The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-05-26
CORPORATION Taxes.

United States court, In chicago, rendered
decision''ln the case of the Pekin. Peoria
and Jacksonville railroad company, on a
motion to enioin it from paying its taxes.
The decision was substantially as follows,
as reported in the Chicago Times Of Tues
day;
1.-THE case of the Pekin, Peoria and
Jacksonville railroad company is an action
on the part of Nh. Trowbridge, a stock
holder, to enjoin it from paying the taxes
assessed against its tangible property and
capital stock. In the bill filed, the compa-
nv allege the fact that it filed schedule of
| its property in due form under the general
law, and that the board of equalization,
without hearing, without, any notice,
and without any proof, raised the val
uatiou upon the tangible property to some |
thing more than double the amount as
fled in the schedule, and also the further |
fact that the board fixed a tax upon the
capital stock On the filing Of the bill, this
court had an order entered setting day
for the hearing, and granting temporary
Injunction On last Thursday the motion
: was heard, and, on examination of the bill,
, the court was satisfied that the company
! ought to be taxed upon its tangible proper
" upon the NdLuatlOu as uAou ny IlScL
/ and returned to the board. The company
claim, in their Lpresent action, that the
board have increased this valuation two
r fold, and that therefore the entire tax is
J null and void. The court did not agree
with this argument, and was inclined to
think that they ought to offer to pay, SO
:, much of the tax as might be demanded by
the schedule which they filed with the
s. county clerk, The company have shown
; the valuation of their property, and the
! fact that this valuation has been Increased
y should only make so much of the tax as
3. covered the increase null and VOID. In
this case. as in other similar cases, the
court was not inclined to continue the IN
re junction in the manner prayed tor, put
D. would grant one permanently as soon as the
company paid the tax upon their valua-
o. ton, or brought the money into court. lie
would enter the following additional order:
The injunction shall continue on the company:
We filing bond in double the amount OF the tax auc
II the company shall have % days in which to pay
III whatever may be due on the tangible proper
v ty as shown by its own schedule.
10 1T was possible that the rule might bt
NJ extended to all other companies. But The
oh court was not willing to enjoin any tax leg
ally DUE The taxes due from the com
panies amounted to a considerable sum
and as the state needed the funds, there
was no reason why the state should b.
r. Ihampered any longer by litigations OF thl
y kind. All must contribute to the supper
, of government, and what a compan.
ne Justly owed it must pay. On complyin
,er with the order, he would enjoin the tax uI
on the capital stock and the increased val
he uation, leaving the company to pay upo
~ its tangible property, The attorney ger
eral of the state was in the city last week
and he agreed with the court to allow thl
course and then to take his cases up to tn
lgo supreme court and let them test the que'
lay ton as to the right Of the board OF equal
car zation to increase valuation and tax cal
~ ital stock. The court would therefor
81, |, oblige the company to pay the taxes jus
ug ly due, and grant an injunction upon the
ind fulfilling the conditions of his order to r
strain the collection of taxes upon the il
creased valuation and capital stock.
Mr., Writ Dexter, who represente
the Michigan Central and the .Chicag
her Burlington aud Quincy Railroad compani
his and the Pullman Palace Car company, +
ual marked that there were some cases whit
;no would not admit of a separation.
The court replied that there might
II goods of a company which could not
ber- disentangled, but in other companies Il
lge- matter might either be settled by court
;o,v referred to the master in chancery tor e
animation. He did not intend to lay doy
the rule, but merely intimate it.
The Chicago Journal says:
bis. The principle OF law ana equity lnSo
= to ed in this case is substantially the same
that involved in all the cases Of tax fight
by Illinois corporations, especially "a
hoii ha
iii, the United States will sustain the posltl
, ''''' taken by Judge Blodgett. 1t would bt
re- cruel wrong upon the private proper
the holders of the state to allow the blund
c. at ing of the Equalization Board to imp
ol;ce upon them the entire burden OF taxat
under the state assessment.
'A1 The Republican State Board of Equal
- ton, as the journal says, made an o
y rageous "blunder" in assessing corpo
w tons, and the Supreme Court of this st
IT, made another ''blunder' in sustaining
,anaI and our board of supervisors made anotl
.Lo "blunder' in spending $4,000 on *
a . worthy, Beardsley and Gest to bolster
- 80 that ''blunder."
:" We suppose all our people know that
- " this county alone the taxes assessed VI
private corporations and railroads by
}"blunder" amounted to 500, 642.95
that much of this sum is still in dispu
!, that Judge Guyer recently refused to g
~ judgement against these corporations,
I that Mr.. Grenel, chairman of the cou
n, board, is still undecided whether to
~ peal the cases or wait the
sion of the United States col
Mr.. Grenell says the state needs the mo
boys due from such corporations in every &C
pto:h ty, and unless it is paid. or large PRO-
ton of little governor will be compelle
call the legislature together to de
means for carrying on the state gov
ment
'S"' We suggest to Mr.. Grenell to n
,'l' Judge Blodgett's decision the basis
W proposition to these corporations to
go such an amount of the tax as would |
W. been LEVIED had their returns not |
changed by the state board. This is p
ably what they will have to do in the
. nv and if all corporations in the state W
Z q =, now pay their taxes on the basis of il
= !, \" Blodgett's decision last Monday, and l.
u. the balance to be determined by the [
supreme court, there need to be no fur
'1i trouble and the state and the local gov
I, yes | ,oonts ,Uo,,Id tboD ha rnlaasnd frnm am