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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (July 13, 1902)
1G TITE OMAHA DAILY BEF,i BUND AT, JULY 13, 1002. RAILROAD TAXATION IN COURT Full Stenographic Report of Hearing in Mandamus Case by Nebraska Supreme Court Part in Continuation of testimony of State Audi tor Charles Weston, member of the But Board of Transportation, tinder redirect ex amination by Mr. Harrington: Q That li, you mean from tbe war they returned It to you and the war It had bee returned In tbe paat you considered you bad to follow on tbe iumi lines? A. It la Incorporated that way, and I don't under stand tbat wo can make an assessment any different. Q. How did you know It was your right and duty to assess all of this property to the Chicago, Burlington 4 Qulncy as the owner of the roadT Judge Baldwin I object, as Incompetent and immaterial and asking a witness to state what tha law preacribee to be hla duty. (Overruled.) A. I didn't know that. Tha property schedules of these different corporations were returned to us by the B. M. and certified to by the auditor of tha B. Is M. in Nebraska. Q. Now you had before you a stste ment from tha Union Pacific railroad as to the amount of mileage It owned in Ne braska, hadn't you?. A. Tea, sir. Q. 1.020 miles? A. Tes, sir. Q. You say that you had tha reports there showing that the Union Paclflo had 1,020 miles In Nebraska. With tbat knowl edge how many miles belonging to tha Union Pacific did you assess in Nebraska? A. We assessed that mileage under tha respective corporation. It Is returned to us under tha heading of different corpora tions and that ia the way we assessed It. Q. But you had before you the state ment of the Union Paclflo showing that the entire road, 1.020 miles, belonged to that company, didn't you? A. Tbat Includea tbe mileage of tbe different corporations and our Judgment waa that we had to as sets separately and independently thf mileage returned by each corporation, and tbat is what we did. Q. That la to aay you asseesed the main line of the Union Pacific and you assessed the physical property of these branch lines which It owns, in the name of these de funct companies? . A. The Omaha A Republican Valley, the Kearney 6 Black Hills, eto. Q. These dead roads? A. We assessed them under the names of the corporations as It bis been done for twenty-five years past. Q. You knew, didn't you, that the earn ings from theae 1.020 miles all went atralght to the treasury pf the Union Pacific company? A. I didn't know that, but I presumed It to be the fact. Q. But the statement they made out ahowed that the earnings went there, and that In the preceding year tbe Union Pacific railroad, after paying operating ex penaea and everything else, had earned 14,100,000 of net earnings in Nebraska on this 1,020 miles, didn't it? A. I don't re member tbe figures now. Q. Did you figure out what that made me roaa worm on me union jacinc a own basis? A. No, sir. Q.Dld you know that the Union Paclflo road waa baaed upon 4 par cent for its bonds? A. No, sir. Q. Or 4 per cent for Its preferred stock? A. No. air. Q. And that It waa paying 4 per cent on Its common stock? A. We did not take the stocka and bonds Into consideration la respect to any of tbe reads. O Do you think vou could at thla time. ..' or are you prepared to state to tbe court what tbla Union Paclflo railroad la worth a nil? A. No, air, I don't think I can. Q, Do you know bow you could figure It out so aa to tell tbe court what It Is worth . per mile? A. I suppose I might make an approximate eetlmate of the coet In a few, moments If I bad some way to get the In formation, Q. Now, epeaklng of tbe main lino of the Burlington, Mr. Weston, you have been over tbe Burlington railroad pretty well, bave you not? A. I have been over It considerable; yea, sir. Q. Now, you assessed 101 miles of main line, didn't you? A. I think It la 191. Q. Don't you know the main line ex tendi more than 400 miles across the state? A. Well, It depends on what you call the 'main line. ' Q. Well, the line running from Chicago to Denver? A. The line doing the through B. A M. business from Chicago to Denver probably extends over 400 miles across tbe atate. Q. And yet you. take that portion of it running from Plattsmouth to Heatings and that little branch running off to Kearney and you call that the main line, and then you take the balance of the line from Hast ings to Denver and treat that aa a sort of a side line, do you? A. I understand we assessed the different portions of the sys tem under the original incorporation. Q. Without any reference to whether It waa main line or elde line? A. Yes, air. Q. Don't you know that the B. 4c M. In Nebraska, aa we call It, haa been out of existence twenty-two years? A. No, sir; I do not. Q You didn't know that that waa Ju dicially determined here that it waa dead twenty-two years ago? A. No, air. Q. Will you take all thla mass of tes timony and tell us what the earnlnga of tbe Oxford and Kanaaa line have been for the laat few years? A. No, air, I cannot. Mr. Pollard aald since there baa been a change la the ownership or management of tha Burlington system tbat tha accounts of the road were kept by dlvlstone and sot by tbe aeparate incorporations and that tor the laat year or two, or for the laat year, at any rate, that they could not return the earnings except by divisions. I think tbat mrnm lifa atitftmpnt mari mt tKa tltn ACT QUICKLY Delay Has Bsan Dangerous In Omaha. XH the right thing at the right time. Act quickly in times ef danger. Backache le kidney danger. Doaa'a Kidney Pills act quickly. Cure ' all distressing, dangerous kidney ls. 1 Plasty of evidence to prove tbla. Mr. H. J. Bpragg ef UH South ltb street, upholsterer and cabinet maker by trade, ears: ''I bad kidney and back trouble (or four years, and during the la'.ter part of tbat time Buffered mere than tongue on telL Many a time my wife bad to help me out of bed. Once on my feet, I dli not feel It ao bad. In addition to thUK I had difficulty with the kidney secretions, which ' greatly disturbed any reet nights. Procur ing Poan'a Kidney Pllla at Kuhn Co. 