The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-02-14

or, indeed, by any conceivable rule having
the remotest reference to the value OF the
roads, or the amounts earned by them, or
the values of their franchises respectively,
the result would have been reversed
Nor does this comparison illustrate the
;niustice and absurdity of this tax much |
more clearly than may be done by compare |
son of the tax on several other OF the
How can it be possible that the c., B. &
O r. r. Co. should pay a tax upon its
Franchise and capital stock over and above
its tangible property on valuation of over
fifteen million dollars, while the Chicago
X Northwestern Il. r. Go. should only pay
tax on valuation Of about four and a
quarter million dollars, and the Chicago,
Rock Island & Pacific R. r. Co., should
only pay tax on a valuation of two million
dollars?
These illustrations show that there is
something radically wrong in the system
pursued therefore approach the argu-
ment feeling assured that the court will
scrutinize the law and its application to as
certain from what this injustice results, that
we may not only be relieved in this partlc-
ular case, but that in the future taxation
of the road we may not have occasion to
complain Of such injustice and oppression.
| suppose it will be conceded, that under
section /, Art. TX, of the Constitution, 1t
this tax is levied upon property, it must
not only be by valuation, but that the pro.
perty must be so valued that the tax shall
be in proportion to the value of the proper
ty compared with other property, not only
of corporations, but of persons.
l. liz &c
for license and excise taxes, which need be
proportionate only as to the class upon
: which thew operate but it will not be con
tended, that because peddler ora corpora
ton owns horse that that horse might bt
taxed higher in proportion than 1t 1t was
owned by farmer. 1t is only In respecI
to their peculiar occupations that they
be taxed without regard to proportion witt
the property of Others not in respect tt
their property and so come to my mrs
proposition, which is, that
. The tax on capital stock, provided to
by the consolidated Revenue Act of 1872
! is intended to be levied as a tax on proper
! ty, and the values placed on this capita
stock must be proportionate to the value
. placed on other properties, both OF corpo
n rations and persons.
= An examination of the consolidated &C
q of 1872, I'd, Gross Statp. 937 shows clear
a " that this was intended as a propert
i tax Section l enumerates the propert
which shall be assessed and taxed, and, al
: ter stating the other classes of property
! says: 18th, The capital stock of corpora
# lions and associations Incorporated unde
# ''the laws of this state.
= SEC. 3. provides for ascertaining ''th
IS fair cash value of the capital stock, il
= "cluding the franchise over and above tn
IS assessed value of the tangible property.
n And the second clause provides for a
pertaining the fair cash value Of the cap
a tai stock.
= Sec. los. provides that the State Boar
al "of Equalization shall assess the capit
r. stock"
/ And Sec. 81 provides for the taxatio
70 of franchises owned by individuals, as pc
m sonal property.
Ia 1t is true that the intention of the Lee
n isture, as to what or whose property tt
If corporation should pay this taxatiC
'o upon. is almost as intangible and shadow
. as the value which is assessed against tn
= corporation but / think that but OF
A. meaning can be drawn from it in this r
q spect, viz: that the legislature recognize
the fact that some corporations own(
in franchises of value, and held a good wi
ST and perhaps chooses in action which we
"A not taxed under the law, and intended
10 tax them as property Of the corporate
er They call these things, in effect, intans
ia BILE property, capital stock over and abo
the tangible property, and treat this cal
ze tai stock as property of the corporation
4. 1t will be observed that this is not an
re tempt to tax the franchise alone-it is t
: :. capital stock including the franchise
a. If the attempt had been made to tax t
nd franchise only, it would probably ha
a. been required to be listed as those own
by individuals are by 2 "a of the same la
a. | understand that by the value of
nd capital stock, the legislature meant
m. aggregate of the values of the shares
If stock, but viii waive that for the prese
,as and assume that it intended by the VOL
nor capital stock, the entire property Of I
,6s corporation-its entire capital eve
nj thing which it possesses, both tangible d
em intangible, real estate, personal proper
nat franchises, and good will, which must h;
M been the construction given it by the 30;
mt of Equalization, for otherwise there co
en- be no even apparent reason for the r
md adopted.
ms Concluded MOnddy)