The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-01-28

the amounts due for 81, and In his
presence offered to pay 90 per cent of the
whole. Dunn refused TO accept the money.
stating that the law wonld not permit him
to. Ryan then paid $4,000 due on some of
the small lines leased by the Southern Pa
cifc. The tender was made In good faith
and RYAN was prepared to pay. Similar
tenders were made in 18S6-67. benson said
he knew he had accompanied Ryan on three
different oecssionsIn different years.
Dunn told the witness that he had no
recollection of his calling at his office in
company with Ryan.
Carpenter objected to Dunn presenting bis
recolections in that way. Said he, let him
be sworn, and then he can testify.
Dunn said lie was not a lawyer, and was
therefore unable to proceed in the usual
way. There was no attorney present TO
represent the State, so far as he knew, and
that was why he had spoken as he did.
benson wanted Dunn 10 refresh his
memory, but after he thought over the mat
ter his answer was the same. He was sure
that tenders had been made for those three
years of 60 per cent of the taxes due by the
company.
Deputy Controller Douglass was recalled.
aud read an account OF the taxes paid by
the Southern Pacific since 1887, as follows:
1888, 1921, $40 80; 1889. $3.50, 159 10: 1890.
S52S.30 50; 1891. S5l4. 523 Ga; 1892, first in
stalment, S246, 4S1 0S6
Charles NJ. Cosan. clerk of the State
Board of Equalization. produced the min
utes of the board for 1888. showing the
action by which it was agreed to assess the
Southern Pacific and Central Pacific Rail-
road as unit and not as separate proper
ties. The same records showed that this
action was taken upon the opinion-a copy
of which was read-of Messrs Delmas,
Terry. Rhodes and Baggett, attorneys TO
whom the board had applied for construc-
ton of the law. The minutes were dated
August II. 1888. The minutes of the sue
ceedIng day showed that Attorne y-General
Marshall had also advised the board TO
assess the franchise, roadway, roadbed,
rails and rolling stock of the Central Pacific
and Southern Pacific railroads as a unit.
Cross said that his object was to prove
that the Equalization Board had in the
years subsequent to 1883 included the Fed
eral franchise. He insisted that the reduc-
tions made in 1888 were caused by the
elimination OF the Federal franchises Up
to 1893 the assessment had been made In a
lump sum, so that even if the railroads had
desired to paw all OF their taxes except the
franchise tax. they could not have done so.
Therefore, he claimed. the whole scheme of
the railroads resistance was shown up.
They declined to pay on the Federal fran
chlse, position which has been since sus-
tanned By the United States Supreme Court;
but ewing to the fact that it was not Separa-
ted, they could not pay on anything. They
paid on the property and thus eliminated
the Federal franchise themselves. Cross
then read all the figures of the assessments
actually made in 1SS3-84-S5- S6sS7. The
record for 1888 showed that on Monday,
August IS. the board stopped assessing in
lump sum and segregated the properties.
On tina; day the franchise of the Central
Pacific is described as that derived from the
State of Californis. Cross maintained that
these words amounted TO the exclusion of
the Federal franchise, and proved that it
had been included in the assessment Of pre-
vious years The State Board so acted in
pursuance of the decision OF the United
States Supreme Court.
John Markley. ex-member Of the State
Board of Equalization from 1888 to 1887.
testified that he considered that he never
assessed any Federal franchise to any rail
road.
Maslin, clerk of the board. thought they
had Federal franchises. The witness had
always opposed assessing them as a whole.
believing Masln to be correct. He remem-
bered that discussions took place as to
whether a Federal franchise existed but he
did not think that any formal motion was
ever made to include such a franchise.
At the conclusion Of Markley's testimony
the committee adjourned Till tomorrow at
10 o'clock.