'a frrug atore, corner 15th and Douglas streets. I took a-course of the treatment, it cured ate and did It quickly. I caooat pra se thla remedy too highly." For aale by all dealer a. Price. 60 cent a. Foster-Mllbura Co.. Buffalo, N. T.. sole agents tor tbe United States. .Baaaembor Us aame, Doaa'a, and take ae ubfUtutt mad this assessment you didn't either have tbe earnings of the entire s 71 tern or tbe earnings of a single one 6f these dead corporatlona? A. As far aa the Burling ton waa concerned, we didn't, but we had the returna as published in the last bien nial report of tbe auditor. Q. And that waa all? A. Tea, air, I think tbat waa all. Q. Now can you tell us what tbe Omaha A Republican Valley railroad earned in the last year? A. I think that can be figured out probably from tbat financial report, but I cannot atate positively, be cause I haven't examined it carefully. Q At least you know of no way by which the court bow could get at the earnlnga of the Omaha A Republican Val ley railroad? A. Not unless It can be figured out from that financial statement, and that was Died after the adjournment of tbe board, I believe. Q. That waa about tbe way you did It with reference to all the roads, didn't you; tbat Is, all the Burlington roada? A. Tea. air. Q. Did any of the other members of the board aeem to bave any more information about thla question than you did? A. 1 can answer that again tbe aame as I did before, aa to myself, but I cannot anawer it aa to them. Q. Well, aa far aa you eould tell, did any of them aeem to have any knowledge about tbe values of any of theae propertlea? A. I think they did, probably. Q. The value? A. They bad aa opinion aa to the assessable value. Q. You mean the cost of reproducing the property, tbe physical property? A. Yea, air. Q. Now In arriving at thla assessment of the Union Pacific, did you know that, ac cording to tbe report of their own chief engineer, tbat the Union Pacific in Ne braska can be duplicated In Nebraska for 180,000 per mile, and yet you caa cash it tn the market for $100,000 per mile? A. I know the cost of reduplication Is eon. talned In one of those documents there, Q.Dld yon know that the franchise or Intamlbls eroperty of tbe Union Paclflo In Nebraaka was wortb mors than $70,000 per mile? A. No,' sir. I didn't know it. Q. Tbe tax agente didn't tell you tbat you were exempting $70,000 a mile of their property In thla atate? A. No, sir. Q. Does the governor claim there should be any advancement of any of the rail road assessments In this state? A. 1 think be did. '. Q. At the time of the assessment? A. While the board waa in session; yes, sir. Q. Now, when Mr. Scrlbner was before you was that a public bearing or was It behind closed doora? A. I think It waa a public bearing. There were a good many gentlemen In there at tbe time. Q. Where waa it? A. In my office. q. Tour private office? A. Tea, sir, my privets office. Well, I think Mr. Grandoo of ths Northwestern and Mr. Blgelow of tbe Klkhorn, Mr. Scrlbner of tbe Union Paciflo, Mr. Pollard of tbe Burlington. Mr. Wood man of tbe Chicago. Milwaukee, 5t ram A Omaha, and poaslbly Mr. Benton, repre senting ths Pullman company. Whether there were others or not I cannot say at the present time. . q Was there any publio announoement of the meeting? A. No, sir; 1 think not. q. was It behind closed doors? A. I think ths doora of the office were shut, but they were not locked; they never were oa any occasion. o Waa there anybody there excepr soms one repreeentlng these railroad com- panics. A. No, sir; I unn not. Q. Was there any information given w the public that there waa any bearing to be had to ascertain theae valuea? A. I don't know whether there was or not. Q. You were Informed about the values of theae roada per mile, were you not given aome Information? A. By whom? q. Didn't I send you some information aa to what the Union Pacific waa worth? A. The Information waa aent to the gov ernor and be read It to tbe board. Q. It waa addressed to you three as a board, was It not? A. Yes, sir. Q. Informing you as to tbe value of tbe property of the company? ; A. Yes, sir. Q. And as to tbe Burlington also? A. Yea, air. Q. I alao told you, didn't I, that the atock of the Missouri Paclflo waa Bailing a few yeara ago at $20 a ahare and now It waa eelling at $110 per share? A. I don't remember the contents of that let ter. Q You learned from It anyway tbat stocks had gone up anywhere from two to five fold on theae railroads in the paat three yeara? A. I think that waa the general tenor ef the letter. Q. The fact tbat they bad gone up to that extent waa given no consideration by you gentlemen? A. We didn't take the stocks of the roada into consideration, aa I aald before. Q. And although tbe Missouri Pacific railroad stock would sell In market for five tlmea as much aa It would four or five yeare ago, yet you aaeeaaed It even lower thaa you assessed It five yeara ago? A. Possibly that la true. Q. And how aa to the other roads? New the Burlington tea years ago; do you know what Ita atock waa