Omaha daily bee. (Omaha [Neb.]) 187?-1922, February 28, 1907, Image 1
The Omaha Daily Bee SINGLE COPY THREE CENTS. OMAIIA, THURSDAY MOJINTNO, FEBRUARY 28, 1907-TWELVE PAGES. VOL. XXXVI-NO. 219. HUNGER IS ENDORSED Detention Takes Fifteen Ballots Before Beaching; Beitlt EQUALLY DIVIDED UP TO THAT TIME Einilitw Finally Switches and Votes for the Burkett Caniidate. . ALL BUT NORRIS SIGN ENDORSEMENT Unconfirmed "ostmastsrs in Fourth May Eave Iofloenoed Eioshaw Vote. NEEDED SOME HELP FROM SENATORS rolUrd tHd JSot Feci as Thoos;h He Coold Afford to AnUlonlM Bur kett and Manger la His On District. (From a Staff Correspondent.) WASHINGTON, Feb. 27. (Special Tele gram.) After fifteen ballot had been taken today by the Nebraska delegation in sscret caucus T. C. Munger of Lincoln received a majority of the votes cast and hiu name has gone to the president for the position of federal Judge for the additional place created In the district of Nebraska, signed by all the member of the delega tion with the single exception of Judge Norris, who stated In the caucus that though he would make no objection to Mr. Munger appointment, he could not con sistently sign a recommendation In his be half. Mr. Mimt.tr had, as predicted In The Bee, four votes to begin with, and received tha Vote of Mr. Hlnshaw on the final ballot, which brought about his nomination. The four votes which were cast throughout for Mr. Munger were Senators Millard and liurkett and Representatives Klnkald and Pollard. Throughout the balloting Repre aenatlvc Kennedy voted for Judge Norris against ths tatter's personal protest. benator Burkett has been the busiest kind of an Individual rounding up the deUgutlon in behalf of Mr. Munger. In this connection It may be said that Mr. llli'ihaw has a number of postmasters awaiting confirmation by the senate. As these postmasters were recommended by Mr. Hlnshaw after bitter flghta in each case, be needed the active assistance of Senator Burkett to make their confirma tion possible, and his vote for Munger may mlain the reason for these confirma tions, should they occur immediately. Senator Burkett, by the action of today, la enabled to pay his political obllgationa to hla friend and campaign manager whose name probably will go to the senate tomor row, or at best on Friday. Pollard Looks for Self. The poaiUon of Mr. Pollard waa pe culiar. Believing that Senator Burkett and Mr.', Munger. politicians of the prac ttcal norC would be against him should he voto for any other than Mr. Munger, he proceeded to get Into the bandwagon when the procession started. - A-tbougU -Mv. Iuaaa.h been, aeieotecy i It can with trutn Ie saia inai ne was uoi the choice of the majority of the delegation. but the Inability of those opposed to Mr, Munger to unite on any one of the can didate voted for, It. B. Reese. M. A, Murtlgan, K. C. Strode, C. C. Flansberg, O. L. Norval and Judge Norris. - made Mr, lounger's selection certain. "The choice of Mr. Munger waa brought through the fact of his overwhelming en dorsements," said Senator Burkett. "Mr. Munger was endorsed by at least KOO men of prominence In the affairs of the state, These endorsements were from reputable lawyers from all over the state, about a hundred lawyers of the bar of Ltnclon; men of affairs In every congressional district of the state; officials and business men of Lincoln, Kearney and Dodge counties. In addition to this during last night and early thla morning myself and othera of the del egatlon received telegrams urging the se lection of Munger. Two telegrams worthy of special mention urging the nomination of Munger were reoeived thla morning, one from William Jennings Bryan and the other from Ex -Governor Holcomb. There fore It might be said that In the face of all these endorsements the delegation would have been flying directly against the ex cressed wishes of the people hod it taken any other action than to have agreed to request the president to nominate Thomas C. Munger Of Lincoln. Personally I am extremely well pleased, aa Mr. Munger is my lifelong friend, but it is not true, as has been atated, that I have endeavored to coerce my colleagues of the delegation to accomplish the nomination of Mr. Munger. Ills personal popularity and well known ability, aa attested by the endorsements which have poured In upon ns from every action of the state, la what Influenced the action of the delegation. It waa nothing but Munger from the start of our con ference until the final ballot was taken. Of course other candidates were given their Innings, but they were not strong enough to win." Hepbara Opposes Investlcatloa. It la understood Representatives Hepburn fend Mann are quietly fighting Representa- tlve Kennedy's resolution calling upon the Interstate Commerce commission to Inves tlgavs the express companies doing an In teuf tate business, who are charged by the Western Fruit Growers association of en 1 taring Into direct competition with the dealers in the sale of fruits, poultry and oysters. Representative Townaend of the Interstate and foreign commerce committee has taken charge of the resolution and if possible will get a report from the com mittal, a majority of whom are in favor of the measure. Bhould Chairman Hepburn. however, decide not to hold another ses aion of the committee It would naturally go over to be revived at the next session of congress. Senator Hansbrcugh