, 1874-09-03
Mr.. Derickson's Charge Of Double
Taxation GroundIess.
The Action Of the Board In Strio,
Conformity to Law.
The Franchise Distinguished from Cor
porate Property and CANAL
Stock,

hilu moved Its adoption:
WnaEnEAs, In tho aaAessment Of railroad property
capital stock Of ths n4!roal corporations, tha iuI-
proSeMents on tue right OF way lying beneath tho
iron ., ana ues q aucl railroads, behaving the
"old te tho better reached Ia such capital stock a
WnEnnss, whuo tho Supreme Court of .hts Slate
ment ut railroad property for the yosr 1878, yct Ba
railroad corporations nru resisting, III tho United 8ntes
Courts With an uncertain Termination, tho collection
Of ta1eh found upon hai1 assessment; therefore,
Resolpos Tint tho Attorney General of tAis stato b
horribly roqossod to re1idor 70 ss board at m carly
duty Of this Board, nnler tho fevenuo lawa u thia
State to ussess aa tangible properly tho improvements
Of he right Of way Of railroads lying beneath the Iron
Roforrea to tho Joint Committee On Railroads
and Capital Stock.
DEn1CKBoN'H RESOLUTION.
Tho resolution Of Mr. Derickson to hx tho
assossment Of the properly Of the State at 40
per cent Of it's fair Gosh valao, togethor with tho
amendment Of R1r. Mr Warner, fixing It at G5
per cent Of ito far caah yaluo, being tho special
order, came up tor consideration, aud Mr.
Hunter addressed the Board in support Of tho
amendment. He said:
Mn- nuNTkn's spxroH.
We could not well perform onr labors Board Of
Equalization without sotno agreement rs to TIC
ag9 rats Of assessment returned by tho local Ahsezsozs
The goartt Las always regarded this Inquiry HI,
prt OF tic process by Which its duties
Aro performed. Every source Of information throw
in Light upon this subject Is exhausted And II tap
peara 70 tue Judgment of this lard Tint tho property
of individuals n tic atata hna been asaetol 1t 10 per
cent, auy other per cent below liz value heu by
tho ruiea aud regulations IN force nom, accord The
same s renctton q vauo to all corporations i,leuding
10 ~ true, and none better than Mr.. Dcrtchaou him
self.
Kcnto,nAn be I'D 10 publish ztatemcnta like this By
tho rules adopted 1y this Board, you make the oorroF~
a,ions ay on 100 s st ot TIC cash ys'uo ot to
dass ony as sGS py na
Tho work IT tta Boasa In ita assessment II corporate
D q b" m .F'iy ss o e ns e. by sga % 5ssJns
st. st. LOUIS snei:osa Company, II 3ano last, J.
on lila point sah sTo direction 70 tho Doasd of
Equalization b The bame that given 10 tho local As
to assess At s 81 fsr f easn vaio 3y .lo published
cecdinga OF the hoard Of Equalization, which aro
brought before ta by tho BILL It slpeass TINT Tits
done, and when tho p1operty wna SO esscssed a value
o9uaxcu upon baRs Of valuation applied to NIL
tho property III the Static In thesc respects 1t doca
not appear That my difference ma5e between cap.
al STOCK including TIE franchise and ouler prop
orty.'
THUS wore tue charges ss HOW made by lir. Dor
nna argument by the counsul for tho cerporatio and
It IL not ta,te remarkable that thoy ahod bo repeat
I'd by honorable number OF this Board, who knows
hat tho decision Of tho Court il III strict accorlnucc
with tho facts aa they transprod usdor his OWL per-
sonal observation.
now invite Tie attention of tho Board for few mo-
tena to the line of argument pursued by tho gentle
man III support Of hta very angular atttudU tn re-
for instance, corporation in tho cy of Chicugo, auI
eays: e. Thu nark yaluo Of the sock Ia $500 006 3D.
