The record-union., 1893-01-26

Z at TINS point to ask a question.
Mr. Cross told the Sycamore not to get
I in too big hurry. He knew Mr. Shana-
han was Swltt-toOted Mercury who al
ways wanted TO get there'' before any
body else. IF he would take things easy
the point would be reached.
q continuing, Senator Cross said he had
been looking over the statutes Of other
States regarding reassessments He
( thought many would believe with him
that the California Legislatures were in
/ telligent bodies, but he thought that the
combined wisdom Of Legislatures Of
/ other states ought to have some weight in
the consideration of reJssessment meas
ures-that is with reference to how far
( back reassessnent should go. He had
/ been unable to learn of one instance
where Legislature went back further
/ than three years.
Property values fiuctuate wonderfully
/ IN California and make it practically i'm
possible to 20 back very far and tX
values OF property in those times. II he
( were asked how far to 20 back in a reas-
sessment he would be in quandary. 1t
was not matter that could be guessed at
and would be left TO the good Judgment Of
every man who has vote on this floor.
He claimed that the Southern Pacific
/ Company had paid every tax that had
ever attempted to be assessed. He pro-
posed to summon State officers and prove
what he said
1 The Senator then referred back to the
Constitutional Convention, of which lie
was a member. de was member OF the
committee on revenue and Taxation.
The delegates were ali pledged to put into
/ the constitution provision for a mort
! gage tax. Ills committee got into a
I dilemma right of when il was found that
/ the Central Eacitic's bonds could not be
/ assessed in this State. 1t was also learned
I that the state itself was lOaning money
/ through the University Regents, and the
| States property cannot be assessed.
/ Iney knew that State property could not
/ be assessed, but they did not think that
| the mortgages could not he assessed.
Mr.. Cross said that if Thomas McCon-
nell should be assessed for the entire
value OF his property, while his neighbor
| was only assessed for what he had left
/ after taking out the value Of his mort
gage, he would be liable to kick. The
\ speaker had heard a man remark at a re-
/ cent committee meeting that the indebt-
edneSS OF the railroad company to the
! United States was greater than the value
( OF the road, and he had been instructed
/ by the press of San Francisco that the
| gentleman he referred to was in1alIibie
/ upon railroad matters. If this mans
statement were true, then the fact would
! be that If these great railroad lords of
/ which l speak were taxed in the same
/ way other incumbered property was
| taxed, every dollar that the State has re-
/ ceived from those people in the way Of
/ taxes, since the adoption of the new Con-
1 sututiOn, has been utter and barelaced ex-
4 tOrtion, unless they paid it voluntarily,
then they were simply depriving them
selves Of that they were entitled to them
4 selves. If the doctrine OF deducting the
I mortgage from the value of the property
/ IS correct, ana if the rule Of the Supreme
| Court, found in the seventy-seventh Cali
! fornia, i'll the case Of Tams, be correct tie
] N "a fCrarr f,r Z hos fat
/ Government not being subject to taxa
/ tiQn, but still being entitled to be deduct
ed from the value of the property. leav-
/ ing the owner to only pay taxes on the
/ difference.
The speaker said that the railroad
which was being whooped up by public
/ sentiment as tax shirker had forced its
money into the States treasury by legal
proceedings. The Supreme Court has
decided that there was no law for the col
lection OF taxes upon railroad properties
which ran into two or more counties.
For the years 1885, 1886 and 1857, the
1 Southern Pacific Company had not paid
| its taxes. 1t did not propose to be treated
unfairly. The company is ready to meet
any just and fair reassessmenJ for those
years. But he was prepared TO say that
\ if an unjust system OF reassessment and
I covering long period, the company
would decline to pay, and the result
! would be the same as befOre-the State
| would get nothing.
Taxes had been paid by the Southern
! Pacific Company into the treasury that
| were in excess of any assessment of any
other kind OF corporation property in the
State.
Senator Cross then referred to the anti
| railroad demagoguery that seems To be
quite popular at the present time. There
were legislators who wanted 10 be popu-
lar, anu who wanted to do something for
! 80 Lott
wanted two things-they wanted to do
| something for themselves and some
! thing for their people. The way to do
/ this now was to frame a law providing for
| a re2ssesSment on fair and just basis.
! The company would pay the delinquency
promptly. The result Of such a measure,
he said, would put almost enough money
| in the Treasury to run the state for
year. What more could a legislators
| constituents expect or want than to know
| that he voted for bill that had made the
| taxes lower for that year than they had
ever been before.
Senator Wilson interrupted the speaker
at this point to ask question. He said
| he knew that if Governor Stanford had
| had his way there would never be any
| trouble about the railroad taxes. But
what he wanted to know was whether or
| not Justice Fields decision did not cause
all the trouble?
Mr.. Cross replied in the negative.
] Senator Cross referred to a Federal de-
| cislon which was to the point. The State
| of Missouri, it appeared, had enacted O
| law providing that express companies III
that State operating boats or cars belong
! ing to others must pay a tax off per cent.
! Of its gross receipts. A lawsuit was the
result of the refusal to pay tho tax. The
court held that Congress aloneIcould deal
with interstate taxes: that the State could
only tax the companies on receipts on
earnings in that particular State.
Senator Wilson asked MIR. Cross what
the Southern Pacific Company's real rea-
son was for not paying its taxes, and was
told that because its Federal franchise had
! been assessed the years it refused to pay.
Since 1888 this had not been done, and the
| company paid all the taxes claimed to be
/ due from it.
Attorney General Hart presented to
| the committee at this jGncture a substi-
tute which he had prepared to take the
place of the bill. Then he asked permis-
] sion to PROFOUND two questions to Sen
ator Cross, and it was granted.
! 1.-The first is" he said, whether or
not he is prepared to make the PROPOSE
| ton to this committee as to the exact
| amount the railroad company is willing
! to pay for the taxes Of 1855, 1856 and 1857
a specified sum without any reference to
any reassessment?''
II am not" replied Mr.. Cross.
''The second question is" said Mr..
! Hart, what specific objections you have
to the particular bill now under consid-
1 erauon2"
Il have been telling you them 50 far as
l feel called upon TO do So" was the
reply.
Mr.. Cross having concluded, the COM
mittee adjourned until P. N. to-day.
uATTnnAn rrAxEs