Omaha daily bee., 1907-05-02
INTERSTATE RATES APPEAL
National Commission Asked to Say whether
They Can Be More Than Sum Of Local
MILWAUKEE, PROTESTS An ASSESSMENT
Don g. Despair Named Rs Labor Com
missioner, His Commission 90
Expire with the Current
Year.
Rrom a star correspondent.l

LINCOLN. May Especial THE State
Railway commission has written to the
Interstate Commerce commission regarding
the right of railroads to charge a higher
rate for through traSho than the total Of
the rates In the several states. Though the
letter was written several days ago no an
swer has yet been received, but a decision
from the higher body is expected any time.
Should the national commission hold as the
state commission hopes 1t viii, hereafter
railroads in Nebraska cannot charge
cents a mile for interstate travel, when
the local rates in the states traversed Is
less than 3 cents. In the meantime the
commission has. written to the Union Pa
cific passenger department asking IL the
| Union Pacific intends TO keep on selling
| tickets for cents a mile between Ne
braska points when the train runs over
into an adjoining state IN going from one
| Nebraska point to another. Should the
Union Pacific insist on charging the cent
rate this matter also will be referred to the
national commission and the local commits
sion believes the result will be an order
| from the former that no through rate can
| exceed the total Of the local rates.
| From the letters being exchanged by the
| commission and the passenger department
| of the Union Pacific It is very evident the
! two bodies have not started of on the
! same footing Some time ago the commission
/ sent letter to the railroad calling its at
tention to the cent rate It was charging
! between North Platte and Sidney. The
opinion Of the attorney general was cited
by the commission that the railroad had no
right to do this. Very shortly the answer
came back that the company, when in need
of legal advice. would consult John N Bald
win, the head Of the legal department, and
not the attorney general of the state. Sew
eral such pleasantries have been exchanged.
but so far no overt act has been committed
by either.
The big day foE the commission will be
| May T. when a schedule Of rates will be
adopted and put into effect. The railroad
men have been notified Of this meeting and
are expected to be on hand and offer objec-
lions or suggestions and to look after their
own interests. On the other hand the COM
mission has on file numerous complaints,
more or less serious, which will be shown
to the railroad men and which they will be
asked to correct.
Member Clarke and Secretary Perkins
were both away from Lincoln. the former
| with his father-in-law, who is dangerously
Ill in Omaha, and the latter has gone to st.
Paul where Mrs. Perkins is ILL., Mr.. Clarke
| returned today.
Milwaukee Protests AsHeEsment.
A. 8. Dudley, tax commissioner of the
! Milwaukee railroad, has raised the qucs-
ton OF the right Of the State Board Of AS
sessment to assess railroads which come
into Nebraska over leased lines and have
no local property in the state except the
right to use the tracks OF some other rail-
road. With his report filed with the board
today Mr.. Dudley sent statement, as fol-
( lows:
The law for the assessment of railroads
provides that the situs of the valuation
Of any company shall be fixed by refer
mileage. This company neither owns
! operates nor controls any mileage in your
T Tac'a put , nnoer contract with the Union
the line of that company across the river
into Omaha. As We have no mileage, the
situs OF our valuation has been fixed by
reference\to our "traokRge rights" APP
parently. and the valuation has been al
lotted to the city Of Omaha Yet the Rock
island Railroad company, which has ex-
actly the same trackage rights into the
city or Omaha on the Union Pacific COM
city of Omaha, In other words, track
age rights has been used in the case OF
thls company and has not been used in
also as method Of distributing the valu-
My position has been that the assessment
OF the Union Pacific company should cover
any "trackaSe rights that another com
pany might have in its mileage; and this
view seems to me to be strengthened by the
fact that where company has only track
age rights the statute does not provide
a method of locating a valuation for such
company. The Union Pacific company In
allowing the use of it's terminals at Omaha
by other companies stlpulates for division
OF the taxes, which presumably are greater
than II the use or the terminals were re-
stricted to the Union Pacific company.
, l am not questioning the validity OF an
assessment to this company. Yet the Rock
Island company and the st. Paul COM
pany both enter the city OF Omaha over
IA al Uni a,fa
both companies having merely, ''trackaRe
rights" and the Rock Island company Is
not taxed in Omaha and the st. Paul com
The st. Paul company does not wish TO
be technical; there may be some property
of the company subject to taxation in your
state, possibly rolling stock, though this
is used exclusively in interstate trafic and
we have paid the taxes levied on the as
sessments OF the last two years, though
az | have suggested, there Is a Question
as TO whether the statute provides situs
for any valuation,
Mr.. Dudley closed his letter with the re-
quest that his road be assessed less this
year than last year, II the board still held
that II had Jurisdiction.
The net earnings OF this road for the
last year amounted to S9OG54, &c. q. and II
spent in operation, maintenance and i'm
provements, 1884 754.Ss, making a total
gross earning OF $5707s, 1886. The company
was assessed at $4,000 last year.
Despair Labor COmmissioner.
Don c. Despair was appointed labor COM
missioner this afternoon and j. c. Derby
Of Lincoln was appointed Janitor at the
executive mansion. Despain's commission
reads from May to December 81, 1907. and
his appointment it Is understood, was at
the 0gent request Of Senator Norris
Brown, and It was limited to eight months
because in that time, II is understood, SEN
ator Brown will be able to find a placa
for Despair In Washington or somewhere
else. For four years Despair has been
chief clerk In the once OF the labor commits
sioner, but the recent legislature abolished
this office by cutting out the salary for
a chief clerk. Senator Brown is under oh
legations TO Despair for assistance in run
ming n press bureau for him previous Ia
the state convention, but the senator fust
at this time was unable 70 take care Of
Despair, and prevailed upon Governor
Sheldon to do So and inasmuch as the gov
ernor had already handed Senator Brown
a package on the Kearney Normal veto. the
Despair appointment is supposed to be a
sort OF consolation.
WsNrhW ~.