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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superseded by tbe other.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
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
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
, 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
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
When you are thirsty, dritik
something that will not only
eutiefy yon, but will cool and
purify, your blood. i
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
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
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
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
Q. Since and Including 1896? A. Yes,
Q. Hsv you the book showing th same
tax prior to that in your officer A. Yes,
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
Q. As a matter of Information In assess'
Ing railroad properties and others? A.
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
Chief Justice Sullivan I think It may be
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
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
Q. And have you those in your posses
sion. A. I believe they are la my desk:
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
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
Q. How did you arrive at It?
Mr. Howe Objected to aa Improper
Chief Justice Sullivan Objection ever
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
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
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
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
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
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
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
Q. Refreshing your recollection again
Mr. Harrington You may offer It, Mr.
Mr. Baldwin Then I offer it aa a part ot
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,
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
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
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
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
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.
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
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
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
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
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
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
- 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
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
Q. Do you know bow many engines the
Union Pacific owned? A. We did from
their report; that Is, that they were using
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
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
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
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
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
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
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
q. You don't know now what the value of
that stock Is, do you? A. I do not know.
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
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
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
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
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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
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
q. Did you know the rate of Intereat
that the preferred stock paid? A. No,
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
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.
Little Over Pills.
. ' Mutt Boar Signature) ot
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