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VOL. XIV.
LINCOLN, NEBRASKA, MAY 22, 1902.
NO. 1.
FINANCIAL DEVILTRY
The Fowler Bill Belles all Experience and
all Kecognized Kconomic Authority
Editor Independent: Never since
the passage of the national bank law
in 1862 has there been a financial bill
passed that has not been presented
and urged under a deceptive title.
The Fowler bill, now pending, is no
exception to the rule. But for disre
gard of truth and misrepresentation
of well-established principles of finan
cial economies the report of the com
mittee, submitted by Mr. Fowler, sur
passes anything that has ever been
presented.
One is left In doubt as to whether
the author of that report is wholly
ignorant of the experience, teaching
and literature of the last century, or
has deliberately sacrificed truth and
falsified all experience and philosophy
at the behest of that organization of
selfish scoundrels that has existed in
New York city since the beginning of
the civil war, and the members of
which are now, and have been, con
trolling the national banks of New
York, and through these banks, un
der the special privileges granted by
the act of 1862 and subsequent amend
ments and acts, controlling the finan
cial interests of the country.
Never in the whole history of con
gressional action has any member of
congress more completely excluded all
possibility of his being regarded, by
those who know anything of the sub
ject of his report, as both intelligent
and honest. It is hardly possible even
that the charitable conclusion, that he
is a most unmitigated ignoramous,
can be entertained.
This bill, that belies all experience
and all recognized economic author
ity, is said to be intended "to secure
the advantages of longer experience."
This bill, that shows in no single sec
tion any evidence of intelligent hon
esty, is said to be intended to secure
a "higher degree of intelligence and
more permanent policy in the supervi
sion of our vast banking interests."
There has been intelligence enough,
but the difficulty has been that most of
it has, in the management of our "vast
banking Interests," been wholly di
vorced from honesty of purpose. With
a credit that for more than thirty
years has been unsurpassed, and is
still unsurpassed in the history of any
country, this bill puts forward again
the false pretense that it is intended
"to protect the national credit." With
a credit that has not been impaired,
notwithstanding all the vicious legisla
tion since 1862. and notwithstanding
the granting of special privileges to
financial combinations by which they
have been able to double and treble
the burden of public and private debts
and put the larger part of the increase
in their own pockets, this bill pro
fesses to protect the public credit
against assaults through our demand
obligations.
The report states that one of the ob
jects is to relieve the treasury from
the burden of greenbacks, treasury
notes, etc., and yet it provides for the
redemption in gold coin of "all legal
tender money, including the silver dol
lar." It destroys every "standard of
payment" except gold, and calls this
relieving the treasury. In God's name,
what about the people? Who will re
lieve them when the volume of legal
tender (i. e., standard of payment
money) in circulation is reduced, prac
tically by one stroke, from over 1,650
million to less than 650 million, while
at the same time the credits repre
sented by the loans and discounts of
national banks alone are increasing at
the rate of over one million per day
rot excluding Sundays. The report
pretends that the burden of redeem
ing the government legal tender paper
will be transferred to banks, but where
will the burden of redeeming the sil
ver currency rest?
This bill, if it becomes a law, will
prevent the government from using
its credit as money, but turns that
same credit over to national banks and
permits them to use it as money. It is
equivalent to the government loaning
these banks every dollar of national
bank currency, issued at one-quarter
of one per cent per annum. Is any man
such a fool that he cannot see that
national bank currency rests on the .
credit of the government? The asset
currency proposition contained in this
bill leaves it still resting primarily
on the credit of the government, but
ultimately upon the depositors of these
banks. Is Mr. Fowler such a fool
that he does not see that this bill is a
trick to turn over to the national
banks the entire credit of the govern
ment, and leave the government with
the responsibility but without ben
efit? The pretended transfer of re
sponsibility to the banks is a dis
honest attempt at legislative jugglery,
and no man with a school boy's knowl
edge of the subject ought to be de
ceived by it.
The pretense of imposing upon the
banks "the burden of furnishing all
the gold for export, and for any and
all other purposes" ought to deceive
no one. It is ridiculously transparent.
The machinery of this bill with ex
isting laws puts it in the power of the
national banks to make the govern
ment furnish all the gold they want.
The silver dollar is quite as good an
endless chain as greenbacks. What a
ridiculous humbug it is to talk about
placing on the banks the burden of
"assumption of redemption" when the
notes supposed to be redeemed retain
all the legal tender quality they now
possess; when every one of them will
be the equal of gold for all purposes
except duties on imports and interest
on the public debts. Such jugglery is
not the product of ignorance, but of
very Intelligent rascality. v
The statement of the purpose "to
Blmplif y and limit the government
fiscal operations by confining it to
the collection of its revenues and the
payment of it3 expenses", is a most
purpose to "limit the government fiscal
operations" so that there will be noth
ing whatever to Interfere with the
control, by the national banks, of
both the issue of money and of the
creation of credits.
Mr. Fowler very correctly calls
these banks "credit merchants." He
might just as correctly have called
them manufacturers of credits. They
are both. There can be no doubt in
the mind of any one, who has any
knowledge of the subject, that the
primary and principal purpose of the
proposed legislation is to assist the
national barks In expanding credits.
For four or five years frequent warn
ings have been given that the New
York bankers had - purposes in view
not in accord with the public welfare.
These warnings have been ridiculed
and denounced in and out of congress,
by the so-called leaders of the party
In power, as the mouthings and rant
ing3 of demagogues; but here, in this
bill, are embodied all the iniquities
and scoundrelly contrivances for pub
lic robbery of which any one has ever
dreamed, and more. Not only is it
proposed to tie the government hand
and foot so that it can have no power
over either the issue of money or the
creation of credits, but it is proposed
to bottle the whole matter up so that
it will be next to impossible to undo
the mistake by a change of admin
istration, either executive or legisla
tive or both.
It will be remembered that during
sessions of 1899 bills were Introduced
providing for a board of comptrollers
of three members, each with a tenure
of office of twelve years. This would
insure the control of this board for
at least four years after any change
of administration .just as Is provide-.!
in this bill. Mr. McCreary was frank
enough in his report on the former bill
to say that the intention of this pro
vision was "placing our currency sys
tem beyond the reach of political ac
cidents." The former bill would have
made it impossible to have changed
the board except by impeachment, or
by a repeal of the law. The Fowler
bill is not quite so bare-faced, but the
purpose Is none the less certain. The
statement of Mr. McCreary is suffic
ient warning of the real purpose of
the triune board and twelve years'
tenure of office.
The New York national bankers, not
many of whom would be outside of
the penitentiary if the law was en
lorced, do not now believe that there
is so much necessity for such a guard
of their interests as there was then.
We have passed into a condition in
which they have such control over .the
banks of other reserve cities' and over
the country banks, that any attempt to
enforce the law against them would
likely produce a panic, and so they
feel secure against any prosecution.
The rapid increase of the credits of
these banks has increased their power
to an alarming extent.
The time between February 5, 1901,
and February 25, 1902, is covered by
the comptroller's abstracts of the con
dition of national banks, and the in
crease of credits per day is shown to
be as follows:
Abstract 22 53 days in
crease per day $2,034,975
Abstract 2378 days in
crease per day.... '. . 1,117,152
Abstract 2482 days in
crease per day 553,415
Abstract 25 77 days in
crease per day 801,422
Abstract 2671 days in
crease per day 276,610
Abstract ,27 77 days in
crease per day 1.175,657
These banks have increased their
loans and discounts, since the fall of
1896, over $1,250,000,000. These ab
stracts also show that we have already
reached an expansion of bank credits
that is encroaching upon the reserves,
and that these banks cannot go much
farther without danger of bringing the
whole fabric down upon themselves.
Trey are, therefore, anxious for the
passage of some such bill as the Fowl
er bill that, by asset currency, will in
crease their power to further inflate
credits, and, by branch banks, make
more certain the control of the New
York banks over other banks.
The fact is, we have reached a stage
of bank credit inflation in which we
have left behind all hope that these
credits can ever be paid. The liabil
ity of banks to depositors, and the out
standing loans and discounts, cannot
be reduced without disaster; much
less can they be paid.
The New York financial combina
tions must control the administration
of the government in order to save
themselves.
FLAVIUS J. VAN VORHIS.
Indianapolis, Ind.
