THE FALLS CITTRIBUNE. . FRIDAY. DECEMBER 22. 1905.
The B. & ASide. .
Omaha , Neb. , Dec. 15 , 1905.
Dear Sir : -A meeting was held
at Falls City on the 12tli inst. , by
business men of Richardson coun
ty , at which resolutions were
passed that will certainly bo con
demned by t H e sober second
thought of all fair minded men ,
when the true facts arc known.
The call was misleading and
the resolutions are unjustifiable
and the good people of Richard
son Bounty should not remain
under misapprehension or be mis
led by misinformation. That
thcv may be made aware of the
fails , I send this communication
believing that you and your read
ITS want the truth. Under ordi
narv circumstanes I would no
use the public press in a matter
in litigation in the courts , bu
the suits now pending in the
United Slates court between tin.
Union Pacific and Httrlingtoi
railroads and the county treasur
crs of Nebraska to prevent tin
forced collection of a lax , basec
upon an assessment that is 1111
fair , inequitable and illegal unde
the constitution of the slate , an
of such importance to every ta >
payer and concern so intimate ! }
the welfare of the commonwealth
that 1 feel full } ' warranted in ad
dressing myself in this fashion t
my fellow citizens , realizing as
do their respect for the rights o
property and for the orderly ad
ministration of the law.
It is the ill-fashion of the date
to condemn every thing corporate
The artificiality that we call a
corporation is the creature of Ihe
law and when created it is en
titled to the protection of the
law. The individual persons who
have organized it and put their
substance into it are entilled lethe
the same Irealment of their cor
porate property as is alTorded to
their personal belongings , or to
that of other citizens.
The railroad corporations of
Nebraska are in no wise different
from other bodies corporate.
Their thousands of stockholders
have the right , as to the safe
guarding of their owner-ship , to
the even protection by the legis
lature , the courts and public offi
cers that other citizens haye and
are entitled to that "ICqualily be
fore Ihe Law" that is the motto
of the stale and is emblazoned
upon ils shield.
The inflamed condition of the
public mind thai leads to Ihe
denial loa railroad of every right
except existence and compel il
to operale and yet haye its reve
nues absorbed by unfair and une
qual tribute in the form of exces
sivc taxation , while fixing rates
of transportation thai are prac
tically conliscatory , resulls from
the falsehoods and exaggcralions
demagogues and time servers who
for purely selfish purposes misled
their fellows.
The railroads of Nebraska are
not and never have been the ene
mies of its people. They are and
have been conducted by officials
and employes who , while bound
in honor to safe-guard the substantial
bk
stantial interests of the stockholders
kZC
holders of the roads , fully realize
that the interests of the railways
and the people served by their
lines are so nearly allied that injury
tine
jury to the inlerest of Ihe one
results in damage to the other.
So far as taxation is concerned
the railroads of this stale have in
lean and fat years paid their
taxes through the entire period
of their existence until 1'HM.
Kven during the years of depres
sion when the roads in Nebraska
were operated at ; > great loss ami
when money would have beer
saved by not turning a wheel in
the state , taxes were paid by
these corporations promptly whei
due and had it not been for sucl
payments , bankruptcy and repiul
iation would have come , not onlj
to the state but to its municipa
components. And this , too. wa
in the face of assessments notori
ously out of line with the assess
ment of private property itld
most unequal and unfair.
