken up and unless the
company asks for another hearing this
matter will be disposed Of shortly. The
board intends to get through with the
hearings as soon as possible, though Il
may be some time next week before all
the corporations have a hearing. The
board desires to complete the hearings by
Saturday, but one or two OF the smaller
roads asked for more time and they will
be heard the hrst three days Of next week.
Crandon Diseases value.
Mr.. Crandon of the Northwestern laid
great stress upon the deductions the
board should make II IL took the stocks
and bonds plan of arriving at the value
of his road. Under the stocks md bonds
plan he figured, after making the proper
reductions the entire system of the
Northwestern would be worth less than
fa1, 900 a mile-that is, every mile In the
sand hills Of Nebraska would oe worth
Just as much as a mile of road in Illinois
other states. In arriving at its con-
illusions he urged the board to pay at
tention to the property in Nebraska and
not concern itself with the terminals in
Chicago. Discussing the value of his
road in other states Mr.. Crandon said In
Iowa II was valued at f31,653 a mile;
Wisconsin. S4i.s45; Michigan, S2S,es5;
South Dakota, S4.s22. In Minnesota he
said where the tax was on the gross re-
ceipts, a senate committee had recon-
mended that this plan be changed and
the Northwestern be assessed at $4,000
a mile. In South Dakota ne said no
property was assessed at its FULL value,
while in Wisconsin the Lord only knows
how railroads are assessed. We GER
tainly get bumped up there" he said
land we have never been able to find out
how those people arrive at the value Of
a railroad. They won't tell US" Mr..
Crandon told the board terminal prop
critics should be assessed where located.
white Cites Chicago Terminal.
Ben T. White. general attorney for the
Northwestern, talked briefly after Mr..
Crandon concluded. and when asked regard
ing the place where terminals should be
assessed he said the Nebraska board
should. Of course. take into consideration
the fact that its lines were connected with
the Chicago terminals. but he assured the
board the extent OF the Chicago terminals
was due in a large measure to the immense
amount Of local business done, and he un-
derstoOd from 5000 to 5000 passengers
were handled daily there. When the mat
ter OF rates came up Mr.. White said Ne
braskA got the full local rate charged for
traffic in the state and that 80 out of every
100 cars routed to the east were sent either
to Omaha, souh Omaha, Fremont or Mis-
souri, Valley and rebilled, thus giving the
state the full local rate, which is credited
only to, the state. Mr.. White told the
board that the constitution provided that
all property should be assessed on an equal
basis and that Notwithstanding the law
provided that real estate shall be assessed
every four years, the railroads should be
assessed on the same basis as real estate.
Real estate, he said. had been increased %
per cent IN value since Il was assessed.
and IL this were true, as had been stated
; the assessment Of this class OF property
and railroads was not done the same
basis. as the constitution provided.
Union Paeiac Wants n Cut.
A. w. Scrfbner, tax commissioner OF the
Union Pacific, appeared before the board
In the afternoon. At the conclusion OF an
address he asserted that II the rule q
uniformity In taxation were impartially ap-
piled to the assessment Of the railroad
property OF the Union Pacinc company In
the state OF Nebraska it's assessed valua-
I ton would be fixed for the year. 1907 at not
exceeding one-half Of the assessment OF its
lines for the year 1905. The Union Pacific
was valued in 1906 al an average Of ss2,5OO,
the main line being valued at $4,000 a mile.
Mr.. scribner said the subject before the
hoard resolved itself into two questions;
hrst. the ascertainment Of the true fun or
actual value of the property Of the Union
Pacific and second the valuation which
should be placed upon such property for
4 taxation purposes in accordance with the
rule Of uniformity IN taxation prescribed
In the constitution Of the state. He argued
that income from the business OF a rail-
road company should be given just as
much weight by the board In arriving at
the value OF railroads that element Is
given by the local assessors in arriving at
the value OF the property OF other taxpayers
and no more. He submitted an itemlEed
statement showing the actual present value
OF the railroads tangible property which
Is subject 10 assessment for the year 1907.
The total was as follows: Main line. 467 q
miles. &6l0e.1 Al; per mile, 354.46S. Omaha
& Republican Valley branch. 42SSO miles
p.oss as; per mile. tS.5Sa Kearney branch,
O5H miles. ;5os.Os4; per mile. S7.7a.
Capitalization OF Union Pacific.
The net capitalization per mile Of the
Union Pacific said Mr. seribner, Is 81, ga
Including the mileage OF the two new
branches in Nebraska which are returned
for taxation this year, the Central City
branch and the Hershey branch. the vaiu,
. OF the stocks and bonds per mile OF road
is given as tfI.So. Deducting property sub
jet 20 local assessment from the stock
and bonds value gives q net stock and
bonds value Of the property OF this com.
pany subject 10 assessment Of 1855 pei
mile.
Mr.. scribner dWelt upon the oonstItu
tional rule OF uniformity. saying that tn,
constitution requires that all property II
the state not expressly exempted from tax
alton shall be taxed In proportion TO Id
valUe. that the courts have held that IN,
constitutional provision enjoining an equal
ity ana uniformity in taxation is para
mount and overrides acts OF the legisia
tIre. In this connection he submitted
statement OF transfers OF farm lands sole
along the line Of the road for the yea
ending April 1. This statement cover
2.Cs transfers Of lands the price paid 10
which amounted IN the aggregate to Ss.