The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-01-31

securities for payment Of money it may
| allow deductions for indebtedness or not
allow them"
In view of this decision can II be said that
| anything is left of the claim that our con-
stitution violates the fourteenth amend
ment. because mortgages are not deducted
from asse ssments Of railroad property?
Mr.. Cross has endeavored to have this
committee understand til at the reason that
the Southern Pacific Company has paid its
taxes since 1888 is that the Federal fran
| chiSe las not been assessed since 1887 To
show how absurd this claim is / need but
to call your attention TO the fact that
for the year 1885 five railroads oper-
ated by that company are delinquent, of
which three viz: the California Pacific,
Northern Railway and San Pablo and
Tulare. have no franchise save the State
franchise. For the year 1886 the same roads
are delinquent and for 1887 the same roads,
together with the South Pacific Coast road
now owned by the Southern Pacific COM
pany, are delinquent. None have Federal
franchise, yet the taxes are unpaid.
III the alleged assessment of a Federal
franchise to the Central and Southern Pa
cihc railways was the stumbling block in
the way Of the payment Of the taxes prior
on the roads which are not claimed to pos
sess Federal franchises?
Again, it is claimed that the assessments
for the latter years are less than formerly
because Of the exclusion of the value of the
Federal franchise from the assessments
made subsequent 10 1887.
| 1t will be seen that the Central Pacific
assessed for so, 900. 600 in 1885. fell to
| in m G
If the decrease in the assessed value OF the
road of s3,oOO.OOO between 1887 and 1888 is
to be accounted for by the elimination of
the Federal franchise from the assessment
OF 1888, upon what or und is the decrease OF
100000 between 1885 and 1887 to be ac-
| counted for?
1t Will be seen also that the assessment Of
the Northern Railway for 1883 was fixed at
| $4,000 below the assessment of 1884,
There was no Federal franchise to eliminate
from the assessment of the Northern Rail-
way for 1888, yet the value for assessment
| purposes fell off proportiOnately more than
In the case of either the Central or South
ern Pacific.
The San Francisco and North Pacific
Railroad was assessed for 100000 less in
1888 than 1887; the Nevada County Narrow
1887; the San Joaquin and Sierra Nevada
Railroad $4,000 less in 1888 than in 1887 /;
the Atlantic and Pacific Railroad S15, 600
less In 1888 than in 1887, and the Pullman
Palace Car Company S55.2 02 less in 1888
than in 1887.
These roads had no Federal franchises to
eliminate, yet they were reduced as we'll as
the Central Pacific and the Southern Paci6'.
These reductions are cited to show that the
assessed value of the Central Pacific Rail-
| road has undergone steady decline since
| 1884 and the Southern Pacific since
1885, and that the decreased valuations of
| 1888 were not confined TO the roads possess
ing Federal franchises, but embraced other
roads not claiming to have Federal fran
/ chise, and that as fact such decrea sed val
uatiOns in the year 1888 were owing TO
| considerations wholly independent Of the
| Federal franchise question.
a great attempt has been made to show
that the assessment Of each railroad as a
unit in 1883 and following years, as advised
| by the Attorney General and other attOr-
neys representing the State and counties in
the tax litigation, was responsible for the
| decision declaring the assessment of rail-
roads for 1885 as void, because of the finding
| That the Federal franchise was included. yet
! that court also found that fences and steam
boats were included in similar cases.
! The railroads found no trouble in securing
| finding in the Circuit Court that the Fed
| eral franchise. fences. steamboats,, and the
distance across the bay of San Francisco
were included, and certainly the procuring
OF the finding that the Federal franchises Of
the Central and Southern Pacific railroads
were included in the assessment is not to
be wondered at when 1t is rememb ered that
| In the same eases a finding was procured in
| cause No. 1863 against the Southern Pacific
| for the taxes of 1884, that the State
Board of Equalization had Included the
distance of tour miles from the wharf at the
road Of the defendant in San Francisco,
across the Bay of San Francisco TO the
wharf at Oakland, and this was done in the
face Of the written record of the assess
ment, that is the assessment roll, certified
| by the chairman ana clerk of the board and
fled with the Controller showing that the
assessment followed to the wharf at San
Francisco where IL stopped and was taken
up anew at the mole in Oakland,
Mr.. Ryan has given us the views Of the
railroad people as to what they will regard
as an unreasonable assessment, and he de-
cares that relevy of the taxes for 1885,
1856 and 1887 at the State and coun ty rates
of taxation for those years, is as Objectional
as the placing Of the same value upon the
property as was placed upon il for those
| years.
The valuations placed upon these rail-
roads by the State Board of Equalization
for the years 1885, 1856 and 1887 compared
with the assessed valuation for 1892, are in
terestiDg as showing that. although other
classes of property have advanced in value
and the assessed valuations of property in
the several counties of the State have stead
lily increased, yet railroad property through
the action of the State Board OF Equaliza-
ton, is made to appear to have steadi ly
declined In value. and this notwithstanding
the increased mileage assessed. The Gem
| trail Pacific, with 6406S miles in 1885 and
1856. was assessed respectively S22.000,O00
and $50, 000,0 600 for those years, and for 1887,
with 1880. it was assessed for but SIS, O0O-
600, while for 1892, with mileage Of TAG 76
-106.0S miles more than in 1SS5-the assess
ment fell TO $4,000. 900.
The Southern Pacific Railroad was as
sessed for the years 1885 and 1886 at
| S17,C00000 for each year. the mileage, 957. OF,
being the same for both wears. For 1887
/ the mileage increased 10 1922. 80 miles. while
the assessed valuation declined toSl6 SOC, O00
! For the year 1892 the mileage of the Southern
! Pacific Railroad increased to 170l 40
miles. but the assessed valuation declined
! o S15,SO0.000. Thus the Southern Pacific,
with 67907 more miles OF road assessed for
the year 1892 than was assessed for the year
1887, is worth 100000 less in 1892 than 1t
| was worth in 1887.
The Northern Railway was assessed in
1887 for SO. 000.0 600. the total mileage being
148 46. Subsequently the Northern Railway
absorbed, among others, the Vacavillo Val
| ley aud Clear Lake, the Sacramento and
Placerville and the Amador branch rail.
roads, so that In 1892 the total mileage of