worth? A. I ao not. Q Do you know what the Rock Island atock waa worth, back, say In 1895, 1834 and 1897? A. I do act. Q.Dld I Inform you tbat that atock waa selling for $40 and $54 at that time and had trebled la value In the last few yeara? A. I can't say- a At wmt vnn 4Mn't increase the ' f ,h mm ilt A I doa't remember now whether there waa aa lncreaae or not Q In tact, when you got done you had made this year the very loweat assessment per mile not in tbe aggregate but tbe loweat assessment per mils sines the year Nebraska waa admitted Into the union, didn't you? A. I don't know that. Q You haven't figured It up to see? A. No. elr. Q.Dld you know when you made that assessment that you had aaseaaad theae roada. with their Immense paying quantise, at thla time for leaa thaa one-half what they were assessed for In 1874? A. I did not know that; no, sir. Q Now, when Mr, Rosewater went there be asked you to aaaeia the franchlssa of theae different corporatlona, didn't he? A. Tee, air. V Q. And that was ths epsa meeting sa the 14th of Msy, wsan't It? A. I believe that wea the date. Q. Did Mr. Rosewater and Mr. Slmeral ask you to make a record of the fact that you were not assessing theae franchises? A. Yes. sir; I be-Here Mr. Slmeral did. Q.Dld you refuse to make a publie record ot tbe tact that yon refused to assess these fraachlaea? A. We took ao action whatever In regard to the franchisee and, consequently, made no record. Q.Dld Mr. Slmeral ask you to make a record that' you did not assess ths fran chisee, ao that be eould go Into court and aettle it as a queatton of law as to whether you were bound to assess them? A. I think when Mr. Slmeral made bla arguaaeat before ua be asked tie to wake a record el Uat bind, Q.-MMd you make a record of that kind? A. No, sir. Q. You didn't make any Und of a record showing ths amount of thla railroad prop erty that you had exempted from railroad taxation? A. We made ao record what ever In reference to tbe franchisee. Q. Or other Intangible property? A. No, sir. Q.Dld Mr. Rosewater and Mr. Slmeral Insist tbat you should take Into considera tion tbe rate ot assessment la tbe cities of Omaha and Lincoln? A. My recollec tion la tbat thsy said something about tbat; yes, sir. Q. And tbe board refused to do so? A. Why, I believe so; yes, sir. Q. So tbat tbs property In tbe cities waa aaaeaaed upon tbe basis of county properties throughout ths state? A. The city properties were aaaesed on the same basis as county properties. Q, As a part ot ths eounty properties? A. Tes, sir; throughout ths state. Q. Now, then. In view of your testimony before the court, I would like to know what yoa mean by earing In your laat anawer here that you did not asaeas tbe franchises separately and apart from the physical properties? A. What I meant by the amended answer was tbst tbs facta that ars set forth there were simply taken Into consideration for the purpose of ascer taining the value of the tangible property and the Idea of tbe franehlaes did not snter Into our consideration at the tlms at all. Q. And you didn't mean by the amended answer to aay to the court that you bad aasessed or attempted to aesess the fran chises? A. No, sir. Q. Now bow did tbat second aaawsr come to be filed? Attorney General Prout I object, aa la competent, Irrelevant and Immaterial. (Sustained). Re-Croas-Examtnatloa by Judge Baldwin Now, at the time thla board met and made Its assessments, you bad before you the statutory returns or schedules from the railroads, didn't you? A. Those that were Introduced In evidence; yes, sir. Q. Well, those were the reports that were made In accordance wltb the pro visions of section 18 chapter lxxvllT A. Ao I understand. Q. Tbat Is, you bad before yoa at tbat time tbe number of mllea of railroad, didn't you? A. Tes, sir. Q. The total In the state, dida't you? A. Yes, air. Q. You bad the road bod? A. Yea, air. Q. The right-of-way? A. Yes, air. Q. The superstructure thereon? A. Yes, sir. Q. You bad ths mala and aldstraeks, didn't you. A. Yes, air. Q. And tbe depot buildings? A. Yea. Q. And ths depot grounds? A. Yes, sir. ' Q. Section and tool houses? A. Yes. Q. Rolling stock? A. Yss, sir. Q. And personal property accessary for tha construction, repairs and operation of tbe railroad, didn't you? A. Yes, sir. Q. They were in thees statements, were they not? A. Yes, sir; I think so. Q. These statements, Exhibits 87 and 88, were the reports of the Unloa Pacific, wars they not? A. Yes, sir, Q. They wsre sworn to and filed before tbe board? A. Yes, air. Q. Showing Its equipment? A. Yea, Q. And all of the rolling stock and equipments tbat tbs Union Paclflo ownsd April 1. 1901? A. Yss. sir. , Q-And they mad jt as a sworn report to A.ies. sir. And tlwt was all tl. report tbat the e required? A.-4 ao understood Hi statute yes, sir. q. There was no proof before you that tbe terminal facilities of tbe Union Paclflo at Omaha .ware worth $10,000,000 were there? A. No, sir. Q. No proof ot tbat kind? A. None whatever. Q. So when you aay tbat you didn't know It was wortb $10,000,000 you meant you had ao Information about It, didn't you? A. Yes, sir. Q. And nobody bad tbe hardihood to swear before yoa that they were wortb $10,000,000, did they? A. Nobody did. Q. Now you had that Information as to what la called ths physical properties of ths road, didn't you? A. Yes, sir. Q.--Now I speak of ths Union Pacific par ticularly, but that was applicable to all of the roada, was It not, Mr. Weston t A. I thing bo; yea, air. Q. They all had these statemeata? Ay Yes, sir, they all bad these statements. Q. Now, then, you knew at that time, didn't you, that they were railroad proper ties? A. I knew tbat; eertalnly; yea, sir. Q. And that they belonged to railroad? A. Yes. sir. Q. Belonged to a moving, living rail road? A. Yss, sir. Q. In operation? A. Yss, sir. Q Doing buslasss? A. Yes, sir. Q. A going concern? A. Well, tbat Is tbe way I understood it, Q. Well, you knew that, dldnt ou? Outside of yoirr general knowledge you bad obtained from the reports themselves? A. Yes, sir; I knew tbat. Q. And they were operating thsss prop erties ss a railroad? A. All of that X un derstood at the time. Q. You bad that before you and you took tbat Into consideration, dldnt you? A. Yea, sir. Q. And you took Into consideration tbe earnings of these roads, didn't you? A. That was dons unanimously by the board; yes, air. Q. You considered these earnings as an item of evidence bearing upon ths value that yoa should place upon tbeas proper ties? A. Yes, sir. Q. And so you assessed the pbyaleal propertlea aa shown la tbs repaVts and took Into consideration the fact tbat they were railroads, the fact that they were being operated aa railroads, the faot that they were living, going, moving eoneerna, and made the assessment as an entirety? A. Tes, sir. Q. And yoa assessed It ss oae and la- separable? A. Yee, elr, Q. Now I underatand that yon took Into consideration the fact ot the earning ca pacity, the usability of theae railroads, and that they were living, going concerns ? A. Yee. air. Q. You meant to aay when yoa said you didn't aasess the fraacblaee that If theae were franchisee you aasesaed them, but It they were not franchises you did not? A. Well, I supposed tbat would be a conclu sion. Q. You are net a lawyer? A. I don't profess to be a lewyer; ao. elr. q. Were yea ever a lawyer? A. Yee, air; I bave beea admitted to tbe bar. Q. Excuse me, I did not know that. Anyway, you supposed that these were aet franchise? A. Yea. sir. ' Q. But you aay to the court, aad were therefore willing to put la the amended an awer, that you did taks tbeas things Into consideration? A. Well, that waa the unanlmoua view of the board. I think the board will all awear to that Q. Well, you were willing to put la tbeee facts? A. Yes sir; se fsr aa I waa con cerned. Q. And let the court determine whether tbey were fraachlaea or not? A. Tea. sir, Q Now. after yew bad all of taeae prop erties, las t U fact Uat J coaaldorsd all ot the things that-1 bave enumerated and then you exercised your beet Judgment as to the valuation? A. Yea, sfrt we did. Q. You exercised your best Judgment aa a board as to tbe valuation to be placed upon it? A. I exercised my best Judgment la the matter. Q. You did tbe best yoa could and acted upon It. dida't you? A. Yea, elr. Q. Aad tbat was your Judgment? A Yes, sir. ' Q. And you made tbe assessment ac cordingly? A. I did. yes, sir. Q. Now as bearing upon your good faith In the transaction, you took late consid eration, didn't you. the stsndard of valua tion of other properties other than rail roads. In thla stste? A. Yes, sir; I did. Q You bad Information upon that sub ject? A. I did; yes, sir. Q. And you found that all property other than railroads, was assessed on a ratio or valuation ot about one-tenth? A. Well, there waa a difference In the board In regard to that, but that waa my esti mate, tbat it waa probably about one tenth. Q. And yoa arrived at a atandard of valuation of the properties of ths rsilroad at between one-sixth snd one-seventh, did you not? A. I think tbat was the view of tbe board; yes, sir. Re-Direct Examination by Mr. Howe You aay that you considered the earnings of these companies? How did you get at the earnings of the Omaha Southwest ern? A. The earnings of ths Omaha A Southwestern, I think, are reported In the audltor'a biennial report. My recollection la we did not bave the earnings for the present year. Judge- Baldwin Your attention was called to one of these statements by Mr. Harrington In referencs to the fact of the miles owned and mllea operated by the Unloa Pacific In thla stste, ons Is 947 miles, and tha other Is 1,020 miles; ths report shows that ths 947 ars the miles owned by ths Union Pacific In thla atate, and the 1,020 mllea operated by tbe Union Paclflo? A. Yes sir. Q. That Is ths line from Norfolk to Slous City? A. Yes, sir. , Q. Which it doesn't own, but operates and Is therefore returned by aome other company, Mr. Howe Now go on and tell us bow you arrived at tbs earnings of each ot theae fifteen companies called tbe B. A M. company? A. The financial report of the B. A M. not being before ua at the time tbe board was In seaaton, the most that we could do was to refer to their earn ings In previous years, as we found them In the biennial reports of my predecessor la office. Q.Dld yoa look at more thaa one blen nlal report of you predecessor? A. I think not. I think we considered bis last blen nlal report, which Included the assessment of the ratlwaya for 1898 and 1899. Q. Do you mean to say that you can tura to the page in the report that ahows - the earnings ot each of tbeas fifteen com panics? A I think so. I think that It Is on pags 130 of that report, if I am not mistaken, Q. When did yoa see It last? A. I don't remember. Q. So you think by looking; back Into formers years' transactions you can as certain what tbe earnings or expense sc count was of these fifteen different com panics for thoss years? A. Tes, sir. q. Then you say yoa assessed the prop- ,rt M TOUretyt 'what do , )th.t- nM .... thm a - - Uraiy? A.-I me., an tl: property, tbe ,, .m..A,. .i.i.