The San Francisco call., 1896-06-09
Their Validity Tested Before the
Highest Tribunal in the
Land.
FUNDS PROCURED WITH EASE.
This Vast Sum Raised by the Corpora.
tion Supposed to Be Hard Up"
on Three Days Notice.

In Judge Hebbard's court there wa
entered a record yesterday which, though
brief, meant that the State had been mad,
richer by more than half million dollars
This entry showed that judgment fo
! $546, ,485 SO delinquent taxes of the South
ern Pacific and Central Pacific railroad!
had been satisfied.
This ends a cause that has been stub
bornly fought on both sides ever since the
suit was instituted in 1889. It has en-.
gagged the attention of the Superior and
Supreme courts of California and of the
highest tribunal in the land, and its final
settlement is the cause of great gratifica-
ton among railroad people, for it is now
their boast that they do not owe a single
dollar for taxes in this State.
The original judgment of Judge Heb
bard was for nearly million dollars, in.
cluding taxes assessed by the Board of
Equalization for the year 1887, which had
become delinquent, and interest and at
torney fees.
An appeal was taken from the Judgment
of Judge Hebbard and carried to the Su-
preme Court of the State.
Here Judge Hebbard's decision was af-
frmed, but the original Judgment was re-
duced IN the matter OF interest and GER
tain fees.
From this decision and Judgment the
Southern Pacific Company appealed to the
United States Supreme Court on writ of
error. That tribunal, a short time ago, af-
firmed the decision of the California Su-
preme Court and the satisfaction of iudg-
ment entered in Judge Hebbard's court
yesterday was under that decision. As
finally adjudicated the Southern Pacific
Railroad Company's taxes, penalties, in.
terest, costs attorneys fees, ETC., amounted
to $257.S20 63, and those OF the Central
Pacific Railroad to $2s8 665 36.
Of the above sum there was originally
SAL ,015 81 allowed for attorneys fees, but
the accruing interest ran the amount up to
$50, ,625 80.
Penalties and costs in the first place were
$27, ,343 81. These, with interest up to date,
amounted to $33, $50 81.
The entire sum of $546, 4S5 90 was paid
yesterday to w. w. Douglas, Deputy State
Controller, acting on behalf OF the State,
in the form of check by N. T. Smith,
treasurer of the Southern Pacific Com
P"iif' DOuSldo CdHl0 10 Gan Francisco
from Sacramento for the special purpose
OF adjusting this matter with E. b. Ryan
OF the Southern Pacific Company. whose
special charge is to look after the taxes of
the big corporation. Their figures, COM
puted independently. tailed to a dollar.
Accompanied by ]. e. Foulds, an at
tache of the law department of the South
ern Pacific Company, the party of three
waited on j. B. Langhorne, who had ably
represented the State during the entire
period of LITIGATION and arranged for the
settlement of the case and the entering OF
the satisfaction of the judgment.
In view of the general impression that
the Southern Pacific Company was in sore
straits so far as ready money is concerned,
an interesting feature of this denouement
of the famous railroad-tax case is that the
company had but three days notice that
it would be required to make this pay
ment of over half million dollars, yet
not the slightest difficulty was experien ced
In raising the money!