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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (July 12, 1902)
THE OMAHA DAILY BEEt SATURDAY, ,I ' 12, 1002. RAILROAD TAXATION ' IN COURT Full Stenographic Report of Hearing hi Mandamus Case by Nebraska Supremo Court 11 After the luprraic court bed announced Its Intention of bearing the evidence, ths proceedings were a follows: Mr. Harrington The relator now offer In evidence tbe return to the alternative writ filed In tbla court Mir 2, 1902, known as the original answer. Mr, Trout That Is 4 part of tbe flies of this court, and of courie It does not need to be Introduced. ' Chief Justice Sullivan Of course It was superseded by tbe other. Mr. Harrington Yes. your honor. Bam was received In evidence. Charles Weston, being first duly sworn, testified as follows, examined by Mr. Elm era!: Q. State your name, please, and your official position. A. Charles Weston, audi tor of public account of tbe state of Ne braska. Q. You have been auditor for bow long? A. Since the d of January. MM. i Q. I will ask you If you hav the offi cial files provided for by sections $9 and 40 of the Nebraska revenue law, made by the railroads and telegraph companies and sleeping car companies that are operating In this state? A. I hate; yei elr. Mr. Weston also Identified assessment re turns ef the St. Joseph at Grand Island (marked exhibit III exhibit 8. of the Kansas City ft Omaha " Railroad com pany for MOi; exhibit 4. the return wad by th Chicago, . St. Paul, Minneapolis ft Omaha Railway company for 1902; exhibit 8, for the Chicago, Rock Islsnd A Pacific Railroad company for 1902; ex hibit 6, for the Missouri Paclflo Railway company for 1902; exhibit 7, for ths Union Pacific Railroad company for 1902; exhibit t, for the Omaha ft Republican Valley branch of th Union Pacific Railway com pany for 1902; exhibit 9, for th Chicago ft NnrthwMtern Railway company- for 1902; ..t.ihi in th Republican Vafley ft WTomiK Railway company, the Repub lic. viliitv Railroad company, th rwfnrd A Kansas Railroad company, tha Omaha ft Southwestern Railroad MniniiK. the Omaha ft North Platte Railroad company, th Nebraska ft Colo rado Railroad company, the Nebraska Rail way company.' the Lincoln ft Northwsstern the Llnoolo ft Black ttnia Railroad company, th Grand Island Wyoming ft Central Railroad company, th Chicago, Kansss ft Nenrasitn jiauroaa .n- tha Atchison ft Nebraska Railroad company ana tne uurungioa River Railroad company, for 1901; exhibit 11, for the Fremont. Klkhorn A. Missouri Valley Railroad company, for 1902; exhibit 12, for the Postal Telegraph' tompanyt; exhibit 1, for th Western . Union .Tele graph company; exhibit Is, fof th Pull man company; exhibit 15, for the Kearney ft Black Hill branch of th Union Pacific Railroad company; exhibit 16, showing the schedule of property belonging to th Union Pacific Railroad company; exhibit 17, showing th mileage, capital stock, earn ings and operating expenses of th Union Pacific Railroad nompany. filed; May., 1902; exhibit IS, showing mileage, capital stock, earnings and, "operating expense of th Kansas City ft Northwestern Railroad com pany, fllefi Jun 6. 1902; exhibit 19. filed January Jl. 1902, for the Sioux City ft Pa clflo Railroad company; exhibit 20. filed January 15. 1902. being th report of the board of director of th Fremont, Elk hnrn ft Missouri Valley Railroad :ompany . .. L Ul....l and tiTrJortot the 'bard-t rector oi toe v, " ,,,. uin Ttaiirosd eomoanr. and also thst Norm of th 6lou City ft Paclflo Railroad com panyi exhibit 21. ahowlng a atitement of th Paclflo Railroad company In Nebraska; exhibit 22, filed by the Mlesourl Paclflo Railway company, dated Jun 1, 1902; exhibit 28, for th Chicago, Rock Island ' ft Paclflo Railway vcompany.f Bled Marcn- .o, 1902; exhibit 24, for th Chicago, St. Paul, Mtnneapolta ft Omaha railroad, tiled May 27, 1902; exhibit 25, for Bloux City ft West ern branch of th Wllmar ft Sioux Falls Railroad company, filed March 11, 1902; exhibit 26, a leUer to th board filed during th sitting of th board; exhibit 87. for the St. Jo ft Grand Island Railroad company and also th Kansas City ft Omaha Railroad ompany, filed February I, ;J902 exhibit IK for th Fremont. Elkhorn ft Mlasourl Valley Railroad company, filed January It 1902; exhibit 29, tho forty seventh annual report of th board et directors of th Chicago, Burling ton ft Qulncy Railroad company and th letter pinned to it. filed May 23. 1902; xhlblt 80, a document addressed to th Board of Equalisation of th state ot Ne braska and algned and aworn to by.Edward Rosswater, filed May 1, 1S02. being a pre ' test mad ;by Mr. Roawater two days ba rer th assessment requesting ,the board to ass th property and franchise of th various roads; exhibit 81. 82 and 88, documents filed by Mr. Rosewater at th nam time. , Mr. Howe Did you not receive a letter addressed to the board from Mr.. Barring ton. the relator, with relation to the as sessing ot railroad property for this year prior to the sitting ot th board?