The morning times., 1896-11-27
REFUSE TO PAY
Sum of $4,000 in License Tax
Due From Two Street Lines.
ASSESSORS MILD REMINDER
Washington and Georgetown and
Metropolitan Companies, Respec-
lively, Kick Against Payment Of
"DOuble Tax"-Case Once Heard
by United States Supreme Court.

by United States Supreme court.
In each Of several recent annual reports
made by Assessor Trimblc there appears
paragraph calling attention in u brief
way to the arrears of license taxes due
from street railways. 1t is the assessors
reminder OF the fact that the District has
failed, SO FAR, to collect several thousands
of dollars from the street car companies,
an aggregate which became due under the
operation of Section &c, OF the local
license laws.
The section reads:
1.-The proprietors of hacks, cabs, omni-
buses and other vehicles for transporting
passengers for hire, shall pay annually as
follows: Hacks and carriages, $40; one
horse cabs, So; Omnibuscs, $40; other
vehicles capable of carrying ten passengers
or more at one time, SO.
This provision OF law was several years
ago made TO apply to the street cars drawn
by horses, the tax being assessed at the
rate of SO for one-horse cars and SO for
two-horse cars, annually, upon each car
actually in service.
The street car corporations refused to
pay. 1t meant an annual outlay, for the
privilege of operating the lines, amount
ing to anywhere from 500 to $500, ac-
MADE A TEST CASE.
A test case was made which was eventu-
ally passed upon by the United States Su-
premc Court, the highest and last resort,
and the only decision rendered upon the
merits of the issue, after the case left the
police court, was in favor Of the District.
The tax has not been paid, not withstand
ing the favorable view of the courts, and
several years ago, when the matter was
fresh from the hands of the honorable su-
preme justices, the effort to collect was
renewed, but was for some reason inef-
fectual, and since then the subject is re-
viyed SO far as the public is concerned, only
when the assessor, in the discharge of his
duty, introduces the paragraph referred to.
as he did this year i'll his report, calling
attention to the derelCtion.
The act under which the tax was levied
was passed by the District legislative as
sembly, in 1871. 1t has been applicable
TO but three roads, the Capital Traction,
formerly the Washington and Georgeto wn;
the Metropolitan and the Belt Line, the
latter company paying the tax pretty
regularly until its ability Was weakened by
financial difficulties.
The Two roads first mentioned paid a
part OF the tax upon them but upon the
passage of the law levying what is known
as the personal property tax, they refused
and have paid nothing since. The ag-
gregate due from the two roads is in the
neighborlIood of S20, 600.
All other companies operating with horse
power secured the Introduction OF an cN-
emption clause in their charters, by SUBJ
stituting provision for paying 4 per cent
on gross receipts.
THE ISSUE RAISED.
Upon the refusal OF the two companies
to pay the tax, the test case was brought
court, trial was had and tie company rep
resented at the proceedings was found
guilty of u violation of the law. the penalty
for which was the amount OF the tax and
n fine not to exceed $50 for each car in
use.
The case was carried to the criminal
court. where a decision was rendered
against the District. but upon subsequent
proceedings the issue finally came to be
tried before Justice James. then holding
4 special term of the equity court. The
company presented the double tax objoc-
ton as Il part Of its defense. also claiming
that the legislative assembly had no
authority TO pass the law
Judge James decided against the Com
panies. He held that the tax was not
a duplication, but even if II were, it was
assessed according TO law anl not incon-
sistent.
An appeal was taken upon an applica-
ton for injunction TO the general term.
where Chief Justice Bingham detiied that
the case was not properly before the court
He held that the supreme court had no
jurisdiction to restrain by injunction the
prosecution of n criminal information to
recover Il penalty. The general term
did not pass upon the merits of the case,
but stated, By opinion, that the defense
made there might with propricty be made
In the police court.
h.a rtri nf hn lob,
was taken TO the United States Supreme
Court. Justice bingham was sustained. and,
as before, the real issue was not touched.
AGREED To DELAY
The attorneys for the companies mean
while interposed, as n stay of additional
proceedings in tile minor courts, the eX-
istence of an agreement had been made
that no effort should be made to collect
the fines or tax until the case was finally
determined and upon the rendering of
the last opinion they held it was not
final decision OF the contention, but
simply established that the courts before
which the case came were without juris-
diction. The agreement seems not to have
been in writing, however.
A change in the motive power upon
both the roads to rapid transit released
them thereafter from liability to the
license tax, and the lapse of time through
collection of the past taxes under the statute
of time taXations. There is. therefore. no
remedy at law, evidently, for saving to
the District the amount of the past accu-
mutations
President Phillips not long ago made
a tender of ST 900 in fun liquidation Of
the amount due from the company, but
Attorney Thomas, representing the Dis
trict, refused to accept it, The only
remedy for the District Is in Congress,
and as it will probably not be the desire OF
Congress to proceed directly by meas
ure to enforce payment, the only course
will be to attach condition. requiring
the adjustment of the account, to every
bill introduced to confer future special
privileges on either OF the delinquent
companies.
DISTRICT PLAN TRIED.
Such Il move was m ade at tine time the
Washington and Georgetown Company
now Capital Traction-sought an eXten-
sion to the suburbs by theway of Eighteenth
street and Connecticut avenue. A trial
of the plan would doubtless have been
made then had not the objections of Sena-
tor Mcmillan to the grant Of the franchise
defeated the company's aspirations.
1t is understood that the District will
move the addition of such prOyiSo to
every measure that may be hereafter in
troduced to extend the railway lines, or
confer other extra privileges upon either
of the companies owing the taxes.
The roads will, without doubt, fight the
proposition before Congress, but it is be-
ieved that eventually the tax will be col
lected.
National Geographic Society.
The paper before the National Geogra phic
Society at its meeting in Cosmos Club