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

Further comment upon this condition OF
things l do not believe to be necessary. 1
think it enough TO ask what other taxpayer
In the State has at once experienced the
same increase in the remarkable earning
capacity of his property, accompanied by
similarly remarkable shrinkage Of the
value OF that property for assessment pur-
poses.
Is it not strange that of all classes of
property in this State railroads alone de-
crease in value, although their mileage and
earnings have enormously increased? Take
the year 1885, as compared with 1892. as a
comparison OF the mileage and value of
railroads and the total value of the taxable
property of the State.
The reports Of the Controller and of the
State Board of Equalization show that in
the year 1885 the total assessments of rail-
roads for that year was $40, 635, $50,
and the total mileage 1852 46-100 while
in 1892 the total assessed value
Of railroads. as fixed by the State
Board of Equalization, was but Sal. 900
or $7,079, $50 less than in 1885, and this In
spite Of the fact that within the same time
the to al mileage Of railroads assessed by
the board had increased to 41lS36, or
1895 90-100 more miles of railroads than were
assessed in 1885
The taxable property of the State for the
year 1885, exclusive of railroads, was $780,
743 745 and for the year 1892 81. 233, SIC, $40,
showing an increase in taxable values OF
1923, 1872, S37. The value of railroads as as
sessed by the State Board of Equalization
for the year 1885 was 9,035, 75o and for
1892 Sal. 956, coo. showing decrease in value
of S7,O69, 75O.
IL these figures mean anything, l am OF
the opinion, taking into consideration the
Increases in the assessment rolls of various
counties OF the State as an Illustration, and
using the increase made in the San Francisco
assessment, that they establish the fact that
the State Board of Equalization in assessing
railroads for the year 1891 and 1892
were of the opinion that mile
Of the Southern Pacific Railroad in San
Francisco was worth for the year 1891
S465 90 less per mile than in $780, and for
1892 that it was worth SIG SO less per mile
than in 1891. while for the same years prop
erty adjoining and bordering upon such
railroad in San Francisco was worth 80 per
cent and 20 per cent respectively for assess
ment purposes above what it was worth in
the preceding year.
That the values placed upon these delin-
quent railroads for the years that they have
resisted the payment of the taxes levied
were just and pr0portiOnate to the values of
other property no man familiar with the
subject can gainsay. That they have in
subsequent years secured lower assessments
does not prove that the assessments made
in former years were excessive.
SIR. Markley, who was member of the
board from January. 1888, to January, 1887,
a aalo nd a
judgment the assessments were fair and in
proportion to the assessments OF other
classes of property.
Now, as to the reassessment Of railroads
for the years that they have failed to pay
the taxes levied upon them. l desire TO
show that the probable reassessment of
these railroads was in the minds of the
attorneys for the railroad as early as
September 6. 1882.
On that date a receipt was obtained from
Rhodes and Barstow for certain moneys
paid to them in connection with the taxes
due San Mateo County for 1881, which con-
tanned the following language: but in the
event that law shall be hereafter passed
providing for a reassessment Of property
referred to in said complaint in said county
Tor said fiscal year. then said sum Of money
is to be credited as payment by defendant
on account of taxes for said fiscal year"
The gentleman representing the railroad
company before this committee has de-
clared that the railroad corporations will
not pay any taxes upon any reassessments
made for the years 1880, 1881, 1882, 1888 and
1884 None Of the suits brought for the
taxes OF 1888 and 1884 were ever actually
tried In court, but Attorney-Gen-
eral Marshall did accept judgments as
confessed by the railroads for about 60 per
cent Of the taxes OF 1888 and 81 per cent Of
the taxes OF 1884, AMI findings were pre-
pared and filed in these cases, which gave
away the States case-that is, findings were
made that in the Federal franchise, fences,
four miles across the Bay of San Francisco
and steamboats, were included in the as
sessmens.
1t is not my desire, even if time permitted,
to refer to the many errors in the state
menrs of facts presented relative to the
delinquent taxes but | do wish to impress
upon this committee the utter unreliability
of the promises put forth by the represen-
tatiyes of these corporations in the
past The consent judgments" Of 1884
were obtained to enable the railroads to
make showing OF having paid something
before the Legislature at its extra session
OF 1884. Sessions OF the Legislature are
nearly always prolific OF promises in their
behalf as TO settlement OF the controversy.
Senator Seawell will no doubt remember
that before the judiciary Committee in 1889.
OF which committee he was the chairman, a
distinct and unequivocal promise was OBJ
tanned by that committee from the counsel
for the railroad that one of the 1885 cases
should be made up for appeal to the
Supreme Court OF the United States, en-
bracing only the distinctive Federal unes-
ton Of the constitutiOnality of the method
OF assessment set up by our Constitution,
aud expressly agreeing to exclude from the
record of the case any reference to the con-
stitutionality of the statute providing for
the collection Of the taxes.
This agreement was made after the deci-
sion by Judge Levy OF San Francisco 10 the
1886 case and afterward affirmed in SO CAL
Yet on the very day that the decision of
Justice Fox WAS filed In the cases for the
taxes OF 1886, that decision was tele-
grabbed to the attorneys OF the railroad
at Washington. who thereupon brought the
decision 10 the attention Of the Supreme
Court aud successfully resisted the effort
Of Attorney johnson. ON behalf of
the State, to have the case heard and the
controversy determined on the merits of the
case.
This action of the Southern Pacific Com
pany was gross violation Of the solemn
promise of its chief counsel made to the
committee OF the Assembly of 1889, and of
the stipulation entered into with the then
Attorney-General of the State, pursuant to
the promise made to the Assembly commit
tee The action of the railroad attorneys
in this case is but repetition of the tactics
pursued to obtain dismissal of the San
MateO case before referred to.
1t was stated before this committee that
the owners of the railroads will pay the
back taxes for 1885. 1886 and 1887 just as soon