The Providence news. (Providence [R.I.]) 1891-1906, 1900-01-15
is TAX EXEMPTION
UNCONSTITUTIONAL?

The case Of Clarence r. Crafts vs.
David S. Ray. town treasurer of East
Providence. which Raises the question
of the constNutionality of laws passed
10 exempt manufacturing property
from taxation, was submitted to the
appellate court today. There were no
oral arguments owing 10 the sickness Of
T,wn Solicitor L. l.. Mitchell of Ea. ,
Providence. John A. Tillinghast is
counsel for the plaintiff.
The action is one OF assumpsit
brought against the town of East Prov
idence to recover the amopnt OF tax
assessed against the plaintiff as the
owner of real estate in that town end
paid by him under protest. The action
was begun in the district court of the
Seventh judicial district and certified To-
the appellate court upon an agreed
statement OF facts.
Crafts on SEPT. 20. 1898, was asscsse d
80 on real es-ate valued at SOD. lie
die not pay the tax when due and the
real estate was levied on uadar the
provisions Of the General Laws and be-
fore sale he paid To the cole or Of tax
&c OF the town under protect the tax
and costs amounting to s25.s9. After
wards Crafts asked the towl council TO
repay him the money. When 20 days
had elapsed without repayment OF TIE
money he began suit on the ground
that the assessment was Illegal and un-
constitutional. He bases the claim OF
the grounds that certain property II
tie Crpsvc"c,s ale company and the
American electrical works corporate
located. In East Providence, was not
included In the assessment for that
year. but omitted by the assessors i'm
good haH Axr
the assessors in previous years I'm full
belief OF the duty OF the town II cx-
empt said property from taxation. The
General Assembly In 1892 passed n law
authorizing town councils TO exempt
from taxation for period not exceed
ing ten years corporations that should
hereafter locate I'm any town. The town
council or East Providence voted 10 cx-
empt the property of the two co pora-
tiCns named fr'm taxation hn their -.
eating I'm the town. Exemption was for
ten years from the nth NJ April 1852
and March %. 1898. The General Ar
semby in 1895 passed a law that ev-
pressly exempted tho two corporations
from taxation la East Providence. The
assessors believe both acts OF tho Cen
eral Assembly TO be binding upon them
and that 70 was their duty to.>omit said
property from taxation.
MR.. TILLINGHASTs BRIEF.
John A. Tilinghast in his exhaustive
and able brief submitted 10 the appel
late court I'm behalf OF the plaintiff. saws
the question to be decided Is: "Can tho
legislature cnnstitutio'silly authorize
towns and cities 20 aid manufactures
or other business enterprises owned /
and cc~t~on~1 Nv r~ivrt~ po~~o,s fo,. /
their Individual gain, bv exem.ting
them fronf taxation for 2 period II
yenrs. as n means of securing the To- /
cation OF such enterprises I'm the nar- 1
ticular communltv7"
Mr. Tillinehast argues the exemption /
~ tho property of n person ernm tava- 4
tion is in substance and effect n ~lft /
70 him ~ tho amount NJ tho tax whtch
he would otherwise 10 compelled 20
nav. ~ matters not 10 hin v-hefha~ a
town votes 90 give hin, tho at,0uuf fo-
which he is tavn1 or evemDts his prop-
erfv From, 10 hief n-d n-~no~tic-,~f tav
and assessos no amount - suoh ex-
emniion u1o- the rennairin0 esta'eS G.,
tho town liohia % taxatinn FOR ~ viii |
not be denied that eveurnfio1 ~ rron-
srtv from taxation results In the i'm