The record-union., 1894-08-04
His GROUND AND LOFTY TUMBLING.
The Attorney-G General Experiences
Change Of Heart.
He is Now Convinced That the Rail-
road Taxes of 1887 May Be
Reassessed.

| the SOuLnefn racine Company, winch Is
now on appeal before the Supreme Court,
appeared before the board. lie said that
the reassessment law gave the board
power to reassess the taxes against the
railroad company in such cases if the
original assessment was for any reason
irregular and invalid. In regard TO the
assessment of 1887, the case, he said, was
tried in San Francisco. and in 1898 the
assessment was declared valid in every
respect.
The railroad company gave bonds and
appealed to the Supreme Court and the
matter will be tried on the 9th of next
month. lie was surprised that this board
could have any doubts, In view OF the
! judgment of the lower court OF the valid
ity OF the assessment. lie argued that
in no way has any authority been given
to the board TO reassess the taxes for that
year.
He claimed also that under no circum-
stances could the board act in the matter
until the Supreme Court lad decided that
Judge Hebbard's decision should be re-
viewed.
MIR. Hebron asked if Alr. Langhorne
! held that II the board reassessed the taxes
it would carry with it the decision OF the
!
swered that he did not. He came here at
| the instance of the Attorney-General to
| call their attention to The fact that the
| Judgment had been rendered, and they
/ mad no power to act In reference to re-
assessment.
swan said that if the board did reassess
| for that year ii inigut possibly influence
! the Supreme Court III the matter OF re-
| mitting penalties, but he did not see that
! IL
the decision would probably be on points
OF cold law. If the Supreme Court should
affirm the Judgment the company would
unq uestionably have To pay the difference
| between the reaSsessment and the judg-
ment into the State treasury. The state,
in any event, would obtain the benefit OF
having the money Ill the treasury and the
interest on its use.
| Beside, this matter may yet go to the
United States Court and be for years TO
come in litigation. He believed that the
railroad should be compelled to pay its
taxes at the time they were due. The
counties need. the money badly enough,
and the company should not be allowed
10 withhold it and save The interest on it.
| The people should have the benefit of it
when it was due, and he was in favor Of
reassessing and getting the money as
soon as possible. lie thought it looked
| as ii some of the lawyers were afraid that
IN certain contingencies they would not
get their fees out of the case.
Beamer asked if the statement of E. B.
| Ryan was correct, that in event of re-
assessment by the board and the pay
ment Of the taxes by the company on it
such payment would be only part pay
ment 10y the railroad company, and that
in event OF final judgment being against
them it would have to pay the difference.
Mr.. Langhorne stated that such pay
ment would have TO be paid in part salts
| faction OF judgment. He did not mean
to say that the Supreme Court would be
Influenced by statements, but was satis-
fled that the company intended to in
fluence ii if possible.
Mr.. Beamer read Mr.. Ryan's statement
| that ii the Supreme Court decided against
| the company it would have to pay the
difference between the judgment and re-
assessment tax, and Mr.. Langhorne said
MIR. Ryan had very adroitly managed to
| bring ii to the attention of the board.
HE did not bring it before the board
at ALL" said Mr.. Beamer; 1--WE had been
talking about the matter for some time,
and we spoke to him about it,
Swan asked Langhorne how it would
suit him if the board should reassess for
both 1886 and 1887 and get the money into
the State Treasury as soon as possible.
Langhorne said if Mr.. Swan was anx-
assess for 1885, which was not in dispute
in court, and let 1887 be decided by the
court
Beamer said that he liked to see the
State get the money due it, if possible
Litigation is expensive. The attorneys
fees in the case of The 1888 taxes were
S55, ,562 So, and in that of 1884 were $685.
337 81. Here was about Sl2l, 900 paid to
! lawyers, and the State only got its money
after all by a reassessment. He did not
| like to continue to play In game where
| he always lost The counties need the
money for these taxes badly, and he
would like to see the people get it. He
did not, however. wish TO be i'll contempt
| of court.
Langhorne said the reason the taxes
for>1oS3 and 1884 had TO be reassessed was
because the board at that time did not
make the assessment properly. They
| assessed the Federal franchise.
| Morehouse said that the reason sthe
Federal franchise was assessed by the
board at that time was that the Attorney
General and his legion of advisers told it
that it would have to assess the fran
chiSe. Those who condemned its action
were either stupidity ignorant or dishon-
est. He had been on the board for many
years and knew whereof he spoke. When
a multitude of attorneys told the board
that it would have to assess the franchise
without specifying further, it supposed
the Federal franchise was the one meant
and assessed it. That is not the question
now, however; it is as to whether the
board has power now to reassess for the
year 1887 or not. He wanted a written
opinion from the Attorney General for
the guidance of the board.
Janghorne said that he would request
Mr.. Hart TO send one up.
! Hebron said that Mr.. Ryan, as agent
of the railroad company, had promised
that the tax on the reassessment would
be paid. He wanted to see the people
| get their money as soon as possible, and
favored the reassessment.
COlgan stated that he wanted to satisfy
himself that the board had a legal right to
make the reassessment and that was tn g
reason he wished for written opinion
| from the Attorney-General. He also de-
sired to satisfy himself as TO whether re-
assessment by the board at this time and
! the payment of the taxes under such re-
assessment would in any way jeopardize
the States case now pending before the
Supreme Court, and Mr.. Langhorne re-
piled: mo: that such action of the
board would have no effect on the case
now pending before the court"
Shortly after Mr.. Langhorne had fin
ished his remarks a telegram arrived
from Attorney-General Hart as follows:
"Have examined Reassessment Act
My opinion is as TO railroad taxes of 1887
that appeal suspends judgment as to facts
tfound and as evidence. Reassessment
permitted if original invalid. You may
take testimony and determine invalidity
of first assessment or may wait until it is
adjudged valid or invalid by the court.
| Ifjudgments appealed from are affirmed,
amount paid on reassessments can be
credited on final judgments. If judg-
menIs are reversed on merits, taxes must
be paid according to reassessment. Will
come up tonight if desired. Answer.
''W. II. III. HART,
attorney General