80 Neb. 18 | Neb. | 1907
Lead Opinion
The Western Union Telegraph Company made a return to the county assessor of Dodge county showing the actual value of its property, including franchises, in said county on the 1st day of April, 1905, to be $9,281.20, and assessed valuation $1,856.24. The actual valuation was raised by the board of supervisors to $46,406 after a hearing at which the company was represented. Thereupon the company appealed from the action of the board to the district court. Upon the trial the court fixed the actual value of said property at $54 a wire mile, or $40,500 for the entire property. Prom this finding and judgment of tin; district court the company has appealed.
The court found specially, first, that the appellant has 80 miles of pole lines and 750 miles of wire in Dodge county; second, that there are 1,200,000 miles of wire in the United States owned by appellant, and that the average value throughout the United States is $54 a wire mile, including franchises; third, that the gross earnings of said system in Nebraska from all sources are $10.50 a wire mile, and the net earnings for said system in said state are $1.36 a wire mile; fourth, that the value of the tangible property of appellant in Dodge county is $12,850; fifth, that the actual value of appellant’s property in Dodge county subject to taxation, including franchise value, should be $54 a wire mile, or $40,500. It is insisted by appellant that as the value of its tangible property in Dodge county is but $12,850, or $17.13 a wire mile, that the difference between this sum and $54 a wire mile was fixed by the court as the franchise valúe of plaintiff’s property. We cannot agree that this is entirely true. The court, in arriving at the value of appellant’s property, took evidence showing the value of its stock and bonds, and this showed the average value per
From the above quotation it will be seen that the value of the entire property considered as a whole, the value of its stock and bonds and the amount of its earnings, should be considered in arriving at the value of the property. It is true that no expert who had knowledge of the value of "appellant’s entire property testified upon the trial, but an expert accountant was called, who gave a statement of the amount and value of the stock and bonds of tin* appellant corporation on April 1, 1905, basing his computation upon figures taken from Poor’s Manual and other standard publications. Objection is made to this upon the ground that such evidence was incompetent. Assessors and equalization boards must act upon the best and most reliable information at their command. Poor’s Manual is resorted to by the commercial world as an authority upon the amount and value of the stocks and bonds of the several leading corporations in this country, and whatever is good evidence for those dealing in such stocks and bonds cannot be regarded as either immaterial or incompetent for the taxing authorities to act upon. Boards of equalization are not governed in their investigation of the values of taxable property by the strict rules of evidence applied by courts of law in the trial of ordi
Aside from this, we cannot say that the value fixed by the court is not fair and just. It may be true that there are many miles of the lines owned by the company of greater value physically and as an income producer than the same number of miles in Dodge county. At the same time there must be as great or a greater number of miles ' of much less value, and .we cannot say that the board of
Discovering no reversible error in the record, we recommend an affirmance of the judgment.
By the Court: For the reasons stated in the foregoing opinion, the judgment of the district court is
Affirmed.
Rehearing
This is a rehearing of the case reported ante, p. 18. The appellant in asking for the rehearing acquiesced in all the principles of law laid down in the former opinion, but contended that this court, as well as the. district court, erred in applying the law to the facts as disclosed by the record. The district court found that the appellant had 80 miles of pole lines and 750 miles of wire in Dodge county; that it had 1,200,000 miles of wire in the United States, and that the average value throughout the United States was $54 a wire mile, including franchise; that the gross earnings of the system in Nebraska were $10.50 a wire mile. It also found the value of the tangible property of the appellant in Dodge county was $12,850, and that the actual value of appellant’s property in Dodge county, subject to taxation, including franchise value, was $54 a wire mile, or $40,500. Appellant complains only of the finding which fixed the value of its lines in Dodge county at $40,500, or $54 a wire mile, and contends that the evidence does not warrant this finding. It further contends that the evidence does not warrant the finding of the value of the Dodge county lines to exceed $22 a wire mile. The evidence shows the gross and net earnings of the entire system in the United States to be $24 and $3.24, respectively, a wire mile, and that the earning capacity of the lines in Dodge county is a fair average for the state of Nebraska. Appellant urges that, because the earnings per wire mile in Dodge county are far below the average earnings per wire mile for its entire system in the United States, the court should not have found the value per wire mile in Dodge county equal to the average value per wire mile for its entire system, but should have found the value of the lines in Dodge county to be in such proportion to the average value per wire mile of the whole system as the net earnings of the Dodge county lines bore to the average net earnings per wire anile for the system as an entirety. The evidence shows the value of the tangible property of
We find ourselves unable to view the record as does the appellant. In the first place, the testimony as to the earnings relates to but a single year. ■ There are many reasons which might affect the relative earnings of the different parts of a vast telegraph system, and the earnings of each part might vary from year to year. The expenses of operation are likely to vary, and the net earnings for the entire system might be very small for one year and large the next. A particular district might show a loss for one year and a large profit for the next. So it seems clear that the net earnings for a single year would not be a proper criterion for determining the value of a telegraph system or for a particular part thereof. There is still a greater obstacle to appellant’s contention. We do not think there', is competent evidence in the record from which either the gross or net earnings of the lines in Nebraska can be ascertained. Appellant’s witness testified
Certain other facts disclosed by the record, while not conclusive, have some persuasive force which tends to sustain the findings of the district court in fixing $54 a Avire mile as the value of the system in Dodge county. It is shoAvn that the average number of Avires per pole in the United States is something less than six, while in Dodge county the number of wires per pole averages a little more than nine. We think it fair to assume that a business corporation like the appellant Avould not string nine or more wires to its system of poles if five or six Avere sufficient to transact its business. If .five or six wires per pole per mile for the entire system produces a net income of $3.12 a Avire mile, it would appear that a system where nine or more wires are used would produce as great, if not a greater, income than a system of a less number of wires per pole. It may be that the evidence in the record is not sufficient to affirmatively show that the value of appellant’s plant in Dodge county is $54 a wire mile, as found by the trial court, but of this the appellant is not entitled to complain. The rule of law seems to be quite well settled, that, in the absence of evidence to the contrary, the presumption is that public officials faithfully and legally perform their legal duties, and that in making an assessment the board of equalization proceeded upon sufficient and competent evidence to justify its action. State v. Western Union T. Co., 96 Minn. 13, and cases there cited; State v. Savage, 65 Neb. 714. In Lancaster County v. Whedon, 76 Neb. 753, it was held that, Avhere a taxpayer appeals from the action of the board of equalization in the matter-of assessment of property for taxation, the burden is upon the appellant to' shoAV that the decision of the board is erroneous. It would follow that the
We have been asked to formulate and state a plan for determining the value of the property of telegraph companies for assessment in this state. The law requires that their property shall be listed at its actual value, and, where the legislature has not formulated or fixed any plan by which such value may be ascertained, it would appear that any course is open to the parties interested to pursue any plan and offer any evidence whereby the actual value may be determined. It is not within the province of the court to lay down or formulate any rule which must be followed for the purpose of ascertaining the actual value for purposes of assessment. . To do so would be to usurp the functions of the legislative branch of the government.
The record fails to disclose any error of the district court prejudicial to the appellant. We recommend that the former opinion be adhered to, and that the judgment of the distinct court be affirmed.
By the Court: For the reasons given in the foregoing opinion, the former opinion in this case is adhered to, and the judgment of the district court is
Affirmed.