The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-01-25
THE RAILROAD TAXES.
Argument Before the Senate Com
n1ittee on Corporations.

l4tAllCC Oil
SACRAMENTO, Jan. 24.-The Senate Com
mittee on Corporations met this evening to
listen to discussions on the railroad reas-
sessment bill. Senator Carpenter presided.
Ex-senator c. W. Cross and Stephen T.
Gage, representing the Southern Pacific
Company. were present Shanahan. the
author OF the oil, was first called upon to
address the committee. He said that he
had not been able 10 devote the attention TO
tho bill that it deserved. and could not,
perhaps, present as skilful an argument a
could some Of the corporation attorneys
who were present. But he knew that tie
taxes Of tbe railroad company remained IN
paid, and he favored a measure which would
force them TO pay a debt which they justly
owed.
There was only one question TO consider. he
said, and that was railroad taxation. The
bin applied generally. but he would only
speak of the bin a. il applied to the railroad
company. He thought perhaps ii might be
advisable to amend the bin, so that it would
90 back TO 1879. But that was the only
amendment he approved of. Great wrongs
had been imposed upon the people Of this
State owing to the non-paYment Of these
taxes. 1t had caused the closing OF the
schools in his county
He then referred to the discrimination
which had let the railroad company off with
) per cent on delinquent taxes as against Is
per cent that had been imposed upon pri-
vate individuals. For years the railroad
has refused to pay its taxes upon one tech
nicaity and another, while all the other
people of the State were compelled to con-
form to the law. He thsn referred to the.
practice Of the company Of paying money
in for taxes and calling it donation. This
was subversiVe to the true principle that
should control and govern the State.
The sum Of $3.50, 600 has been withheld.
and this without reason or cause. In doing
so the very manhood of the country has
been debauched. officers have departed from
the behests of their constituents and have
voted in the Legislature against the inter-
ests of the people. II an individual or cor
Doration buys property upon which there
is a delinquency the purchaser assumes
that debt and responsibility. lie said he
believed that the bill was all right except
Ing that it ought'to be amended so as to go
back 10 1879. The railroad company has
boosted that it would rather pay $4,000
more than could be collected under the
terms Of the bill than pay one cent into tie
State treasury.
Shanahan then gave the authorities TO
back up his assertions. They were the
same as he presented to the Assembly
when the bill came up there for argument
DR.. J. F. Mcconnell of Sacramento fol-
lowed Shanahan with a few remarks. He
said he understood that the railroad men
were here ready to pay their taxes If that
was true he was sati, fed. but if they were
not going to pay, why, he was in favor Of
the passage Of the bill.
Carpenter said that tho committee was
not the railroad. The committee had no
money to pay taxes with they were here to
make laws.
Mcconnell replied that the creatures
should not be above the creators.
Attorney Gross, representing the Southern
Pacific Company, spoke next. He opened
with the startling statement that there was
not one cent Of tax due from the Southern
| Pacific to the State. There could not be a
tax due until one had been levied. Let the
| Legislature impose upon the farmers of the
| State an unjust tax and every one of them
would resist. Impose upon the great mer-
! chant class an unjust tax and they, too,
would rise up and resist. ANY system which
4 q
publican system. There has not been one
cent levied on the Southern Pacific since the
adoption Of the new constitution that has
been legally levied. There is not to-day
any law in California under which one cent
I of taxes can be collected from any railroad
operating in this State.
Mr.. Cross said that when he was mem.
Der OF the Senate he had undertaken to
amend the presen: bill so that the matter
could have been settled, but the moment he
raised his voice in that direction the Other
me bers cried out railroad man." and
then the bill went through with whzz and
! whirl.
He argued that proper consideration is
not given to big measures before the Legis.
| lature. AS an instance he cited the action
taken on the present bill In the Assembly
1t passed there with practically no opposi.
ton, and when it came to the Senate it was
with difficulty that it was placed in the
hands OF the Corporation Committee. Then
| when it did reach that committee the author
| of 1t, after cool and calm consideration
was not sure but what al amendment ought
| to be made TO it.
| II it were to be amended so as TO 90 back
TO 1879, why not 20 back 10 1S49? Every
piece of real estate Ia the State would have
to be reassessed twelve different times il
this bill is passed. IL it be true that all Of
the courts of this State and the Legislature
is corrupt, what Is tne use of passing the re.
assessment bill? The attorney. however
| declared that he did not believe chat this
was true.
Cross contended that the Federal fran