eso " .ss sss9eieon @ hss tapee Fropery Of tho
on tho tangible property, which is ali asuessab1s, and
its stock wou9 V vaaueless and !hero would be moth,
ing TO Asseaaf He cteS alBo the c1Acs OF incorporated
lumber companies Of Chicago, aud sa5s: Take from
tcn tcir lnla. ships, lumber, mud hills receivable,
aud their capital stock would be vafuole aud thero
thing shall be assesHed by tho Board ovor and auovo
the eotporation's tangsplo property. ~. peseksoa
e eoasacod ' at Ills soa apa
n a1ss nsay as pe US e soo @ T. ha lS a
GUS tho facts might be admltted bnt no rroceeds to
establish for our guidance tho general universal lrin
ron s soas IL
Ut way aud depota nll Of which assessablc and its
capital stock would have market real vai,o a11
to tho capital stocR aud above tho real yaiuu Of
tho tangible property Of the corporation"
gentleman is iguorut Of lle law unur w}.ich tacss
asaeas1uensa are to bo made, to suppoao u
wiilful rerYcrson whcro olr duty Is plaiiiy laid
Of tho Revenue Inv: "T4e capital stock Of oil coma.
ncs aud associations hereafter created under
tho iwa OF this Stt0 shall bo 50 valued by tho State
board Of Equalization to ascort., anl vter,nao,
respectively tho fair caah value OF capital Atock
ucludng the franchise over atld above the aaacsBe<
value Of tao tangible property Of such company
Tho statute ia imperative that "Tho capital stock,
inelkltaq The franchtse" snll bo aaacssed. Does tho
gentleman In Ills !abor0d argument sny franchise
1nees No his theory aud lis argument proceed on
tho assumption that III any suplosabio case, fran-
ciiso ~ yaluoess and therefore, ought not to be
BcHsed.
1as SEQ for moment about sl!a natter Of fsan-
cllse What ia It. what fs tic !aw, anl what aro tho
fncta beArng upon unl pertinent to erforunnco
ought te know, that by vol settled authority 'reo
capital stock; = Iho corporate PROPERTY; j, Tic
franchise Of tho corporation AL Of which, by equally
vol settled authority azo held to 10 taxable to tho
poration.
"l the case of corporation, tho corporate powers,
capacity, and tug length Of uno which its business
tey arc il franchise ind, as las been seen, il prop
erty.
i quote freely from tho somarks Of chiof-Jusics
Is before me: "That overy cooperation posapssca
franchise OF some value COLL admit of no doubt Even
,aa wlafG t u ,sS ssS'ed Tor tS rRss "f rsn esi
in the State, tho privllegeof t1e combination ot cup
ital by 'aany pcrsons, with tho capacity TO hold ad
sion, like singlo Individual, froo from composition
nn'ong those tntvEesto a, FROM ohanga or disturb
onse ~ TIC changos Of individual NE. aa without H.
eorparatlon in ts Legal capacity must necessarily have
yauo beyond and distinct from the nero yaua Of
tho money property which tho corporation ia
| atel to hold and llHo In ita business"
Can we, ask, again believe tat tle honorable gen.
ttenan who atsulea tho cunsoralp Of th!s hoard la
ignorant of thoso principles which un1esie the yory
| ignorant OF tho law under which We aso ucting?-
tlat ho docs not understand the ruea by which WI aro
Hovoruel iu performing our dutlea7 No. Far b. It
from nlo do tho honorebo gautlenan W much in
Justice. nm willing to leiicyJ TINT ho II 5otte in
fornlv. After cArefl peruaa II hiA communication
III published in tho newspapers, Inclined to bu-
ltovo that tlore is much "mctAod III his madncss."
nay 10 mistaken ~ to the Bcncnail's tuotyu but,
argument tlat stAon,snt Of facts would
awor liz purioso and that no compliance With tho law,
/ ou tho mart u thia noard, would attain e obtuut
| Which hs Roaka to accomplish. Whio ostensbly hta
argument " directed agatnst tho aogoa rules Of this
ch w 4ro sotlng and, while he Jsofeagos to nd In
tho Law "a syutsnl u taxation which commands itaef