ASSOCIATED LIBELS
THE REAL MOTIVE
Major Steagall Points Out the Motive of
of the Plutocrat in Acquiring the
Philippines
Editor Independent: There has of
late been a great deal, said in the pa
pers and in the debates in congress as
to the motives that prompted the ac
quisition of the Philippine islands;
but so far no one has touched the ral
point, the moving cause that lay at
the' bottom of the plot, yea, conspir
acy, to saddle those "islands upon the
American people. The desire to ex
ploit them had but little to do with it,
in comparison with that deeper, dark
er, more hellish and damnable motive,
to-wit: the desire for an excuse to es
tablish and saddle a large standing
army, that would be at the command
of the plutocrats whenever they might
wish to crush out the last vestige of
civil and religious liberty in this once
happy republic. From the day that It
was first mentioned in the negotiations
at Paris, I have never for one moment
doubted that this was the hidden sec
ret, the underlying motive, and I have
upon hundreds of occasions so de
clared.. A. H. STEALALL.
t
Associated Press Engaged In Libelling
Democratic Senators Some Lies
Corrected
Washington, D. C, May 17, 1902.
(Special Correspondence.) The Asso
ciated press dispatches have com
mitted a great libel on the Hon. An
selm J, McLaurin, United States sena
tor from Mississippi. The papers
throughout the land reported that Sen
ator McLaurin had deserted his col
leagues on the Philippine question to
the extent of justifying the inhuman
treatment given the Filipinos by Gen
eral Smith and others of that stripe.
It was said that many other demo
cratic senators were opposed to the
policy of their party on the Philip
pine question and would willingly fol
low Senator McLaurin's lead to get
out of a bad hole. But the truth of
the matter is that Senator McLaurin
said nothing of the kind, and the lat
ter part of the statement contains no
more truth than the former. The
democrats in. the senate are perfectly
united on the Philippine question and
the method of pursuing its considera
tion. Perfect harmony exists among
them all. I wish they were united on
all issues. But the Associated press,
willing as it always is to aid the re
publicans, gave a report to the coun
try that on its face would show that
Senator McLaurin from Mississippi
was heading a number of democrats
insurgents on this gravest of questions.
They know that the republicans are
badly in the hole on the question; that
they have made several desperate at
tempts to have it closed; that they
have refused absolutely to summon
witnesses for fear of hearing the
truth, and now the Associated press
has gone one better by deliberately
misquoting a speech of a democratic
senator. It is but the pursuit of the
same old game that they have prac
ticed to deceive the American people
ever since they have had to read their
dispatches.
A statement made in the Omaha Bee
concerning Dietrich's great feat of
tricking Witness Boardman into eat
ing army rations and enjoying them,
after he had a few minutes before de
nounced them as utterly unfit for food.
e see this statement in the Bee and
the Bee copied it from the Washing
ton Post. Yet, from the information I
can secure, there is no more truth in
it than in the statement the Associated
press made about Senator McLaurin.
Boardman denounces it as a "lie" out
of the whole cloth and declares it to
be his intention to carry the. matter
higher. -J
This witness, Boardman, a member
of the Twentieth regulars, is the only
man -who has had the courage and I .
think it either courage or lack of men
tality to go upon the stand and at
tempt to justify Smith in his "kill
or burn" policy. Boardman says that
he believed it necessary and as a gov
ernment witness, summoned by Sena
tor Lodge, made a pretty fair witness
for them until some one asked about
the army rations and then one thing
led to another until he was asked
about the currency of the islands. He
then deliberately charged that coun
terfeiting was being practiced by the
American officers in the islands and
that these counterfeits were being
forced upon the Filipino people. He
turned out to be a good witness for
the prosecution before he had finished
his testimony.
The senate has been considering the
Philippine government bill all week
with the exception of a few hours
spent in the discussion and passage
of the fortification and agricultural
appropriation bills. Several republi
can senators have spoken among
them Senator Stewart, and here again
the Associated press gives a test of Its
ability to send out the truth. The
dispatches speak of the senate as being
crowded to hear the eloquent speech
of Senator Stewart the old renegade
from Nevada. As a matter of fact,
there were not half a dozen senators
republicans and democrats on the
floor during the whole three hours oc
cupied by the white-haired hypocrite.
