The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-04-01

The Western Union Telegraph Company
yesterday began proceedings in the SUPERB
or court against King county and County
Treasurer whit,lesey to enjoin the treas
urer from levying upon and attempting
to sell It's personal property to satisfy
certain personal property taxes amounting
to slsass. and to compel the treasurer to
accept in full payment OF such taxes
$52is. The telegraph company claims that
under section 20 of the revenue law
passed by the last legislature. the county
is attempting to tax its franchise. con-
trary. as the company claims. 30 the con-
stituiion and laws of the United States,
the constitutionality of the section men,
toned. The forcible collection of the tax
was temporarily restrained by the court
pending a hearing on the law OF the case.
Section 40 OF the new revenue law pro-
vldes that each corporation using or OPP
Grating telegraph. telephone and electric
lines or electric light lines in the state
shall annually return to the county assess
or sworn statement OF the amount num-
Der Of shares and value OF it's capital
stock; the total amour: 81 its current In
debtedness. except current operating ex.
pensss; the total length of It's lines In
each county and In the state, and the
total assessed valuation of Its tangible
property in the state: together with the
date. character, extent and value OF its
franchise. gross income and other peril
nent facts
The telegraph company IN Its complaint
in the injunction suit claims that II con-
formed to the requirements of the law.
and on March / filed a schedule, as re-
CURED by the section mentioned. In which
in relation to the extent and value OF its
franchise ii stated that the franchise was
10 last until revoked by the government.
but was open TO any other telegraph coia-
pany which might accept the provisions
OF the act of congress granting such fran
chises: could not be sold. assigned or trans
ferred, and was therefore of nominal
value
Nevertheless, the company alleges, the
assessor proceeded TO assess the COM
pany for royalties and patent rights
in the sum of 5000. without giving the
without giving 1t any chance 10 appear
and object to the assessment. wholly dis
regarding the sworn return or the CON-
pany and without giving notice of its al
legged incorrectness
The company says In its complaint that
IL never has oNred, and does not own
now. any royalties or patent rights In
the county or state. or IL would have listed
them for assessment. yet i. is now called
upon by the treasurer to pay taxes upon
the royalty and patent right assessment.
The company says IL Is willing 10 pay,
and has offered TO pay. taxes upon all
other property. but the treasurer will
ceive no part OF the money rendered
and insists upon the payment of the tax
as levied.
i. Is the claim Of the company that the
assessment of it's alleged royalties and
patent rights is in reality an attempt to
tax It's franchise, and that the FAX Is r.
legal and void, for the reason tina. the
company's lines are CONSTRUCTED on pos.
roads of the United States and its bus!
ness carried on under the provisions OF
the interstate commerce act. and taxation
OF the franchise is therefore prohibited
by the provisions OF the constitution OF
the United States guaranteeing equal
rights and regulating interstate commerce.
On these grounds the court Is asked 10
enjoin the treasurer from attempting 10
collect more than is admitted to be due
by the plaintiff company for personal
taxes.
In an interview last night. S. II. Piles.
who il one of the company's lawyers.
pointed out how. in the company's opinion.
the company would be injured IL compelled
to pay taxes upon It's right to do business
In every county of the United States, no
matter how small the tax levied upon the
franchise by each county might be. Ac-
cording 70 Mr. Piles. Snohomish and King
counties were the only ones which at
tempted 10 tax the Western Unions fran
chSe, and similar suit has been brought
in Snohomish county to enjoin the collee-
ton OF the tax. Mr.. Piles says that
Judge Ried who Is Popuist. has over
ruled demurrer to the complaint In the
Snohomish county court, thereby, Mr.
Piles thinks, virtually holding that the
telegraph company has the law on its
side.
The King county SUI will come up for
hearing on April 6 before Judge Benson
on an application for a temporary in
junction,