reported the free al cohol bill from the committee on finance this morning. He gave notice that he would coll It up at the first opportunity. The bill la amended so aa to provide for a store keeper at government expense at each dis tillery established, following the rule with respect to small distilleries already estob lUhed. The senator opposed this amend ment In committee on the ground that It waa unnecessary and a needless expense to the government, but he was outvoted In committee. Strong Internet are fighting the bill, but the aenator has great confl dvnee that be will be able to get It through. Unas Matters mi Capital. Representative Hlnshaw toflay recom mended J. (X Jlmerson for postmaster at Liberty, vice Robert K. Kerby, resigned. The secretary of the interior has ex ecuted a contract with the Robinson 4 Son Contracting company of St. Louis for the construction and completion of the dlver- tCoatinued on Fourth Page.) SUMMARY OF VA Thursday, Febra y AH. 1007 FEP v'. 1007 (UN MOM TVk N TNU mi T ' i TV i 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WSATKZK. FORECAST FOR NEBRASKA BnoW Thursday. Friday fair anil warmer. FORECAST FOR IOWA Snow and colder Thursday. Friday fair. lemperature at Omaha yesterday: Hour. Deg. Hcur. Deg. o a. m 25 Id. m W a. m 2 2 p. m 82 7 a. m 27 3 p. m 32 a. m 27 4 r. m 32 a. m 28 in. m 32 10 a. m 2tl 6 p. m 31 U a. m 29 7 p. m 31 12 m 32 II p. m 82 p. m 33 UE OI8X, ATirU. Records at Lincoln show that forty-five counties and many of the cities and towns of Nebraska have voted large auins as bonuses to aid In the construction of rail roads, and that the Interest on these bond Issues In every city or town has amounted to more than the total taxes paid by the railroads there. Fags 1 Anti-pass bill, as amended, reintroduced In the house at Lincoln by the Joint com mittee. Fags 3 South Omaha's "petition in petticoats"' gets a hearing at Lincoln, the legislature meeting In Joint session to listen to speeches against forcible annexation. Page 1 The senate recommends Thomas' bill for terminal taxation for pansage with a slight amendment. This bill Is a dupli cate of the Clarke measure pending in the house. Page 1 The senate recommends for passage sev eral Insurance bills, among them one providing penalties for using Insurance funds for political purposes or to inlluence legislation. Page 1 Representative Jennlson of Clay county affords a comprehensive analysis of the terminal taxation plan, showing how rail road property escapes taxation In every city and village in Nebraska. Page 1 South Dakota senate kills bill to repay to North Carolina the money collected on bonds of that state. Page 1 WASHUrOTO&T. T. C. Munger is endorsed for Nebraska federal Judgeship by Nebraska delegation on the fifteenth ballot, after which all except Norris sign his recommendation. Page 1 Shallenberger, Madden and White to re tire from the Postofllce department. Con gressman McCleary to be second assistant postmaster general. Page 8 Both houses of congress approve the conference report on the rivers and har bors appropriation bill. Page a 1TZX.KASXA. Three sons of former Governor Jackon of Iowa are founders and boosters of Dallas, 8. D., on border of Tripp county Umla, uo b opened to settlement aext year. Para 3 Sherman Saundera and J. F. Westrand of Bloomfleld purchase the Peavey line of elevators on the line of the Omaha road. Page t Letter from aecertary of lumber deal ers' association Introduced in evidence before Judge Post tending to show a com bination. Page 3 Cold rain, freezing as It fell, has coated Nebraska with Ice. Page 3 Wlllard Barrows, son of B. F. Barrows, surveyor of the port of Omaha, Is mar ried at Hastings to Hazel Mines, daugh ter of Mr. and Mrs. J. D. Mines of that city. Page 3 Original appraisers of land Involved In the Fisher claim of (10,000 summoned to Lincoln to testify as to the changing of the amount set out in the original docu ment. Page 3 DOOTSTIO. Interstate Commerce commission In quires further Into Joint operation of Alton railroad by Union Pacific and Rock Island railroads. Paga 1 Mr. Jerome cross-examines expert wit ness in Thaw case. More evidence of in tention to apply for a lunacy commission to examine the prisoner. rags 3 X.OOAXu Figures showing meals and prices charged for feeding city and county pris oners are presented. Page T More women and boys than men go to Lincoln on behalf of anti-annexatlonlsts of South Omaha. Page T Proportional grain rates from Omaha on Iowa grain end today , Page T Knights of Columbus pass resolutions In honor of memory of Count Crelghton. Page T Real Estate exchange drafts bill to require water companies to extend mains in certain cases. Page 13 Charles C Bassett, forced by court's refusal to proceed further with suit for custody of children, will take the witness stand today, making his first public ap pearance since the divorce case began, though he has been in Omaha ten days. Page 4 SPOBT. National Base Ball commission defers action on Western league draft of To peka and asks National association to change drafting rule. Page 11 PEORIA SCANDAL REVIVED Arrcet of Former Convict for Rob ' btaar Safe May Implicate Prominent Cltlseas. PEORIA, 111., Feb. 17. Edwin II. Tate, an ex -convict, haa been arrested In New York City for the robbery of the safe In the offtoa of the board of school Inspectors in the library building January , and the taking of the script, for ths forging of which Newton C Dougherty, former super intendent of schools, is now doing time In Juliet. The arrest haa Implicated four prominent residents and officials of Peoria. Tate reaches Chicago today in charge of da tec Uvea It is said the robbery was planned by Dougherty, who Is serving a sentence at Jollet. "PAT DYER JSJ0 BE JUDGE President Will Promote St. Lasts At. tormey te Place Federal Bench. WASHINGTON. Feb. I7.