As for the galleries well, there were
not a half dozen people in them for
any length of time. The usual num
ber of visitors came in to see the sen
ate in session, but Stewart's eloquence
affected them to the extent that they
wanted to get out. And they got out.
Senator McComas spoke on Tuesday
on the situation and, as usual with the
republican senators, denounced the
minority for their attack on the Amer
ican soldier. This one idea is the
whole text of the speeches of the re
publican senators. The ensign was
hoisted by Lodge, and every republi
can senator since has made this point
the main topic of his speech.
The house was busy during the week
with the naval appropriation bill and
incidentally the Sampson-Schley feud
was referred to by Representative
(repM Md.), an ardent champion of
Schley. Thus it came and from that
moment there was very little said
about the naval appropriation bill.
The conflict took a partisan turn and
every subject from the Philippines to
Maclay's war libel on Schley were dis
cussed with equal vigor. Representa
tive Vandiver (dem., Mo.) brought up
the Philippine question and severely
attacked the administration for refus
ing to Investigate the charges in the
islands and with deliberately white
washing the charge against officers
charged with such outrages. The Phil
ippine question was then the topic for
several hours, when Mudd started the
Sampson-Schley feud by offering an
amendment that no money appropri
ated by the, bill should be expended In
purchasing the Maclay history.
Crowninshield was then given a hearty
reception by Representative Williams
of Mississippi. 5 "Who is Crownin
shield?" asked Williams, and he then
-proceeded to read a humorous poem
pntltled "Wbn Ty CrnWn,"gVH'1L
Papa ?" and the Jaouse was convulsed
with laughter. . It closed ,by calling
him "the greatest tar who ever stayed
ashore." In a more serious ,vein, Mr.
Williams1 took up the ; Sampson-Schley
controversy Whatever the official
conclusion might be; the American
people, he said,, had come to the con
clusion that Schley had something to
do with the magnificent victory at
Santiago. And . yet It has happened
that Maclay had .written a book, had
submitted it to Crowninshield, declar
ing that Schley was a coward and had
nothing to do with the victory. De
spite the imperial ukase that the
Schley controversy must be dropped,
Mr. Williams said that American . peo
ple would not be . stopped in drawing
their own conclusions; as to who the
victor was and on whom the responsi
bility for his mallgnment rested. The
bill will probably be voted upon pn
Monday and - then ' several matters of
importance will be discussed.
. After finishing the naval appropria
tion bill, the house will proceed to
the discussion of the bill coming from
the committee on foreign . affairs to
regulate passports. One day will be
devoted to claims, the regular day for
that business having been postponed.
Under a special order, a bill-providing
for the regulation of immigration will
be taken up and. a lively debate is to
be expected. -
There is also prospect of taking up
the Hill bill relating to subsidiary
coinage. This measure will be strong
ly antagonized by the minority, and
may precipitate a discussion of the
currency question. Early in the week
the committee on rules will hold a
meeting to decide whether or not time
will be given to discuss the Pacific ca
ble bill. - .;
No political interestcenters in the
caucus which will be .held tomorrow
evening relative to the Fowler cur
rency bill. If the final decision is to
consider the bill In the house, it will,
beyond the shadow of a doubt, be an
item of interest in the" fall campaign.
There will be a strong opposition in
the republican membership and the
decision will probably be to let the bill
alone at least until 'after election.
"Uncle Joe" Cannon is stated to be the
leader in opposition to the bill and he
will make a strong fight against allow
ing the bill to be discussed on the floor
of the house. The Older and more con
servative members of j the party are
against the consideration of the bill
at all as a census of the members
shows. The entire delegation Irom
Illinois with the exception of Mr.
Boutell from Chicago are opposed to
the bill. On the otner hand, Mr.
Fowler, chairman of the banking and
currency committee,1, is -certain that a
fuller explanation 'of the -bill to. the
republican members will win it many
supporters and as he has numerous
able and influential members of his
party behind the measure and particr
ularly as it is a good thingv for the
trust, 1 the money r trust, an energetic
canvass for votes will secure many
in its support.