- A. I believe the governor received such a letter 'and read It to th board. Mr. Slmeral: Q Mr. Weston, th as sessment wss made the 16th of May? A. That waa the date of th final adjournment bf the board; yes. sir, Q. Hd you made your, assessment prior to that time or at that time? A. W mad It at that time. Q Now, handing you . book, being a record, I will aak you to stat what this book Is. A. It Is a record of the assess? ment of th various railroads In th stat, showing th distribution to ths different rountles In th stat through which each railroad runs. q Now. tat what Is ths total amount of th railroad assessment for th year 1908. A. 826,589.692.70. Q I will ask you to stste how many A Word To the Wise When you are thirsty, dritik something that will not only eutiefy yon, but will cool and purify, your blood. i ROSE'S ' 1 Lime Juice is the product of the choicest West Indian Lime Fruit, and is known the wide world over as the. best temperance drink. Your grocer or druggist has it.. relies, of railroad there were in th state reported to you? A. 4,702.22 miles. Q. Do you know how many miles of side track there were? A. I do not remember now; no, sir. (Book marked exhibit 14.) Mr. Slmeral The relator offers tn evi dence all of exhibits 1 to 24. Inclusive. No objection. Received la evidence. q. Hav you tbe assessment for 1901? A. Yes, sir; I found It' Q. On what page is that? A. Page 165. Q I will ask you to stste what the num ber of miles of ratlroad assessed tor that year was Mr. Prout The respondents object to that as Irrelevant. Incompetent and Immaterial. Chief Justice Sullivan Without finally de ciding that question, we will receive the evidence, on the theory that fraud Is an Issue. A. 5,706.22 miles. Q. And stat the valuation or assessed valuation of 1901? A. $26,422,722.80. Q I will ask you to stat If this book Is one of the official records of your office? A. It Is. . Q. And It shows the assessment for bow tnsny years back? A. Since and Including 1895. Q. Since and Including 1896? A. Yes, sir. Q. Hsv you the book showing th same tax prior to that in your officer A. Yes, lr. J. And hsv you got them here? A. I bave not; no, sir. Q. Will you produce those? A. Yes, sir, I hav the book her showing th as cessment for 184. Mr. Harrington We will make an offer here formally; It will be a matter about which there Is no dispute, of th assess ments Of 1874, 1882, 1890, 1892 and 1900. ' Mr.' Prout W object to that a Incom petent, Irrelevant and Immaterial. (Over ruled. Received In evidence.) Q. Handing you exhibit 85, I will ask you to stat If that document was on 111 In your office showing th ratio of assess' ment of property in th various counties of the state for the year 1902? A. It 1 a partial compilation made from reports, will say from county clerks, I received from county clerks, of th various counties, In regard to the results of the assessors' meet lugs, held on th third Tuesday In March. Q. And when did you receive these let ters? A. I wrote th county clerks soon after tbe meetings of th assessors and received these letter In reply. Q. And thla Is a compilation mad from those letters? A. A partial compilation of those letters. ' '(J. And was mad for the purpose of using It as a basis? ' A. As a matter' of Information. Q. As a matter of Information In assess' Ing railroad properties and others? A. Yes, sir. Q. Did you mak an estimate of th In cress In th assessment of this year over th last?. A. You mean the aggregat as sessment? Q Yes, sir. A. No, lr, I did not. r Q. Who was It mad ft in your office?' ' Mr. Kelby That Is objected to as In competent, Irrelevant and Immaterial, and it has not been shown there" la any in crease. Chief Justlcs Sullivan Technically, I think th objection la good, v Q. I will ask you to stat, Mr. Weston, if you had Poor's Manual in your possession In tbe office of th board, at th tint that these assessments were made? A. It waa aent for by th governor during th sitting ... . . " of th board and was consulted by him one or twice. , Q. You had it there? A. We had It there, but I never consulted it myself. Mr. Slmeral Th relator offers in evi dence Poor's Manual tor 1901, It being the thirty-fourth annual report. Mr. Prout To which the respondents' ob ject a Incompetent, Irrelevant and Imma terial. Chief Justice Sullivan I think It may be received. Q. Now. I will ask you to state. Mr. Weston, If these letters which I hand you, bound in letter index No. 15, are the ones that were written to you by the various county clerks throughout the state and ot which this exhibit 25 Is a compilation? A Yes. sir. Mr. Slmeral The relator offers In evi dence exhibit 86, being the bound volume containing letters referred to In the last question, together with the letters. (No objection. Received In evidence.) Q. Mr. Weston, were there any other documents besides these that . you bave brought Into Court filed with you or used by you in reference to the. assessment of ratlroad property thla year? A. There were aome compilation ot figures furnished as by tha different railroad companies by the tax commissioner ot the different rail road companies. Q. And have you those in your posses sion. A. I believe they are la my desk: yes, sir. Q. Will you be kind eaough to bring them in? A. Yes. elf . - : ' Q. Now, was thsr anything more that you bad before you a a Board ot Equalisa tion this year, documents or anything ef that kind, that have not been produced here? A. Why, we eonsultsd the property schedule for one or two years prior to the return for the year 1902. q Property schedule ef what? A. Of the railroads, similar to those that are Introduced. ' ' Q. Mr. Weston, in making up your est!