-e. rolling atock. depots, sidetracks, rlght-of wsy sad everything wss added together, Q- That Is. ths physical property? A. Yes. sir; the physical property added to gether. And then that aggregated and divided by tbe total mileage of the corpora tion and distributed to the different coun ties In proportion to ths mileage In thoae counties. Q. Was not tbe property of the Omaha A Southwestern, that fifty and eighty-eight one-hundredth miles, part ot it Is north of us and part south of us at the present time? A. That Is my recollection, I don't re member positively the number ot miles contained In that part of the road. q Do you know whors Saline and Gage counties are? A. Yes, sir, Q The Omaha A Southwestern road Is in all of those counties, is It- not? A. I doa't know positively. J know there Is a break In tbe .line somewhere. Q How far are they separated? A. Well, I can't say positively, for I don't know. . in speaking of aa "entirety," you don't mean to Include In tbat the franchise except aa you bave stated here? A. That is all, only as I have stated here, Q. Now, taking the Union Paciflo, taking that as aa sntlrsty, do you mean the entire property ot the main line and branch lines do you call tbat ths entirety, or do you separate them Into three properties? A. We separated according to the returna made by the roads; thst Is, assesa the prop erty of each incorporation separately, Q. Then as an entirety you did not con. elder that part of the Union Paclflo that ia outside of Nebraska? A. No, sir, we did not We simply Included tbs property In tbs state of Nebraska. Q. New you eay this answer wss unsnt moualy agreed upon by the members of tbe board? A. I so understood It at ths time. Q. Where waa It agreed upon? Objected to as Incompetent, Irrelevant and Immaterial. Witness excused. Mr. Slmeral The plaintiff offers in evl denee the fourth annual report of tbs Union Pacific Railroad company for ths year end lag Juno 80, 1901. marked Exhibit 41. Mr. Harrington We offer in evidence the twenty-first annual report of the Missouri Pacific Railway company for the year end log December 11, 1901, marked exhibit 43 the annual report ef the Northern Paclfla Railroad company tor the year ending Juno 80. 1901, marked exhibit 44; the twelfth an nual report of the Great Northern Railroad company, marked exhibit 45; the annual re port of the Chicago A Northwestern Rati read company for lta forty-second fiscal year, marked exhibit it; the twenty-fin annual report ot the Chicago, St Paul Minneapolis A Omaha railroad, marked ex blbit 47; tbe annual reports of the Inter state Commerce commission for the years 1900 and 1901, marked exhibits 48 and 49, and the preliminary report of the income account ot tbe railwaye aa published by the atatlatlclaa of the Interstate Commeroe commlasloa under an act of congress for tha year ending June 30, 1901, marked ex hibit 69 William Stuefer, state treaaurer, being duly swora, testifies aa followa, examined by Mr. Harrington: Q Ia aaaesslng the railroad property of tha Chicago, Burlington A Qulacy Railroad company, did you take into consideration tbe franchise or value ef tbe franchise ef the corporation? A. No. Q Ia making any ot these assessments, did you take Into ooaalderatloa tha value ot the franchise of any railroad corporation dolag business within the atate? Attorney Oeneral Prout objects ss calling for the conclusion of the witness aa to law. (Overruled.) A. No. sir; I really don't know what a franchlas is. Q At tbs tlms you mads this assess ment, or participated In making It, did yoa kj,ws r do yea m k&ew. Us value per mile of any railroad in the stats of Ne braska? A. No, air. q. You don't know now, and yoa don't know how to find out, do you, tbe value by any Information you have acceaa to, or ever bave bad aeeewe tot yva doa't knew bow to find out the value per mile, cash value, of aay railroad la the etate ef Nebraaka? A. Only from the reports that bars been filed with ths auditor hers by tbs different rail road companies. . q. Do on know new, aad caa you tell us the value of the Union Paciflo railroad la this stats per mils? Caa you figure It out? A. No. sir, I couldn't do It q. How did you get at the value of It? A. Well, by looking at tbe former assers- meats by former boards and taking Into consideration their aaseasments and state ments we kind of formed a basla on which ws wsnt on to make the aaaessment Q- Do yoa know the amount of atock per mile agalnat any road In the state? A. Not tbe stock. q Do you knew ths market valud of any railroad stock in the stats? A. No, sir. q. Do you know the amount of bonds per mile sgalnet any road In ths etatet. A. No, ir. Q. Or the value of Its bonds? A. No, sir. Q You don't know any ot those things? A. No, sir. q. You simply did the best you eould wltb the physical property and looked for tbe prior assessment to find that out the best you could? A. I slso took Into ac count ths earnings of tbe road; we consid ered that Q.Dld you take Into account the earn ings of the Chicago, Burlington A Qulncy? A. Well, anyhow, for 1899 and 1900. Q You mean you took Into account the reporta In the auditor's office of what the railroads themselves claimed were the earn ings apportioned to these fifteen different corporatlona? A. Yes, air; I auppoae. They were aworn statements. Q As a matter of fact, you do not find anywhere in the auditor's report sny state ment of what the C, B. A Q railway earned tn Nebraska, do you? A. No, sir; not tbe C. B. A Q. Q. All you got was alleged estimates ot what was earned by tbeas desd corpora tions tbat haven't run a road for twenty yeara? A. No, I don't know about that Q.Dld you know there was a railroad la Nebraaka known as ths C, B. A Q., a live concern, and doing business and carry ing passengers? A. Not the C, B. A Q., but the Burlington A Mieeourl river line. q. Do you carry a pass on the C, B. A Q. In Nebraska, yourself. A. Not In Nebraska, tbat I know of. The Burlington A Missouri River railroad. Q Get your pass and see If it Is not tbe O., B. A Q. Mr. Kelby objects. Q. Your pass didn't tell you that? A. I don't know whether I looked at the pass. I never traveled on tbe C, B. A Q. pass. I havs ons, but t haven't traveled on It and I bavs never looked at It Q.Dld you aver know of a railroad In Nebraska known as the Oxford A Kansas? A. Yes, sir; tbat Is somewhere out west here. Q. You don't know where it Is? A. No, sir; not exactly. . Q. You never knew tbat road to issue a pass? Attorney Oeneral Prout objects aa In competent, Immaterial and Improper. (Sustained). Q. How many miles of railroad known as the Burlington railroad do you know ot there being - In Nebraaka? A. That I couldn't tell. I nsver added It together. There are quite a few companies thst be long to tbs same company. Q. You know It is all one great sys tem of railroads, didn't you? A. No, air; I didn't know tbat either. Q.Dld you know that tbe whole Bur lington system bad been merged Into one corporation and all ot Its stock,- or at least 98 per cent of It sold to the Northern Pacific and Great Northern railroad? - A. No, air. Q. You didn't know tbat that occurred about a year ago, and yet It was of such Importance tbat it stirred the whole coun try? A. No, sir. I havs heard of some kind of a merger, but I didn't taks any Interest In It Q. You never heard ef that merger? A. I heard of It Q. You knew Jim Hill, as they call blm, had gotten control of ths whole Burling ton eystem of railroads? A. No, air; I didn't know tbat, honestly. Q. Are you not a banker? A. Yes, sir. Q. Didn't you find that In your financial publications that ths whole of tbe Burling ton system had been turned over to tbo Northern Pacific and Great Northern rail roads? A. I haven't seen sny such reports for ths laat two years, so I don't know. Q. Then what yon want the court to an. deratand Is that you don't know whether the "Q." road runa and operates trains or not In Nebraaka? A. No. sir; I doa't know thst I know ths Burlington is run ning a road. Q. The B. A M.. you mean? A. Yea. sir. Q. You don't havs any report of ths ssrnlngs of ths B. A M.? A. No, elr; not In 1902. I don't think I had. Q. Out of the 8,400 miles of ths Bur lington road In Nebraaka you aaaeaaed only 191 miles of It, then, to the B. A M., didn't you? A. We asssssed It to the different corporations aa given to tbe auditor here. Q. How did yoa get at the mala line In Nebraska, and what la tbe main line? A. From Flattamouth to Kearney, I guess. Q. Do you mean that that Is the main line now? A. Well, I don't know, I could not tell you. Q. You didn't inform yourself on that eubjeot? A. No, air. q, Do you know what name tbat portion ot the road from Haatlngs to Denver is known ss what different corporations? A. Well, sir; I couldn't tell unless I referred to tbe report Q. Now refer to the report and see If you cannot tell us tbs asms ef tbs read that runa from Hastings to Denver, or roads? A. It will take seme time to do that Q Tbe fact of the matter is yoa couldn't tell that, even by looking at tbe reports, could you? A. It I could tell what eoun tlee It runs through I xould toll then. Q.Dld you ever In your life knew tbe names of the corporatlona or In whose names you ssaeaaed this property from Hsstlpgs to tha Una of tbs ststs. to Arapa hoe county? A. No, air; I couldn't tell you becauae there la no such county la tha stats aa Arapahoe county. Q.Dld you learn the earnings of ths B. A M. In Nebraaka even? A. No, air; 1 don't thtqk tbe laat earnings I did, but tbe earnlnga before I did. Q. Do you or do you not know that tbe entire earnlnga go to the C, B. A Q-? A. Well, that I cannot tell. Q. And yet you attempted to assesa this property without knowing whether It went to the C, B. A Q. or not? A. Well, we aaaeaaed It. Q Assessed what? A. The property; the railroad property. Q. The phyalcel property? A. We con aldered It physical property; yea, sir. q That la all you know? A. Yea. sir. Q. You don't knew anything about ths C.. B. A Q. franchise being aeaoeaea; no body talked of Ua being assessed, did they? A. Well, I can't aay tbat. Tha conclusion I formed was by taking tbs road aad ths former sssessmsat and former earnings tor former yesrs. Q And on what basla did you estimate the earnlnga? A. Well, about ope-aeventh of what other property had bean assessed. Now I know what other property waa as sessed at Q. What do you mean by tbe "earn ings?" How did you get at the earnlnga? A. Well, thoee were filed with the auditor. Q You do not mean that the earnlnga ot tbe C, B. A Q. were ever filed with the auditor? A. No, sir, I don't Bay that. Q What yoa mean Is, you found soms ststements covering these fifteen different defunct corporatlona? A. I don't want U say "defunct." Q. You don't know of a railroad that la operated In tbla state known as the Atchl- sen A Nebraska, St. Joseph A Grand Island. Kanaaa City A Omaha none of these run a railroad In Nebraska, do they, that you know anything about? A. They art run, I gncss, by ths Burlington people or the B. M. road. I auras. Q You knew that these roads bad no franchise of any value because they were u?tng another franchise, these fifteen cor porations? A. Ws didn't consider ths franchlas. Q You tried to assess the physical prop erty at one-seventh of the value; Is