Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-05-10
TO the PEOPLE.
Hon. Greed Raymond, as a So
Ii0itOr Of the Central Pacific
Railroad Company,
ADDRESSES THE PEOPLE Of CALIFORNIA
The Anti-RailrOad Sentiment, the
Revenue Laws and the Rail-
road Tax Cases.
CORRUPTGC AND BLACKMAIL.
What Resistance TO Taxation Has
Really been Made by the
Railroad, and Why.
CORRUPTION AND sLACXMAIL.

Uftu lhut ~ kAe
Railroad, and Why.
AN APPEAL TO TEE HISTORY
OF the Railroad Tax Gases; 90 the
Principles OF = Republican Form
of Government TO Common Hon
eSty and for Fair Dealing.
To TIE P!orLE OF THE STATE OF CALIFoRNIA
For three years past ! have been intimately as
sociated with the Directors of the Central Pacific
Railroad Company. My position has been that
OF Assistant General Solicitor and as such I
have been in special charge of the cases known
rs the railroad tax cases and believe am thor
oughly advised OF the motives that induced the
Directors of that company 10 make a legal resist
ance to the tax laid upon the assessment made
by the State Board of Equalization. 1t is perhaps
unfortunate both for the railroad company and
PliD4Js tiitll III liiC VI
of the company they have not always given to
the public information which would enable the
formation OF a just judgment of their actions.
The grOSseSt misrepresentation, both of their
motiFes and OF their acts, have gone unchal-
lenged, and men who have devoted the best
years of their life 20 the development and pros
perity Of the country, who have faithfully kept
and performed their obligations moral and
legal, have allowed a sentiment to grow up,
based chiefly upon misrepresentation.
propose now TO present to the people of this
state statement of the revenue laws of the
questions involved IN the railroad tax cases, and
of the efforts made by the Directors of the com
pany for Il speedy adjustment and final settle
ment Of the difficulties arising out of these ques-
tions.
While the questions involved are constitution
a ones, and il any other country would not be
comprehended by the mass OF the people, yet
the American people, by reason of their active
participation in the affairs of the Government,
are able TO grasp and comprehend such ques-
tions; indeed, it has not been infrequently the
case that the masses arrived AZ a correct solution
of these questions in advance of the legal pro-
fcSsion. Notably was this the case upon the
greatest constitutional question ever raised
namely. that involved in the relations of the
Federal and State Governments to each other,
ana ofthe relation of the people of the Union to
each. Upon these questions lawyers and Judges
differed from the beginning and after years of
discussion were as far apart rs ever. The people
seized upon these questions in the supreme mo-
ment and determined them with such accuracy
fha- ~
dom of that determination With a firm belief
in the wisdom and justice of this people. I ap-
proach the question involved
Fox 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 the latter companies have paid
without question all taxes upon their stations
workshops and lands assessed by the same tr-
bunGls which assessed the property of other
persons within their jurisdiction. These taxes
have been cheerfully paid at the earliest mo-
ment that payment could be made, and they
amount in the aggregate 10 immense sums of
money. Since the adoption of the new COnsti-
tuition difficulties have arisen which the rail-
road companies deplore as deeply as can any
one else-difticulties which many of the ablest
men in the Constitutional Convention (and at
the head of which was Mr. Estee, predicted
must necessarily arise under the provisions of
that instrument The new Constitution pro-
yided a general system OF taxation affecting all
property within the state except railroad prop
cry operated in more than one county. This
general system, in brief. provided that all prop
erty should be taxed in proportion to its value
that Is to say, that the rate of taxation should
be the same rs TO all property. and that all
property should be assessed in the same proper
tion 70 It's value. whether that proportion was
one-half or two-thirds of the value thereof
This system required that the proportion of
value should be aScertained under Il general
law. affecting all persons and all property
within it scope. 1t required that before liza
bility was fixed, there should be notice and an
opportunity 10 be heard given TO every person
whose property was to be affected.
It gave an appeal from the Assessor to the To-
6 i Boards of Equalization elected by the people
OF the counties, which Boards held their sessions
at times fixed by law, and were required to
transact their business openly, in the presence
of the people, and to proceed according TO the
rules Of evidence, calculated to insure Justice.
II required the assessments to be made in the
county by the Assessor elected by the people, who
was to act III their presence and be directly re-
sponsible to them for his action.
It prevented property from being assessed in lc-
calities distant from the place where it was sit
uated. It prescribed the mode and manner OF
the assessment, and allowed every owner OF
| property 20 deduct from the value of the same
, the value of the mortgages, deeds of trust OF
other liens thereupon, and permitted the Asses
sor TO assess such owner only for the beneficial
! interest which he mad in the property to wit
! the value thereof after deducting the amount O
such mortgages or liens. This system, fairly ad
| miniStered would produce that equality which
is of the very essence of taxation
There are diflicultie, inherent in the subiec
| Of taxation which have hitherto rendered il i'm
possible to frame laws which under all cfrcum
stances would distribute the burden of taxation
with exact equality. All laws enacted in civil
lied countries, down to the time of the adontiol
of the new Constitution of California aimed I,
| accomplish, as near as may be, that end. an,
the general system adopted in the state OF Cali
fornia contained all the safeguards which expe
rience has taught to be necessary to the protec
tion of the citizen in his right 10 property
against unjust and arbitrary exactions
In the moment of excitement, and against tn
protest of men whose fealty to popular right
bad never been questioned, a majority of tn
trainers ofthe new Constitution excepted fror
the operation of this general and eauitabl
system the franchise, roadway, roadbed
rails and rolling stock of road
operated II more Than one county i