- mate of tbe valuation of other property than rallroada did you take Into considera tion the city assessment or Omaha. South Omaha and Lincoln? A. You mean ths separate assessments that waa made for city purposes? No, sin we did not. Q Did you have any returns showlna- tbat? A. No. air. w did not. Q. Do you know what 1 the percentecs Of assessment la Omaha.- A. I do not. q Do you know what It la In Lincoln? A. I do not. Q. These papers that you hav testified to and that have been offered In evidence as exhibits, do they beer filing marks ef your office, the most ot them? A. Most ot them do, yes, sir. . Q. And were received at the time they were filed? A. Yee. air. Crosa-exsmlnatUn by Mr Baldwin: Q. Mr. Weston, what waa the atandard of valuation, which you used In valuing the property of railroads for assessment pur poses? A. Do you mesa ths ratio? Q. Ths ratio. Mr. Slmeral We object te that as Im proper cross-examination. Chief Justice Sullivan Objection sus tained. Q Mr. Weston, did you 11 X any standard of valuation er , ratio-for assesinent pur poses? , . . :. ", ... .. . v.. Mr." Simeral Objected te as Incompetent and not proper cross-examination. Chief Justice Sullivan Overruled. A. Approximately, we did. Q. What waa It? Mr. Slmeral Objected to as Improper eross-exsmlnatloa. . . Chtet Justice Sullivan Objection sus tained. - Q. How did you arrive at It? Mr. Howe Objected to aa Improper cross-nemlnstlenv '. Chief Justice Sullivan Objection ever ruled. '. A. By consulting he returns thst we received from th counties and also the grand assessment rolls of previous years. Q. What wer the returns yon particu larly refer to? A. Th return that were sent to me from county clerk aa the prob able action of the assessor In the different counties snd also from a comparison ot those returns, with th action of assessors In previous years In assessing different species of property throughout the state. Q. What waa tha result of thl investi gation and this Information which you had received from theae comparisons? . . Mr. Slmeral W object to that as in competent and Improper cross-examination. Chief Justlc Sullivan Objection, sus tained. Q. In tb formation of your judgment. Mr. Weston, aa a member of th board, did you take Into consideration that these railroads that you assessed were actively engaged In tb business ot operating rail roads? Mr. How Thst Is objected to aa In competent and not proper cross-examination. Chief Jiuatlo Sullivan Objection sus tained. Q. Did you .consult and consider tho records of not only this year, but prior years, with .reference to the return made of the earnings ot the different railroads? Mr. Slmeral That la objected to aa In competent and not proper cross-examination. ' Chief Justlcs Sullivan Objection over ruled. , A. We. did. Q. Were there any different persons ap pearing before the board at the time you were considering the question ot assess ments, making arguments or statements? Mr. Slmeral Objected to a not proper cross-examination. . , Chief Justice Sullivan Objection over ruled. A. There were. Q. Did Mr. Rosewater appear before the board. A. He did. Q. Mr. Weston, I win ask you to exam ine that paper, which Is marked exhibit 28. Have you examined It? A. I have. - Q. Do you recall these statements that are oontalned therein aa made before the board? A. Yea, sir, that la my recolleo Hon of the converaatlon at that time be tween myaelf and Mr. Rosswater and be tween Mr. Rosewater and the governor. Q. Mr. Weston, hsve you received these statements that were filed? A. Those that Mr. Slmeral spoke ot? t Q. Yes, sir. A. Yes, sir. , - . Mr. Blmeral We desire to offer, in evi dence these documents, exhibits 89 and 40. (No objection; received In evidence.) Mr. Baldwin The respondents offer In evidence exhibit 28. Mr. Slmeral Reserving a general objec Uon to this method of cross-examination, we have no specific objections to this ex hibit 88, but generally object that It Is not proper cross-examination and Incompetent. - Chief Juatloe Sullivan It . may be re oelved. Q. Mr. Weston, -.your attention waa called to exhibit No. 40, offered by the re lator, which waa a atatement ot Mr. Scrlb ner, the tax commissioner of the Union Pacific. I do not now- recall whether you said that waa filed or not Was It filed A. It does not contain the filing mark, ot the office, but it waa left with, me and has been on my deek. Q. Waa it before the assessment waa made? Did you have It before you made the assessment? A. Yes, sir, before the assessment was n ide a copy et thla waa furnished, I think, to every member ot the board. Q. For the purpose ot refreshing 'your memory, Mr. Weston. I would ak you If it la not a fact that at the time of that bearing Mr. Bcrlbner, from thl paper marked exhibit 40, read in full that part o this paper which contained the evidence of J. B. Berry, chief engineer ot th Union Paclflo Railroad company, his evidence be Ing given in what waa called the penalty suit of cost ot reproduction ot the Union Pacific railroad at about that time, 1901? A. It Is my recollection he did. - Q. Read that In full? A.