Omaha daily bee. (Omaha [Neb.]) 187?-1922, February 28, 1907, Image 1

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    The Omaha Daily Bee
Detention Takes Fifteen Ballots Before
Beaching; Beitlt
Einilitw Finally Switches and Votes for
the Burkett Caniidate. .
Unconfirmed "ostmastsrs in Fourth May
Eave Iofloenoed Eioshaw Vote.
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. 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.)
Thursday, Febra y AH.
1007 FEP v'. 1007
' 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
Thursday. Friday fair anil warmer.
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
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
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
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
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
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
National Base Ball commission defers
action on Western league draft of To
peka and asks National association to
change drafting rule. Page 11
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
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.
President Will Promote St. Lasts At.
tormey te Place Federal
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
More About Deal Between Rock Island and
Union Facifio.
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
"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
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
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.
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)
Senate Votes Down BUI to Refand
Money to Mate of Sorth
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
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,
Appropriations committees are attempt
ing to hold the appropriations below $2,250,
000. The situation will require special 2
mlll levies for both years.
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
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
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
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
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.
South Omaha School Ma'ams and School
Children Visit Lincoln.
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
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
"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
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
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.)
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
"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'
How Cit'ioni Bate Contributes1 to Support
of Railroads,
Liberal Donations of Bonds Hade to
Various Companies,
Many Towm Fay nnial Tribute Greatat
Ikan Tax Collections.
Millions Given in Past to Aid in Building;
New Lines.
Answer to Charsje that Kebrnnkena
Have Derived All the Benefit and
Famished None of the Cost of
State Development.
dome examples
of Rom
I'M Id on
to K. R.
R. H. ion.
Lincoln . ,
Heatrlce .
Fremont . ...
Falrbury . ... 85,000
Geneva 7,600
Seward ...... 15.0OO
David City. . . , 7,000
"flay Center. 13,000
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
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
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