The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-02-18

findings were based were conclusive, and that It
was not competent to go behind the record TO
prove such record TO be false and erroneous.
ana yet the chairman did permit the record OF
the State Board OF Equalization 10 be attacked
by the very witnesses sought TO be cross-ex-
amlned, in an attempt 10 show that Federal
franchise had been assessed TO the Central and
Southern Pacific Railroad companies for each
year prior 10 1888. The one record was certain
ly as emitted TO credit as the other.
The testimony before the committee did not
show that any member OF the board at any time
ever proposed to assess Federal franchise or
die In fact assess such franchise, there being
State and Federal franchise, that Of necessity
both We're included yet the record Is that fran
chlse-n0t franchises-was assessed. Every pre-
sumption OF law is In favor OF the validity of he
act OF an officer acting within the scope OF the
authority conferred by law and IN this matter
The presumption IS supported by the written
record OF she proceedings of the board making
the assessments.
In the Superior Court of San Francisco on Feb
TuaIy 3, 1893, d decision was rendered by Judge
Hebbad IN favor Of The State aud against the
Central and Southern Pacific system of railroads
IN the suit TO collect the taxes dat for the year
1887 upon the assessment FOR that year made by
The State Board OF Equalization. judgment was
given Tor the taxes, costs penalties. interest and
attorneys fees, aggregatlng about 1896, 800 les
timOny similar TO that introduced before the COM
mitiee was introduced 10 Judge hebbard's court
and in the opinion fled The court says that
from both staBdpoints Of facts and OF law, the
findings must be that Federal franchise was not
nclnded In these assessments.
Here then is a finding based upon substan-
TALLY the same evidence that was produced be-
fore this committee holding that the Federal
franchise was not included in the assessments
for tie year 1887, as found aud reported by the
4. al ~ mil
recently tried and decided by Judge Hebbard
are The only tax suits in which the issue as TO
whether the Federal franchise was really as
sessed o. not was ever actually and fairly con-
tested ana tried. We think that the Hebbard
decision IS conclusive on the point,
Ii is stated in tie majority report that the pro.
visions Of the Political Code relative 10 the as
sessment, levy and collection Of taxes We're de
clared unconstitutional IN the action of the
People VS.. Central Pacific Company (S3 Cal. p.
393). This statement IS erroneous Tie court
IN that case did not fad the laws with reference
10 the method of assessment or the levy OF taxes
unconstitutional II WAS the method Of cOllec-
lion by which railroads were required TO pay all
the state aud county taxes TO The State Treas
urer at the Capitol thar was declared unconstlIu-
ti0nal rs being special legislation, and not
the method Of assessment and levy Of
taxes. Again, the decsioA Of Judge Heb
bard, above referred 10, establishes tie
fact that The taxes can be legally collected.
Therefore the finding in the majority report that
the entire assessments Of said railroads for tn e
said three years, 1885, 1886 aud 1887 is, In
the Judgment OF your committee, invalid and
void, and that 10 tax upon said properties for
said years can be collected by law until said
properties shall have been reassessed and taxes
lev-d I'm accordance with the constitution OF
the state and OF the United StaIes," is not JUS.
titled IN law or IN fact.
We are Of the opinion that the people Of The
State VIII not be satisfied with any compromise
Of this matter, but on the contrary, demand OF
their representatives, IN this Legislature the
passage Of law that VIII compel the delinquent
railroad companies TO make fun payment Of their
just and fair proportion OF the burdens Of gov
eminent The delinquent railroad companies
have during ali these years received the equal
protection Of tile laws OF tie State IN respect to
ther rights ano property, without contributing
TO the necessary cost aad EXPENSE of maintaining
and executing the Jaw, thereby increasing the
burdens OF the remaining taxpayers Of the State.
Want If good faith and sincerity OF purpose IN
their professions expressive Of desire for set
clement Of the question have marked the course
OF these companies throughout the conduct OF
this litigation. The commentary Of Judge Heb
bard on this point, in bis decision 10 The 1887
cases, Is as follows:
In conclusion. it may be said that none OF
INC AucHttti~ 80 FDtftu III THESE dctlOus are novel;
They have all been passed upon, either directly
or Indirectly. By the courts OF the various States
aud Of tie Uai'ed Safes. There Is little ID the
| contentious Of defendants as herein made TO
commend them 10 the favorable consideration of
a court Of justice.
They had abundant opportunity to show
good faithsin the matter OF these taxes, either
under section 1866 Of the Political Code. by ap-
| pearing before the Board OF Equalization TO
have the assessment corrected in auy particular,
or under section 1868. PolIIIeal cd. by pay
ment OF and suit 10 recover back said taxes
| neither OF which opportunities were avaiIed OF
| by defendants, as far as this court is informed
But instead they come into court Offering 10 pay
no portion of their taxes valid or Invalid; resist
ing Tue payment OF every cent thereof. and seek
| 10 avoid liability by technical detenses while b
| are not sustained, either in fact or 10 law.
As further evidence Of the want OF good faith
| the San Pablo aud Tnlare case, now on appeal TO
| the Supreme Court OF the United States as the
result OF an agreement arrived at between the
| Assembly judiciary Committee OF 1889 and
! The chief counsel Of these companies has not
! been heard OF determined by that court because
| OF the opposition Of The attorneys for the rail-
! road. against the protest Of the State This case
| at The time the agreement was made was ex-
| pected 10 result ia a complete settlement Of this
controversy The majority OF the Judiciary
Committee. IN their report TO tbs Assembly on
| March IA, 1889. said: ave are now able TO saw
that as a result OF the inquiry into which this
| committee has entered, a stipulation has now
been entered into and signed between the
Attorney General and the chief counsel OF the
| Southern Pacific Railroad Company, whereby IL
! Is agreed to submit to the Supreme Court OF the
| United States, on agreed findings. the TulaEe and
san Pablo case which involves alone the ques-
ton OF the eonsti,utiOnality under the fourteenth
amendment to the constitution OF the United
| States. Of the system Of taxation under our
present constitution; and that your committee
believe that decision liz this case will determine
| the federal questions at Issue between the State
| OF California and the railsoad companies"
The substitute bin presented with the majority
report provides for the diseOntinuance OF the
action OF the people OF the State OF California vs.
San Pablo and Tulare Railroad Company, now
! on the docket of the Supreme Court Of the
| United States, and in our opinion that case
/ should not be discontinued, but on the contrary
| every effort should be made 10 Induce the
| Supreme Court 10 take up and decide the con-
| silturIOnal questions presented in the record.
The said substitute bin presented by the ma.
| lOrity OF the committee would also suspend and
abate the actions just decided by Judge Heb
| bard. We are OF the opinion that the Legisla-
ture is not prepared to adopt so foolhar dy pro-
| position. As before stated, the judgments in
these actions are for about the sum OF 1896, 800,
all OF which sum. except about S64 600 allowed
as attorneys fees Will, II the judgment be
| afnfmed, as Is confidently predicted by the
States attorneys, fnd It's way into the state aud
| county treasures.
proper feassessment bin, In our Judgment,
should embrac the entfte period since the adop-
lion OF tie present constitution IN 1873 and we
| present herewith such 2 bill and recommend its
adoption as a substitute for Assembly bill 10
and Ia lieu Of the substitute reported and re-
commended by the majority OF this committee
The substitute bill submitted with the re-
port is entitled: ''An act in relation to re-
assessment Of property and the equaliza-
ton OF the same in cases where former as
sessment is invalid or void and in relation
to levy and collection Of taxes on said reas-
sessment"
The first section contains the meat of the
measure: