The Rock Island daily Argus. [volume] (Rock Island, Ill.) 1872-1873, 1873-09-01
The Question of Assessing
the capital stock of
Corporations.
Attorney-GeneraI Edsall
gives his opinion on the
Subject.
Such Assessment Declared
to be within the purpose
of the Revenue Law.

SPRINGFIELD, ILL.,, Aug. 3O.-As init
mated last night in my dispatch, the State
Board Of Equalization are considerably
exercised over the question of assessing
capital Of corporations in this State Some
discussion was had upon the subject to day
during the session of the Board, when MIR.
Miles, the Chairman Of the Committee on
Corporations, sent to the Clerk desk to be
read the following opinion Of the Attorney
General on the vexed question:
STATE OF Ill. ATToRNEY-GENERAL's OFFICE
SPRINGFIELD, H., Aug. 30, 1873.
SIR: In compliance with the request
contained in the communication of the
Committee of the Board of Equalization
of Assessments, dated the 29th inst. / have
considered, and herewith state my opinion
on the following points: First, is it nee
essary, in order that the State Board of
Equalization may legally assess the capital
stock, including the franchises of corpora
tons as required by the fourth clause of
Sec. 8, State revenue law, that the state
ments required by Sec % of said law
should be obtained and reported in the
manner specified in sections 80 and SO of
SAID law! Second, in the event of Asses
sors failing to obtain and return the sworn
statement required by said Sec. 90, can
the State Board take such action as to it
may seem proper to obtain such statements,
or the information required by such state
ments, in order to perform the duty re
quired of said Board by the fourth clause
of Sec. 3 of said revenue law? Third, is
/ it competent for this Board to instruct its
| officers or a committee of the Board to
cause suits to be commenced against any
! Assessor or Assessors, or others who haN e
apparently knowingly violated the express
/ requirements of the revenue laws of this
State?
! The fourth clause of the second section
of the act concerning assessments so far
as is material TO the present question, is in
! these words:
The capital stock of all companies now
or hereafter created under the laws of the
State shall be so valued by the State Board
of Equalization as to ascertain and deter
mine respectively the fair cash value of
such capital stock, including the fanchises
over and above the assessed value of the
tangible property of such company or as
50, iation. Said Board shall adopt such
rules and principles for ascertainiag the
fair cash value OF such capital stock as to
it may seem Just and equitable if not in
consistent with this act, which shall be as
binding and of the same effect as if CON
tanned in this act subject, however, to such
change. alteration, or amendment as may
be found from time 10 time to be necessary
by said Board.
- a. Il
Board of Equalization TO directly value.
and not merely equalize, the assessment OF
capital stock, including the franchises of
companies of the class referred TO in the
statute. The 32d section of the act makes il
the duty of the officers of the corporations
concerned to furnish certain Information
which would be very useful to the Board
in making the assessment, and in case o.
their failure to furnish the same it is made
the duty Of the Assessor to make such re
turn or statement from the best informa
ton he can obtain. The thirty-third sec
ton makes provision for laying this inform
alton before the State Board of Equaliza
e ton and concludes thus;
4 And said Board shall value and asses
+ the capital stock Of such companies or as
sociations in the manner provided in thi
act. Laws OF 1917.
The lUSth section OF the act also de
:, clares that the State Board of Equaliza
, ton shall assess the capital stock of eacl
= company or association respectively, nov
or hereafter Incorporated under the law
: of this State in manner hereinbefore i
f this act provided > Laws of 1872. I TIL
c question is, whether, under the law, tn
q State Board of Equalization can make
!, valid assessment Of such stock, in cas-
IL both the corporation and town and count
e Assessors fail IN making and returning tn
e statement specified in the thirty -secon
section of the act From the synopsis W
have made of the provisions of the Stat
: law, the following propositions are plainl
:. deducible: First-It is the absolute an
d imperative duty of the State Board {
II Equalization to make the assessment {
the capital stock of the class of corpora
u tions referred to in the statute. .Secon
a w hile the statute entities the Board
Equalization to this means of information
~ it does not require the Board to make tn
statements referred to in Section 80 til
basis OF their assessment 1t would
competent for the Board, if they though
n proper, wholly to disregard these stat,
30 ments in making their assessment. an
a act upon information derived from otht
lie sources. The quotation we have mac
e, from the third section of the act show
he that it was the intention of the LeCisI
O. ture that the Board should rot be col
fined TO any specific means of informs
e. ton in ascertaining the purposes of a
ne sessment, but leaves it open to the Boa,
to adopt such means to obtain the reaui
ite information as may be found mo
lie feasible. The spirit of the act, as well
- the provisions of the Constitution per,
th nent thereto, require that all proper
- subject to taxation should be fairly al
equally assessed In proportion to its valu
eh so that each person or corporation will
required to pay tax in proportion
and only in proportion to, the value of /
or its property. If any considerable pc
ton of the taxable property of the Sta
escaped assessment, an undue burden W
u thereby be imposed on that which is q
sessed.. The statute should, therefore, i
ceive such construction as will make
g practicable to assess all property liable
oi assessment If the failure of the office
: OF the corporations to give information
~ qulred by the statute, or even the tailu
~ OF the Assessors to make such stateme
he from the best information they can obta
tr ,ne could deprive the State Board of Equal
~ atlon OF the power to make the asse
,ho pa ment, then the plain purpose and intent
nn Sn0 the statute would be defeated. 1t wo,
o n enable the corporation to derive bent
~ nf from their own wrong. In view of tn,
: Vi considerations, it is my opinion that
BILE t;op and tho IooaI Asas =. tho i, ooi ~ p9
VOL give the information or statement as
capital stock of the corporations, as
ug guired by Sec. 80 of the act. the St
ohm or 10 proceed to MALI the assassap, y, snu =,
such stock, but it may in any man
deemed most feasible obtain the reouis
information, and ascertain the value
such stock and make the assessment