The record-union., 1893-07-28
be more costly than the trestle-

would be more costly than the trestle-
work.
The roads belonging tc the Northern
hallway were then taken up. They are
the Sacramento and Placerville, Amador
Branch, Santa Rosa and CarquineZ, San
Joaquin and Sierra Nevada, Vaca Valley
and Clear Lake, West Side and Mendo-
clno, Woodland, Capay Valley and Clear
Lake, Berkeley Branch and Shlngle
Springs and Placervilie roads.
MIR. klink testified that on this system
the earnings had fallen off during the
present year about 10 per cent.
The South Pacific Coast road had suf-
tered an interruption of traffic this year
from washOuts and the caving of tun-
/ neI, which had made deficit in the earn
Ings. and it would be lucky if it could
pun up so as TO come out even at the
end of the year.
The question OF the reassessment of the
roads came up next and Mr.. Ryan took
1t up as a whole, down to the year 1856.
he SAID From 1880 to 1855, inclusive,
ne thought the assessment of each year
has been declared illegal by the courts
or 1856 the assessment, although it has
an lnvalidity existing in it, has not yet
been declared invalid. The taxes for the
year 1897 are IN suit and now on appeal to
| the supreme Court of the State. Judge
Hebbard in his decision declared that the
assessment Is valid, in face of the testi-
mony to the contrary. There is no ques-
ton in my mind as TO the invalidity OF the
assessment OF 1887, for the following rea-
sons:
"First-Testimony of members of the
State Board of Equalization had before
the Judiciary Committee OF the Legis-
lature OF 1889 and Corporation Committee
of 1893, as to Federal franchise.
''Second-Admissions made to myself
at different times, in different years when
have appeared before the State Board
OF Equalization on matters pertaining TO
the assessment of the Central and South
ern Pacific Railroads relating also to
the Federal franchise.
Ihird-For the year 1887 the entire net
earnings of the Central Pacific Railroad
Company were taken as a basis for the
value OF the roadway, roadbed, rails and
rolling stock of said railroad, when from
| 100000 to SSG0,OO0 of those net earnings
were derived from the ferry system and
not from operation over the rails of the
company
tourth-The reason embodied in the
third also applies to the Northern Rail
way and the California Pacific, as the
earnings OF their respective ferry-boats
were taken into consideration i'll fixing
the value of the two above-named roads"
The South Pacific Coast, Mr.. Ryan
stated, Is included in the suit brought by
the State for the collection Of the taxes of
| 1881 Since 1856 there has been no
declaration of invalidily by court, and
he now brought it before this board,
as he considered the board had right to
make declaration of invalidity in them
II 1t was satisfied such was the case. The
Southern Pacific wishes to put all these
things behind them and have them set
tied. For the assessment of 1856 the stat
ute of Limitation runs and it cannot be
brought into court.
The reassessment cannot work any
harm to any one but the Southern Pacific
Company, and they are willing to take
the brunt OF it. The board is not COM
PEELED to assess it for 1886 and 1887 this
year, he thought, but the sooner it is done
the better for the parties concerned
Some mem bers Of the board did not
agree with Mr.. Black, and thought thew
would have to assess it now.
MIR. Black explained that what he al
luded to was only the taxes of 1856 and
1887, and he thought the board had a
right, if it believed there was an invalid
ity in the assessment for those years. to
declare that 1t existed. That would put
the matter in such shape that it could be
acted upon, and the company was
anxious to have the matter settled for all
time.
The members of the board discussed
the matter at some length without coming
to any definite conclusion.
MIR. Black stated that prior to 1880 the
roads were never assessed for more than
$1,000 per mile, and most of the time at
present Northern California Railroad
was sold to n. d. Rideout for $40 900.
The board adjourned till this morning
at $3.50 O'clOck