The record-union., 1893-07-29
RAILROAD ASSESSMENTS.
The ReasSeSsment of Delinquent
Taxes Resumed.
Agent Ryan Presents the Southern Pa
cific Side OF the Question to the
State Board of Equalization.

morning.
Z. Black Ryan addressed the board,
saying that they knew under what con-
ditions the new Constitution was adopted
and what efforts were made to bring the
railroad to the front. In an address be-
fore legislative committee, ex-senator
Cross once said that when the railroad
question came up before the Constitu-
tiOnal Convention it went through with
hurrah.
Thereafter when the State Board of
Equalization was elected they considered
it their duty to assess the railroads all
they could stand and to bring the assess
ments on the roads up to the highest
standards. In 1880, 1881 and 1882 they had
raised the assessments 100 per cent. and
considered they had done their duty to
their constituents. In 1888 and 1884 they
piled Pelion upon Ossa and raised the
assessment 800 per cent. higher.
1t was then considered by the law de-
partment of the company necessary to
draw line against further action of this
sort as the very existence OF the property
was assailed.
There were then members of the board
who were still willing to go further un-
der one excuse or another.
WILLING TO PAY.
The company was not unwilling to pay
It's just taxes, but wished to escape assess
ments that threatened to conhscate their
property. There was not year that a
tender was not made of fair proportion.
Many tenders were accepted and many
counties were paid in full. In 1882 the
company paid over Sl,000,000. Time and
again the speaker had taken as much as
$4,000 in money to make fiat payment
OF its taxes, and was told that he must
wait until the Attorney of Record could
be consulted. He would see in the papers
the next morning his answer given in
column or two OF abusive matter.
MARSHALL RECEIVES IT.
Under this experience he came to 1888
and 1884. Attorney-General Marshall at
that time took hand in the prosecution
of certain suits for the collection of taxes.
About two and one-half tons of gold were
paid by the company to Mr.. Marshall.
He asked that it be deposited with the
State Treasurer and that the State take
the control and disbursement of it.
He was met with the statement that the
Treasurer could not receive it, and re-
fused to do so. suit was afterward
brought to force that officer to receive it,
and the court ordered that he should do
so. This was a payment made under
stipulation made in open court, that it
ment the courts might decide to be still
due. If the courts decided the road must
pay more it would be paid by the COM
pany. In all the tenders made by the
company this stipulation was in
serted, covenanting to pay whatever the
courts decided it should.
COUNTIES RECEIVE THE MONEY.
Mr.. Ryan further stated that he went
to various other counties on the same
mi G-ip IN a. nd xayne sd . ~,
counties accepted the money, part of
them accepting the State taxes also.
They were paid and the receipts received,
and when the counties came to pay the
State they were met with the same objec-
ton. 1t is known that the company has
no receipts for taxes of 1885, 1856, 1887, as
II did not pay them for those years,
DUNN REFUSED.
He went himself in 1885 to the Con-
troller, and in the presence of s. G. Dem
son offered him 60 per cent. of the as
sessed taxes on account, with stipula-
ton that such payment should only be
considered as on account and should not
prejudice the payment of a further
amount if the courts decided it to be due
the State.
The payment was refused, and he was
told that the Controller could not accept
II. In 1886 he made the same tender,
with like result. The courts decided
that 1t could be paid in part, and tie
company always stood ready to do so.
The same tender was made in 1856 and
1857. The company then paid the taxes
on the smaller roads, all but the five
roads under consideration.
Mr.. Ryan said he wished to tell the
board that these suits were not brought in
order to escape paying the taxes; the
company only wished to know whether
they were to be allowed to exist or were
to be taxed out of existence.
THE INCREASED ASSESSMENTS,
Up to 1885 certain amounts were paid
to some counties. He would refer the
board to their own archives to verify his
assertion as to the increase in railroad as
sessments after the State Board of Equali-
zation was instituted. In 1884 the assess
ment was made still greater, as they ad-
ded enough TO make the assessment
nearly $40, 900 per mile, making the taxes
5000 per mile. he had not been able to
find any other State that taxed railroads
at more than $3.50 per mile
The company telegraphed to the Con-
trolIers OF various States to find out the
assessed values of railroads in their
States, the number of miles assessed and
taxes paid. In no instance did they
find showing that in other States rail
roads paid over one-half that amount,
while in this State the population was not
nve TO the square mile as compared to
hundreds in other States.
DECLARED INVALID.
In 1880, 1881 and 1882 the assessments
were declared invalid, as the fences were
assessed with it. In 1888 and 1884. if he
remembered rightly. it was decided in
valid on the mortgage proposition and
the bay between San Francisco and Oak
land was assessed as part of the mileage
DUNN WAS HOSTILE.
Mr.. Ryan read long extract from the
report OF Controller Dunn. which states
that the history of the railroad tax suits
is one presenting deceit, misrepl lesenta-
ton and false and fraudulent records
upon the part of the railroad companies,
and denying that the fences and distance
across the bay were assessed.
The gentleman who prepared this re-
port, Mr.. Ryan said, was one of the Board
Of Equalization, sitting in judgment on
the claims Of the company.
DELMAs WANTS HIS FEE.
Judge Rhodes, in his intercourse with
him, he had found always fair and cour-
teOus, but the attorney who was asso-
ciated with him met him (Mr Rvanl at
every turn with a demand tor his fee
that is, he did not ask so much for the
taxes as that he should be paid before
they were settled, and when the company
offered TO pay its taxes to the State and
counties the elalLn was always inter
posed that settlement could not be had
unless the attorneys fee was also paid bv
the road.
DISCRIMINATING ASSESSMENTS,
In 1888 and 1854, Mr.. Ryan proceeded
there was not over Is per cent. increase
in the assessment of ordinary property.
while in that of the railroads there was an
increase OF 100 per cent. The records of
the state Board Of Equalization show that