The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-09-10


makes a system of taxation operating
to impose upon railroads a grossly I'M
lust share of the burdens OF government.
"We find from the evidence which is
uncontradicted," says Judge Taft, who
wrote the opinion of the court, chat
generally, in the State OF Tennessee.
for number of years, the asses >ors
and the board of equalization of each
county intended to assess. and have as
sessed, real and personal property at a
uniform percentage less than it's real
value; that this percentage is not uni
form between the counties, but that it
is not substantially less than % per
cent in any of them. We base our CON
cusion on $50 affidavits contained in the
record They do not cover specifically
more than 80 counties out of the 96
counties III the State; but when they are
supplemented by the evidence of the
members of the State Board of Equali-
GERS, who officially investigated the man
ner of making assessments i'll each cOun-
ty in the State by actual visits and
by correspondence, by examining the
assessing officers and by n comparison
have no difficulty in finding the facts TO
be as above stated.
MODE OF UNDERVAI.UATTON.
THE motive for differentiation is
manifest, and the variation in the per-
centage, as between the counties, Is
dependent only on the varying extremes
to which taxing officers of different
counties are willing to go in departing
from the statutory rule 10 reduce the
State burden on their respective coun-
ties.
'In this case the effect of the in
junction is to compel assessors of the
State to reduce their assessment to- the
illegal standard of valuation adopted
by different and unfaithful assessors OF
other species OF property, and is justi-
fed by the result that in this way is
secured something like uniformity which
is the sole purpose of the constitution.
We have already found, from the
evidence, that there is an intentional
differentiation of property in each
county, and that this is uniform as to
all real and personal property, and re-
suits from clear understanding be-
tween the assessors and county boards
of equalization, who have Il common
motive for the reduction.
FRAUD AND NOT ERROR.
More than this, an action to enjoin
a tax is a collateral attack upon the
judgment of a quasi judicial tribunal;
and it cannot be justified except on the
ground of an obvious violation of law,
or something equivalent to fraud. 1t does
not lie where the injury complained
of arises only from the erroneous, but
honest, Judgment of the lawfully con-
stituted tax tribunal. The various
boards whose united action is by law
intended to effect a uniform assess
ment on all classes of property is to
be regarded as one Judgment. If any
board, which is an essential part of the
taxing system Intentionally, and there
fore fraudulently, violates the law, by
uniformly undertaking. certain classes
of property, the assessment by other
boards of other classes of property at
the full value, though a literal COM
pliance with the law, makes the whole
assessment, considered as one judg-
ment, a fraud upon the fully assessed
property. And this is true although the
ants property may have been wholly
free from fault OF fraud or Intentional
discrimination"
In this case the injunction was made
permanent and the tax assessment was
fixed by the court at 10 per cent. of
the real value of the railroads proper
ty.
1t will be interesting also, in connec-
ton with this ease, to note the valuation
of railroad property complained of. 1t
was as follows: The main line at the
rate Of 100000 per mile; Nashville and
Decatur division, $4,000 per mile;
Henderson division, $4,000; Memphis
division. S27 1000; Cumberland Valley
division, $500; Clarksyille and Prince
ton division. $4,000.
The valuations for 1896, the year be-
for this, and not complained of, We're:
The main line Mt the rate of $1,000 a
mile; the Nashville and Decatur divis-
ion $21 900 mile; the Henderson di-
vision. $4,000: Memphis division, S13,-
800; Cumberland Valley division, So
600; GAINESVILLE and Princeton diyis-
q Onn