-The president has decided to appoint David P. Dyer fed eral Judge of the eastern district of Mis souri. He now occupies tha position of United States district attorney for that district. JOINT CONTROL OF ALTON More About Deal Between Rock Island and Union Facifio. LINE MORTGAGED BEFORE IT WAS BUILT Moore Crowd Found Treasury Almost Empty and Bonds Issued for Im provemeats All Gone Hnrrl nil aad the Bankers. NEW YORK, Ftb. 27j-Couneel for the government renewed their attack on the financial methods of the Harriman group In the Chicago & Alton railroad before the Interstate Commerce commission this aft ernoon, when they called Charles W. Hil liard, comptroller of the road, as a witness. Milliard testified that he became comptrol ler In October last, when, under the Joint arrangement for the management of the property the Rock Island took its turn. Hilliard said his first task was to find money to carry on the Improvements un der way. There was money In the treas ury for current expenses, but not enough to carry on the improvements, which in cluded a cut-off of 34H miles of road from a point near Murrayvllle to Springfield. There was not enough money to complete the building of this line, said the witness. "I looked Into the question of raising mowj by mortgage," he continued, "and I discovered that It had already been mortgaged." "Do 1 understand that this road had been mortgaged before It waa built?" asked Com missioner Lane. "Yes, I was told that It waa covered by the mortgage of 1900, and there was noth ing that could be done except to put a sec ond mortgage on It, which would have been poor security," said Hilliard. Mr. Kellogg then read the mortgage to show the line had been covered by It, and the witness said: "All the bonds were gone. I found from the books that the $13,000,000 had never, been paid to Stanton for the stock, that the $3,000,000 had never been paid to Stanton for the road, but that , the $22,000,000 in bonds had been turned over to the syndicate, who delivered the stock and the road through the lntermedl- j ary, Mr. Stanton." The commission wanted to know what the books showed had been actually expended In connection with the handling of the property, but while the witness was search ing for the records the session was ad journed until tomorrow. Mr. Hilliard will be recalled tomorrow morning. Commissions to Bankers. Edward H. Harriman concluded his testi mony at the morning session and his ex amination brought forth nothing of special Importance. He was succeeded on the stand by Otto H. Kahn, one of the leading member of the firm of Kuhn, Loeb & Co., which has financed many of the Im portant deals of the Harriman party and a former director of the Union Pacific. Kahn remained on the stand until mid afternoon and under cross examination of C A. Severance, counsel for the govern ment, told of the re-organliatlon of the Union Pacific. There was a special inquiry as to the commissions paid to Kuhn, Loeb A: Co., and the inter-relations of the firm, the witness and Jacob Bchiff-Mlh the Union Pacific. The witness, said the firm had received a commission equal to 5 per cent of the purchase of the Southern Pa cific, a. commission of 5 per cent, divided with other underwriters, on the sael of the Union Paclflo . convertible bonds at a re duction of 6 per cent. The witness spirit edly defended the acta of his firm and cited Instances where It has sold stocks to the Union Pacific at a figure below the market. M. Kahn made an extended de fense of the Alton transaction, based on the methods and conditions of the time. Mr. Harriman, during his testimony, again Invoke the question of private bus iness as against Interstate commerce and again refused to answer Interrogations as to his individual stock deals and Mr. Kahn refused to divulge anything specific as to the business transactions undertaken by his firm in behalf of clients In or outside of the Union Pacific dlrtcorate. He and coun sel, Paul D. Cravath, urged the same ob jection made by Attorney Ml)burn in be half of Mr. Harriman and added the special plea of the confidential privilege between a banker and his clients. The commission ruled against all ob jections and tha record waa in each in stance properly completed for reference to the courts. William H. Moore and Daniel a. Retd, directors of the Rock Island, testified as to the contracts with Mr. Harriman and his associates for Joint control of the Alton and that there waa no other written or verbal agreement. Mr. Moore said that while the contract waa still being fully ob served. Its effect was nominal. He and( his associates had expected benefits from ' the arrangement that had not materialised and their earlier plans in connection with the project had not been carried out. Parrhase of Grand Island Line. Mr. Harriman, In answer to Mr. Kellogg, testified that the Union Paclflo had pur chased the St. Joseph A Grand