Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-03-05

Central Pacific Railroad, has addressed the
following open letter to Governor Stoneman:
SACRAMENTO, March :. 1854
Governor George Stoneman-Dear Sir; That in
the future ihera may be no misunderstanding in
reference TO the position Of the TsiIoad companies
take the liberty Of addressing this communication 10
You in your official capacity.
Prior to the adoption Of the new Constitution the
property Of railroad companies taxed IN the
same manner as the property OF other persons.
IN VIOLATION or THE CONSTITUTION.
The new Constitution separated part Of the prop
erty Of railroad companies nom the great mass OF
property in the State, and app'i,d 20 it a system
which the companies believed to Dc in violation OF
the National Constitution. To determine this ques-
ton Mr.. G. p. Huntington, early in 1851, COM
meaced actions in the Circuit CouJt in which the
whole matter at issue between The companies and
the State could be finally determined The State
took technical objection 70 the jurisdiction Of the
Court, and she case went of upon that ground, and
without reference 70 the merits.
In lSS2 the companies commenced proceedings IN
the Superior Court ~ san Francisco on the equity
side, t1determno the question at issue ard rendered
iu;o Court without prejudice 60 per eent. OF the
amount claimed and desired 20 tigatc FOR the bah
ance. Again the state interpreted technical objec-
tions-reiuss "a 20 rece part IAymeu, or TO e; the
cases be heard on the merits.
THE STATE COMMENCES SUIT.
The State then commenced suits 70 recover the
taxes These cases were taken into the Federal
Courts and an agreed case, known as the q" Ssn
Mate0 case was made UP between the State rcpre-
sonted hy Judge Rhodes, and the companies, rsur,-
sonted by judge Slnderson and myself This case
was taken O. tJe supreme Court. advanced on the
calendar, argued and submitted Cor decision Tn toe
meantime an election had occurred, and change in
the Ssate administration. it was assorted Or ne
press and many able lawyers puhi ly that taa ease
WAS not fair one. These tbipgs were pressed
upon the supreme Court OF the Unted Stites aud
that tribunal, as 1 ana advised, directed ;ha; ero-gh
cases should be tiled upon their merits to rr.zeat
al. the questions, and that when such casts were
brought up that tscy would advance them og ,be
calendar and hear them at orco. This vas au-
uouncci az The commencement % the Circuit urt
last August. These eases worg tried. SiN lu ula.-
Der. But one oi them las as Sc, been appealed.
That ease was taken up and motion made Go sj-
vance IT, The CoGr; rsiusai Tho ground OK chat
refusal, as stated I'm she telegram irOm Washington
% the prtss was, THAT lli must ae brought 'hsre.
and they would not hear the case by riecemeal.
A PROPOSITION F0E SETTLEMENT,
Upon my return 10 the State in October last.
made % you IA writing a proposition % settle the
whole maTter upon the basis % the assessment VI
lNS2. This you refused, giving IN writing YOUR
sons for such refusal Your r5ius1l was iu Noycm.
Der. ON thc 10Th or 18Th day of November, the
san Francisco Chronicle, IN an article commenting
upon the railroao's proposition, took the ground
that You had dO-c right but maintained that fair
settlement uf the whole matter would De for the
companies 20 pay the taxes flat. To this the COM
panes accedcd, being willing % make many s3cTi-
unul al few weeks ago, when was advised that the
Attorney-General would close the cases, 10 which
counsel employed by counties interested did not
object, upon the CbfpHic'ts proportion.
Correspondence tween the Attorucy-GenlraI
aud yourself excited the public Iaiud, aud We cor
cuded it best 10 pay the taxes according 70 the
Chronicles proposition and leave the question open
whether were liable for any more.
THE FULL AMOUNT DEPOSITED.
Imet the Attorney General in the Circuit Court,
and all the cases then on the calendar were submit
ted for decision on the testimony taken in the six
cases tried Judge Sawyer then decided the cases
for the defendant. then in open Court suggested
that, notwithstanding this decision, judgments
might go for plaintiffs for the amount Of taxes
claimed. Judge SAWYER declined TO do this without
the consent OF the attorney General, who did not
consent. At 8 p. Y. Of the same day went into
Court and moved 10 set aside the judgments and en-
ter judgments for the plaintiffs proposed MessTs.
Rhodes and DGmas were present and one or the
other objected and asked for continuance Of the
matter until next morning, agreeing, as | under
stood them, that the statu quo should be main
tanned.
1 then deposited the full amount Of the taxes with
the Clerk OF the Court to be paid to the State and
counties Interested.
As the matter then stood judgments were for the
defendants on the same evidence already taken.
The money was in the hands OF the Clerk 10 pay the
taxes
The next morning the papers published your letter
to Mr.. Delmas, announcing that in your opinion the
Legislature should be n9ened, and that you would
convene it.
a STIPULATION DRAWN.
After this all parties were again in Court, and
urged the Court to enter judgment for plaintiff
which the Court would not do unless the Attorney
General consented to set aside the judgments al
ready entered. This the Attorney General did and
judgments were entered accordingly, silting in
open Court what strictly true, u az desired 10
get the money into the State and cou0ty treasures
as soon as possible and that the stipulation made
by the Attorney General and myself was not in
tended, and under no circumstances should be con-
strued to cut off any lights which the State would
have to appeal further drew the following stipu-
lation, which embodied my understanding Of the
situation:
"In the Circuit Court Of the United States.
Ninth Circuit District OF California. Title OF
Court and cause. 1T is hereby stipulated by and
between the parties TO the aboveentitled acou that
a writ OF shall be taken in said case to the Su-
preme Courv Of the United States, upon a record
which shall fully present the question whether the
defendant is liable for penalties interest and at,or
neys fees claimed in said action.
"And it is further stipulated that both parties
will join in the request to the Supreme Court either
TO advance said case at once for hearing and de.
csior or If that cannot be done, both parties will
stipuate to submit the upon written printed
arguments as soon as it can possibly be done"
WAITING TO HEAR FROM THE SUPREME COURT.
then telegraphed as fully as possible the situa-
ton TO the Supreme Court at Washington, and asked
them to hear test case at once, and am at this
meut expecting to receive an answer
While l am OF opinion that the entire rights OF
the State involved in this controversy saved las
it was intended they should be) By the Judgment al
ready entered and proposed to be entered in favor
of the State, yet am perfectly willing to place the
point beyond controversy by any argument any
form of judgment that may be necessary for this
purpose, so that doubt can be entertained by
anyone, and so that every question involved be-
tween the railroad companies and the State may be
set at rest forever, and decided finally and AT once
by the Supreme Court of the United States, no
question remaining.
l have thus my dear Governor, epdeayored to
give you plain statement of the precise status Of
the litigation now pending, and of the entire will
ingness and readiness of the railroad companies
now, as in the past, TO bring the controversy be-
tween shem and the State to an immediate and fiaa
conclusion, have the honor to be your ohedient
servant, CREED RAYMOND,
Assistant General Solicitor c. F. R. H. Co.