Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-03-03
TEE RAILROAD TAX CASES.


We do not believe that the history of
any part of the country will disclose a par
allel to the result of events of the last few
days in the Federal Court at San Francisco.
The State appealed to the proper tribunals
to enforce the collection of taxes against
certain railroad corporations, In a large
number of these cases the judgment OF the
Court upon the facts as elected before it
in one case, which was a full and ample
test of the tissues in all, went
againt the State. The commonwealth was
therefore beaten, so far as the lower Court
was concerned. It was determined by
proper tribunal that the claim for taxes
was nos valid one, that the State had not
properly assessed the railroad companies
and that they were entitled to be protected
against the attempt to collect from them
sums not due to the State on legal grounds.
Thereupou the defendants, recognizing that
it is a duty to pay just tax, and desiring
in no way to cripple State upon the pros
perity of which their own success depends,
came into Court and paid in the principal,
and consented to the judgments gained be-
ing set aside and judgments entered for the
State aud against themselves. Thus the
State received every dollar it claimed of
the principal, and to make perfect clear
ance Of the ground the defendants agreed
in open Court that no right of the State to
have test cases carried to the Court of final
resort on appeal as to other sums claimed
should be obstructed by any act or
objection of theirs, but, on the
contrary, should be specially reserved,
for the State claims certain penalties
by way of percentages and attorneys fees
and interest upoa the delinquent taxes,
and the legality of which are now at
issue. These penalties are not paid and,
as we understand it, their payment will be
resisted on grounds which would appear to
be so legally fortified that no other than
defeat Of the State will be the outcome
Everything, then, which can be, or is de-
HlIGu 10 bG LahNu ~ tlAt bACiAAl OEhlG VI
the United States, ia in condition to go
up, and, if the appeals are not taken and
perfected, the fault will be With the
representatives of the State in the case. 1t
will thus be seen that there is nothing it
may desire TO complain of on the part of
the State of which it has been deprived.
l,I - -,,,I
No right of the State to appeal has been
vacated. Every remedy the State has had
to test the validity of its assessment and
tax methods IS TO railroads remains to it.
And, now, what has been the result of
the Court proceedings? In the face Of the
record, and which to the fair-minded is
conclusive refutation of the libelous charge
that the railroads are or have been seeking
to avoid their fair share of the cost of State
and county Government, the cry still goes
W to the Governor for an extra session of
the Legislature. Obviously it can be but
for one purpose-to "cinch the railroad
organizations by urfriendly and vexAtious
legislation, in order to crafty malicious
envy and personal ambition. Nothing
could be done at such a session to add to
or advance any right the State has, nor de-
prive the corporations of any rights they
have before the tribunals of the country
but the opportunity to annoy the railroad
companies is very tempting one to the
average dsmagogue. 1t is said to be a mat
ter of doubt as yet-notwithstanding the
s,mi.official announcements given out
As to whether the special session
will be called. The pressure brought to
bear upon the Executive to secure it has
been very great, and very annoying no
doubt. and the position of the Governor
anything but pleasant. But it must be OBJ
yious that whatever reasons the rabid sp.
pellants for an extra session may have
plausioly set forth, go far as the railroad
taxes are concerned, have now been dissi-
pated to the last vestige. There has been
no compromise of a single right bat on the
contrary express record has been made that
no right possessed by the State to prose-
cute the mooted paints Of law to final con-
elusion shall even be assaulted by the de-
fendanss. If, after these developments, a
call is still issued, it must be based upon
other eror Ids than those recently SO much
debated relative to railroad taxes. 1t is