Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1912-04-26
Nebraska
RAIL COMMISSION DIVIDES
Members Do Not All Agree on Bonds
for Funding Debts.
DECIDE NEBRASKA CITY CASE
Clarke and Winnett Favor Proposed
Plan While Hall Objects-More
Expense Accounts Filed for
Primary Campaign.
From a staff porresnondentl


LINCOLN, April s5.-,Special Tele-
groml-The railway commission divided
this afternoon. two TO one. on the ques-
ton Of the stock and bond issue of the
Nebraska Gas company. The majority,
Clarke and Winnett, voted to permit the
issue and Hail voted against ii. The
question has been before the board for
some time and Commissioner Clarke for
the majority filed a written opinion. Hall
Will file his dissenting opinion later.
The commission voted to validate the
and to permit the issuance Of bonds
amounting to s27,i5Ss5. this being the
amount of money which the owners assert
they have put into the plant since they
acquired ii. The commission further or
dered that the bonds must not lie sold
at less than 20 per cent face value, and
further. that no dividends can le paid
on stock until the commission is satisfied
that the physical value of the property
is equal to the capitalization and the
earnings sufficient to Jay for upkeep,
and depreciation in addition to dividends.
Where Members differ.
The line is sharply drawn in commits
sion and bond issue, the majority hold
ing II has no discretion in authorizing a
bond issue TO fund debts, under the read
ing of the Nebraska law. Commissioner
Hall holds ii is both the law and the
duty of the commission to see that the
physical value of the property bonded
Is equal to the face Of the bonds. that
its authorization may be a guarantee to
the investor that he has property Sc
curtty for his money invested in the
bond. There is no disagreement ON this
point in the case Of new corporation
or for bonds issued for prospective i'm
provements, but the majority holds that
the rule, under the law, does not apply
20 funding Of debts, which is simply
changing the form OF indebtedness and
not creating a new debt.
This difference between the commits
sioners has cropped on: In several in
stances heretofore. but the present case
is the most pointed and for this reason
both views are to be set out in a formal
opinion to be filed with the commission
records.
More Expense Accounts.
A number OF candidates filed expense
accounts this afternoon. among them all
the candidates for governor. r. l.. Met
calfe tops the list Of expenditures. but Is
well within the limit prescribed by law,
He says he expended $3.50, while the
legal limit is $3.50 Jesse Newton. re-
publican expended s2S6.1s, Governor AID
rich $40. the filing fee and Nathan Will
son, prohibition, the same. w. E. Sellick,
republican for congress in the First dis
trlct. expended s49lSs. which according to
the vote cast for congress two years
ago is siLsS above the limit, but II the
total number OF voters In the district
at the 1910 election is taken as the basis,
Il Is under the limit.
The following additional statements
were filed: w. L. Minor republican, land
commissioner, $780, 10; Waldo wintersteen,
Fremont. democrat, -ector. nothing;
George Hall, Franklin, democrat, treas
urer. s2S6s0: c. s. Bassett, Gibbon. re-
publican land commissioner, sll5Ss; F. L.
Hall. democrat, national committeeman.
4s3i; j. ]. McAllistef. representative,
Dakota county. $50; r. IL West, Grand
Island. senator Eighteenth district, s1.so;
J. w. McKissick. Beatrice, representa-
tive, IS.
Agreement on Valuation.
The valuation department Of the rail- |
way commission and the Burlington |
people have reached point where they |
are agreed. or will be able to stipulate |
all their differences except on land values. |
to be submitted to the commission. The
differences on cost Of transportation of
material and several other matters is one
of method of computation and will be up
to the commission to decide and not a
oueafton NJ evidence