Island since last year. The price paid was $2,022,000 and the witness owned the property and sold It to the Union Paclflo. Objection was made to questions as to when he bought ths stock of the St. Jo seph Grand Island and what he paid for it and the witness declined to answer. The commission ruled that he must an swer and there was the usual formal re fusal. The witness said the St. Joseph A Grand Island was not a parallel and competing line. Mr. Kellogg asked of whom the New York Central stocks acquired by the Union Paclflo were bought. Mr. Harriman said they were bought In the open market. "Were you or any of your associates in terested in the sale at the time of the Union Pacific purchase?" pursued Mr. Kel logg. Mr. MUburn objected and Mr. Harriman declined to answer. Mr. Kellogg asked the witness If It waa not a fact that of the $22,000,000 aald to have been spent on the Chicago A Alton, $2.740,0'J6 was made up of car trust certifi cates and $1,000,000 loan from Kuhn, Loeb A Co., so that the expenditures of the lines were about $18,006,000. Mr. Harriman aald that possibly the figures were correct. He simply knew that $22,000,000 had been apent on the line. STVYVEtA.1T riiu TALK! Deposed Head of Illinois Central Dt. cllaea to Wrangle. NEW YORK. Feb. 27. Stuyveaant Fish waa asked by the Associated Press today what answer, if any, ha cared to make to the accusations which E. H. Harriman pre ferred yesterday before the Interstate Commerce commission. He said: I have little to sy. I shall not be drawn into a wrangle with (Continued on Second Paga) SOUTH DAKOTA KEEPS CASH Senate Votes Down BUI to Refand Money to Mate of Sorth Carolina. PIERRE. S. D., Feb. 27. (Special Tele gram.) The senate resolved Itself Into a debating club at the opening of the session and continued In that position for the ses sion, killing the bill to repay North Car olina the money secured on the Shaffer bonds; placing the divorce bill on the cal endar, and passing the antl-dlscrlmlnation bill. The North Carolina bill had the right-of-way on an adverse committee report and the report was opposed by Dillon In a speech of nearly an hour. Byrne, Goodner and Lincoln opposed the return of the money and the adverse committee report was adopted by a vote of 25 to IS, which kills the bill. The favorable committee report on the divorce bill, which required a year's resi dence in the state and three months In the county before bringing suit, with all hearings In open court, was the next on call and was fought by Dillon, Goodner and Dudley. Dowdell and Lothrop cham pioned the favorable report, which waa finally adopted, after the unfavorable minority report had been voted down by a vote of 28 to 15. The next fight was on the house bill to prevent discrimination In trade. It Is aimed at the Standard Oil and lumber bus iness of the state and prohibits selling at a higher rate In one place than another, with freight rate differences. Goodner, Dil lon and Tobln opposed the bill, which was supported by Robertson, Dowdell, Byrne and Vessey, and while It failed as an emer gency bill. It went through with the emer gency off by a vote of 28 to 15. The public printing committee Introduced a bill for a state printing Committee to es tablish a plant and at the same time a resolution for a constitutional amendment to levy a tax for the purpose of establish ing the plant. The only house tangle waa over the Price 2-cent fare bill, which waa defeated on committee report, after iU had been ad vocated by Price and Vanosdel and opposed by Glass, Satre, Issenhuth and Hare. The house passed a number of house bills, In the principal of which they Include drugs In the provisions of the pure food act; pro viding for compulsory education of Indian children; authorizing the Board of Regents of Education to select two sections of state land west of the river for experimental farms. The house defeated the senate bill to provide for uniform life Insurance policies, but notice of reconsideration was given. The house bill to require railroads to equip their engines with self-dumping ash pans was defeated by a vote of 47 yeas to 34 nays on a motion to indefinitely post, pone. Appropriations committees are attempt ing to hold the appropriations below $2,250, 000. The situation will require special 2 mlll levies for both years. ADAMS ALIBI STRENGTHENED More Evidence that Prisoner Signed Alleged Confession tinder -Dnresa. : WALLACE, tail, Feb. 5T.By testimony from his own lips, Steve Adams' attorneys purpose to convince the Jury that he Is an Illiterate, ignorant man, incapable of using the language ascribed to him In his alleged confession of the murder of Fred Tyler; that he had been led to believe he would be hanged If he' did not sign the statement and would be spared If he did sign; and that under this fear he affixed his name to the statement prepared by Detective Mc Partland and his associates. Strong testimony was given today by Lloyd Mason, the son of Alvln Mason, the pioneer . settler, to uphold an alibi for Adams on August 10. 