The assessment of railroai
property for 1904 wass of such out
rageous character and so defiant
of right and justice that there
ame to the officials of the roads
i plain duty. The rights of the
tockholdcrs had been invaded
ind the constitutional guaranties
jf Ihe corporalion had been vio-
alcd. The assessment of the
> roperty of Ihe Burlington was
ncreased 78 per cent over thai of
1903. This was done arbitrarily
L > y Ihe slale board by taking
property that had no situs or
place in Nebraska , like the expen
sive terminals in the great cities
of Chicago and St. Louis that
est many millions , and including
it in the assessment and by jump
ing at the conclusion thai as
other property in the state might
perhaps be increased 70 to 80 per
cent , therefore railroad property
should be increased in the same
ratio. The writer well recalls
that when he was before the
slale board , presenting in argu
ment the faces and figures thai
would form the proper basis for
valuation , he was interrupted by
the most prominent member of
the board by the remark thai as
the coming assessment would
show an increase of 70 to 80 per
cent over 1903 , therefore Ihe rail
road property must be increased
in similar ratio. The writer re
plied : "I am neither a prophet
nor the son of one , but I predict
that instead of 70 or 80 per cent
increase it will be found that the
increase , includiuq even the large
amount of personal property that
has heretofore escaped taxation ,
will not be more than 35 percent
and if you increase the Burling
ton property so enormously , be
cause of your guess , it will be too
laic to remedy the wrong when
you find you arc mistaken. "
The returns of the local asses
sors showed how erroneous was
the statement or guess of the
board. Property other than rail
road was increased not over 35
per cent and including the very
large amount of personal prop
erly that had been hid away and
never before turned in to the
assessors it was 54 per cent.
An interesting part of the tales
auditor's report ( pages lf 9 and
195) is the following.showing of
the assessments of 1903 and 1904 :
In I'.HVI llio toliil of nil Htnto us-
us iissi.vjin.oo ;
Uuilnul nilI ! ( mil UhSUHSimml "T.SriU1 lil.OO
ol her pioiii'rty . 1111,1711 , lltl.OO
In IHiU tliu lotitl of all stiitu HKSUS-
Mil-lit wiis . J.MI,7r'V-'l3.00
Ptnlmit rtlUronit aSHessimmt M , 177,511. 00
Leaves olliur propuity . 'JIHiXVSI.OO ) | (
Deduct assessment of I1H > ; | . 101,173,1:1.1. : 00
Sliowrt nn luumisu of
being an increase of 54 per cenl
as against an increase of 78 per
cent on the property of the Bur
lington railroad.
When it is considered that in
1903 all the railroad properly
was exposed for taxation and was
fully assessed while in the same
year all other property was under
assessed and an enormous amount
escaped the view of the assessors
the cause of the railroads is fairly
rir
ly shown and the merit of their
side of the controversy is evidently
tle
ly both apparent rand real. One
ler
advantage thai Ihe private owner
has over Ihe railroads is that the
property of the railroad is known
to all men and cannot be concealed
11IX
cealed while the private tax
shirker has abundant opportunity
to cover his belongings.
The officers of the railroad ap
pealed to the courts and the suits
, are there pending. Testimony is
being taken and the rights of the
stale and counlies are being
cared for by the attorney general
. and others learned in the law.
This is the lawful and
- orderly
course and the question will be
decided after that full hearing
guaranteed by the constitution to
every litigant. If the ts
shall adjudge that the tax im
posed is valid in ils entirety niit
will be promptly paid with inter
est and penalty. Neither Rich :
ardson county nor any other noi
the state will be injured by the
submission of this controversy ton
Ihecourts of the land. If anj
- harm shall come to any county il
will be causedby the action o
its own officers and this is especi
ally true of Richardson county
- for it is not true that the Burl
ington h.is r ( ti < d to pav its L\\-
fully assessed taxes for 1904 and
1905. and in most oi the counties
of the stale tin- tax for 1904 as
tendered bv the railronds h.i *
been acci-picd , but not so in Rich
ardson ( county. The truth is that
prior to the 30th day of Novetnn
her I , 1904 , the Burlington road
tendered to the treasurer of Rich-
anlson county on account of
taxes levied for that vear against
its two branch roads iti thai
county , the sum of $11.400.31 or.
