Evening star., 1901-10-24
ALL MUST PAY TAXES
Illinois Supreme Court Renders an
Important Decision.
CHICAGO CORPORATIONS INVOLVED
Mandamus Issued to the State
Board of Equalization,
CORPORATIONS INVOLVED
COURT ALLEGES AUD

SPRINGFIELD, Ill. October 24.-The su-
preme 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
writ of mandamus against the state
board of equalization to compel it to assess
the capital stock. including franchises, of
twenty Chicago corporations, the fair cash
value of whose capital stock. including
franchises over and above the value of
their tangible property, is alleged to aggre-
gate S235 900 900.
The following are the corporations di-
rectIy affected: Chicago City Railway
Company, West Chicago Street Railway
Company, North Chicago Street Railroad
Company, Chicago Union Traction Com
pany, Peoples Gas Light and Coke Com
pany, Chicago Telephone Company, Chi
cage Edison Company, Chicago Consol-
dated Traction Company, Chicago Electric
Transit 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 Company, Chicago North
Shore Street Railway Company, South Chi
cago City Railway Company. Chicago West
Division Railway Company, Chicago Pas
senger Railway Company and North Chi
cago City Railway Company.
History OF the Ease.
This case was instituted by the states
attorney of Sangamon county at the in
stance of the Chicago Teachers Fedora
tion. 1t was for a writ of mandamus to
compel the state board of equalization to
assess the foregoing corporations which 1t
was alleged, have hitherto escaped taxa
tion by the board The court holds that
the board IN assessing corporations does
not act as a board of review, but as an
original 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
ne enfOrcd by mandamus. Instead of max.
ing proper assessment the court says that
the board arbitrarily and willfully failed
TO follow a proper and lOng-established rule
in force in this state for making such as
sessments, by refusing to take into consid-
Grafton the bonded Indebtedness of said cor
pOrations. They also disTegarded 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 evadirg
their duty sought to pass new rules foc
their government in making said vaIu3-
tions and assessments and refused to con-
slider the information then before them,
furnished by the assessors, provided by
statute, and assessed the capital stock ana
franchises of said corporation at nominal
sum, instead of at the fair cash value
thereof.
Fraud Not Presumed.
while it is true that fraud will not be
board Of equalization in fixing the value OF
corporate property for the purpose of tax
alton IS quasi-pOlitical in it's nature, still
when It is apparent to the court that every
well-knCwn rule for the valuation of cap
ital stock, including franchises, has been
violated and arbitrarily disregarded by the
board, and such board has refused to con-
slider the statement as to values prepared
by the assessors under the statute for It's
use. and has refused to consider inforIna-
of n
erty submitted to il by interested parties,
and has arbitrarily fixed such at a grossly
inadequate sum under rules passed by il
Tor the occasion, the court is justified n
holding that fraud in making of such as
sessments has been established and such
pretended assessments may be properly
6isregarded and treated assessment
and such board be coerced by the writ of
mandamus to assess such property.
The Opinion of the Court.
The opinion quotes the order of the lower
court follows:
"And it is further considered and directed
by the court that you. the said state board
and the members thereof be and you are
hereby commanded TO convene forthwith at
the capital building in the county of San
canon, and that you there forthwith value
and assess the capital stock, including the
franchises, of each of said companies here
in named as of April l, 1900, in the manner
provided by law, so as TO ascertain and de-
termine respectively to each of said cor
poratiOns the fair cash value of it's capital
stock, including its franchise and
above the assessed value of the tangible
property Of such company for the year
1900 And it is further ordered that in ar
irving at such valuation and assessment of
the capital stock. including the franchises
OF said companies hereinbefore named said
board and each member thereof shall. from
the best information obtainable by it and
them. ascertain and take into consideration
among other things, as to each corporation
as the same was on the first day of April
1890 the market value or. if no market
value, then the fair cash value of it's shares !
or stock and the total amount of all it's in
debtedness, except the Indebtedness for cur
rent expenses. excluding from such ex-
penses that amount paid for the purchase
or the Improvement of property and the
assessed or equalized valuation of all tam
gible property of said corporations. respect
Nely. on said April /. 1900, and you are
further commanded to direct the respective
assessments so made TO be certified by the
said auditor of public accounts to the coun-
ty clerk of Cook county, that the taxes for
all purposes thereon may be extended by
said clerk for the year 1900.
Ordered to Make Return.
You are further commanded to make re-
turn to this court on the 18th day of June
1901. in what manner you have complied
with this order. The court does not by it's
said order and Judgment undertake to con-
rol the discretion Judgment of the re-
spondents in the valuation or assessment
he capitdl STOCK lncludlnS the fran
chises OF said corporations. 1t only LAYS
down the rules of law which govern and
the methods which should be pursued by
tne respondents in making such valuation
and assessment. This we think proper
We have been asked by the petitioner to
nx the date when return to the writ shall
De made. such order is not pecessary I'm
der section 81 OF the Practice Act upon
Ming in the trial court a certified copy of
the order of affirmance the same will ope-
rate as a precedence, and that court will
become reinvested with Jurisdiction and
may proceed as though appeal had been
taken. Finding reversible error In this
record the Judgment of the circuit court
Will be affirmed