1904, the date Tyler is supposed to have been killed. Mason testified that about August 1, 1904, he met Steve Adams, then known as Steve Dick son, at Mason's hay ranch. lie remembers seeing Adams on August 7. Next day, the witness said, Dickson and Glover went down the river, Adams coming back about ten days later In company with Jack Slmpkins. Miss Myrtle Mason, a sister of Lloyd Mason, corroborated this testimony. A mysterious stranger of unknown name was pictured by the defense as presumably one of the real murderers of Tyler and Boule. Charles A. HIU testified that he was In the Marble Creek country In Aug ust, 1904, about the time Boule and Tyler were killed, and while on the trail met and talked with the stranger, who said: "The eta gives up Its dead, but the woods never." Mrs. Warren Oliver of Spokane testified that her husband is a cousin of Steve Adams and that Adams came to see her In the hospital In Spokane on August 13, 1904. Warren Oliver corroborated hla wife's testi mony. Alvln Mason waa recalled by the defense and asked If he knew Harry Orchard. He said he had met Orchard twice in the Marble Creek district In company with Jack Slmpkins in 1906. Mrs. Steven Adams waa placed on the ; witness stand and testified that when she was oeing taaen to Boise she was told that Steve had confessed all and would aoon be released and permitted to return to his farm In Oregon. McPartlahd made the same statement to her after arriving in Boise, after which she was locked In the woman's ward In the penitentiary, where she was visited by Governor Good ing, who treated her with every considera tion. FOLK SIGNS TWO MEASURES Governor of Mlssoarl Approves Two. Cent Railroad Fare and I aaraaee Bills. JEFFERSON CITY, Mo., Feb. 27.-OOT-ernor Folk today signed the bills passed by the legislature providing for a 2-cent per mile railroad passenger rate and limit, lng the salaries of Insurance companies, both those incorporated under the state laws and foreign companies doing business in Missouri. They will become lawa ninety days after the adjournment' of the legisla ture. The house today passed the senate bill amending the constitution of the state to make salary of the members of the legisla ture $750 a year. The proposition will be submitted to the voters at the next general election. The senate today passed the senate bill providing for a stamp tax of 25 cents on each tea shares of stock, 1,000 bushels of grain or 1.000 pounds of cotton or pork sold on stock exchanges for future delivery. Colorado Womaa Released. DENVER. Feb. 27. Stella Good, arrested yesterday at Colorado Springs In ronnec tlou with the murder here of Mrs. Cora B. Wright and her daughter, was released during the night by the Denver police. PETITION IN PETTICOATS South Omaha School Ma'ams and School Children Visit Lincoln. TOM HOCTOR'S THOUSAND AT THE CAPITOL Pleasant Greetings exchanged and Speeches Aaralast "Forcible An nriatlon" Listened to by the Leiclalatare. (From a Staff Correspondent.) LINCOLN, Feb. 27. (Special. ) South Omaha for the second time swooped down upon the legislature to protest against being annexed to Omaha, but this time in stead of it being a "petition in boots," the Magic City's delegation waa more aptly referred to as a petition in "petticoats." There were eonugh school teachers and school children In the crowd of 1,000 to give the delegation all the appearance of a fresh air picnic. Acting as escorts for the 144 school teachers and their pupils who were given a holiday by the powers that be, In order to get them to swell the crowd, were democratic officeholdera and friends of the administration. The delega tion was bedecked with ribbons of red bearing the Inscription "South Omaha pro tests against forcible annexation," while numerous banners were flung aloft bearing various inscriptions, "For the square deal," and such like, and it was headed by a brass band and the "big stick," which incidentally was stolen by some one and will never again get back to dear old South Omaha. Sentiments of One Protestant. One of the bright little fellows In the delegation was Oscar Lucas, aged 9 years, who was gaily decorated with the usual badge. The little fellow did not care to be quoted on the question which Is so thoroughly uppermost In the minds of the people of the packing . house city, but of other things be was willing to talk. He said: "I am 9 years old. I" go to the parochial school, but we got a holiday today to come down here. All of the school chil dren In South Omaha got a holiday and most of them are here. I think there must be 100 with the crowd about my age. My papa used to work for the electric light company, but he Isn't working now be cause he hurt his eye." At the State Hoaae. The delegation with Its brass band reached the state house doors at 12 o'clock, but as the house had adjourned for lunch it committed no overt act other than to have the band play some spicy music for the benefit of the state house employes and hangerson. At 2 o'clock the delega tion occupied every available space in rep resentative hall. Dignified school teachers hoisted themselves upon radiators and smiled and made 'eyes at politicians who occupied chairs or seats on the steps to the speaker's rostrum and in the window ledges. Members of the senate then came In and found places somewhere and every where and the big tournament waa on. Hart started It when he introduced a reso lution to have the aergcant-at-arma find Mike Lee and bring him In to face the musie,'as he so' gracefuUyHH!