The record-union., 1893-01-25
THE REASSESSMENT BILL.
ARGUMENT BEFORE THE SENATE
CORPORATION COMMITTEE.
Ex-senator Cross Points Out the In
justice of the Disputed
Assessments.

The Senate Committee on Corporations
held an important meeting in the Senate
/ Chamber last evening. Senator Carpen-
ter presided.
The only bill up for consideration was
Shanahan's Reassessment Bill, No. 10.
The author stated that perhaps out of the
multiplicity of duties of legislator, he
had not had time to give his bill as much
| attention as it demanded, and perhaps it
might not be as skillfully drawn as might
be possible. Shanahan said the bill is
very similar to those which have been in
troduced for three preceding sessions,
which met with defeat Although the
bill is a general one, it particularly ap-
plies to the collection of taxes due the
State from railroads. He imputed i'll
motives to preceding Legislatures, in so
much as he said that the wishes of the
/ people were not carried out. He then
entered into a TRADE against the railroads.
| He cited authorities to show that his bill
is constitutional. Although he had heard
it said that the bill is unconstitutional,
Mr.. Shanahan said no valid objection to
! it had been presented to his mind. Only
] properly
/ be accepted would be to date the collec-
| ton OF taxes from 1879.
/ Mr.. Mcdonnell OF Stockton, a State
/ Grange officer, addressed the committee
1 lie understood some railroad represent
| atives were present to make some re-
marks; that they would say the railroad
was Wiling TO pay its taxes. lie be-
/ lieved the Shanahan bill was constitu-
/ tiOnal, but he understood that bill more
/ carefully prepared would be offered as a
substitute. lie had nothing further to
say.
! Ex-senator Cross claimed the attention
( OF the committee. he said he was pres
ent to represent the Southern Pacific
! Railroad Company. He said there is not
I Il dollar OF taxes Justly levied due the
/ State from the railroad which is unpaid
/ n tax IS due the State until the tax is
properly levied and assessed. Impose
/ upon the great merchant class of this
| State a tax which they know to be un-
! lawful, the selt-respecting, sterling men
] among them will rise up and protest
/ There has not been a TAX levied against
/ the Southern Pacific Company since the
adoption OF the new Constitution which
/ IS valid. He challenged apy man to come
| forward and state to the committee that
1 he had paid tax which had been inn
| properly assessed and levied. When in-
/ terrupted by Mr.. Shauahau, Mr.. Cross
| said he did not pretend to say that unjust
I INSTRUMENTATION HdQ nOb Deen made.
| When power IS absolutely lodged in any
/ man or body of men then is the time
/ when that power should be welded with
| the greatest care and discretion.
| Il am not the paymaster of the South
4 ern Pacific Company, and if l We're L
| would not come To this committee to pay
any claimed taXes,' said Mr.. Cross, in
answer to Mr.. McConnelPs remarks.
/ If any invalid legislation has been
/ passed, it has been owing TO ultra anti
/ railroad sentiments absorbing the good
/ judgment OF members OF the Legislature.
/ The bill before the committee passed the
/ Assembly III the heat of passion and
without consideration. The author of
the bill stated in his remarks that an
amendment might improve the bill. II
has been said that only the railroads have
escaped attention. If this bill is right,
there are more than twelve institutions
IN the state which have escaped taxation.
MIR. Cross, in answer to Mr.. Shanahan.
said he knew of many instances where
| invalid taxes had been levied.
Mr.. Shanahan said he knew of only one,
and that was that an unjust discrimina-
ton had been made i'll favor Of the rail-
road, which Mr.. Cross accepted as one
reason why the tax levy had been un-
lawful.
II scorn, sir, I scout the proposition
that the courts and Legislatures Of this
State are the tools of any railroad" >" said
Legislature of this state are as honest
and upright as any which have ever ex-
| listed. If not. why, in Gods name, is a
reassessment bill demanded?" His re-
marks laid low the insinuations OF the
gentleman from Shasta.
Ihe Federal franchise up to the year
1888, which is not subject to taxation, has
been assessed, which everyb body who
knows anything about such matters.
knows to be unjust.
Since the assessments were so laid that
! the franchise has not been assessed, the
railroad company has paid every cent
due the State.
Mr.. Cross took up the statement Of the
gentleman from Shasta, that ninety-nine
out OF every hundred peopleof his dis
lrlct would vote for the reassessment bill.
If 1t were submitted to them. IF the
people OF that community sends man to
the Legislature who thinks no taxes have
been paid, but given as a donation" said
Mr.. Cross, Il can readily understand
some other things, too. If the people
have derived their information from the
gentleman who represents them, | can
readily understand why they would all
vote for the bill.
Whenever any legal law is enacted
which viii permit the Southern Pacific
Company to pay delinquent taxes. i am
ADVISED from the proper sources that thew
VIII willingly pay every cent due the
STATE II any gentleman will present an
equitable and just measure to collect tba
taxes Of the railroad, then the money
Will be forthcoming. and promptly, too,
The railroad has paid millions of dollars
which they have not been compelled ia
do. -
Mr.. Dunn, ex-Controller, took excep-
ton to this statement, but Mr.. Cross re-
ferred him 10 the proper books to see for
himself. The railroad has paid money
into the State Treasury. which the Su-
preme Court has decided could not be-
| legitimately exacted. MIR. Huntinuton
and the Board Of Directors desire to liva
at peace and good will, with the peonIa
OF the State; they are willing to nav an
taxes, and even more, If necessary. 10 he
[coNr1NUED on EIGHTH PAqE5