The passage of the naval appropria
tion bill will clear , the decks at the
south end of the capitol . for general
legislation,-which will fill in much of
the time between now and adjourn
ment. The general deficiency bill will
not be made up until a few days before
adjournment and will not be likely to
be discussed much either in the com
mittee or on the floor. The prospects
are that from now on the attendance
will be very small, as many members
are at home mending their apolitical
fences and looking for a renominatlon.
The exodus has been so great during
the past ten days that the committees
have secured a quorum with great dif
ficulty. During the past week there has been
much activity on the part of those fav
oring the passage of the irrigation bill,
which has passed the senate and has
been reported to the house with some
modifications. Speaker- Henderson has
promised to set aside a day for Its con
sideration and the prospects are, from
a census recently taken, that the bill
will pass. The leaders are opposing
the bill, but as it has some strength on
the republican side and is favored al
most unanimously on the democratic
side, it will probably pass. There has
been a persistent campaign in favor
of irrigation, which involves the allot
ment of lands made fertile by irriga
tion to bona fide settlers, who would
be required by deferred payments to
reimburse the government. One strong
argument Is that it does not take mon
ey directly from the treasury, but
provides for using the proceeds from
the sale of public lands for the stor
ing of water and the conveyance of the
same to the arid lands. There will
undoubtedly be a strong opposition
and If the bill passes it will be by
democratic votes. The democratic
certainly can claim credit for what
has been done so far and the passage
of the bill will be a great step toward
making the western farmer a true
friend of the democratic party.
The entire time of the senate will be
used In discussion of the Philippine
government bill, and there is no reason
for changing previous predictions that
the debate upon the measure will come
to a practical close at this week's end.
The fact that? there will be an adjourn
ment of the senate over the coming
Saturday to permit that- body partici
pating in the Rochambeau statue un
veiling, will have the effect of post
poning the final vote from Saturday
until Monday or Tuesday.
There is no longer doubt that the
minority will permit the bill to be
voted upon as soon as debate upon the
measure will have been exhausted.
Under present conditions the bill will
take, up most of the time this " week
and the prospects are that no other
business will be sandwiched in with
it. Speeches in favor of the bill will
be made by Senators Spooner, Dolll
ver, Burton and Clapp, while tn oppo
sition Senators Hoar, Bailey, Bacon,
(Continued on Page 2.)
RAILROAD ASSESSMENT
As Predicted by The Independent, the Be-
publican Board Insults tbe People
by Making-a Raise of beven
Tenths of one Per Cent
The unexpected "doesn't always hap
pen. Frequently results can be fore
casted with almost mathematical cer
tainty. It required no gift of prophecy
to foretell that the state board of
equalization would make nq appreci
able raise in the railroad assessment
this year, because the republican party
in Nebraska has for many years been
controlled by the railroad interests.
It is not simply because the taxing
board is composed of Governor Sav
age, Treasurer Steufer, and Auditor
Weston, that the railroads are asses
sed at such a ridiculously low valua
tion but rather because the republi
can party, that is, the leadership of
that party, is dominated by the rail
roads. There are individual republi
cans, of course, who are free from such
a charge; but the party as a political
organization is essentially a railroad
party, a monopoly party. On the
other hand there are undoubtedly
soma populists who wear the corpor
ation yoke, although not many;, but
the party as a political organization
is essentially an anti-monopoly party.
For these reasons it is folly to expect
relief from railroad extortions and
tax-shirking through republican ad
ministration; it cannot come except
through an anti-monopoly party, and
when the republican party ceases to be
a monopoly party, it will cease to be
the republican party.
Last week the board completed its
work of assessing the railroads, decid
ing that the 5,704.34 miles in Ne
braska should be valued at $26,589,
592.70, or an average of $4,662.12 to
each mile. This is about $180,000 in
crease over last year's assessment,
or the insignificant amount of seven
tenths of one per cent (.7 per cent, or
an increase of 7 points out of a thous
and.) The following table shows the as
sessed railway valuation for the thir
teen years, 1890 to 1902, inclusive, and
the grand assessment roll for these
years, except tor 1902, -that being not
yet completed.
Grand Assessed Rail
Assm't Roll. way Val'n.
1890 .. ..$184,770,304.54 $29,854,221.05
1891 .. .. 183,138,236.28 29,265,917.80
1892 .. .. 186,432,376.71 29,339,631.00
1893 .. .. 194,733,124.73 . 28,574,138.00
1894 .. ..183,717,498.78 27,939,178.50
1895 .. ..171,468,207.48 25,425,308.00.
