Omaha daily bee., 1912-01-04
COURT FIXES BOARDS RIGHT
Irrigation Body Has Authority to
Restrain Use of Power.
DRAINAGE LAWS ARE UPHELD
Lancaster Courts Decisions Uphold
Ing Consolidation OF street Rail-
way Lines with Respect TO
Capital stock Upheld.
lFrom q staff Correspondent.l }

tFrOm starr correspondent
LINCOLN. Neb., Jan. 3-(Specal Tele-
grsm)-The supreme court handed down
large number Of opinions late today
and with that act Judge Root retired
from the bench. Judge Root Is not pre-
pared to say just what he will do beyond
that he will re-enter the practice OF his
profession and that probably he would
open an office in Lincoln.
one OF the most important cases de-
clded was that Of Kirk against the State
| Board Of Irrigation. In this case the real
point involved was whether In granting
| the use OF water in the Niobrara river
for power purposes IL was within the
| province Of tho state to stipulate that the
power must not be sold beyond the bor-
ders OF the state. Kirk was resident OF
Sioux city and proposed TO use the power
developed in Knox county. Neb., to oper-
ate street cars In Sioux city. The water
/ right was granted by the board but the
restriction made that the power must be
used in the state, from which Kirk APP
/ pealed but the supreme court holds the
board was within It's powers.
Drainage Law Upheld.
! Another batch of cases OF general in
tcrest. all OF which were affirmed, in
volved the eOnstItutionallty OF the pres
ont drainage law. They were appeals
from Nemaha county The court holds
the law constitutional and also holds that
land benefited by the general drainage
scheme must pay it's share for laterals
which do not directly benefit IT but which
said laterals are necessary 20 the gcn-
eral scheme Of drainage IN which the
land IL benefited.
The Lincoln Traction cases are affirmed
except on one point. The right OF the
company TO sell heat, light and power
is not determined by the court but for
this purpose only the case Is remanded
As the company's rights IN these matters
did not appear on the evidence the lower
court Is instructed to determine them
In deciding the case the court comes to
some interesting conclusions. One Is that
the constitutional inhibition against the
consolidation Of competing railroads does
not apply 10 street railroads.
Another Is that In such consolidation
Il Is not illegal II the stock and bonds
OF the new company is In excess OF the
capitalization of the respective compan-
les or the actual value OF the same but
such stocks and bonds are not evidence
OF capitalization upon which the COM
pany Is entitled to earn dividends or fix
the price OF service.
: Auditor Barton has received one reply
up TO the present time from his letter TO
the retiring officers of the Union Fire
Insurance company and that is from f..
/ II. Marshall. who Jays he has referred
the demand for the return Of the money
, to his attorney and awaits his reply. Mr..
Barton says that unless the money is re-
turned January he will begin action fol
recovery.
: second Guaranty Assessment.
The state Banking board today made
It's second assessment upon state banks
under the depository law. The assessmen
, Is one-quRrter of 1 per cent upon th'
u average deposits for Che six months pre-
ceding December /. These total $72, ,S09
"a es29s and will produce S1s2 This II
to ebe-a added to si72Oo0 raised by the firs
Il call issued July /. This money, while
Q technically belonging to the guaranty
q funds, remains in the custody OF the vari
! Gus banks from which 1t ls levied ant
r stands as a deposit TO be used only II
!, case OF demand caused by the failure
a OF some bank.
MnIera settle Controversy.
= The state railway commission toda,
:, settled the milling in transit controversy
= between the millers and the Burlington
= road in short order. The whole matter
q was settled by stipulation In a manne
satisfactory 10 all parties. The inter
state rules are TO be binding on inter
state business except It is understoo'
- that when shipment consists Of a mix
- ture OF transit and non-transit products
= In the same car the flat carload rat
y from the transit point win apply on tn
. non-transit part OF the shipment, ant
: that the actual weight OF the entir
shipment win be used to arrive at tn
carload minimum weight.