Daily Los Angeles herald., 1884-06-03
NEW TO-DAY.
Mr.. Hayman's Letter.
TO The People Of he State Of California. !.

| ASAks AA0y AAAssAA q AAOevSAs
10 The People Of HE State Of California
For three years past have been intimatel
associated with the directors Of the Central Ps
clhc Railroad Company. Ny position has bee
that Of Assistant General Solicitor. AMI as sue
have been In special change OF the cases know
as the railroad Tax Cases, and believe ! al
thoroughly advised Of the motives that induces
the Directors OF that company to make Il lega
resistance to the tax laid upon the assessmen
made by the state Beard Of Equalization. 1t
perhaps unfortunate, both Tor the railroad com
pany and the public that In the busy life OF thu
Directors 0f the company they have not Away
| given to the public information which would en-
able the formation Of q Just Judgment o
their actions. The gros est misrepresentation
| both OF their motives aud Of their ts, have gon'
| unchallenged, and men who have devoted tn,
best years Uf their life to the development anc
prosperity OF the country, who have faithfully
Kept and performed their Obligations. moral and
| legal. have allowed q sstiment to grow up, based
chiefly uDon Misrepresentation.
| ! propose now to present to the people OF thi,
| State a statement Of tho revenue laws, Of The
questions involved In the railroad tax cases, and
| Of the efforts msde by the Directors OF the I'M.
| pany for a speedy adjustment and final settle
mcnt Of the difficulties arising out OF 'hese ques
| tions
While the questions involved are Constitution.
| al ones, and In any other country would not be
comprcheBded by the mass OF the people, yet the
American people. by reason Of their active par
ticipation In the Affairs OF the government, are
/ able to grasp and comprehend such questions;
indeed, 1t has not been inirequently fhe case
| that the masses arrived at o correct solution OF
these questions in advance Of the legal pro.es-
sion. Notably was this the case upon the great
est Constitutional question ever raised, namely,
that involved In the r, ,ations Of the Federal and
State governments to each other. and OF the re-
lation Of tho people Of The Union to each. Upon
these questions lawyers and Judges differed
from the beginning, and after years u disclssion
were as far apart AZ ever. The people seized
upoR these questions In the supreme moment
and determined them with such accuracy that
now no one questions the Justice or the wisdom
of that determination. With firm belief in the
wisdom and justice OF this people 1 approach the
questions involved
For many years prior to the adoption OF the
new Constitution the railroad companies OF Cal.
iforhia and especially those belonging to the Cen
lral Pacific systen,I aid their taxes promptly and
since the adoption OF thu new Constitution the
latter companies have paid without question all
tixes upon their stations. workshops and lunds
assessed by the same tribunals shich assessed
the property OF other persons within their juris
uiction. These taxes have been cheerfuily paid
ut the earliest moment that payment could be
made. and they amount In the aggregate to
immense sums o. money. Since the adop-
tion or ths new Constitution difficulties have
arisen which the railroad companies delloie as
many Of the ablest men in the Constitutional
Convention (,nd at the head VI which was Mr..
Estee) predicted must necessarily arise under the
provisions Of that instrument. The new Consti-
| tuition provided u general system Of taxation af
fecting all property within the State except rail-
| road property operated In more than one county.
This ge .iersl system, in brief, provided that all
property shonld he taxed in proportion to its
value. that is to say, that the rate OF taxation
should be the same as to all property, and that
| al mr. ahnult hp Spu in the mr.
portion 10 its valne, whether that proportion
was one-half or two-thirds OF the valu, thereof
This system required that .he proportion OF value
should be sscertained under q general law af
fceting all persons and all property within its
scope. II required that, before a liability WAS
fixed. there should be notice and an opportunity
to be heard giyen to every person whose proper
ty was to be affected.
1t gave an appeal from the Assessor to the To-
cal Boards Of Equalization. elected by the people
OF the counties, which Boards held their sessions
at times fixed by law, and were required 10 trans
act their business openly. in the presence OF the
people, and to proceed according TO the rules Of
evidence, calculated to insure Justice. 1t re-
qured the assessments to be made In the county
by the Assessor elected by the people who was to
act In their p essence, and be directly respon-
sible to them for his action.
It prevented property from being assessed In
localities distant from the place where it sit
uateti. It prescribed the mode and manner Of the
assessment, and allowed every owner OF properly
to deduct from the value Of the same the value
OF the mortgages, deeds OF trust or other liens
thereupon, and permitted tho Assessor to assess
such owner only for the beneficial interests
which he had In the property, to-wit: The value
thereof after deducting the amount OF such
mortgages or liens This system, fairly ad-
ministered, would produce that equality which
is Of the very essence OF taxation.