that right, now? A. Yes, sir. Cross-examination by Mr. White In ar riving at the value of these different rail roads In the state of Nebraska, did you take Into consideration the queatton of their operation? A. Yea, sir. Q.Dld you consider them as operated lines? A. Yea, air. Q. You do not mean to aay. then, that you considered the rails and ths ties, the roadbed and the right-of-way as dead, un used materials? A. No, sir, we did not. Q. You considered the felling stock as being moved upon the track? A. Yes. sir. Q. And you considered the earnlnee? A Yes. sir. Q.Dld you consider tbat ths railroad had a right to move traffic In this state un der the law? A. Yes, sir. Q.Dld you consider the same facta with referencs to all roads that you did in refer ence to any one of them? A. Yes, sir, and all of them. Q. How Is the value of these roads ar rived at? A. Ws took Into consideration the counties through which the roada run and alao the net earnlnga of the different roads. Q.Dld you take Into consideration tbe aaaeaament of other propertlea generally throughout the state? A. Well, I did. Q.Dld yoa ascertain what the general standard of valus was ot property through out the stats for assessment purposes? A. Yes, sir; 1 did. q. What was tbat standard you ascer tained? A. From one-eighth to one tenth. Q. How did you arrive at the standard? A. Because of property that bad been sold and I know what It has been assessed at and what It has been sold at, that Is tbe only way I eould arlrve at It For Inatanee, If It was assessed at $5 and sold at $50 It waa one-tenth. Q.Dld you aacertatn that value gener ally throughout the state?. A. No, elr; only through our part ot the country Is all. Q. How did yoa eoms to assess tbe rsilroad property at one-seventh, when you had asaessed the other property at one-tenth to what portion of the state are yoa referring to? A. 1 said In our section of the country. Q. You ssy you ascertained that prop erty generally throughout the stats, or tn your section of tbe stats at least, waa as ssssed at one-tenth? A Yes, sir. Q. Knowing- tbat, bow did you come to assess the railroad company at one-eev-entb of lta value? A.-VWell, we kind of didn't like to lower the asseasment "of former years. It bad been assessed at that and we left It as It waa aaaeaaed laat year. That ia ths way I figured it. Q. Was It your general opinion that if exact Justice had been done tbat railroad property should bave been lowered for aa aeaament purpeaes? Mr. Harrington I object ae Incompetent, Irrelevant and Immaterial. (Overruled.) A. My Judgment was It should have been lowered a little. Q. Taking Into consideration all of tbe matters that you bare referred to, -did the aaaeaamenta made express your best Judg ment as to tbe value of railroad properties? A. Yss, sir; tbat was the beet I could find snd I used my best Judgment in assessing tbem. Re-direct examination by Mr. Slmeral: You took the Union Pacific at about $45, 000 a mile, didn't you? Wasn't that about what you took It at on an average? A. Yes, air; I think that was about It. I think tbeYoad could bs reproduced for that Q. Now supposing It bad. been abown to you tbat tbe Union Pacific was wortb $100, 000 a mile. Including ths franchise, that Is ths tangible property ,and intangible prop erty, would you bave thought the assess ment you put upon It Just and right? A. There never waa eucb a ahowlng made. Q. No, but auppoae that there bad been a showing that It was worth $100,000 a mile, would you bave thought or believed that the aaaeaament you put upoa It was Juat? Attorney Oeneral Prout objects as Incom petent, Irrelevant and immaterial. (Sus tained.) Q. Why did you aasess tbe Burlington or B. A M. mala line higher than tbe Union Pacific? A. Becauae, it I am not mistaken, the earnlnga of that road were higher than tbe Union Paclflo per mile. Q. Where did you get the earnings of tbat road? Was it from Plattsmouth to Kearney Is tbat it? A. I think it wss from Plattsmouth to Kearney. Q. Now did you bave tbe earnings of tbs B. A M. at that time for this year? A.-No, sir; I don't think ws did bavs them for this year. Q. For laat year? A No, sir; I think It wss la tbs last report. Q. That was some years ago, wasn't It? A. Tes, sir. Q. Now, yoa bad tbe earnings of tbs Union Paclflo for this ysar? A. I think we did have. Q. And tbat abowed $4,711 a mile, didn't It? A. Yes, sir. It was less than It waa laat year. Q. That was net? A. Tes. sir. It was lees than laat ysar the earnings were. Q. You didn't lower the Unloa Pacific oa tbat account? A. No, sir. Q. So tbe reason you assessed tbs B. A M. higher was becauae ths nst sarnlnga were higher then ths Union Pacific? A. Ws took thst into consideration. . Witness excused. Adjournment taken until Wednesday at 1:10 a. m. On Wedneaday, July 9, at the morning aesslon Mr. E. W. Slmeral waa sworn and examined by Mr. Harrington: Mr. Slmeral, did you appear before the State Board of Equalization on the 14th of May on behalf of The Bee Building company. A. Yea, sir; I did. Q. Did you make aa argument before them wltb reference to the aassssment of railroad property la tbla state? A. I did; yes. sir. Q. Were there any remarks made by members of she board during tbe course ot the argument there? A. Yea, sir. q. You may etate whether or not a report of what occurred there was taken dowa at tbat time oa behalf of The Omaha Bee? A. Tea sir; and I think that ths ratlroada alao bad one; there were two stenographers there tha gentleman we bave. bare now la ons of them. Q. Calling your attention to the article entitled, "Taxing Railroad Franchises." In