Omaha daily bee., 1909-03-21
Public Cannot Be Taxed for valua-
ton of What it Gave Away.
PLANT BONDED ABOVE VALUE
Company Not Entitled to Earnings
on This Excess.
MRS. LILLE GETS INSURANCE
From a staff correspondsnt.l

LINCOLN, Neb., March 0.-Cspecial. y
The city of Lincoln has won its dollar gas
suit. Judge w. II. Munger OF the federal
court this morning handed down a decision
holding that the rate fixed at that figure
by the city ordinance was a reasonable one
and that outside of any computation as to
the increase in business and profits that
would follow the reduction OF rates the
present net income gives a return of over
5 per cent on the actual investment.
The litigation has been in court for
nearly three years. The ordinance was
passed by the city in November, 1906, and
on a later date the gas company went into
federal court, complaining that the rate
fixed by the ordinance was unremunera-
tive and amounted to a confiscation Of it's
property. A great deal OF evidence was
submitted on both sides and the case has
been in the hands OF the court for some
time. Illness of the Judge has prevented
an earlier decision.
The decision also holds that the occupa-
ton tax levied by the city is invalid. This
Is 2h per cent Of the gross income of the
company, or about $500 a year. 1t is sur
missed that in order to sustain the dollar
gas rate the court found It necessary 10
eliminate this tax. the payment OF which
would further reduce the return to the
company.
City Attorney Stewart is OF the opinion
that the company will have to refund to
all Of It's patrons the sum Of % cents for
every 1000 feet of gas they have had to
pay for at the excessive rate of H.9 This
will mean the repayment of between $4,000
and 800, 100.
Tho court finds that the value OF the
company's property is s5e6,0S, which is
,t,ont 1,IT tho arnoupt ~ kha os,totapdtpu
bonded indebtedness. Upon this valuation
the company is permitted to earn a net
income OF nearly $50, o0O. or So per cent of
it's actual value. This return. II will be
noted. does not give the company enough
Of y net income to carry its interest
charges on bonds.
The court allows the company nothing
whatever for it's franchise. It says this is
q property right protecting the compan
in the possession and use Of public prop
erty, but that the public ought not be taxed
for r. privilege which II has voluntarily
granted.
Verdict for Mrs. Lille.
eve. the jury, find for the plaintiff and
assess her damages at $4,2S3.76."
This was the verdict of the jury in the
suit of Lena Margaret Lille against the
Modern Woodmen of America to recover
u S0,UuO pOilSy On III llc u hSi hNSD"AiN
Harvey NJ. Lille.
San that l can say is that I am over
ioyed," said Mrs. Lille to a reporter. 81
have worked for this for six years, and
| have now been rewarded by having the
stain removed from my name.
Il cared nothing for the money; it was
to establish my innocence that I sought
to bring this case to trial. I was the
victim OF a prejudiced public sentiment
at David City and did not have a fair
trial.
Il shall send the first message of my
victory to Governor Mickey, who gave me
my pardon, and I shall tell him that
eleven good men OF Lancaster county have
declared that he was right. Then I shall
send a message to my daughter at Los
Angeles and tell her the good news
Mrs Ltllie said that she would leave for
Los Angeles soon to visit her daughter
her parents and other relatives. She said
she did not expect to make her home or
the coast, but had not decided where she
would locate. This question would be
settled after she had reached California
She said that the long trial had been a
great strain on her and she was worm
out. but the joy of having her Innocence
established by a jury not swayed by pub