The record-union., 1893-01-19


force them to certify into the State Treas
ury the moneys collected by f. c. Mar
shall from the railroad companies. In
order to fully explain the facts in the
case, the decision is embodied within
General Harris report. The effect of the
decision was that the judgment therein
referred TO was held not to be void, and
that il was the duty of the State Con-
troller to certify the sums into the State
Treasury.
There was unpaid and alleged to be due
from Southern Pacific and Central Pacific
systems after crediting the amounts paid
In through Marshall:
SAL 6,252 %
222,252 33
Total. .............. .S962,356 10
The above does not include interest or
penalties.
General Hart says: ''If the agreed judg
ments in the United States Circuit Court
IN the cases transferred thereto, in refer
ence to these taxes and the settlement
with Attorney-General Marshall are to
be considered as binding and conclusive,
it is questionable whether the State can
ever recover any portion of the above
amount of delinquent taxes by re-assess-
ment, for it cannot be said that the assess
ments were so void that the Legislature
assessment for those years.
II have nothing to add regarding At
torney-General MarshalPs conduct in
those cases. The statements made by
Controller Dunn in his official report re-
garding said litigation are a sufficient
commentary thereon"
This closes the Attorney-GeneraPs con-
sideration of the first branch of his re-
port, the taxes l8S0-16S4 inclusive.
The second branch of the report is con-
fined to the delinquent taxes of 1885, 1886
and 1887, no portion of which has been
paid.
Controller Dunn's report of the thirty
eighth and thirty ninth fiscal years is
quoted at length.
In the same report Controller Dunn
states that actions were brought to recover
the taxes of 1885 and 1886, but that none
were commenced for 1857 after advising
with the AttOrney-Generil (Johnson).
Attorney-General Hart severely criti-
clses Dunn for this action. He says that
II the Controller was correct in saying
that Attorney Marshall had not
presented fair case tor the State in
previous years, it was not good reason
why with another Attorney General the
Controller should have deemed it un-
| necessary to bring new suits by which a
proper presentation could have been
made.
OOutIOl46E Duun cOQlu nave secured al
least 90 per cent of the taxes of 1885 and
1886 for the State if he had consented to
certify that proportion into the Treasury
on account of said taxes. He refused,
believing that by refusing to accept par
tial payments, the State could obtain the
whole amount. Attorney General Mar
shall, on the contrary, claimed that what
ever was secured from the railroad would
be so much gained. Dunn and Marshall
were so much taken up with their con
troyersy that the railroad companies were
practically undisturbed, and were not
pushed in due season for the taxes Of
1855 and 1856.
''In my opinion" says General Hart,
'Mr. Marshall, as Attorney General, was
over-reached in the matter of railroad tax
litigation"
Then follows history of the various
suits brought in reference to these taxes.
The Attorney-General gives it as his
opinion that II am certain that the pro-
visions OF our Constitution upon the sub
ject of railroad taxation are not in viola
ton of the Federal Constitution" on
which point he quotes numerous author
tiles.
The face of the total taxes for the years
1885, 1886 and 1887, alleged to be due and
unpaid from the Southern Pacific and
Central Pacific systems is as follows:
1850 ........ S715,3G3 SO
4oo0-'..-...'... O4S,907 05
1857. 647,439 20
Total.................. ............S2, ,011,76o is
General Hart explains a difference of
S20,94l 81 between his figures and those of
the Controller (forty-second and forty
third fiscal year., by saying that taxes of
the North Pacific Coast Railroad to that
amount were charged against the South
ern Pacific Company.
Then follows statement of total taxes
assessed to Southern Pacific system from
1880 to l893 inclusive. Of these the taxes,
1880 to 1884, inclusive, were compromised
by Marshall on the basis of about 80 per
cent; 1885, 1886 and 1887 are unpaid and
in dispute; and since 1887 all have been
paid.
''Since 1887 the railroad companies
have not claimed that the Federal fran
chise has been assessed, and by reason of
authorities quoted they have also prac-
tically abandoned the defense of the con-
flict of the State Constitution with the
Fourteenth amendment to the Federal
Constitution in reference to the assess
ment of railroads operated in more than
one county; and in reference to the de-
duction of railroad mortgages as fully
shown from the fact that the companies
have promptly and fully paid all taxes
levied since 1887. and the offer of the rail-
road, through its attorney Mr.. Craig. to
/
and costs in the case of The People VS..
The San Pablo and Tulare Railroad Com
pany, now pending in the United States
Supreme Court.
'In view of the decisions above cited, I
think that litigation in this State arising
out of the levy of taxes upon railroads is
practically ended, except as to the taxes
remaining unpaid. If an adjustment of
these taxes can be made the people will
no longer be burdened with litigation in
reference to taxation of railroad com
panies."
The Attorney General deems it curious
that his predecessors should have per-
mitted the question of the taxation of
Federal franchise (which could apply
only to the Southern Pacific and Central
Pacific main lines to interfere with suits
brought against branch roads.
Elaborate tables are offered showing
the proportion of railroad assessed prop
erty in the State to the entire assessed
value OF all property for each year from
1850 to 1892, inclusive, and the Legislature
is permitted to draw thereirom its own
conclusions as to whether the claim of the
railroad company that its assessment in
years past was an exorbitant one be cor
rect.
The summary of Attorney General
Hart's report is as follows:
The total amount of State and county
taxes due from the Southern Pacific and
Central Pacific systems on account of the
face of taxes unpaid, is as follows:
1SSO-S1-S2 1-S2-....................... S416,252 2S
222,2O1 SO
323,e02 4S
- I10,oO3 S3
64S,90I %
647,439 20
20
The above statement does not include