The labor world., 1899-05-27
CAN'T SHlRK The TAX
WATER COMPANY BONDHOLDERS
MUST YIELD UP THAT 100000. q
United States Supreme Court Decides
That There Shall Be No Review
of Famous Case Involving the
Priority of Lien of Overdue Taxes
and Mortgage BOnds-Decision
Favorable to City Stands. n

Favorable 10 C1ty SI0nUS.
City Attorney Richards received the
welcome news from Washington Tues
day to the effect that the cry has won
the Duluth Gas & Water company person.
al tax case in the United States supreme
court and the, trustees now have nothing
to do but pay over 100000 to the county.
The matter was up in the supreme court
yesterday on a motion for a writ of GER
tiorari made by the trustees, but the
court refused to grant the motion.
This case has been fought long and
hard. 1t involves the paying of 100000 to
the county of St. Louis by the trustees
Of the Duluth Gas & Water company for
personal taxes for the years 1894, 1885,
1896 and 1897. The taxes for the first
three years involved are in judgment and
the other case is RI ready to be entered. The
different amounts are: For 1894, S14, 032.2 "a:
for 1895, $13,O67.s5; for 1896, $9,Oss.2; and for
1897, s25,569. The taxes for 1894, 1895 and
1895 have been drawing interest at the
rate Of per cent annually since Decem-
ber, 1897, when judgment was entered. The
state supreme court, in the matter of the
taxes of 1897, modified the judgment or
der of the lower court to some extent
ruling that the company should not be
taxed for its franchise. This modification
does not reduce the amount very largely
SO that there is still snug sum coming
to the county and city. 55
The question that has been before the
United States court is one that has Great
ed widespread interest because of the
many interests involved In Its final de-
cision. The trustees Of the Duluth Gas
& Water company refused to pay its per-
sonal taxes claiming that the bondhold-
ers' mortgage covering the company's
property eliminated any right the county
had to levy taxes on the property. In
other words, it is explained, this meant
that any corporation that might desire
tc. escape taxation needed only to acquire
the convenient burden of a mortgage and
no personal taxes afterward levied could
be collected as the mortgage would take
precedence over the levy. This was the
point that aroused the greatest interest
and caused such hard fighting In the
courts. e. Is Ds5s5t s5ss5 Zig }sz.li s9@l
The trouble started when the city and
county made the move of levylng attach
ments on the property of the company for
delinquent personal taxes. The compa-
ny's attorneys obtained from Judge Loch-
rem in Minneapolis an order injoining the
city from making the levies on the prop
erty and ordering 1t to make its claim
before the master Of chancery appointed
by the court, who was Victor Stearns.
or course the city obeyed and Its claims
went to Mr. stearns, who decided against
the city. The case was then tried In the
United States circuit court before Judge
3Amidon Of North Dakota who heard the
case for Judge Lochren. Judge Amid don's
decision was also adverse to the city 81 {
City Attorney Richards did not give up
hope with this, but, resolving that there
was merit in the case. :carrie4 # UP to the
United States circuit court OF appeals,
which convened in st. Louis a few weeks
ago. The court Of appeals decided In
favor Of the city, overru1ing the decision
OF the lower court. .5s1 ..#$
ordinarily the court Of last resort but
gthe trustees Of the Duluth Gas & Water
company made last struggle to win.
The only way that the matter could be
brought to the attention Of the United
States supreme court was by applying for
"a writ Of certiorari, which was DONE. Had
writ Of certiorari been obtained, the
trustees would have gained a complete
review of the case and a ruling by the
supreme court. 5.
The attorneys Of the trustees submitted
a brief to the supreme court arguing the
merits Of their case. City Attorney Rich
ards, in the brief he submitted, did not
touch on the merits of the case, but COM
batted the appellants right of review.
This seemed ITO be the point that the court
considered, for yesterday the word came
that the application for a writ had been
denied :s: .5 s.s.52 ~. ssy5 3, 81: sSasS
There is now in the hands Of an escrow
Committee consisting Of Samuel Unte--
meyer and Judge Dillon of New York,
$50, 900 with which to pay the amount Of
the judgments against the trustees. When
the mandate Of the United States court
Of appeals is handed down, which will be
on June 10, the city attorney will send
copy Of it to this escrow committee and
all that will remain for this committee to
do is to turn the money over to the
county OF st. Louis.
The county will get approximately $780,
900 out Of the suit. OF this amount the
city is to get 40 per cent or about NS25, 900.
THIS will be divided pro rata among the
different funds. The general fund will
get the lions share, about $4,000 or l1.00o.
This it is expected, will help tide over the
citys difficulties materially; and will help
along until the ctty's live property begins
to pay in Its tax again. 1t Is felt by the
city officers that the money will get into
the city treasury just at the proper time.
~ HOw's This!
We offer One Hundred Dollars reward
for any case of Catarrh that cannot be
cured by Halls Catarrh Cure.
f. J. CHENEY & CO., Props, Toledo, o.
l. We THE undersigned have known F. J.