--wo years ago, but while it waa being read the Hon orable Michael came in wearing a smile as prosperous aa an engaged school ma'am, and the resolution waa declared out of or der. Speaker Nettleton presided and In troduced the speakers from the Magic City, who spoke in the following order: Rev. Dr. R. C. Wheeler, Police Commissioner T. J. Nolan and City Attorney Fleharty. The tune they played this year waa different from two years ago. Then they did not want annexation or anything that looked like it This year they did not want "forcible" annexation, but were professedly willing to vote on the question and let the majority of both cities settle it once for all. Fleharty went Into details to some extent, showing the debts of the city and the value of its property, while all three played to the sentiment of the members without a discussion of the merits or de merits of annexation. The speeches were well received and the speakers given the most respectful hearing, and at the con clusion Mike Lee carried a motion to let Omaha and the rest of South Omaha die cuss the other aide of the question at 1:30 next Friday. Recommends Terminal Taxation. The terminal taxation bill which was in troduced Into the senate by Thomas of Douglas was reported back to the senate this morning with a recommendation that It pass. It waa amended by the committee to exclude freight line companies from Its provisions and In a few minor details. The bill Is a duplicate of the Clarke bill in the house. , At the afternoon session the senate de veloped a mania for killing Insurance bills, and after a long discussion on one of a dosen - measures Introduced by Aldiich at the request of the Insurance department started In to Indefinitely postpone them one at a time. The friends of the bills argued that they were recommended by the committee of fifteen that met in the east some time ago and considered uniform Insurance legisla tion. The opponents based their arguments on the ground that they were designed to cripple the local state companies and were backed by the large companies of the east. The first bill to suffer was 8. F. 203, which required Insurance companies to make annual apportionments of surplus funds on deferred payment policies. Instead of mak ing the apportionment at the maturing of the policies. Local companies contended the law would take away from them their surplus funds and would place them In a bad light aa compared with eastern com panies. S. F. 304, which prohibited corporations and stock companies from acting as agents for Insurance companies, suffered a like fate. Recommended for Pnasaere. The next one, 8. F. 305, prohibiting the use of money by insurance companies for political purposes or to effect legislation, waa recommended to pass, after being amended. 8. F. 206, which required that the insur ance policy should contain the entire con tract, waa indefinitely postponed. Files 207 and 208 were ordered ems roused for third reading. The former prohibits and pro vides pealtles for misrepresenting the terms of a policy or the benefits to accrue under It, and the latter makes the insurance so licitor agent for the company and not for the Insured. 8. F. 210, placing limitation.! on the salaries of Insurance company offi cials aad agents, was ordered engrossed, and S. F. SI, relating to the provision which shall be contained In policies, was Indefinitely postponed. After this action the committee quit work after thf most strenu ous two hours put in since the beginning of the session. Hoaae oa Railroad Commission. The appearance of the South Omaha dele gation delayed the discussion of the Jcint (Continued on Third Page.) TERMINAL TAXATION NEEDED Nebraska Towns and Villas;- Are How Being Deprived of Their Jast Revenae. . (From a Staff Correspondent.) LINCOLN, Feb. 27,-(Sperlal.) Represent ative Jennlson of Clay county Is one of the house members of the legislature who has made a close study of the question of taxation of railroad terminals by cities and villages for local purposes. He favors the Clarke bill. This afternoon he gave out the following Interview: "Since the State Board of Equalization and As-essment fixed the valuation of the I'nlon Pacific main line mileage at $!o.9S8 per mile and the supreme court of the United States in Its recent decision Justified it we may assume It a correct valuation. "In April, 190$, the Vnlon Pacific com pany, over the signatures, among other officers, of A. W. Scrlbner, tax commis sioner, and Erastus Young, general auditor, returned the reproduction or tangible value of the I'nlon Pacific main line property, Including Omaha terminals, at $14.892.!. or an average reproduction value of $3t,Sfi4 per mile. The state board's value of $9,9S8 per mile raised this value to a total of $42,525,948, a raise of $27,633,045, or 185 per cent. which, if the Union Paclflc'a return of tangible value was correct, must repre sent the Intangible or franchise value of the I'nlon Pacific main line. "The value of Its tangible property re turned by the Union Pacific from Omaha and South Omaha Is $4,157,855; for the bal ance of its main line, $10,736,045. Doubtless It is true, and If the Union I'aclflc orators would have a large distributive value out of Omaha they must admit Its truth, that the 1S5 per cent of value added by the state board aa the Intangible value applies In like manner to main track, sidetrack, spur track, building or acres of right-of-way wherever found. Adding this 185 per cent of tangible value returned by the company from Omaha and South Omaha as the in tangible value of the property