Arizona daily citizen., 1901-12-06
THE TAXING or CORPORATIONS.

craI attention. because few have been
of more real importance. The decision
OF the United States Court confirms IA
previous decision OF the Supreme
Court of Illinois that the State has a
right to assess corporations for taxa
tion at the real value of their posses
franchises Thus Il street car company
is to be assessed At what its property
is worth. including its rights to use
the streets. and not merely at the val
tie of its power house, It's rails and its
ears ,hc difference between these
valuations IN illustrated by a transac-
ton in Western city some years ago
\ company bought out street car
line which operated horse cars and
paid several million dollars for it. let
is say ten millions. 1t was the design
pt the new company to institute an
electric line, Therefore. after pnrChas-
ing the old line. the entire plant was
discarded, rails were taken up and sold
for scrap iron the old horse cars
were thrown away and the horses
iold the entire tangible property of
he old corporations being sold for
sl00. 600 After this sale bad taken
place the new company bad nothing
eft except the right to- build their new
'lcctric line In the streets That right
rad cost it 50. 900 ,eO0 and the company
Considered it worth that sum. The city
rad originally given away the fran
'hise valued at nearly ten millions,
t'nder the Illinois decision the new
,ompaHy would have to pay taxes on
hat ten millioh dollars.
The assessing board of Illinois. known
" the State Board OF Equalization
lad. In assessing corporations, taken
10 account Of the value OF their fran
'hises. only valulng the tangible prop
'rty One street car company In
chicago which has o capitalization.
including stock and bonds. of $50, l64
800, was assessed Mt SIS. .526.7Sj II
was contcnded that the laws OF the
State required the assessment OF the
corporation UP to the full value of It's
'angibIe aIri intangible property AT
thc Instance OF the Chicago Teachrrs
FetAsration the States Attorney of San
CANON county in which b located the
state capital. instituted a suit to com
pei by mandAmus the Board of EquaIi-
lation to assess twenty -one corpora
lions named in the petition at n fair
cash valuations. which In the aggregate.
according to the petition. amounted ~
t235 900. btih in excess OF their assess
mcnts The ease went 10 the Supreme
Court OF Illinois and that tribunal de-
cided that the board must assess the
corporations at a fair valuation. taking
INTO account the bonded debt and the
value of the capital stock The Mayor
OF Chicago estimated that this decision
would add eight millions to the revc-
nnea of the State and two millions a
year to Chicago
The Supreme Court issued manda-
mus directing the asaessMsnt to be
made not later than November Is. in
accordance with its decision. Later on
the Chicago traction, companies OBJ
tanned from Judge Groase.up OF the
United States Court an Ordcr restrain
ing til" l'pard or Equalization from
IN" assessment III directed by
IN" state Court. Tho two courts
lher'io". rlHshed, haE ON Friday last
Lhe Federal Judges Grosscup ana
fihmphley IN tn" e. ,rcult Court dis
'oi'ed their restrals ing order and re
fused permanent Iniunction In hi,
''''"" "''iS" w oSscup adopted thu
reasoning of thu Illinois Court II
uh~ alue of the property o
NV '"'lhHain@ ms TO be assessed thu
''"'F ~ W " Ike into consideration th'
'""''' '"V and the stock, although
NV n"fh" quotations OF the stocl
"""''1 "" do az basis for assessment
Nv 'S@ ge in this connection cited tn
""' W Northern Pacific stock, which
AZ luoted recently at 81 900 a share
"hic h was ten times more than IL
r"a value After the decision OF tn
20 irt the Board of Equalization in
'r eased the assessment OF certain trac
: ION companies In Chicago from 81,
5oo,o 900 to 375.000,O0o How far thl
decision of the courts in Illinois vii
AFFECT assessments in othcr States ma
depend largely upon the laws of tn
states bearing upon the subject. Tha
| franchises form valuable asset ther
is no doubt, and that just taxation cal
| only be achieved when everything q
value ID taxed Is equally plain II /
only when mines. railroads. franchise
are taxed 10 their full value that lau