-Yea, air, q. From this statement to the board? A. Yea. sir. Q. Also at the time of that hearing, when Mr. Scrlbner waa present, did he read to you the statement of the bond and stock Issue of the Union Pacific Railroad com pany, and the Oregon Short tine and Ore gan Railway and Navigation company.? For tbe purpoae of refreshing your memory, 1 would like to ask you to examine this ex hibit 14. A. I cannot atate positively in regard to that, but mr impression la that be did. Q. Refreshing your recollection again Mr. Harrington You may offer It, Mr. Baldwin. ! Mr. Baldwin Then I offer it aa a part ot the cross-examination. rMr. Harrington We will agree that the annual report of tbe Union Paclflo can be offered tn full. Mr. Baldwin I don't know aa we bave any objection to that. We will offer la evidence exhibit No. 41. (No objection. Received In evidence.) Mr. White Mr. Weston, In valuing the property of the different railroads you con sidered tbe schsdules, did you, that were left with the board for consideration by the representatives of the different resdi? A. I don't understand exactly what you mean by a schedule. Q The schedules required by section 19. A. Oh, yes, sir, we did. Q. And you. had before you testimony and Information given orally by repre- aentatlvea ot the different roads? A. Yes, sir. q. Mr. Orandon, tha representative ' et the Elkhorn, and also Mr. Bid well, ita general manager, appeared before you, did they not? A. Ye, sir. Q. And you received Information from them concerning the value of the Elkhorn line, did yeu not? A. Orally, yes, sir. Q. What waa the information with re- spsct to ths cost of rsproductlon of that road? Mr. Simeral That is objected to aa im proper at preaenL Chlsf Justice Sullivan Overruled. A. It waa stated by Mr. Bldwell to be nineteen thoussnd and aome hundreds ot dollars; I csn't give It exactly. - Q. That was with reference to the whole road? A. Yea, air; per mile. Q. And ita rolling stock and roadbed? A. Rolling stock and roadbed, yea, air. Q. Now, were there any representations In regsrd to the fact that physically It terminated at certain points In Wyoming and South Dakota? A. I think, my rec ollection la that Mr. Bldwell made aome reference to that fact. Q. Was there a statement further that It did not participate In transcontinental Waffle? A. I think that waa Included tn Mr. Bldwell's statement. . Q. Did you have any testimony before you, or any Information before yon, rela tive U the earnings of the Elkhorn com pany for different year , prior to and In cluding 1901? A? We consulted the re turns that were tor the year 1901 and also the earnings of the compsny as contained In the annual reports er the biennial re port of the auditor. I think we consulted Mr. Cornell's last biennial report; I think that waa the only one, and different reports that the railroads made eubeequently. Q. Was the Information before you that for at least three years, 1896, 1896 and 1897. that the Elkhorn road bad been operated at a loss? A. No, sir, I don't remember thst Q. Waa not there some years la which there were deficits? Was that considered by you? A. We did not look far enough back to find that, I do not think; that Is my recollection. Q. Was that called to your attention at all; that It was operated at a loss? A. I think the fact was mentioned by Mr. Bid- well with reference to some prior year. Q. Yes, air, that I what I meant A. Yes, sir, but . thst I all. Q. Did you not have a document before you which was prepared by Mr. Whitney, showing the sales of real property in dif ferent counties, and ahowlng what th property bad been assessed tor? A. Yes, sir, I did. Q. Is that document among the docu ments that have been offered in evidence here? A. No, sir, It Is not Q. Do you know where that la? A. I do not. Q. But you had such a document? ' A. I had auch a document; it disappeared from my desk and I don't know where it Is. Q. You do not know where it Is? A. No, sir. Q. Well, It wae from that document, with other documenta and the other evi dence which you arrived finally at the con clusion as to what the asseesment of the various railroads In tho state of Nebraska should be for tbe purposes ef taxation? A. Yes, sir, together with a general knowledge of the situation In the state. Q. General knowledge of what assess ments had been and were? A. Yes, sir. Redirect Examination by Mr. Harrington Calling your attention to ths statement purporting to be dated In April, and made on .behalf of tbe Burlington company, Mr. Weston, aa a matter of fact waa that ever placed In your bands until after the as sessments were made? A. Yss, sir; my recollection Is that we had that prior te the meeting of the board. Q. Wasn't that prepared after Mr. Rose- water made bla argument, aome days? A. No, sir, I think not. Q. Now, sir, you say you took into con slderatlon the stock and bond of the Union Pacific, do you? A. No, sir, 1 did not say that Q. what did you say with reference te stock and bonds?' A. I "don't think tbe records show thst I made any atatement as to stock and bonds. Q. Did you, or did you not, ascertain the value ot the Union Pacific per mile? A. So tar as the tangible property 1 con cerned, we attempted te do that. Q. Only the tangible ' property? A. That was my understanding at that time, Q You took the testimony that Engi neer Berry gave In the penalty case in the federal court aa to the cost of reproducing the Union Pacific railroad? A. I don't think, as a matter of fact, that we paid very much attention to that estimate. Q. In any event, all yon assessed er at tempted to valu'e In any respect 'with ret erence to the Union Pacific ratlroad waa tbe tangible property oi the corporation? A. That was. our . vlw,ot tha .matter, yss. Sir. " ' .