S5.1S2.39 less than the amount't
of the total tax of Sl7.5S2.70J.
levied for all purposes. The tender -
der in question wji improvideiitly
refused. At the time of filing its
bill in equity in Ihe Federal
court , the judge of thai court
made , an order directing this
company to pay to the treasurer
of Richardson county the sum
that it had theretofore lendcred
lo him , without prejudice , and
without in any manner affecting
Ihe defense of the county to the
pending suit , and for the purpose
of preventing any inconvenience
that might otherwise result to
the county if the tax , or the
greater part of it , were not paid.
The attorney general , represent
ing all of Ihe conn ties in the
state including Kichanlson , ad
vised dial they could receive Ihe
amount tendered without preju
dice to llieir riglils in said suit.
Notwithstanding that , and for
some reason undisclosed , the
treasurer of Richardson county
lias refused to accept , the tender
made , although he might have
received Ihis money on any day
since the tender was first made.
The effect of said tender , had it
been accepled , would leave in
controversy in the court Ihe sum
of $ ( > , 182.39 instead of $17,582.70
and lake il for the years 1904 and I
1905 , the amount ready to be
paid by the railroad of Richard
son county is $21 , < > 42-lf > leaving
in dispute $11,542.12.
Do the people of Richardson
county understand that the real j
thing in controversy is the ex
cess tax , or that the entire tax is
in controversy'1 ! The respective
amounts tendered are still avail
able , and may be paid in at an )
any moment whenever its treas
urer shall signify bis desire to
accept the same , and the paynienl
will in no wise affect the right ol
that county to hereafter clain
the full lax from the Burlingtoi (
road in case its contentions shouh i
not be upheld in the present liti
gation in the Federal court.
The state board of equalizatioi
prior to the year 1904 asscssei
the properties of the various rail
roads in Ihis slale at a figure ap
proxiiiiating one-sixth of their
eal or market value. In most o
he counties of this state , the
isscssed valuation of the proper
y actually assessed , instead of
being assessed at a one-sixtl
alue was , in the majority of in
stances , assessed at from one
enth to one-twentieth of rea
. alue. This striking disparity
esultcd in the railroads carrying
i large proportional burden o
axation than other citizens o
Richardson and other counties.
The attempt in l'J04 to hav
all property in the state assesse <
it one-fifth of its value createc
changes in the relative assessec
value of the railroads and other
property which are important to
consider.
The farms of Richardson coun
ty for the year 1903 had been re-
lurned at $5.5 ( > per acre , or about
eight per cent of their real value
for every one knows that the
average value of farm lands in
Richardson county has been at
least $70.00 per acre. For the
year 1904 these lands were assess '
- ed at $9.41 per acre , an increase
of $3.85 per acre or only about j
- 70 per cent of their full value.
- These figures , and all that I
will give in this communication t ,
are taken from the official report ,
of the htate auditor , and are not
made up by the railroads , but by
'e
a member of the state board of
equalization that made the railroad
ilhe
road assessment of which the
companies properly complain.
Let me now show what IKU
been I : done with reference to liv
stock in RiLli.irdsoii county and
the following table taken from
the official report will show the
valuations for 1903 and 1904 and
t .e percentages of increase and
of drcrgase.
tl > 0.1 lilll Itii'trii'i ! ilBoroa.su
llo * ! < | i"rlidtiil 7.T.I I'J Tl nil | ior a
Cit'Ci ) per lu'inl 4 ! H 101 lit per o
Hlici'ii | > or linii'i , | U . 'il in per < !
llo , , H jn'f lie.ul 11. 1.17 IT pun1
i Now let us compiM tlie-5.'lig-
, ures of val.ios upon personal
properly with what has been
.
! done | in the state at large , and
'
i these will be found in the state
jauditor's ' , report , pages 169 and
J195. I j
JWfl 1804 ilccic'iixi
iifftii'iul MB IIM 21 per o
| ti'i < liuiiil fifl .fij 7 pcro
tV lll'Hll l.'JU l.ld llpcrfi
s .in 1 wiiirons i ichl inl.ns d per c
iititl oleo ! ruoli . .l.fl'i I .III 2u pi-'r i !
