Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-04-05
THE RAILROADS.
Discrimination and More of 1.-THE
Question of Taxation.


[San Francisco Bulletin, April Sd
Discrimination against railroads in the
matter of taxation Is the rock on which
our fiscal system is supposed to have beer
wrecked The Circuit Court of the United
States in two trials 50 decided As tc
what the outcome is going to be in the
United States Supreme Court opinions are
divided. II is held by some that the Court O
last resort will surely overrule the Circuit
| Court and decide that the State can exer-
else any discrimination it pleases in the
matter of taxing corporations Others are
equally confident that the Supreme Court
will sustain the Circuit Court The case
was TO have been argued last October
There was so much urgency about it that
the prospect of speedy decision was good
But the leading attorney for the people, il
is alleged, ordered the hearing to be put
over. There is no probability that the
case will now be heard before next fall
There is involved directly in the matter
100000 of attorneys fees There are
other sums also in sight Upon the whole
quite profitable legal bonanza has been
uncovered One of the objects of the ex-
ira session, as set forth in the call of the
Governor, is to make provision for the pay
ment Of these fees. One would suppose
that under these circumstances discrimina-
tion would be religiouslv avoided in all
that is proposed at Sacramento If dis
elimination of one character should prove
fatal, nothing but attorneys fees and new
legal bonanza can come out Of more Of it.
But the leaders in the Legislature seem tc
he persistently heading that way. Judge
Wallace evolved an entirely new form OF
it. The resolutions introduced by him and
adopted by the Assembly draws line be
tween railroads which have received public
assistance and those which have not.
The lire thus attempted was blurred and
indistinct. 1t would have puzzled the new
leader of the Democracy to trace it. The
inference from his premises was that rail
roads built by private capital were exempt
from State supervision Another Demo
cratic leader is credited with a statement
to the effect that Subsidized railroads
should be treated differently from those
built by private capital" But Judge
Wallace, N his argument before the As
sembly, did not establish his own PROPOSE
ton. On the contrary, if he proved any
thing, it was that roads built by private
capital were subject to State control. There
can be no degrees in control Of that kind.
All the PENNSYLVANIA law which he read
on the subject had no other meaning. 1t
does not require much argument to con-
vince anyone that il we start wrong we are
not going to arrive at the right place. The
Legislature is not starting right. If there
is to be any logical coherency in its delib-
erations it is acting on false pretenses.
Nobody knows vet whether the discrim-
ination alleged against the State in taxing
railroads is going to initiate against the
collection Of revenue from that source.
But one thing is quite clear-that one dis
elimination cannot be cured by another.
Some people may get into the offices which
they covet. The State may be put to the
trouble and expense Of long contention.
But the prospect is that nothing more sub
stantial will come out Of al! Of it but con-
tiugent fees. The strangest part of the
business is that Notwithstanding the great
activity in the discrimination line the re
latioas which the Government bears to the
railways have already been pretty thor
oughly laid down 10y the Supreme Court OF
the United States We cannot hope to do
anything at Sacramento that will change
these relations Judge Wallace can pro
duce no case TO show that subsidized rail
roads are alone 10 be subject to the super
vision Of the State He has nowhere
shown the extent TO which subsidy affects
a road that is To say, whether Il small sub
sidy affects its character as much rs u big
one.
Ii would have been much better to wait
till it was known definitely what was &C
ing to be the result Of the discrimination,
which Is now the main subject Of contest.
There was no necessity whatever for the
extra session The face Of the taxes had
been paid into Court. There was nothing
Ut stake but the interest, penalties and at
torncys fees. These latter, according to
the ayerment, however, OF one Sc W
yers, are all safe, if the State should win
The contingent fee proposition leavened
the mass. But as the Legislature is in ses-
sion it is Just as well to get out Of it all
the good that IS possible. If any change
is to be made, it should be to some we'll
tried system already in operation, which
has been judicially interpreted, and which
Is not liable to the charge of discrimina-
ton which is supposed to have wrecked
the one we have set up 1t is not sur
prising that our people should decline to
follow the leaders who precipitate them
into ditch after ditch, with no other result
but 10 benefit q profession, which does not
require these adventitious aids, to yield its
capable members splendid rewards for their
services Our people have, perhaps, done
enough already toward the enrichment Of
certain classes. But We do not think that
they can lie induced to engage in the per
manent development Of legal bonanzas