-Oft 1. il: q. You did not assess or did not at tempt to assess or place a value In any respect upon the franchise or Intangible property of the corporation? A. No, air, q. Yju never took Into consideration its contract with the Rock Island or Mil waukee for the use of the Union Paclflo bridge?'' A. I knew nothing about that, ' q. The reports before you showed thst those contracts existed. A. I overlooked It q. Did you take into consideration the fact that it was owner of stock in the Union Pacific Land company to tha emoun ot 110,000,000? A. No, air, we did not, Q. Did you take Into consideration the fact that it waa the owner of coal atocka to the amount of 15,000,000 1 A. We did not no. q. Did you know as a matter of fact that the atatement filed by the Union Pacific was misleading In the fact that they make deductions for bonds ot more than the whole bonded debt? A. You mean under section 88? q. Yea, air. A. No, air. q. No, no, that last paper there? Thla? A. No, air, I did not examine that critic ally. -. I don't know anything about It q. You did not know that that 1382,000, 000 Is all misleading? Mr. Baldwin That Is objected to aa la competent. Irrelevant and immaterial. - q. Do you know whether the atatement by which they deducted 1232,000.000 from supposed assets of the company is correct er not?' A. I don't know; I did pot in reatlgate thoae figures at all. q. But yet, air, that is the very table on which Governor Savage made the esti mate that the Union Pacific railroad waa worth only 145,000 a mile, is ft not? A. I doa't know. q. You know thst he claimed that was the basis? A. That was my recellectloa of the conversation between Governor Savage and Mr. Rosewater. . q. You do not know today and yen can not Inform thla court at this time what the Union Paclflo ratlroad Is worth a mile, can you? A. Probably net, air. q. You had no Information before you as to the number of thousands ef dollsrs of stock against each mils of the Union Paclflo railway in Nebraska? A. No, air, I believe not. q You did not know then and yov do not know now the funded debt of the Union Paclflo railroad In Nebraska? A. t did not; no, sir. Q. You did not know then and you do not know now the total funded debt ot the Union Pacific railroad? A. No, air. Q You did not kaow then aad you do not know now tbe amount of the preferred stock and tha value thereof of the Union Psclflc rallroada? A. No. sir. I do not q. You did not know then and you de not know now the amount of Ita common stock and the value thereof, do you? A. No. sir. ' q. You s'mply took the statement that it cost about 830,000 a mile to reproduce It? A. Aa I ssld a moment ago, I do sot think we gave any consideration to that atate ment : - q. How did you get at the value ot the Union Paclflo railroad? A. We did not bass our estimate on that q. What did you estimate to be the value of the tangible property of the Union Pacific rallrrad? A. I think the assess ment was 9,854 a mils. q. You mesa that is for the aoala lias only? A. That la for the main line, yes, sir, per mile. q. What do you mean by the term tangi ble property? Its roadbed? A. All ot Ita phyairal property. - q. The brsnch line you assessed very differently? A. Certainty. q. Did you kaow er have any reeeoa to believe that the Union Paclflo railroad worth la cash at that time anward ot f 100,- 000 a mile, main line and branches both?1 A. No. air. q Did yeu knew that the weet bait of tbe Union Pacific bridge, with! a year paet bad become aubject to assessment by the state board and not by local authori ties? A. I understood that from the at torney general, that Is all. Q. Did you add anything to the value of tbe Union Paclflo road as a result of that? A. I don't think we did. q. That simply went for nothing In the final adjustment You know that, don't you? A. I don't think that we looked at it that way, no, sir. Q. Well, you did not Increase Its assess ment any as a result of It? A. No, sir. q. Did you look Into the question of the tolls that are charged on that bridge? A. No, sir, we did not q. Did you Inquire to find out whether they chsrged a rate upon that bridge ten times aa high aa they do on ordinary mile age In the stats. A. No, sir. q Did yon add anything for tbe Union Pacific depot, the Union depot down there on the Union Pacific? A. No, elr, not thle year. q. Did you consider the fsct that during the preceding year they bad spsnt more than 4,00,000 tn improving tha line, add ing te the value of lis property, all out ot Its earnings? A. No, air. q. Did you consider the fsct that they bad spent more than four millions of dol lars In buying new engines and equipment? A. No, sir. q. Did you consider the fact that they had apent 13,000,000 In betterments outside ot the 14,100.004 I have mentioned? A. That fact waa not before ns. q. None of thoss things? A. No, sir. q. Do you know that all of these things that I bave been epeaklng of were Included In the return? A. No, air, I don't know that. Q. Do you know bow many engines the Union Pacific owned? A. We did from their report; that Is, that they were using In Nebraska, Q. Do you know what you valued those engines at? . A. I do not remember now, no, sir. ; Q. How much apiece? A. I don't re member now, no, air. q. Have you no Idea ? A. I think It wa tn the neighborhood of 