The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1901-10-24
CHICAGO GREATLY ENRICHED
Two Hundred and Thirty-five Millions Added to
Taxable Property in the City,

Springfield, ILL.,. Oct 24.-The supreme
court this morning affirmed the judgment
of the circuit court of Sangamon county in
what is known as the Chicago teachers
tax case. This, in effect, awards a writ
Of mandamus against the state board Of
equalization to compel it to assess the
capital stock, including franchises, Of
twenty Chicago corporations. Two hun
to be a fairly estimated cash value of the
capital stock, including franchises, over
and above the value of the tangible prop
erty Of these corporations. The corpora
tions directly affected are:
Chicago City Railway company, West Chi
cago Street Railway company, North Chicago
Street Railroad company, Chicago Union
Traction company, Peoples Gas Light and
Coke company, Chicago Telephone company,
Chicago Edison company, Chicago ConsOli-
dated Traction company, Chicago Electric
Transfer company, Chicago and Jefferson
Urban Transit company, Evanston Electric
Railway company, Cicero and Proviso Street
Railway company, North Chicago Electric
Railway company, North Side Electric Street
Railway company, Ogden Street Railway COM
pany, Chicago North Shore Street Railway
company South Chicago City Railway com
pany. Chicago West Division Railway COM
pany, Chicago Passenger Railway company.
and North Chicago City Railway company.
This case was instituted by the states
attorney Of Sangamon county at the in
stance of the Chicago Teachers fedora
ton. 1t was for writ of mandamus to
compel the state board of equalization to
assess the foregoing corporations which 1t
was alleged had hitherto escaped taxation
by the board. The court holds that the
board, in assessing corporations, does not
act as a board of review, but as an orig
inal assessor, and that the performance
OF its duty to assess the fair cash value
of capital stock, including franchises, over
and above the value of tangible property
may be enforced by mandamus. The court
says:
Instead of making proper assessment, the
board arbitrarily and wilfully failed to fol-
low a proper and long established rule in
force in this state by refusing to take into
consideration, in making such assessments.
the bonded indebtedness of said corporations.
They also disregarded all other rules for the
making Of such assessments In force at the
time Of the filing of this petition and for
the purpose of evading their duty sought to
pass new rules for their government in max
ing said valuations and assessments and re-
fused to consider the information furnished
to them by the assessor and assessed the
capital stock and franchises of said corpora
tions at a nominal sum instead of at the
fair cash value thereof.
While it is true that fraud will not be pre-
sumed and that the decision Of the state board
of equalization In fixing the value OF cor
- 49,
ouasi-judicial in its nature, still, when it is
apparent to the court that every well-known
rule for the valuation Of capital stock, in
cluding franchises, has been violated and
arbitrarily disregarded by the board and such
hoard has refused to consider the statements
as to values prepared by the assessors under
the statute for its use and has refused to
consider information as to the value of such
corporate property submitted to it by in
terested parties and has arbitrarily fixed such
a grossly inadequate sum under rules passed
by il for the occasion, the court is justified in
holding that fraud in making such assess
ments has been established and such pre-
tended assessments may be properly disre-
yarded. and such board be coerced by the
writ OF mandamus to assess such property.
The opinion quotes the order of the
lower court as follows:
'And 1t is further considered ana directed
by the court that you, the said state board
and members thereof, be and you are hereby
commanded TO convene forthwith at the cap
itaI building in the county Of Sangamon.
and that you there forthwith value and assess
the capital stock, including the franchise. OF
each Of said companies herein named as on
April 1, 1900, in the manner provided by law,
SO as to ascertain and determine respectively
as to each OF said corporations the COM
pany's cash value of its capital stock, In
Guiding its franchise over and above the