The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-04-30
TAX MONEY REFUSED,
A Scheme of the Rail-
roads Frustrated at
Sacramento.
MUST BE PAID IN FULL
Central and Southern Pacific
Held to the Original
Assessment.
WAS so DECIDED IN COURT.
Deputy Controller Douglas Holds
That He Cannot Legally Accept
the Funds.

SACRAMENTO, CAL, April 29.-Deputy
State Controller w. w. Douglas, who has
charge of the affairs of the Controller s
Department in the absence of State Con-
troller E. P. Colgan who is now ILL., has re-
fused to accept the Central andSouthern Pa
cifc railroads second installment of State
andcounty railroad taxes under the reas-
sessment for the year of 1887, and has ad-
dressed the following letter, embodying
his views on the question, to E. B. Ryan,
tax agent of the Southern Pacific Railroad
Company:
II hereby acknowledge the tender
through the National Bank of D. 0. Mills
of $180,612 SO, in payment of the second in
stallment of State and county taxes, upon
the alleged reassessment of the Central
Pacific Railroad and the Southern Pacific
Railroad, made by the State Board of
Equalization for the year 1887.
"Acting upon the advice of the Attorney
General and Messrs. Langhorne and Miller,
special counsel, l decline to accept the pay
ment and order the same into the State
treasury, for the reason that the Supreme
Court of this State has declared the orig
inal assessment of the Central Pacific and
Southern Pacific railroads for the said
year 1887 to be valid and has given judg-
ment in favor of this State for the face of
the taxes under the original assessment,
with penalty interest, costs and attorney
fees e. P CoLGAN,
'Rer W. W. Douglas"
The amount Of the original assessment
of State and county railroad taxes against
the Central and Southern Pacific railroads
for the year 1887 was $546,875 OF. This the
railroad company absolutely refused to
pay, claiming that the assessment was ex-
orbitant and unjust, and suit was insti-
tuted on the part of the State to recover
the amount of said assessment. In Febru-
ary, 1898, Judge Hebbard of the Superior
Court rendered a decision in favor of the
State, declaring the assessment valid and
allowing penalty, costs, attorney fees and
interest on the total amount of the iudg-
ment from February 3, 1893, at per cent
until paid.
As soon as this decision was rendered an
appeal was taken to the Supreme Court of
the State, and while pending, in August,
1894, the first installment OF the tax debt
became due. AS the State Treasury was
depleted at the time, the State Board OF
Equalization deemed it advisable to re-
assess the company in lesser sum and ac-
cept the first installment on account OF
said debt.
In January, 1895, the Supreme Court OF
the State affirmed the decision of the Supe-
rior Court and the case was then carried
to the Supreme Court of the United States,
where it is now pending.
The stand taken by Deputy State Con-
troller Douglas is that the decision rem
dered by the Supreme Court, affirming the
decision of the lower court, invalidates the
reassesssment made by the State Board oi
Equalization in August, 1894, and makes il
impossible to accept the tender of the sec
ond installment of the amount set in said
reasSpssment