29,000. q. Nine thouaand dollars for each en gins? A. From 38,000 to (9,000; that Is the full valuation. q. You know, Mr. .Weston, that the Chi cago, Burlington ft qulncy railroad waa operating about 1,400 miles of railroad In Nebraska at that tlms? A. I knew that they were operating a considerable amount ot railroad; I did not figure It up to know just bow much it waa. q. Did you assess any property in Ne braaka agalnat ths Chicago, Burlington ft qulncy railroad? A. No, sir, ws did not; that was not our ldsa at that time. q. You did not assess any amount or any property up to the Chicago, Burlington ft qulncy railroad at all? A. Any property? q. Yes. sir. A. To ths Chicago, Burlington ft qulncy. q Yes. sir. A. No, sir; I think not. q. You simply took these defunct cor porations that have not done any business la the state for years and aaseesed It tn their names? A. We made the assess ments undsr the names that ths returns were made to us. Q As a matter of fact, you knew that all of this system waa being operated by the Chloago, Burlington ft qulncy railroad. didn't you? A. I knew that, yes, sir. q. Did you, at the time you made this assessment, have any statement from the Chicago, Burlington ft qulncy railroad aa to the amount of Its stock and bonds? A. think that statement wss filed with us before the time the board adjourned. Q Wasn't It filed after tbe board ad journed and after this suit was filed here? A. I caanot eay positively. q Now the statement of ths ChicacO, Burlington ft Quinoy railroad waa filed on the 23d of May, wasn't It? A. It ap parently wae from that mark, yea sir. aon t remember positively when It wss filed. I know It wssn't filed at the time the other reports were filed and I asked Mr. Pollard, tax commissioner of ths Burlington Railroad company,' 'specially for It . q. Did you know that during the past two or three years a depot has been built by the Burlington In Omaha that cost sev eral hundred thousand dollars? Mr. Kelby Objected aa assumed tbe cost of the building. (Overruled.) A. I bave had general knowledge ot tbe fact that a depot waa built In Omaha sev eral years ago by the Burlington, but bow much It coat I am unable to aay and have no knowledge of tbe fact at the present time. q. To what corporation did you flgurs that depot belonged? A. My recollection Is that It belongs to tbe Omaha ft Southwest ern: I think that to the name of the corpo ration. q. Did you add to tbe value of the road for tbe depot and all those terminals? A. That was Included in the sssessment of the valuation ot the Omaha ft Southwestern. Q. Don't you know for that depot and terminate alone that it would require you to mace more of a valuation than you did for the whole railroad? A. No, air. q How ldng la that Omaha ft Southwest ern railroad? A. Well, 1 can't etate now. The record there shows. q. Only fifty miles? A. I don't know, - q. And In whst county Is It? A. The records there show. I don't remember. q. You don't remember? A. No, sir, I aon t remember. Tbe records show. q. Did you estimate er did you know met the termlnala of the Omaha ft South western alone would make 230,000 a mile for the Omaha ft Southwestern? A. No, slf. q. How about the Union Paclflo ter mlnal? What did you allow for those? A. They were estimated in the aggregat value of the road, but what it was now I csn't stats. q. Now find out for us what yon esti mated the value ot the Union Pacific ter mlnals of Omaha to be? A. I cannot do It now because I haven't the flgurea. q. Well, the whole matter la bare, isn't H? A. No, sir; the whole matter Is not there. Q Well, what ether Information have you? A. All the Information we had Is whst Is there, I supposs. q. Then I wish you .would tell us at what yon valued the Union Pacific terminals at Omaha? A. I can't de that now. q. Cannot you find out from thla Infor mation here? A. No, sir; not from this In formation. q. Where la the In formation from wbtch you can find out? A. When we were mak ing an estimate of the value of this prop erty we ussd a great many flgurea and memoranda that are not now preserved. The record there Is simply a statement ot ths amount of the property, but whst valua tion we put upon each Item of property In cluded In that atatement I cannot eay now. q. Did you make any estimate, gener ally speaking, of tbe terminals In Omsha? A. I will aay In regard to that matter that we did not figure the matter out closely; that we were largely guided In making that assessment by the assessments ef rrevious yesrs. q You didn't take into consideration the fact that those terminals todsy, owing to the Increased population of ths stats, hsd greatly lncreassd in value? A. No, air. we didn't look at it in that way. q. Did you kaow that the terminals la OmabaA are worth today more than 810,000, 00? A-I didn't know It q. And yon dlda't try te get that In formation before exerciilog your duties as a msmber ef this board? A. I dlda't know It at the time; ao, air. q. How did you distribute tbe terminals, then, of the Burlington railroad at Omaha? A. The value was added, ot course, to the aggregate ot value sod divided by the number of miles In the road and certified to the counties according to the number of miles In each county. q. Now, it you added the Omaha ter mlnala to the Omaha ft Southwestsrn, which la only fifty miles long, and mad a valuation ot 16,500 a mils, how do you