1896 .. ..167,078,270.37 25,424,708.00
1897 .. .1165,193,736.42 25,561,720.70
1898 .. .. 167,810,764.79 26,108,936.80
1899 .. .. 169,105,905.10 26,106,450.10
1900 .. .. 171,747,593.41 26,346,735.90
1901 .... 174,439,095.45 26,422,732.39
1902 .... 26,589,582.70
Last year the board assessed the
Omaha Bridge & Terminal company,
and did not do so this year. Compar
ing the property assessed both years
the increase on railroad property
alone is $184,752.40, although the ac
tual increase, as shown by the figures
above, is only $166,860.31. This is
acounted for by the omission of the
bridge property this year, which will
be assessed by the county authorities
in Douglas.
This insignificant raise in the rail
road assessment is an insult to the in
telligence of Nebraska taxpayers. It
will help out the already overburdened
state general fund to the tune of some
thing over $900 on the 5 mill levy al
lowed by law. It will result in about
$1,300 additional state taxes all told
general, university, and state school
funds. And right in' the face of the
fact that two of the roads, the Burl
ington and the Union Pacific, have In
the past nine months (ending March
31, 1902) increased their net earnings,
over the corresponding period in 1901,
as follows:
Burlington $1,541,241
Union Pacific .. 2,796,084
Remember that these figures repre
sent INCREASED net earnings; the
actual net earnings for the 1902 nine
months period being:
Burlington .. $15,690,140
Union Pacific 17,281,769
Yet the state board of equalization,
let all the railroads in the state off
with a paltry raise of $1,300 for state
taxes; and the total increase for all
purposes, state, county, municipal,
and school district even at the high
rate of 50 mills would not amount to
$10,000 for the entire year for all the
roads. The Burlington alone will
draw from the people of Nebraska for
net earnings (that is, the total charges
for freight and passenger service, less
operating expenses) in the neighbor
hood of $8,000,000 or $9,000,000 during
the year 1902; but the people of Ne
braska will receive from all the rail
roads In the state not to exceed $1,300,
000 in taxes of every description and
it is doubtful if the amount will
reach $1,250,000. -
Whatever criticisms may be urged
against the members of other boards
of equalization, whether populist or
republican officials, the fact remains
that the present board- deserves the
severest censure for its action. The
question of just and equitable taxa
tion is a growing one, and it is idle
to deny that the present board is better
equipped for doing its full duty than
the boards which preceded It. Only
recently have the people came to a
clearer realization of the fact that a
railroad corporation possesses and en
joys a valuable something which the
owners of property generally do not
possess or enjoy that is to say, its
franchise, its right to exercise the
governmental function of eminent do
main, condemning and taking private
property for its' use; its right to the
! exclusive use of a continuous strip
land as a highway; its right to charge
for services "all that the traflic will
bear." Only recently have the people
come to a clearer realization - of the
fact that a railroad should be; valued
as an entirety not as a scrap heap
of ties, rails, box cars, and engines'.
Only recently have they leaned that
the railroad valued as an entirety is
vastly more valuable than the com
bined values of all Its visible constl
tutent parts ascertained in the usual
way. And the present board cannot
escape criticism on the plea of ignor
ance. Other boards may, but this one
cannot, because the whole matter ha3
been very thoroughly discussed in the
newspapers; it was presented in an
able manner by M. F. Harrington in
a letter to the board, and in the argu
ments of Edward Rosewater of the
Omaha Bee and E. W. Simeral, his
attorney, before the board. The In
dependent has been hammering away
on this franchise question for many
months but, of course the republican
board would not listen to a populist
paper but is is gratifying to note
that Mr. Simeral and Mr. Rosewater
have been close readers of The Inde
pendent. There is no copyright , on
the idea, but The Independent was the
pioneer in the movement in this part
of the west to tax railroad franchises
and to show how the value of such
could be ascertained.
What is a railroad worth? Let
Judge Brewer answer. He cannot be
charged with being a wild-eyed popu
list. "It is a cardinal rule," says the
judge, "which should never be for
gotten, that whatever property is
worth for the purposes of income and
sale it Is also worth for the purpose
of taxation." (Adams Express Co. v.