It llCllliO : CilOll " . .011)2 Slpi'i-i-
Compare this substantial de-
rease with the 78 p.n4 cent in-
rease of railroad property and
le evidence of the unfairness of
lie assessment is apparent.
The two lines of road owned
y the Burlington in Richardson
ounty are the Republican valley
nd the Atchison and Nebraska
ailroacl. In 1903 the Republican
ralley railroad was assessed at
4,500.00 per mile and the Atchi-
on and Nebraska at $5,700.00
> er mile. Without any change
vhatever in the roads themselves
ither as lo their physical value
ir their earning power , Ihey were
joth increased lo $10,000.00 per
nile. The Republican valley
vas increased $5,500.00 per mile
jr 122 per cent and Ihe Atchison
ind Nebraska was increased
*
$4,300 per mile or 75 per cent.
The law provides that the assess-
nent shall be at 20 per cent or
one fifth of the value. Taking
the assessment of $10,000 per
mile and it makes a valuation of
$50,000 a mile for each of these
roads. The Republican Valley
railroad extends from Ncmalia to
Salem and from Netnaha to JJea-
trice. It runs one mixed train
daily except Sunday and the
character of its railway as an
earning factor will be shown by
Ihe following statement of its
earnings , operating expenses and
taxes for the year ending June ,
30th , 1904. Its gross earnings
were $132,217.38 , deduct operat
ing expenses and taxesl ( > 4,138.08
leaves a net loss to the Burling
ton railroad company for operating -
ing this line of $31,919.70. In
other words , the Burlington is
paying out of its treasury over
$ 0,000 per year for the accom
modation of the people who use
this line.
The lack of fairness in the
assessment of the roads in Rich
ardson county is shown by the
fact that the Missouri Pacific
railway , which has its main line
through Richardson county on
which it runs two passenger
trains daily , is assessed at only
$8,400 per mile , or a full valua
tion of $42,000 per mile as against
$50,000 per mile full valuation
for this stub line of the Burling
ton road. Is it any wonder with
this sort of discrepancy and ab
surd valuations that there is
complaint of the action of the
ahsessing board and that the rail
roads thus mal treated should
appeal to the courts to reined3 *
their wrongs ?
If every property owner had
paid his taxes as punctually as
the Burlington road , there would
today be no need of a Scavenger
law. The Burlington has paid
annually to the stale of Nebraska
for Ihe use of the state , and her
municipal corporations , numerous -
ous sums of money aggregating
nearly $500,000 per annum for
several years past. In 1903 il
paid inlo the different treasuries
of the stale of Nebraska $530,000
In 1904 , if it shall be adjudged
Ihat it must pay the entire tax
levied , it shall be required to pay
about $040,000 and a greater sum
for 1905.
The constitution affords to
every citizen the right to appeal
to the courts to remedy a wrong.
The property owners of Richard
son county will wage on war
against the Burlington road on
the ground that that company is
L
At thr Largest and best variety of Fancy China and
Dinner Ware Collection ever in this county and you
\vill findHaviland , Austrian , Bavarian , Japanese
German , English and American Novelties galore.
HOLIDAY GOODS--on display and if you want any
thing in this line just come in and get prices and you
\\ill be sure to make your purchases of me.
SPECIAL PRlCES on 100 piece Dinner Ware.
GROcTFl ls"Ti TO
always the cheapest. Call for anything in a ( > rocerv
store and you will < ret it.
DON'T FORGET THAT GOOD COFFEE-Kven
body is talking about it joe , 250 , jjoc and 35c.
'WHITE ' SATIN FLOUR" Is my leader but don't
forget about "Sunllour. " Try either and you will get
the best there is.
Cash price 22 cents per dozen for Eggs r
PHONE i4i Opposite
Court House
m For ( hristmas Giving !
