New-York tribune., 1901-10-25
CHICAGO FRANCHISE TAX.
IMPORTANT DECISION OF ILLINOIS
SUPREME COURT.
CONTENTION UPHELD WHICH WILL ADD
OVER s2O0,O000OO TO ASSESSED
VALUATIONS
VALUATIONS

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 chi
cago teachers tax This in effect grants a
writ Of mandamus against the State Board OF
Equalization TO compel it to assess the capital
stock, including franchises of twenty Chicago cor
porations, the fair cash value of whose capital
stock, including franchises over and above the
value of their tangible property, is alleged TO aggre
gate s2S5. .O00OOO.
The following the corporations directly af-
fected Chicago City Railway Company, west
Chicago Street Railway Company, North Chicago
Street Railroad Company, Chicago Union TRACTION
Company, Peoples Gas, Light and Coke Company.
Chicago Telephone Company, Chicago Edison Com
pany, Chicago Consolidated Traction Company.
Chicago Electric Transit Company, Chicago and
jefferson Urban Transit Company. Evanston tiec-
tric Railway Company, Cicero and Proviso street
Railway Company North Chicago Electric Ral-
way Company, North Side Electric Street Railway
Company, Ogden Street Railway Company chi
cago. North Shore Railway Company. South chi
cago City Railway Company. Chicago. West d.
vision Railway Company. Chicago Passenger Rall-
way Company and North Chicago City Railway
Company.
This instituted by the State Attorney
OF Sangamon County at the instance of the Chi
cago Teachers Federation. 1t was for writ OF
mandamus TO compel the State Board of Equalza-
ton assess the foregoing corporations. which,
it was alleged. have hitherto escaped taxation oy
the board. The court holds that the board IN as
SeSSlnS corporations does not act aS d pOdAN "a
review, but al original assessor, and that the
performance of its duty to assess the falr 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 a proper assessment, the board
arbitrarily and WIlfully failed TO follow a proper
ana long established rule in force in this state TOT
making such assessments. by refusing 10 take INTO
consideration in making such assessments the
bonded Indebtedness Of said corporations Ihey
also disregarded ali other rules for the making or
such assessments in force the time OF the ming
OF this petition, and for the purpose OF eVadg thelr
duty sought TO pass rules their ernIntht
IN making said valuations and assessment ana re-
FUSED 10 consider the Information then before then
furnished by The assessors, provided by statute
and assessed the capital stock and franchises OF
The fair cash value thereof.
While IL Is true that fraud will not be presumed,
and that the decision of the State Board or EqudH
zatlon in fixing the value OF corporate property Tor
the purpose OF taxation is quasi judicial in Its
nature, still, when il is apparent 10 the court that
every well known rule for the valuation OF capl-
tai stock, including franchises, has been violated
board refused consider the statement as 10
values prepared by the under the statute
for its and has refused to consider lntOrIna-
ton 10 the value Of such corporate property sub
mltted by Interested parties, and has aroltra-
rlly fixed such at a grossly inadequate sum under
rules passed by ii for the occasion. the court Is
justified in holding that fraud in making OF such
tended assessments may be properly disregarded
and treated assessment. and such board be
coerced by the writ OF mandamus 10 assess such
property.