Ohio, 166 U. S., 185 and 220). It Is not
often that a railroad is sold outright,
but ownership of a portion thereof Is
usually in the market in the way of
stocks or bonds. Let us apply this
to a Nebraska road or two.
Before the Northern Pacific bought
the Burlington stock, the capitaliza
tion for every mile of line was:
Capital stock $14,503
Funded debt ...... 22,767
Total $37,270
The Hill crowd offered $2 in 4 per
cent bonds for every dollars worth
of stock, and this was accepted. These
new 4 per cent bond3 are quoted at
96. The old bonds are not quoted, but
it is not likely they are below par.
Accordingly the actual , value of the
Burlington today is at a conservative
estimate $50,000 per mile, or 4$120,
831,50Q for the 2,416.63 miles assessed
by the board at $0,357,236.70, or less,
than one-eleventh of Its actual value.
2,416.63 MILES B. & M.
Actual value per mile. . . .$ 50,000
Actual value 120,831,500
Assessed value per mile; ... 4,285
Assessed value 10,357,236
At one tenth 12,083,150
At . one-ninth ; 13,425,722
At one-eighth . . 15,103,938
At one-seventh 17,261,643
At one-sixth.. 20,138,583
At one-fifth ... . . . . 24,166,300
Suppose we take the Union Pacific,
not counting the branch lines.-simply
the 467.38 miles from Omaha west,
which the board assessed at $4,480,324.
or $9,800 per mile. Under the reor
ganization this road is capitalized per
mile at:
Stocks $73,263
Funded debt -.. 51,182
Union Pacific 4s are selling at 105
1-2 to 106 3-4; preferred stock at 87
and common stock at 103 1-2. This
would bring the actual value of the
road to about:
Stocks $66,000
Bonds 54,000
Or $120,000 per mile. That is what
the Union Pacifis is worth oa the
market today. Yet this republican
board assessed it at only $9,800 per
mile or less than one-twelfth of its
467.38 MILES UNION PACIFIC.
Actual value per mile ....$ -120,000
Actual value 56,085,600
Assessed value per mile .... 9,800
Assessed value 4,480,324
At one-eleventh .. 5,098,691
At one-tenth 5,608,560
At one-ninth 6,231,733
At one-eighth .. 7,010,700
At one-seventh .. .. ....... 8,012,228
At one-sixth .. .. 9,347,600
At one-fifth 11,217,120
In order that the farmer may know
whether the board did its duty, let
him make a comparison with his own
assessment. The different fractions of
actual value are worked out down to
one-fifth. The Burlington's assess
ment Is little if any higher than its
net earnings in Nebraska will be this
year. If the farmer or business man
were assessed no higher than his net
earnings, the grand assessment rolls
would shrink worse than they have.
Mr. Simeral's statement to the board
that the Nebraska railroads are today
worth about $300,000,000 on the mar
ket, Is about the correct figure. These
roads are earning interest and divi
dends on that amount. They did not
cost anysuch sum, but that makes no
difference. When the farm rises in
value its assessed valuation goes up
the cost is never figured in arriving
at the taxable value of a farm. The
question always is, What will it sell
for? The Nebraska roads, or most
of them are being sold every day on
the stock exchange. They are worth
three hundred million dollars; yet
they were assessed a miserable sum,
less than one-eleventh, less than 9 per
cenj;, of their selling value In the mar
ket and this, too, after fellow repub
licans to the members of the board,
men higher in the councils of the
party, had implored them to make a
substantial raise. Even at one-seventh
actual value, the railroad assess
ment would have been over $42,0CO,000,
or over $16,000,000 greater than j it is.
(Continued on Tage 3.),
r
PARCELS POST
Congressman Stark's Letter on the Measure
Believes It a Railroad Scheme
Representative Stark, of the Big
Fourth district, Is out with a letter
to the papers of his district statins
the facts regarding his position on tha
parcels post bill. The Independent ia
glad to publish this communication in
full, because, although It does not
agree with Mr. Stark's conclusions,
is recognizes the fact that he Is a
thorouehlv loval siiDDorter of norm-
11st principles and that no district In
the state has been better represented
in the past six years than the Fourth,
The letter is as follows:
Washington, D. C, May, 1902.