Tbe Omaha Bee of May l(th. I will aak you whether yoa bave read that article through recently? A Tea, I bave read It through recently. Q. Was It ths 14th or 15th of May, yoa wsrs tbsrs? A It waa on ths 14th. Q. I see the article Is dated tbe 15th? A. Yea, air; It had not been transcribed by tbe reporters. Later It appeared la tbe daily Bee of tbe ltb. Q. Does this article which I bave lust banded yoa contain substantially a oorreot statement ot what was ssld by yourself and by the other persona participating ta It? A. Yes, all. Mr. Slmeral: The relators now offer tba aid article In evidence, aame being marked exhibit No. $1. the purpose being ta show that the board willfully violated tbe cor rect rule of valuMng tbls property after their attention was specifically dlreoted to It. so that they did not act la Ignorance. (No objection). Mr. Slmeral We will offer In evidence the (Ilea of The Omaha Dally Bee marked Exhibit SlVi for the purpose of showing the market value of the stocks and boada of the railroad corporation herein In volved. Mr. Baldwin To whlcb tbe respondents object aa Incompetent, Immaterial aad tr relevant , Chief Justice Sullivan I think It Is ad missable, and aame Is received In evidence, Mr. Slmeral The tax commissioner ot tbe city of Omaha, and of ths city ot South Omaha, being absent from the court, It la agreed that If tbey were present tbat tba tax commissioner of Omaha would teetlfy that the valuation of property la tbe city of Omaha frr municipal taxation Is at tbe rate of 40 per cent of Its actual valus and, that the tax commissioner ef South Omaha would testify that the assessment of 190$ ot property In South Omaha la valued at 60 per cent or upward of the true cash valua thereof. Mr. Kelby 80 far as I am concerned and bave anything to eay In thla matter, I shall certainly not permit that. Ia tbe first place, because the tewtlmony Is incompetent snd Immaterial; and aecond, because it la not tbe fact Mr. Baldwin Thla Is all subject to tba ob'ectton that It la Incompetent and Imma terial, and alao subject to the right to re but it. Mr. Slmeral It la agreed tbat tha tax commissioner of the city of Uneoln, If present, would testify that for municipal purposes here all property la asseesed at kg actual value. Mr. Baldwin This Is subject to ths same objection that It Is Incompetent snd Imma terial, with the right to rebut it Chief Justice Sullivan The evidence will be received subject to the objection. Mr. M. I. Altken, tax commissioner ot Lincoln, being duly sworn, testifies as fol lows, examined by Mr. Harrington: Mr. Altken, are you the tax commissioner ot the city of Lincoln? A. Yea, sir. Q. Upon what basla aa compared wltb the actual value le property assessed for municipal purposes In Lincoln tor the year 1902? A. I assessed ths property 'at the full, fair cash value. Cross-examined by Mr. Kelby; When did your duty aa tax commissioner of tbls city begin? A. April 10. 1901. Q. This Is tbe first term of office that you served? A. This Is ths first term, yes, sir; tbe second year. Q. Do you know about the assessment of property for 1901? A. Yes, sir. Q Where they assessed at their actual cash value for 1901? A. Yes, sir. Q. What Is the relative difference be tween the assessment of 1901 and 1902? A. But little. I raised them a little for 1902. Made them a little higher. Q.Dld yoa personally make the assess ment in each of the warda in the city of Lincoln? A. I assessed all of the real ee tate myself, end the personal I superin tended somewhat. Q. v0u procured it to bo done through deputlea regularly appointed by you? A. No, air; I did all of the real estats by ob servation and personally. Q. And personality?. A. Tbe personal ity was done by the deputies. I after warda looked at the achedule and ad vanced a number of the larger assaas ments. Q. What do you mean by "fair, cask value-?" A. Well, what I considered it worth. f TVUmt .a.M..mI I , WAttS A . IX . M V fWU .WU IU V ww. Yes. sir. Q. Well, from what consideration waa your Judgment based aa to Its wortb? A. Well, the selling pries and tbs rental value, and a part ot It, ot course, was assessed with the view of making it fair and equttable with other property. Q. Take the Rlcharda block, on O aad Eleventh streets, do yoa remember what the assessed value of that was for this year? A. Yea, sir; $95,000. Q. Do you consider that aa Its actual value? A. Yes, sir, and mors than It coat Q. Do you mean to aay tbat building coat less than $95,000? A. Yea, sir. Q. What la the ground worth? A. The ground I valued at $35,000. Q. What did the building coat? A. That building coat $56,000 and I valued It at $60,000. Q. You are sure of that? A I bad It from tbs contractor, and there was a com plaint filed before the Bosrd ot Equalisa tion thla year and ths attorneys made atatements of ths cost of the building and of the property, giving thoee figures. Q. Do you know what the aggregate rentals are that are derived from .that building? A. Well, I only bave tbe stats ments ot the attorneys tn tbs caas. Q.Dld you make any Investigation to Sent Free Fraa Trial Packaga of thla Maw Dla covery Mailed to rcry - Jrlan Sanding Name and Addresa Quickly Restores Strength and Vigor. Free trial paokagea of a moat remark able remedy are being mailed to all who write the State Medical Institute. Tbey cured ao snaay men who bad battiest fas 4. L ROBINSON. M.D.CH. JrUdkaJ Mrocttf rears against tbe mental anA physical suf tertiAr of lost manhood that the Institute baa decided to distribute free trial packs Ss to all who write. 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