ex plain It you took all the terminals la thst you assessed thst psrt ot ths road from Plattsmouth to Kearney at 110,580 a mile without aay terminals ot thst character? A. There ie a vaet amount ef business done over that stretch of rosd over ths main line ot the Burlington. q. More than there la Into Omaha? A. I do not pretend to say that. q. The equipment all belongs to the Burlington, doesn't It? A. Yes, sir. q. Now, if you look back over prior years, didn't you find thst the Omsha ft Southwestern waa assessed at mere than (6,500 a mile before they ever built that depot or made those extensive Improve ments down there? A. I didn't find those tscts. I havs no recollection of it now. q. You didn't find It worth $6,580 a mile In 1892? A. No, I didn't find It. I didn't look at It to see what It was assessed at In 1892. q. Do you know when that depot waa built? A. No, I can't aay positively. A number of years .ago, though. q. How long ago do you think? A. Well, my estimate Is It Is five or six years sgo. q. In 189? or 1898? A. Somewhere along there, I auppoee. Q. Can you tell us tor bow much per mile the Chicago, Burlington ft qulncy Is bonded? A. I cannot. q. Can you tell us bow much per mile It Is stocked? A. I csnnot q.--Can. you tell us what Its stock Is worth? A. I cannot q. Can you tell us what Its bonds ars worth Its 3V4 per cent bonds?. A. No, sir, I cannot q. Do you know what Its 7 per cent bonds, some of which arc outstanding, ars worth? A. No, sir. q. Did you Inquire to lesrn as to whether the Chicago, Burlington ft qulncy stock bad all been aold and disposed of tn the mar ket and at a fixed value? A. No, sir; I did not. q. You don't know now what the value of that stock Is, do you? A. I do not know. No. -sir. q. You did not know when you msde the srsessment of these different defunct cor porations, known as the Burlington now, what tbe value per mile ot the Burlington was, and you do not know now? A. Do you mean with reference to ita stocks? q. I mean its value. What It would sell for tn the market? A. I do not know pos itively. In fixing the mileage of each one of those separate corporations that are oper ated by tbe Burlington road we endeavored to obtain the fair valuation In proportion to the rest ot the property in the state, or ratio of assessment. ' Q. What I want to know Is: before you can assess any property you first must as certain what it la worth? A. Yes, sir. q. Now, I want to know from you whether when you assessed this road or these different little corporations consti tuting tbe Burlington system, whether you know tbe value 'pcr!4nlle of the Burlington railroad or whether; you can tell the court now what It would cell for for "ash In ths market? A. Do you mean the entire sys tem? q. I mean tbe entire f?:m. That la. the syetem In Nebraska. A. No, sir, I do not know that tn the aggregate. q. Now, you assessed something up to the Oxford ft Ksnsaa railroad, did you not? A. Yes, sir. q. You hsrdly sssessed tbe franchise of that, did you? A. I believe not. q. In fact, yon don't know whether there Is such a railroad in the stats, do you? A. I think there srs a tew miles of It out In the southwestsrn. part of ths state.' q But you don't know? A. I bave never been upon It. . - . i Q. But you knew that the road that la operating all of these and the franchise that waa earning all of this money was that of the Chicago, Burlington ft qulncy? A, I had reason to ttynk so because r Q. The fact la, you traveled over It and bad a pass overate entire system, didn't )out a. (,-enainiy i nave, mere is no question about that, . q. Now, did you at any atage of the pro ceedings sssess the valuable franchise of the Chicago, Burlington ft qulncy In any respect? A. That was not our Intention to at the time. q. And you didn't do it? A. No, sir. q: Now, what did you allow for ths fren chlse of the Atchison ft Nebrasks? A. I Just stated that It was not our Intention st tbe time to make any assessment of ths franchise. q. As a matter of fact, you didn't sssess the value of the franchise of any railroad In th state In making this assessment, did you? - Mh- White I object to counsel asking a question of the witness wherein he seeks to ascertsln whether or not the value of the franchlss of the various railroads In ths stats has bee assessed separate and apart from the - tangible property, tor the reaaon that It Is Incompetent, Irrelevant and Immaterial, and tor ths further reason that under the law ot our 'stste the board Is not rsqulred to assess the franchise ot ratlroad companlea separate and apart from the tangible property., (Overruled.) A. No. air. q If I understand you correctly, at tha time you msde this assessment you did not even have the ststement of the earn Ings of the Burlington . road for the pre ceding year? A. That Is apparsnt from ths record; yee, sir. q. Now there is another matter I want to inquire about You aay you went back and made aome comparlaons with prior years? A. Yes, sir. q. Did you know, as a matter vitally affecting railroad property, that on the 25th ot January, 1900, the rallroada west ot Chlcsgo, Including all of thsse Ne braska roads, ths rosds known as ths "Granger lines," perhaps, hsd Increased their freight ratea on 240 articles of com merce In common uss 47 per cent, and it waa shown for the first time In their earn ings ths following year? A No, air: I did