The Saint Paul globe., 1904-12-07
NEWS OF THE CITY
STREET RAILWAY
MUST STAND RAISE
Ramsey County Wins Suit to
Compel Company to Pay
Taxes on 1908 Levy

Under decision of Judge William
Louis Kelly, filed yesterday in the Ramsey
county district court; the Twin City
Rapid Transit company must pay the full
amount of taxes On its st. Paul prop
erty on the so-called blanket raise OF
the state board of equalization Of 1908.
The decision. which involves the pay
ment of $91, ,046 in taxes and $s,l04.6O IN
penalty for non-payment, is important IN
that it indirectly involves the taxes OF
the street railway company in Hennepin
and washington counties and a similar
tax against the property of the Duluth
street railway company.
A stipulation for settlement between
the county commissioners of Hennepin
county and the officers of the Twin City
company which does not include the 10
per cent penalty and interest since the
taxes became due, has not been APPROX
ed by State Auditor S. G.. IYerson. In
the light of the decision by Judge Kelly 1t
is not at all probable that Mr.. Iverson will
consent to compromise for any less
than the ful amount claimed under the
valuation put on the property by the
state board of equalization.
State Auditor cratIhed
''I am very much pleased at the IA
vorable decision the state auditor said
yesterday. 81 am naturally pleased that
whichsthe state board of equalization act
ed in the street railway matter, and which
is it's authority in nearly all large assess
ments has been upheld. The Ramsey
county case having been decided in favor
ofsthe county look to see the claims Of
the other counties promptly paid"
The suit in Judge Kelly's court grew
out of the blanket raise of the Twin City
company'S property by the state board OF
equalization in 1908, by which the assess
ment was increased from $5,700,0 000 to S.
250, ,000 The assessment included the
property in Ramsey, Hennepin and
Washington counties, and taxes became
due on the valuation March 1, 1904. The
company refused to make payment, claim
ing the action of the state board was ar
bitrary, the valuation excessive and that
the law under which it was made was
unconstitutional.
Suit was brought in Ramsey county to
enforce payment; with the penalty of 10
per cent that had attached March 1. A
tender of $4,000. the amount which
would have been due on the old valuation,
was made and refused, and a few weeks
ago an offer of payment of S91, ,000 the
taxes, less the penalty, on the new val
uation, was made to the county attorney s
Office. Assistant County Attorney O'NeiIl
refused the tender, and the case was sub
mitted to the court. Judge Kelly,s find
ings give judgment for, the city for the
full amount claimed. $100,158.60 which,
with the costs, will bring it to 5000
Compromise Is Ineffective
The attempted compromise of the Hen
nepin county suit has not been officially
brought to the attention of the state au-
ditor. The amount claimed in taxes on
the new valuation in Hennepin, less the
10 per cent penalty, is $125, 5,S5S.S4, and
this amount, with certain sums for inter
est, was agreed to by the county COM
misSieners of Hennepin. Without the ap-
proyal of the state auditor the compromise
is Ineffective. and in the light of the de-
cision yesterday this approval will be
withheld.
The assessment of the street car prop
erty in the three counties named. with
the increase in the value of the Duluth
street railway means taxes in four coun
ties Of $270,000 and with the 10 per cent
penalty of $4,000, this sum is indirectly
involved in Judge Kelly's decision.