The Red Cloud chief., 1902-09-26
PARTIAL VICTORY
Railroads Do Not Escape Entirely
Unscathed in Court
SYLLABUS IN THE CASE
Decision Rendered by thief Justice Hoi-
iomb In u Lengthy Onc-Enrnings
and stock values are Elements
showing Real value

banded down its decision in the man
damus suit brought to compel the state
board of equalization to as sess the
franchises. etc, of the railroads..
As Judge Holcomb once occupied a
position on the state board of equaliza-
ton. he was supposed to be more Ia
miliar with the subject than any other
member of the bench.
I'VE cannot escape the conclusion
says the court. that both the tangible
and intangible property of the railroad
companies were I'm fact assessed as one
property or one unit Earnings,
franchises. stocks and bonds are desig-
mated as property to be considered.
The two principal questions consid-
cred by the court were as follows:
Has the board failed To assess property
which under the law ii is its duty to
assess. Second. in making the assess
mcnt has the board acted traudulently
in valuing such properties for assess
ment and for that reason rendered
void the action taken. In effect the
court finds that franchises and all in
tangible property must De and were
assessed by the board that the trans
action was O tainted with fraud;
that the board is clothed with quasi
judicial rowers As 10 the valuation
OF such property and when it has act
ed on sufficient information and eN-
pressed an honest Judgment as TO such
value. its Judgment cannot be con-
trolled 10y the vrit OF mandamus.
The following is the syllabus OF the
case:
I. Pleadings construed and held TO
present an issue of fraud in regard to
the manner OF making the assessment
complained OF.
2. II is the duty OF the state board
of equalization To value and assess for
purposes OF taxation, all railroad and
! telegraph properties of all kinds with
in the state. with the exceptions men
tioned in sections SO and 40 OF the
.Aeyenue act.
Nv 3. In assessing property for taxa
ton the dominant idea of the organic
Jaw. Is that needful revenues shall be
I raised by levying a tax on property
) by valuation, in such manner that
every owner OF property subject to
taxation shall pay taxes in proportion
TO the value of the property owned.
6. The word property" as used in
sthe constitution is n generic term and
4Rciudes all property of whatsoever
scription whether tangible or in
gible.
While the revenue act provides
the assessment for tax purposes OF
property at its fair cash value, the
hrt will take judicial notice of the
Let that for general revenue purposes
etyhe standard of value generally prevail
, ing is far below the actual cash value
of the property assessed.
q. In observing the constitutional
rule of uniformity. property which es'
capes axes altogether can not b.
taken into O In determining thu
standard of valuation of property ac
tua,ly listed. returned Or assessed, OF
which taxes are levied.
7. The state board OF equalization
in the assessment of railroad and tele
graph properties should include in IL,
assessment the value of the franchise
with the tangible property assessed.
8. In the assessment Of railroad an,
telegraph property. the state board o
equalization may consider not onl.
the returns required to be made b.
sections 80 and 40. but also other in
formation of a reliable character oh
tainable which may tend to establis
the true value Of the property as
sessed.
o. The provisions OF section 80. c
the revenue act, requiring the assess
ment of the capital stock of the COZ
poEations named therein, at its actua
value, after deducting thercfrom tn
value of the real estate and other pei
s0nal property OF such corporation al
sessed as such. are not applicable I
the assessment made by the state boar
OF equalization. of the properties ,
railroad and telegraph companies.
10. Sections 80 and 40 of the revenr
act embrace the legislative plan an
method of assessing railroad and tel,
graph property which are comple'
within themselves and capable of Ell
forcement Independent of the prov
sions of section 30.
II. In assessing railroad and tel
graph property, II is the duty of Il
state board of equalization to secu
all reasonable and necessary reliab
information relative to the yalue
the entire property of each corpor
ton assessed and assess such proper
as a unit or as one property.
~. In determining the value of Il
property assessed, IL is the duty
the board % consider all factors ha
ing the elements of property, wheth
tangible or intangible. which enhan
the value of the corporate estate, al
value such property FOR assessme
purposes so that the valuation plac
thereon shall harmonic with the co
stitutional rule OF uniformity.
IS. Where railroad and telegra'
properties are situated in more tn
one state, II Is necessary to consit
and determine the value of the wh'
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