The Rock Island daily Argus. [volume] (Rock Island, Ill.) 1872-1873, 1873-11-22

Preliminary injunction Granted by Judge Nc
Roberts Against Taxing the Capital
Stock Of the Ottawa Glass
Company.
Special Correspondence Of TIE chicago Tribune
MoRRIs ILL.,, Nov. II, 1873.
This afternoon Judge McRoberts, sit
ting in Chancery, made an order for the
granting OF an Injunction restraining Mil
ton II. Mead, C.,nnty Clerk of LaSalle
County, from extending the tax, on the as
sessment Of the State Board OF Equaliza-
ton, upon the capital stock Of the Ottawa
Glass Company. Application was trst
made TO Judge LELAND, Of Ottawa, but he,
being n stakeholder in the corporation, did !
not desire 10 hear an argument in support
of it. Accordingly, Judge Cation solicitor,
and his son, ArthurJ. Cation, Of counsel
for the Company, came here this after
noon, and applied to Judge McRoberts for
an order directing the issuance of the writ
Mr.. A. j. Cation said that relief was ask
ed because the assessment of the capital
stock was illegal aud void. The full value
Of the tangible property of the Company
had been added to the capital stock, thus
doubly taxing the corporation, in direct
VIOLATION OF THE STATUTE.
He then read the bill, which sets forth
that the Ottawa Glass Company is, and
has been for more than six years last past
corporation organized under the laws of
this State and doing business in the City
of Ottawa. in IIaSalle County, in the man
ufacture oflooking- glass In june or July
last,it was applied to by William s. Eaton,
Assessor OF Ottawa, 10 make list Of the
tangible property aud capital stock, that he
might assess the same for the purposes OF
taxation. The complainant, by Thomas
ID. Catlin, its Secretary, Treasurer, and
Bookkeeper, filed out the blanks in good
faith, and 20 the best of his ability, by set
ting down all the tangible property of the
corporation and the amount of its capita
stock. The filed blanks were delivered &c
the Assessor, who assessed the property
etc, at $4,000. The total amount OF the
capital stock of the Company is $500
divided into 325 shares of 500 each, al
Of which has been fully paid into the treas
ury. The highest known price for which
any OF the stock has been shld Is IS cent
on the dollar. In August last large por
ton Of the Company's buildings was de
stroyed by fire since which time no actua
sales have been made of stock, aud tn
officers believe its highest market value
be not more than rs cents on the dollal
i ne hSstASiT TtIuTiltu Tue hSetSSul"ul
the Clerk of LaSalle County, who laid
before the County Board, who raised tn
assessment ON the tangible property to th
sum of $4,000; and this last assessmeI
was returned " the Auditor Of the Stat
who laid il before the State B jard vt Equa
ization The latter Board reduced the a
sessed value to $37 ,257 and assessed Ii
Company
sol ,42O FOR ITS CAPITAL STOCK,
10 addition tn the amount of the asses
meut upon its tangible property as abo
stated Whereup0n the Auditor Of Pu
lie Accounts issued an order 10 the Coun
Clerk, ordering him TO extend the t;
against the complainant on the full amou
of the assessment OF So Az for capt.
stock, in addition to the amount of the 1
sessment upon its tlngible prOpert
Whereupon, the County Clerk threatens
to extend the tax upon the proper boo
against the complainant upon the asse;
ment OF sol ,l2U for its capital stock, a
also upon the assessment of $37 ,257
its tangible property and would extend t
tax unless restrained by the order and
junction OF the Court. The action of q
State Board in the premises had been I
result vi accident, mistake or fraud on the
part in ascertaining the value of the ca
tai stock, and in assessing against the CO..
plainant both the full amount of the
sessed capital stock and the full amount
the assessed value of its tangible propert
making in all the sun OF $9S, 6I1 ShOu
the said tax be extended and collected
Teparable injury would result TO the Go
pany therefrom. Therefore. the cOmpla
ant prayed that a writ Of injunction ISIS
10 restrain the County Clerk from maxi
the extension, to be made perpetual up
the final hearing OF the suit
JUDGE CATIONS ARGUMENT
The Hon. j. d. Cation then said NJ
it please the Court: This is a motion
n preliminary injunction on bill filed
the Ottawa Glass Company tO restrain
County Clerk from extending tax W
an assessment of SOL ,42U upon the capi
stock OF the Company. Although | mil
make many points III this which
think would entitle US tO the relief sOug
propose for the present to cOnhne my'
tO one which, IL seems u me, is 50 conc
sive rs ~ preclude rational controversy
~ go b. the very merits of the case. /
point Is, that this assessment on the ca
tai stock Of this Company is made in
pable violation Of the plain language of
statute aud manifest intention of the l.
stature 50 much So that 1t Is
ONE OF THE EXTRAORDINARY THING
in human affairs which only at long I'M
walls ocGur among intelligent men.
tangible property fthis Company was
sessed by the State Board OF Equalizat
% the sun Of $37 PSI, Of which we III
no complaint and have no objection to
extension Of the tax on the same. T
the Board Of Equalization proceeded,
addition to this, 10 assess the capital st
Of the Company ~ the sun of sol 4
The return of the Assessor showed
the capital stock Of the Company consi
OF $4,000. all paid up, and that Il
had been no sales of the stock though
bills shows in this that the Assessor
mistaken, for there had been sales,
highest OF which was 70 cents on the
lar How the State Board liked upon
value OF the capital stock OF this CumT
at @6l ,42U, when the whole amount
but $32, 500, may seem difficult To
tetiuine. Undoubtedly the Board
fessed 70 be covered by the
RULES ADOPTED BY THEM
for ascertaining this valuation. prob
with such variations as they thought
exigeucies of the case would bear. L
rules provide that they shall add the
Indebtedness OF the Company, excu
Of that FIR working expenses, u the
ual value of tue capital stock and that
shall constitute the vaidation Of the ca
stock.
Let US examine for moment the
sonaDleness, or rather the complete al
dity. of these rules Their legality wi
considered when we come to the sta