, 1874-08-25
EXEMPTION ERoM TAXES,

<1ny rendered decision In tho case Of tho |
County Treasurer, who clalmoa u judgment for |
unpaid taxcn against ccrtain lands ln thia county
owned by tho Northwestern University. Ob1nu- !
tion Aad been made that this property WAS OK |
empt from taxation under Its charter, as tho
property OF All institution OF 1earulng. Tho
University owns III this county several hundred
acros Of land, much Of which Ia located In this
city. Included in this Ia one-hnlf Tho block
now covered by tue Pacific IIotol, bo!woon Clark
aud IaSallo atreets. Tho University has owned
thia property over twenty years. A large area
Bty, md 1oasod 10 tho occupants, aud no taxos
las oyer boon paid tloreon. The objection to
tile assessment was oyerruod by Judge Wallace,
who holdB that tho exemption by the Legiyla-
turo In tho charter Of the University Is Of ne
coHaity controlled by tho State Constitution Of
184a, which roads:
Tho property Of tho State aud countless bath real
md personal, and Btch ether property the General
Aascnbly may doom llecehsary for school, religou1,
an charitable purposes, may BE- exempted from taxa
ton.
And tho Constitution OF 1870, which reaaB:
Tho property Of tiu Slate counttcs, and other mu-
nicral corporations, bol rea a1,s personal, and such
other property may bo used exclusively fur agricu
tral and horticultural eociecs, for school, relig,ouB
cemetery, aud charitable purposes may he e1Gmptpd
from taxation, but such exemption shall bu only By
general law.
Tho general Law exempting property from
taxation passed in 1861 restricted tue exemption
to property used exclusively for tho purpose Of
education. etc., and especially excluded tho prop
erty OF the school not used for the purposo4 Of
tho school and held for profit. Judge Wallace
held shat all the property owned by tho Uniyer-
s.ty, aud not used BY 1t for the purposes and
objects for which tho University was erected,
was 1iablo to taxation. The Univoraity las
taken an appeal to tho Supreme Court.
The University rolled on tho doctrine that tho
charter Of tue University was contract with tho
corporation which could not DO sot aside. Tho
| Court held that tho Legislature had no power.
undor tho Constitution. to exempt property from.
direct taxation, except ~ in tho case OF tho
Illinois Central Railroad, by tho acceptance Of a
stipulated equivalent for taxation, or where
thoro wsH y consider alton. Tho only conaidora-
tion urged in this case was tho general benefit
to the State from tho aohool, and this, In Judge
Wauacea opinion, was too vague to Justify an
exemption from taxation. Ho inclined to tho
opinion that the only exemption that could bo
claimed was that allowed by the general ACT
of 1851.
This decision ia Of considerable interest to the
people Of Evanston. aud especially to thoso who
hold aud occupy land not owned by the Uni
yersity; these have hitherto paid all the ta1eH OF
the town. and havo recently been called upon to
pay tho extraordinary tax levied for tho con-
structlon Of water-works. II Judge Wallacc'a
opinion DO suatainod by the Supreme Court, all
tho property Of the University. save that used
exclusively for school purposes. will have TO pay
taxeR like other property.