Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-12-19
Nebraska
STREET RAIL LINE REFUSES
Omaha and Council Bluffs System
Sidesteps Physical Valuation.
WEBSTER APPEARS IN LINCOLN
Lawyer Declares Railway Commits
sion Has No Authority Under Law
to value PrOperty--NOrthw west
crn Hearing on TOday.
(From a staff Correspondent

CFrom staff Correspondent
LINCOLN. Neb, Dec. 1S-(Special Tel
cgram.) -Late this afternoon John l..
Webster dropped into the rooms of the
state railway commissioners and, while
not formally entering any appearance for
tho Omaha & Council Bluffs Street Rail
way company, informed the commission
ers why the company had made no reply
to the request for valuation of the com
pany's property.
The. commissioners some time ago sent
blanks to the street railway officials, who
have not replied, and up TO today have
not indicated that they would not. Mr..
Webster told the commissioners the com
pany contended the act for physical val
uation did not apply to street railways.
lie bases his contention on section Of
the act, which says.
The term public service corporation
when used In this act shall mean and
embrace every railroad, railway, teIe-
graph, express, telephone and the rail-
yards companies
Mr. Webster asserts that the term rail-
road or railway does not mean street
railway and that courts in other states
have so held. For this reason he init
mated the Omaha company would not
furnish the commission with an estimate
of the value OF its property. The railway
commissioners have not discussed the
question sufficiently to decide what they
will do in the premises and will probably
consult with the attorney general before
deciding.
Northwestern Hearing Today.
The State Railway commission, COM
mencing tomorrow morning. will take up
the hearing on the physical valuation OF
the Northwestern railroad in Nebraska,
The states representatives have reported
the reproduction value of the company's
property at $685. 1886, 22531 and its present
value at $31, 1850, $3.50. The present value
is obtained by substracting the deprecia-
ton through use and otherwise of the
tangible property from its value If new.
The company contends the physical
value of its property is $46724,SSS.
Those who appraised the property for
the state fixed il at the actual cost OF the
physical property, II reproduced, plus le-
gal. engineering and all other expenses
actually necessary for the construction
of the road. They declined to consider as
entering into its value expenses OF pro-
motion, promoters profits, discount on
securities sold or any deficiencies in
operation during the earlier periods OF
the roads existence, though they did al
low for interest on investment between
the time money was needed and used
and the time when the property was
ready for operation.
The Northwestern road has 1,O746S
miles of main track in the state and with
the addition OF sidings a total OF 1,2633O
miles.
The hearing will commence at $50 to-
morrow and no one has any clear con-
ception when it will be concluded, but
indications are that it will be pro-
tracted affair.
Union Pacific Asks Time.
The Union Pacific railroad company,
through its attorney, Edison Rich, has
asked the State Railway commission for
an extension Of time in which to complete
the hog sheds at stations where more
than forty cars are shipped each year.
The law passed by the last legislature
provided that the sheds should be built
by January /, 1912, but also permitted the
commission to grant an extension Of
time.
The Havens-white Coal company OF
Omaha has withdrawn its complaint ask
ing that the Great Western railroad COM
pany be compelled to put in track scales
at Omaha.
POweI's Suggestion Accepted.
L. G. Powell of the railway commits
sion's accounting department has made
suggestions which have caused the Inter-
state Commerce commission to suspend
the order establishing a system Of &C
counting for telephone companies. Mr..
Powell proposed simpler methods OF &C.
counts for small telephone companies,
and these suggestions were adopted by
the commerce commission.
Allen May Get Place.
No action has yet been taken by the
state Railway commission in appointing
a secretary TO fill the place made vacant
by the resignation OF Clark Perkins.
A. B. Allen OF this city, who was prt-
vate secretary to Governor Mickey and
state oil inspector under Governor Shell
don and at present secretary OF the re-
publican state committee, is an applicant
for the position. 1t Is generally believed
he will get the appointment.