The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-08-19

NNo-N ~ OAAAO Las tAA-
dered a decision directly declaring ille-
gal and unconstitutional the charter ot
the city Of Cleveland and incidentally
avoiding the charter Of nearly every
other city and own in the state, as they
are subject to like objection as that Of
Cleveland. To remedy this the govern
or Of the state has called the legislature
18th day of this Month
h state OF affairs has grown out OF
the fight yer corporation taxation be-
tween Mark Hanna and these corpora
ions on the n side n Hon. Tom
Johnson, on the other. The mayor of
Cleveland insists that the street rail-
ways and the light and power compa-
mics shall pay their proportionate part
Of the public taxes, which he says they
have not been doing. His political op-
ponents charge him with using the
power the city charter gives him to op-
press the corporations and play the
tyrant in the matter of their taxation.
1t appears that the assessment upon
the personal property and real estate
Of these corporations of that city is
only o 10 per cent. of the market
value of their securities or Of the CAPT.
talization of their acknowledged net
earnings at 81 per cent, while other
property in the city is assessed at 40
to so per cent. of it's true value"
This state of affairs did not suit May
or Johnson; so he set about, with what
the corporations term "pcrnicious ac-
tivity," to have these assessments rails
ed to somewhere nearer the true value
Of the property. This was esented by
Senator Hanna and his confreres, and
thus the fight began which resulted in
the supreme court declaring that the
city's charter under which the mayor
was trying to secure proper taxation
on the corporations was rull and void.
Mayor Johnson showed that one COM
| pany assessed at 81, 400, 900 was paying
cash dividends of s per cent. on stock of
par value of $780, 900 and 5 per cent.
in stock worth much over 5000 per
share. The mayor insisted that this
stock was worth $3.50 per share and Of
fered to pay that for it.
The local board Of assessors took the
mayors view of the matter and added
5000 0 900 to the taxable value of the
corporations of the city. They were,
though, overruled by the state board of.
assessors, resulting in a loss to the city
of nearly half a million dollars a year
in taxes.
On this decision Mayor Johnson took
the question to the courts with the re-
suit of an adverse decision by the su-
preme court as stated above.
Mr.. Johnson by no means admits de-
feat. He will now fight these corpora
tions before the state legislature. He
will go to Columbus when that body
meets and lay the facts before it and
there enter into the fight with these
corporations in an endeavoF to secur
for his city and the others of the state
charters which will force the corpora
ions to bear their just proportion of
taxation.
1t is said that Senator Hanna will also
be on n when the legislature con-
venes, prepared to lake an active part
in the fight He is said to be confident
of victory in behalf of these down
troden, oppressed corporations against
the effort to make them pay taxes on
more than 10 per cent valuation of their
property. We are told that a greas
many republicans secretly favor Mayor
Johnson and will not rally to Senator
Hanna's support. Senator Foraker, it
is said, is in sympathy with Mayor
Johnson and is encouraging republicans
to a sides against the corporations.
There is a possibility, if not a proba-
bility, that this affair may renew the
hostility between these two senators and
again bring on the fractional fight
among the republicans of tha state.
1t is a novel condition of affairs and
we may expect to see some fur fly be-
fore the fight is over.
"And we rise to remark just here
that in all probability, if this matter
of valuation for taxation of certain
corporations other than railroads in
our own state were closely looked into
it would be found that conditions some
what similar to those in Ohio exist here,
and while there is such a cry as to de-
felt in state funds it would be we'll for
this matter to receive attention from
the state auditor whose duty it is to
pass upon the valuations placed upon
these corporations.