Editor: , "T
I have received a number of copies
or tne weorasKa independent, issua
of May 8th with the following portion
of an editorial marked "Populists and
democrats in congress right along for-
get the principles they preached from
the stump and advocate something
opposed to those principles at times,
because they believe their constituents,
or some of them, might suffer if tha
true rule were invoked. For ex
ample, Congressman Stark last winter
sent out a letter in which he made a .
savage attack on the parcels post bill,
not so much because some republican ,
deviltry was lurking behind it, as
because a parcels post would enable
the farmers of his district to buy good3
from Seigel, Cooper and Co., or Mont-,
gomery, Ward & Co., at a less price
than they would have to pay the local
merchant. Here was a measure es
sentially populistlc in principle, op
posed by a populist. And he was not
alone in the opposition. A number
of the Fourth district papers took it
up and combatted the bill, because
it was a parcels post measure and not
because it might have some bad feat
ures." As I recall the matter a number
of retail merchants of the Fourth dis
trict did write me as they had a per
fect right to do, touching the proposed
bill and I answered them, as was my
duty.. At the same time others wrote
me and to the end that all may be ad
vised, I submit a copy of a letter on
that subject. -
Washington, D. C, Feb. 13. 1902. - '
Fred A. Allen, David City, Neb.
My Dear Allen: I am In receipt of,
your letter touching the proposed par
cel post bill and greatly appreciate
the same. One of the foundation doc
trines of the people's independent par-i
ty is government ownership of the
means of transportation and communi
cation: that is, that the government
should, own and operate them In the
interest of the people and the cost of
the service to be fixed by the expense
of operation. ' I -am thoroughly de
voted to those principles and as the
years roll by, believe In them mom
and more. The idea of the parcel .
post bill now before congress is to so
extend the postal service tha't it will
perform the same class of work as is
now done by the express companies.
Now the first question is, how do ex-,
press companies perform their work?
They maintain offices to receive and
distribute and they rely absolutely on
contracts, largely with railroads, to
carry on their business. These con
tracts were made a great many yeara
ago, for a long time, and were eagerly
sought for by railroad managers to
show a fixed income, to assist them in
selling shares of their stock. Of Iat4
there is a disposition by the railroads
to absorb the express business and:
make it a part of their own business.
If the so-called Northern Securities
company is held, by the supreme court
of the United States, to be a corpora-,
tlon that can carry on the purposes
the incorporators intended, then it will
only be a short time before the express
business will be carried on by the rail-;
roads and the express companies will
be small affairs as are now the fast
freight lines. One of the things tho
railroads desire to avoid is the regula
tion of express charges by law and it
has occurred to them that if they can
get that business generally made a
part of the postal service they will
then avoid supervision by legislation.
It makes no difference what rates are
fixed by the government, the railroads
are not compelled to perform that ser-.
vice for those rates. As far as they are
concerned it is a matter of contract
between them and the government and
they have a long line of adjudications
by courts of last resort, that their
property cannot be taken from them,
in the matter of fixing rates as com-"
pensation for ' their services, without
adequate compensation. That propo
sition has been declared in the maxi
mum rate case from our own state
and whatever we may think of the in
justice of the decision. It must be re
membered by practical men that; It is
the law. The courts have decided that
they are the arbitrators as to what
shall be reasonable charges and not
the legislative branch of the govern
ment. So then the postofflce depart
ment would have to pay them a rate
which ultimately met the views of the
court. As the railroads now receive
about one-third of the appropriations
for the postal service, they are satis
fied with their present contract. The
deficit in our postal system is brought
about by the cost of carrying the malls
and the money is made up from the
general fund. And to supply the gen
eral fund an excuse would be made
for all kinds of excessive taxation even
to invading the legitimate objects of
taxation by a state and thereby creat
ing a sentiment in the states for the
reneal of certain kind3 of taxation on
the ground of double taxation. Starve
out local government and feed fat a
central government. The railroads no
doubt reason that as, so far the well
paying service of carrying the mails
has not got them into court or been
any particular bother to them, why not
increase the classification, especially
as .it would bring to them a business
