Omaha daily bee., 1898-07-22
RECOVERING ON THE BONUS
Taxpayers Who Helped the Bridge Company
Get Another Judgment.
RESULT OF A CHANGE OF CORPORATIONS
Omaha q Council Bluffs Railway
and Bridge Company Loses He
cause il Has Not nm Iowa
Charter to Back II.
RESULT OF A CHANGE OF CORPORATIONS

Judgment for 81, S45. Sc was entered yester-
day in the superior court against the Omaha
& Council Bluffs Railway and Bridge COM
pany in the suit brought by w. s. Baird,
representing the claims of various property
owners, to recover taxes levied for the con-
struction of the company's bridge across the
Missouri. The case was tried in April last
and w. S. Baird and w. ID. Hardin were
| appointed commissioners by the court to
determine the amount Of the tax that the
plaintiffs had paid. The commissioners filed
their report yesterday and judgment was en-
tered accordingly. The case, 1t is under
stood, will be taken to the supreme court by
the motor company.
The suit is one of several that arose from
the levying of the tax voted to assist the
Omaha G. Council Bluffs Railway and Bridge
company in the construction of the bridge
across the Missouri river. In 1886 the people
of Council Bluffs voted a 6 mills levy on the
total valuation of all property in the city
for the years 1887 and 1888, the proceeds Of
which were to be given to the Omaha g.
Council Bluffs Railway and Bridge company,
an Iowa Incorporation, for the purpose Of
constructing a railway and wagon bridge
over the Missouri river at or near the foot
of Broadway in Council Bluffs, running to
the opposite bank. The basis of the action
brought to recover the taxes paid was that
prior to the payment of the taxes by the
citizens to the county treasurer the Iowa
corporation assigned to the Omaha & Coun-
Gil Bluffs Railway and Bridge company, a
Nebraska corporation, all it's right, title and
interest in this tax. that had been voted, in
return for one-half of all the fully paid up
capital stock Of said Nebraska corporation.
The state law provides that a tax may be
levied for such purposes, but holds that the
money can only be paid to a corporation in
corporated under the laws of the state. The
Iowa corporation having assigned it's interest
in the tax to a foreign corporation the court
held that the money for the tax had been
unlawfully paid over to the Nebraska cor
poration. Spencer smith, representing a
large number Of citizens, brought suit
against the motor company and recovered
an amount in the neighborhood of $50, 900.
The motor company appealed, but the SUI
preme court decided against it.
In the case brought by Baird in the supe-
rior court and in which judgment was en-
tered yesterday, another question was in
volved. The motor company set up that
Baird was outlawed inasmuch as suit had not
been brought to recover within five years
and that therefore he was barred by the
statute of limitations. Baird, however, con
tends that suit was brought within five years
after the discovery of the fact that the
money levied under this tax had been paid
by the county treasurer to a foreign corpo-
ration and not to the domestic or Iowa cor
poration, as the law provides. Judge MCGEE
sustained Baird's position and it is on this
point that the motor company will take the
case to the supreme court.