There difficulties inherent in the subject OF
taxation which have hitherto rendered 1t impos'
sible to frame laws which under all circum-
stances would distribute the burden Of taxation
with exact equality. All laws enacted In civil
lied countries, down to the time Of the adoption
Of the new Constitution OF California, aimed to
accomplish, as near as may be, that end. and
the general system adopted in the state OF Cali.
forna contained all the safeguards which ex-
perience has taught to be necessary to the pro-
tion Of the citizen In his right to property against
unjust and arbitrary exactions.
IN the moment OF excitement. and against the
protest OF men whose fealty to popular rights
had never been questioned, majority Of the
trainers OF the new Constitution excepted from
the operation OF this general and equitable
system, the franchise, roadway, rosdbed, rails
AMI rolling stock OF roads operated in more
than one county In the State. They singled out
from the mass Of property not all railroad prop.
erty, nor all property operated in more than one
county, but railroads operated in more than one
equity, and applied to them a special system Of
taxation.
This special system is found in Section 10,
Article Kill, OF the new Constitution, which pre-
scrbes that ''ihs franchise, roadway, roadDed,
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 actnal value, and shall be apportloned to
the counties, cities and counties, cities, towns,
townships, and districts, In which such ra lroajs
are locIted, in proportion to the number OF
miles OF railway laid in such counties, cities and
counties, cities, tjwns, townships and dis
tricts."
This special system, by virtue Of Section Of
the same tcle as construed by the supreme
Court of California, prevents the owners Of such
property from deducting from the value thereof
the mortgages or liens upon the same, and
denies to the owners Of such property all protec-
tion from the general laws OF the land. consitu-
tional or otherwise, which
Fir't-Require that property shall be taxed
in proportion to its value.
Second Require such proportion TO be ascer-
tained by the general law.
Third-R squire that before liability be fixed
NOTICE AND AN OPPORTUNITY TO BE
HEARD MUST BE GIVEN
[NoTE-Sincc the above was written, the
Supreme Court Of the United States. all the
Judges concurrng, have, In the case OF Hagar
vs. Reclamation, District No. los, considered the
l4th Amendment as applicable to revenue pro-
ceedings and have held that when taxes col
lected by an assessment on and valuation Of
property, that such proceedings are invalid, and
the tax Hereunder void unless the law under
which the proceedings are had, provides for
nOtlCt anu gives tiit lN"pklcT opportunity 10
be heard before his liability is fixed This deci.
sion would seem TO dispose OF all the tax cases
in favor Of the railroad companies,
Fourth-Give an appeal from the Assessor to
another tribunal.
Iiith-Require the assessment TO be made in
tn, county, and prevent its being made in a
locality distant from the situs OF the property.
Sixth-Prescribed the mode and manner Of
the assessment, and the rules of procedure and
evidence, and
Seventh-Allow deduction for Indebtedness
secured by mortgages other liens.
The section in question which Ii t-this property
out II the pro uction Of the general laws Of the
land contains q full grant Of powers 1t is what
lawyers call a selfexecuting section. II it he
legal and valid, the power OF State BOARD
| under it, and limitations OF that power, can
| only be ascertained by an examination OF the
section itself. 1t is not within the rightiul
| authority Of the Legislature to take away any
part OF the power conferred by the constitutional
provisions II these eNceptional provisions are
valid, then railroad property operated in more
| than one county can be assessed at any time or
| y,ce at which the Board in its pleasure may
elect to meet, without notice OF any kind to any
| lerson 10 be affected by its action, and without
| an opportunity to be hS ard after its action, for
| ts decision is declared TO be final.
That Board may assess the roads at one
hundred thousand dollars per mile, or it may
assess them at one dollar per mile, and its
action being final and conclusive, neither the
railroad companies on one hand, even IL the
power ~ eN~fJiscu 10 nor people
on the other hand, II the Board becomes corrupt
and should assess the property At one dollar per
mile, could obtain relief.
Referring to this system, one OF the most dis.
tinguished lawyers in this country, spanking In
the presence Of the highest Judicial tribunal,
said. Somewhere In one OF these briefs II is
written that the author has fearched from the
time OF King John for 80 fragrant an Instance Of
disc eliminating and arbitrary taxation within the
pale OF the common law, and that the example
h.f ne Iaaha ali the rest Re this n IL mn
for enterprise and ingenuity. for rude yet Gun.
ming severity for irreverence for law, for dislain
OF obstacles, Appearances and traditions, and
for contempt Of vested rights, 1t seems safe to
SAY, that carried away the excitement, Cali.
fornt has in form sanctioned provisions without
parallel In the Constitutions of North American
States made by white men for white men. In our
tine"
In the exercise OF this monstrous power, and.
as am advised at the dead hour OF midnight,
the first State Board OF Equalization made an
assessment OF railroad property. The valuations
placed by that Board upon single track railroads,
rnnnin nn chiefly kIonVh thinlY hettled ceunties