not. q. You did not know, then, that aa a re mit of that, the values of theae prop- ertiea tor the last two yeara have been Immensely iucressed? A. No, sir. q. Didn't thess tsx commissioners give you this Information, tell you about this Increase? A. I think not. q. Did they tell you they hsd rsclsssl fled a lot of property ao as to Increase the rste on it? A. I thln'i not. q. Did they tell you tUat the Burling ton stock had been sold to tbs Northern Paclflo and the Great Northern for 2100 a ahare? A. They did not Q Did you know It? A. I bad general Information that a sale of that kind bad been made a year or two ago I hadn't given the matter great attention" and I could not state positively, and cannot ICHOOLI. if. I!l!l .t.ir i jpnmnnn i sniinrw ucnnsimw msrysceeei ia A iVL ssssa ass bisssssmbw music wi f rV.f kvmmnlupvWlMielotinieoV PL. fX Baptist Fctnnlo Gollcno" DT aho asiaaouaJiooNaaavATOsiy or asuato. . im. Bros arr vera tu alvar of Umiawu f radualra. A aaodarn CMTTjtory ktiu I0 euikia. UwomsmI; IUiihcm4 cwatai W, Wbus, ttm. AofceitM, now, what the terms of the aale were. q. You knew, dlda't yon. that that sale to the Northern Pacific and the Oreat Northern bad been made since you made the assessment ot 1901? A. I csn't State positively now. q. You knew that that sale waa made after the assessment et two year ago and after the asseesment ot one year ago. didn't you? A. I ran't state poslUvely thst It wss made after the assessment of one yesr ago. Q At least yeu knew that It waa made after the assessment of two yesrs ago? A. Probably It waa. q. Did you know that as a result of the sale ef tbst stock to tbe Orest Nortbren and the Northern Pacific that tbe value of the Burlington stock bad been Increased 60 per cent and upward of 60 per cent? A. No, sir; I didn't know It. q Now, did you, at tbe time you as aeesed the Chicago, St Taut. Minneapolis ft Omaha road, have before you a state ment of their earnings? A. Yss, sir. q. Of th Chlcsgo, Et Paul, Minneapo lis ft Omaha? A. Oh.' no, I think their ststsment wssn't in. There were one or two that were not in at the time. q. Did you know tbe amount ot the common stock of that road per mile? A. No. sir; I did not. q. Did you know tbe amount of the pre ferred stock per mile? A. No, air; I did not q. Did you know the rate of Intereat that the preferred stock paid? A. No, sir. Q Did you know ths premium that It commands tn the market? A. No, air. q. Did you know what dividend had been paid on the common atock during the last two or three yeara? A. No. sir. q. Did you know that within the paet four or five years the common stock of the road has gone from a condition where It paid no dividend to paying 6 per cent dlvldenda? A. No, sir. q. Do you know tbe rate of Interest that tbe bonds of thst rosd bear? A. No, air. q. Did you know tbst the bonds of that road commands mors thsn 40 per cent pre mium? A. No,-, sir. q. You didn't take any of thoae tblnga into consideration In sssesstng the value of that railroad? A. No. sir. q . -Which do you call the main line ot the B. ft M. now, or the Chicago, Burling ton ft qulncy? A. The line from Platts mouth to Kearney. q. Why do you call that the main line? A. Simply because It has always been re turned and assessed thst wsy. It hss been so recognised for a great many years past q. You know the line from Hsstlngs to Kearney Is not the malne line? A. I sup pose that portion la not; no. q. And yet you assessed that road from Hastings to Kearney at $10,580 per mile? A. Something Ilka that. q. And you assessed the Omsha ft Southwestern 'coming this way, with all the termlnala, at $6,500? A. Well, that branch of the road from Heatings to Kesrney Is assessed . together with tbe road between' Hasting and Plattsmouth. q, Just becauss It has been returned that way for years? A. And over a por tion of the rosd between Hsstlngs and Ash' land ths Burlington road does Its through' business between Omaha, Chicago and Denver. q. You knew between Hastings, and Kesrney there wss no through business? A. No; but the portion of the road from Hastings, to Kearney has to be assessed with the rest of it. , (To Be Continued.) The Peril of Owr Time Is lung disease. Dr. King's New Dis covery for Consumption, Coughs and Colds cures lung trouble or no psy. 60c, $1. Wagn to Be Advawerd. . DENVER, Colo., July U.-The Denver Rio Grande railroad has agreed to an ad vane In wage of Ita telegrapher tfrom, 82.60 to 810 per month, according to po tion. The grievance committee of the teleg ranhers has been meeting with the officials of the road for several weeks, and man mature have been disposed of amicably. SOLUTE SECURITY. Genuine Carter's Little Over Pills. . ' Mutt Boar Signature) ot o Pae.alts Wrapper Beeavs. Tear small est ae ease ' take ae safest iru EuejiesZa rex BIZZIKCtL rti iiucsmtS. . FIR T0IP1B LIYEl't rei ccxiTiFATisa, ni uufiw sua. reimeoBrLxus! Teewf sale yfe sVXS CURK HOC HtADAOHkV fw CMICMteTTM-a CNLIM talYROYAl PILL bS H aVTW ..'I PV !. m rnitaMTSS'l SNUiata avraM SmfcaUtaawM tmm 1H- ' alt Bfaatliu. T-fir I t tt Bee Want Ads Sell ou Their Merit No free gift is necessary to make them worth the price we ask. Ths Bee baa tbe circulation that's why. Oldest aad Urgsst est. , mf fS'i'li P.T"f !' lut UnlvmttMs. NDfOD itLUM. si.., test. lCiH . ; AB IrsfttrrrtT!? iwtocyiir. Wll xulppC laboratory tar Bntonc were. Hue r hum. iy M a-- lout. a. Ma'