Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-05-23
SUPREME COURT DECISION
County Assessors May Fix Their own
Valuation

The Supreme Court Friday affirmed the
order and Judgment in the case of the San
Jose Company VS.. January, the Treasurer
of Santa Clara county. The appeal in this
case was taken from an order dissolving
temporary injunction, and from judgment
dismissing plaintiff complaint, the demur-
rer of defendant to plaintiffs complaint hav-
ing been sustained and judgment rendered
upon plaintiffs declining to answer.
Plaintiff is and was on the 10th of March,
| 1880, corporation engaged il the manu-
| facture and selling of gas to the city and
inhabitants of San Jose, and to the town of
Santa Clara and adjacent places in Santa
Clara county. It's capital stock was $780,
600, divided into {, 1000 shares, which were
owned by stockholders and not by the cor
poration. The corporation owned taxable
property in Santa Clara county, VIZ, real
estate and improvements, personal prop
erty, money, street mains and franchise.
In due time the corporation fled with the
Assessor statement of all property, in
Guiding the street mains and franchise,
THE COMPLAINT
Alleges that the full cash value of the
street mains was SIS, 600 and no more,
and that the Assessor assessed them at
$40, $50; that in making the assessment he
added to the full cash value OF the street
mains the cost estimated by himself Of
digging the trenches, laying the mains,
pipes, ETC., and making the connections,
and thus made up an aggregate value of
$40 060. The complaint also alleges that
the full cash value of the plaintiff fran
chise to be a corporation to be 500 and no
more that the Assessor assessed the same
at Sl30, 000 In making which valuation he
estimated the combined aggregate market
value of the shares of the capital stock of
the corporation, held and owned by the
shareholders, at S240, ,000 and from that
aggregate deducted the combined aggre-
gate value of all the taxable property Of
the corporation, including real estate and
improvements thereon, personal property,
money and street mains, ard found the re-
suit Sl30, 900, and assessed the franchise at
that sum. The plaintiff made application
to the Board Of Equalization of the county,
claiming a reduction of its mains from
$40, $50 to $4,000, and on its franchise
from $50, 600 to 500. The Board exam
ined the application, and examined, on
oath, the officers of the plaintiff and AS
SCISSOR. From such examination it ap-
peared to the Board that the valuation
placed upon said street mains and franchise
were made in the manner hereinbesore
stated and not otherwise, and the Board
being of the opinion that they had been
CORRECTLY ASSESSED,
Rejected the application and refused to re.
duce either of the valuations. The tax on
the street mains, at a valuation of SIS, 900,
would be 1925 on the valuation of S40,-
$50 is S6l2 90; franchise, at $3.50, 900 is
81, $50; at 500, would be 81 80, and plain
tiff rendered payment of S2a5 and 81 so,
receipt of which was refused. Plaintiff
PRAYED for an injunction restraining de.
fendant from proceeding to enforce the col
lection of the taxes upon the valuation as
fixed by the Assessor as to the valuation of
the mains. The Supreme Court say that
the duty of making the valuation was cast
upon the Assessor. The method of arriv-
ing at the valuation, the process by which
his mind reached the conclusion, is matter
committed to his determination. II he
erred in his judgment, the remedy was by
application to the Board of Equalization,
and the Courts will not revise the iudg.
ments of these officers upon such questions.
This disposes of the case, because the tax
upon the entire valuation of the mains was
not paid nor offered to be paid. If any
part of the tax complained of be legal, that
part must be paid before party will be
heard to complain of an illegal action. By
Section |, Article Kill, Of the Constitu-
tion, franchises are declared to be property
for the purposes of taxation. The method
of assessment and by whom was to be and
was provided for by law. Therefore,,,it
does not rest with the plaintiff or with the
Courts to determine that its franchise had
| no value. In pecuniary sense the vaiue
lnf ra1au no q
| iects for which they existed and the meth
DDS by which they are employed, and may
change with every moment of time, bus
that franchises are property, and are to pe
taxed in some method in proportion TO
value, is part of the paramount law OIL
this State.
WHILE WAITING FOR CoUeK to go as it
came. Won are often laying the foundation for
some pulmonary or bronchial affection. It is
| better to get rid OF cold at once by using
| -.c,odv Dr- n ,Tavna'a Ey-