As a hint to those who are puzzled over the question
| of what to give , we append a list of suggestions from | J
the many gift articles in our cases :
FOR HIM FOR HER
Gold Silver Gold Silver
Rings Match Broaches Hat Pins
Stone-set Boxes Rings Bracelets
Pins Hirrors
Emblem Cigar
Charms Brushes
Pins Jars Pendants Knives
Charms Stamp Lockets Forks
Watches Boxes Bracelets Spoons
Fobs Brushes Necklaces Files
Chains Knives Watches Scissors
Cuff links Desk Hat Pins Thimbles *
Studs Fittings Chatelaine Carving
Sets
A. E. JAQUET
THE OLD RELIABLE JEWELER
attempting to have its legal rights
measured ' by lawful tribunals.
Deny this right to the Burlington
ompany , and it will strike home
at the rights of every citizen. In
jrder therefore , to subserve Ihis
right individually , il must be
rcely conceded to the corpora-
ion.
It is hoped that the suit in
juestion will be decided by the
courls wilh all possible speed ,
ind the decision in that case will
necessarily carry with it the
juestion of the validity of the
axes for 1905.
If the assessment is sustained
mil the taxes decreed to be due
rom the Burlington company ,
hey will be promptly paid. The
> ayment of all personal laxes
rom private persons and corpor-1
itions olher than railroads under
he laws of Ibis slate become due
on February 1st. The law , as
t now stands , in relation to the
payment of personal taxes , makes
one rule for railroad companies
and another rule for other corpora-
lions and individuals.Tlie railroad
ire required lo pay Ihcir laxes on
or before December 1st in the
year in > vhich they are levied ; all
other corporations and citizens
are not required to pay their per
sonal taxes before the first day ot
February of the ensuing year.
\nother unjust discrimination
against the railroads of this state
and one that is clearly unconsti
tutional and one of the reasons
for bringing the suit at the time
it was commenced in 1904 and
also one of the causes for bring
ing the suit as to the taxes of
1905 at this time.
The facts herein set forth can
not be controverted and the fig
ures given , while they apply
more particularly to Richardson ,
also apply in measured degree to
all other counties in the state.
The Burlington railroad
company , notwithstanding the
unwarranted assertions made in
the resolutions passed at Falls
Citv , has neifher repudiated its
taxes , nor is it an outlaw. It is
pursuing its rights in the courts
under the law and in one contro
versy and in one court as the law
not o n 1 3' authorizes , but
but encourages , saves itself
and the numerous counlies of the
slate , the enormous costs of liti
gation that would ensue if it
brought a suit in each of the ( 1
counties through which its road
runs. Instead of Ihe ( > 1 suits ,
with the expense incident to the
taking of the enormous amount
of testimony needed to get at the
facts in a controversy like this
it has but one suit , and it would
be a sad day for the cilijjens of
this republic , vhcn the power of
any equity court to grant the
writ of injunction against a
grievous wrong shall be abrogat
ed or abolished. Such change ,
so radical and revolutionary
would be a harder blow at Ihe
ri'ghls of private citizens than it
would be to any corporation
The method that is being pur
sued in these cases is the orderly
and proper one and no abuse ,
either upon the officers of tlit-
roads who are charged with the
performance of the duty that de
volves upon them because of their
trusteeship , or upon a righteous
judge who uses a power of the
law lo prevent a wrong , will pre
vail.
My employment by the railway
company compels me to explore
and lo know the facts in relation
to Ihis matter , but the profess
ional relation that I bear does
dot require that I should be
guilty of mistatement or misrep
resentation , either to the courts ,
of which I am a sworn officer , or
at that higher and most august
tribunal the bar of public opin
ion. The people of Nebraska are
entitled to know the truth , and it
is my privilege to give it. know
ing as I do , that it is might and
will prevail.
Charles F. Manderson.
I