in the two towns, we find the value of the property to be ' $11,872,756. But Omaha and South Omaha under the unit system of asses ment on their 9.66 miles of main line get an assessment of $878,955 of this amount; hence there is left for distribution over the balance of the mileage only $10,993,798. I do not admit that this sum ought to be or is all distributed over the main Una mileage. I claim that only part of this sum should be distributed over the main line, and that part of It the per cent the main line contributes to the total value of Union Paclflo lines In the state. "Outside of Omaha and South Omaha contributions of the tangible value are: The main line $10,735,048 The O. A R. V. branches 4.291, 5,V The Kearney branch 5a4.153 Total $16,580,755 "Of this the main line contributed 6S.9 per cent and I claim that that per cent of the Omaha and South Omaha terminals, via., $7,574,727. only can be distributed over the main line a distribution of terminals of $lfi,5u0 per mile. "But you will notice I am talking about the Union Pacific am baaing my argument on it the only road the railroad orators dare to talk about because on It and on it only can the railroads show distribution of terminals for the benefit of the outlying mileage. Ana I am willing to take it In the worst way possible, and will for this Interview permit the distribution of all the Omaha and South Omaha terminals over the main line only $10,993,798 over 457.7 miles a distribution of $24,000 per mile a dis tribution of $9,000 more per mile than the railroad orators claim and what la the re sult? I find that according to the Union Pacific's own sworn returns, $18,249,861 of its $42,625,948 assessed value Is In the In corporated towns and that these towns, with $18,249,861 worth of Union Pacific prop erty Inside their limits, get an assessment under the unit system of $4,937,811, and that $13,312,050 worth of Union Pacific property within the limits of Incorporated towns never answers any place for city or town taxes. "Omaha and South Omaha lost $10,993,798 of this amount. It follows therefore that of this loss $2,318,252 was lost out of the other Incorporated towns on the Union Pacific main line, and this, too, when I am distributing terminals out of Omaha $24,000 to the mile $7,500 per mile more than the facta warrant, and $9,000 per mile more than the aforesaid orators claim. "How can this be? It Is easy. Grand Island, for Instance, has within Its town limits 118 acres of Union Paclflo right-of-way, worth $T60 per acre $ 89,502 2.31 miles main track, reproduction value 42,144 20.3 miles side track and spur track, reproduction value 81,200 Building on right-of-way not locally assessed 48,269 Total reproduction or tangible value aa sworn to by Union Paclflo $261,115 Add the 186 per cent the state board and supreme court say it has in tangible value 478,08$ And you have for tangible end in tangible value of Union Pacific main line property in Grand Inland. $739,178 Its prosent assessment under unit system is $210,182 "In 190 the Union Paclflc'a Grand Isl and city tax on Its mileage was $798. Under H. R. 192 it would not have beun less than three and one-half times that amount, or $2,800. "Do. a the town of Grand Island not furnish to all property within Its limits the privileges and advantages afforded by Its city government? Is It not true that if the railroad company Is failing to pay Its share of the cost of city government that other taxpayers are paying this cost for the company? "Grand Island's is not an Isolated cast. The same condition exists In all the im portant towns Fremont, North Platte, Columbus, Schuyler, Central City, Kear ney, Lexington, Sidney and Kimball. North Platte gets a city tax for 190S from the Union Pacific under the unit system of $857. It would get under H. R. 192 $3,500. The smaller towns would gain In much smaller proportion, because they do uot have the large amount of railroad prop erty either to protect or tax. "Now, if this condition prevails on the Union Paclflo main line, where thee is dis tribution of terminals, under this basis of figures most unfair to H. R. 192, what must be the condition where no large terminals are distributed? I come to this conclusion, that tbe railroads escape their fair share of city and town taxes under the unit system of assessment and that it Is up to this legislature to pass laws before them that will correct the Inequality and make the railroads respond In city and town taxes on their property In cities and towna as other taxpayers do." KfFlaey Case Goes Over. ALBANY, . 1. Y., Feb. r7.-The senate Judiciary committee today postponed a-v tlon until next Wednesday In the proceed ings for the removal of state superin tendent of Insurance Kelsey. Garrett Heads Air LI a. NEW YORK, Feb, 27.-W. A. Garrett today waa elected president of the Sea board Air line to succeed Alfred Walter who died racaotly at hla Lowe la this city' BONUSES AND RAILROAD TAX How Cit'ioni Bate Contributes1 to Support of Railroads, MORE THAN GENEROUS IN THEIR GIFTS Liberal Donations of Bonds Hade to Various Companies, INTEREST PAID tXCEEDS THE TAXES Many Towm Fay nnial Tribute Greatat Ikan Tax Collections. STARTLING FIGURES FROM THE RECORDS Millions Given in Past to Aid in Building; New Lines. RUINOUS INTEREST PAID ON ISSUES Answer to Charsje that Kebrnnkena Have Derived All the Benefit and Famished None of the Cost of State Development. dome examples Bonuses Olven the of Rom Interest I'M Id on tfonuses Taxes Collected from Roads. to K. R. 910,500 3,000 3,000 1,800 1,500 360 900 490 730 R. H. ion. 96,346.63 903.3S 9,193.83 1,379.84 688.88 160.84 463.60 893.34 174.40 Lincoln . , Heatrlce . $195,000 00,000 60,000 Pliittsmouth Fremont . ... Falrbury . ... 