Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1882-04-03
RAILROAD TAXATION.
THE POSITION OF THE RAILROAD COM
PANY STATED.
Letter from Hon. Greed Raymond to
the Colusa "sun" On the
Subject

Editor CoIusa Sun-Dear Sir: In your is:
sue of March 18Th appears an article headed
"The Railroad Taxes" In the position
taken by you in that article l in the main
agree, and especially Go l agree to tins prcpo-
sition THAT rich men are interested more
than poor men in maintaining not only the
legal but the equitable rights OF property
and they are interested more IN the malnte-
nance of good government"
The article in question bears upon its face
evidences of the sincerity of the writer, and
deals with what the writer terms the SINS OF
the railroad company in a spirit more OF re-
gret than Of anger.
A due regard for the Judgment of thought
full men, and respect for the opinions OF the
public, call for statement of the position OF
the railroad company relative TO taxation-a
position much misunderstood, but as lmpreg-
nable in law as it is just in morals.
PROMPT PAYMENT OF TAXES.
For many years prior TO the adoption of
the new Constitution the railroad companies
of California and especially those belonging
to the Central Pacific system, paid their
taxes promptly, and since the adoption OF the
new Constitution such companies have paid
without question taxes assessed upon their
stations, workshops and lands by the same
tribunals which assessed the property of
other persons within their jurisdiction. The
taxes so paid for the present fiscal year
amount, in the aggregate, to about $3.50, coo, |
and the taxes so paid by the railroad people |
for the years 1889 and 1882 in Colusa county
amount as appears from the books OF the
Tax Agent of the company, to S9.09S p.
THE CASE STATED.
Since the adoption of the new Constitution !
difficulties have arisen which the railroad |
companies deplore as deeply as can any one |
o1c no fn{i
eral system Of taxation which affects all prop
erty within the State except railroad prop. !
| erty operated in more than ore county. This |
general system in brief provides that prop
| erty shall be taxed in proportion to its |
value; that is to say, that the rate OF taxa |
tion shall be the same as to all property, and !
| that all property shall be assessed in the same
proportion to its value, whether that proper
tion be one-third or two-thirds Of the value !
thereof. This provision carried out produces |
| thai quality which is the very essence of tax !
alton. This system requires that the proper !
lions OF value shall be ascertained by gen. !
eral Law affecting all persons and all property |
within it scope It requires that before a /
liability is fixed
THERE MUST BE NOTICE
An an opportunity to be heard and given to !
every person whose property is to be affected. |
This system gives an appeal from the AS !
SCISSOR to the local Boards of Equalization |
elected by the people of the ccunties-to |
Boards which hold their sessions at times |
fixed by law, and Of which notice must be |
given-to Boards which must transact their |!
business openly in the presence of the people, |
and must proceed according to rules of evi- !
dsnce calculated to insure justice. This sys- /
tenn requires the assessment TO be made in the |
county by the Assessor elected by the people |
of the county, and who acts in their presence
and is directly responsible to them for his ac- /
ton. It prevents property from being :
| sessed in localities distant from the place !
where the property is situated. This syst m
prescribes that the mode and the manner # .
assessment must be carefully and precisely |
fixed by general laws; and lastly, this system !
allows every owner Of property to deduct from
the value of the same the value OF mortgages, |
deeds of trust or other liens thereupon, and |
permits the Assessor to assess such owner /
only for the beneficial interest which he hiss !
III the property, i. e the value thereof after
deductiDg the amounts of such mortgages or
liens.
THERE ARE DIFFICULTIES INHERENT IN THE
SUBJECT
Which have hitherto rendered y impossible |
to frame laws which under all circumstances
viii distribute the burden of taxation with !
exact equality, bus all just laws aim TO &C.
c0mp.ish, as nearly as may be, that end, erd
the general system adopted in the State Of ,
Californis contains the safeguards which ex- |
perience has taught to be necessary for the |
protection of the citizen in his right of prop |
| erty against unjust and arbitrary ex7c;ions. |
| The trainers of the Few Constitution adopted |
another and special system which applies |
! alone TO franchise, roadway, road-bed, rails |
and rolling stock of roads operated in more !
than one county-not to all railroads in the |
State-ror to all property operated in more |
than one county. By this system one class |
/ 4CS, Id {
property and is subjected to its operations.
This special system finds its origin in Section |
10 of Article XIII. of the new Constitution.
! That secsion, IN respect to the subject under
consideration, prescribes that " the franchise,
roadway, road-bed, rails and rolling stock Of |
| all railroads operated in more than one county
in this State shall be assessed by the State
! Board of Equalization
AT THEIR ACTUAL VALUE,
And shall be apportioned to the counties,
cities and counties, cities, towns, townships
| and districts in which such railroads are To-.
Gated, in proportion to the number of miles
of railway laid in such counties, cities and
| counties, cities, towns, townships and dis
! trict7." This special system, by virtue Of |
| Section Of the game article as construed
/ by the Supreme Court Of this State prevents
| The owners OF such property from deducting
| from the value thereof the value Of tie mort
wo- IDS, while the owners Of all other property
in the State are only assessed for the excess
| of value over mortgages and liens, the own
ers of such railroad property are to be
assessed for the full value OF the property
withou any reduction whatever From this
! summary it will be readily apparent to all
! t, ~ the owners OF railroad property operated
! in m orc than one county are denied any pre-
tecti n from the general laFs, constitutional !
| or otherwise, which
!. Require that property shall BE- taxed in
! proportion TO its value
! 2. Require such proportions to be ascer.
| tanned by general law.
| 3 Require that, before liability is fixed, :
notice and an opportunity to be heard must ,
| be given.
4 Given an appeal from the Assessor to
another tribunal.
| 6. Require the asses sment to he made in
! the county, and prevent its being made in !
localities distant from the stus of the
| property.
7. Which prescribe the mode and manner !!
Of the assessment, and the rules of proceed !
ura and evidence and
| s. Which allow deductions for indebted. |
ness secured by mortgage or other liens.
/ MUST ASCERTAIN The LIMIT OF POWER
! Section 10 Of Article XIII. Of the State !
! Consultation contains full grant of powers.
| 1t is what the lawyers call self-executiug. II
| that section be legal and valid the power OF j
! the State Board under it and the limitations !
OF that power must be ascertained by an ex. .
animation of the section itself, for it ia not !
within the rightful authority of the Legis- !
lsture to take away any part of ,
the power conferred by the oon5tt.- !
tional provisions Starting with this PROPOSE. |
! tion-which cannot be dispHted-it Is mani !
fest that, if these provisions be valid, then |
that railroad property operated in more than |
one county can be assessed at any time or
place which the Board may, in its pleasure, /
elect to meet, without notice of any kind to !
persons to be affected by its action it may |
assess the roads at 800. 600 per mile, or it
J may assess them at ore dollar per mile,
and its action being final and conclusive, |
neither the railroad companies on the /
one hand, even if the power is
EXERCISED TO THE EXTENT or ooSFIscATIoN, !
Nor the people on the other hand, if the |
! Board became corrupt and should assess the !
property at 81 per mile. could obtain any re- |
| lief. The power of this Board under the /
Constitution was strongly but accurately |