85,000 Geneva 7,600 Seward ...... 15.0OO David City. . . , 7,000 "flay Center. 13,000 Ktlmate. Issue matures 1907. (From a Staff Correspondent.) LINCOLN, Feb. 27.-(8peelal.-Opponent of the proposal to tax railroad terminals for local purposes and apologists for tha railroads never tire of pointing out what great benefits have come to Nebraska com munities through the existence of the roads. The fact that the railroads hve been to some extent benefited seems to have es caped their attention entirely. During nil the talk that has been heard of the expense of building, equipping and maintaining tha railroads, not a word has been slid about the Contributions of the public to the con struction of the lines In the way of bonuses and subsidies. The habit of voting bonds to aid rail roads has prevailed to a considerable ex tent in Nebraska, and for a long time. Forty-five of the counties have at one time or another voted large Issues of bonds to assist In the construction of some one or another of the lines, the total Issue for this purpose up U the present time being $6,493,465, an averj of a little, jnpre than $125,000 for each coimty Involved. At pres ent bonds Issued for this purpose to tha amount of $2,779,400 are outstanding, or an average of something over $61,000 for each of the counties participating. , The Interest charge on these bonds at the outset was $447,431 annually, an average rate of a trifle less than 8 per cent, while the In terest charge at present is $201,981, or about the same as at the beginning. The rate of Interest stipulated In the bonds, varies from 10 per cent to 4H. What the Records Show. The tabulation of the bond Issues printed In connection with this article affords a considerable amount of Interesting Informa tion. Assuming that Its figures are ac curate, and they are copied from the state records at Lincoln, though there may be minor discrepancies, they show that In a number of cases the roads receive more In interest payments on bonds than the local taxes against them amounts to. For example, the city of Beatrice In 1901 received from all the railroads the sun of $902.35, and paid on bonds Issued in favor of the Kansas City & Beatrice rail road interest to tha amount of $3,000. Ths citizens of Beatrice further shared In a total interest payment for railroad bonuses voted by Gage county to the amount of $9,220. Propetty owners of Lincoln also have the doubtful privilege of oavlne the rail. road taxes levied in tbe city, and a little I more. In 1906 the total of railroad taxea levied In Lincoln waa $6,246.63, while the total Interest charges on ' bonds voted aa bonuses waa $10,500. This for the city of Lincoln alone; of couise the city had to bear its share of the county Interest pay ment on bonuses, whloh Is very heavy. As a matter of fact, Lancaster county went In for voting bonds to railroads to a much greater extent than any of the other coun ties, and has paid a larger price for so doing. Lancaster Coanty's Experience. In the beginning, Lancaster county voted $120,000 at 10 per cent to aid the Atchison & Northern, and paid in principal and in terest $300,000. To the Midland Paclflo $250, 000 of twenty-year bonds at 10 per cent were voted, and on these the county paid in principal and interest, assuming the rec ords at the state house to be correct, $052, 000, and still owes $98,000, on which the in terest charges since 1893, tbe date of ma turity of the original bonds. Is $127,000. Doth these lines were gobbled up by tha B. & M.. after a long drawn out contest In the courts, during the progress of which the constitution of Nebraska was twisted out of shape in order that Ihe Burlington might gobble "a parallel and competing line." A bonus of but $50,000 waa voted to the B. M., but thla also carried 10 per cent and run for twenty years, making the total payment in interest and principal on the lBsue $150,000. Thus Lancaster . county contributed as bonus to the B. V M. $1. 2S9.00O, and la still paying Interest on $98, 000. which will some day have to be re deemed. The city of Lincoln contributes each year In Interest alone on bonuses aa follows: To the Missouri Pacific, $3,600; to the Lincoln A Northern (a piece of the B. & H under another name), $2,000; to the j Fremont, Klkhorn A Missouri Valley (the jMortnwesterni, to ine unicago. Rock Island A I'aclflc, $2,600. Other Towns Coatrlbate. In Falrbury the same rule holds good. Property owners of the county seat of Jef ferson, county In 196 paid the railroad taxes and almost $1X00 besides through In terest on bonuses. The taxes levied against the Rock Island for 1906 in Falrbury were $369.71, and the St. Joe A Grand Island paid $158.86. The city of Falrbury paid $1,600 In Interest on bonds voted to aid In the con struction of railroads. PUtttsmouth almost plays even with ths railroads, but not quite; It takes a pretty wideawake community to get much tha better of the tax argument with a modern railroad. In Plattsmouth for the year 19u tha railroads were taxed 12.U4.U, wbsW