Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-12-05
TAX Sinking BY INJUNCTION

TAX Sinking BY INJUNCTION
One of the most perniclOus abuses of
judicial injunction is the assistance given
by the federal courts to tax Sinking
railroads on the plea that they have
been assessed above the just proper
ton of their true value, as compared
with the assessed valuation of other
taxable property. Nowhere in the
United States has this abuse been more
fragrant and inexcusable than in Ne
braska.
The ordinary taxpayer In Nebraska
has no alternative but either to pay the
tax levied upon his property or to sub
init to n seizure of his chattel property
and delinquent tax sale of his real es-
tate. The best he can do If he deems
his taxes to have been illegally levied,
is to pay under protest, and take his
chances of recovery of the overcharge
after due process of law. But the rail
roads of Nebraska, or rather two of its
railway systems, have deliberately con-
spired to starve the government into
submission. They have figured out how
much taxes they are willing to stand
and rendered the amount to the respec-
tive treasurers, and have used the in
junction club TO hammer the counties,
school districts and municipalities into
compromises on their own terms in vio-
lation of the constitution and laws of
Nebraska, that prohibit the remission of
taxes even by legislative act Knowing
that the state courts could not and would
not issue restraining orders to prevent
the collection of taxes, they have in
voked the power Of the federal courts
and left the county and municipalities
of Nebraska without the necessary
means to carry on their respective gov
ernments without embarrassment
1t is easy, of course, to find single
instances, here and there where lands
or chattels have been undervalued by
county assessors and to make it appear
that these individual instances of under
valuation constitute the general prac-
tice 1t is easy also for the railway
lawyers TO juggle with figures and make
it appear that the valuation of the rail-
roads by the state board is way out Of
proportion to it's valuation in the stock
and bond markets, and it is much more
easy even TO juggle with figures about
their earnings in a particular state. when
a very large proportion of the traffic is
interstate; and it is very difficult to as
certain the exact proportion TO be cred
tied to each of the various states
traversed by the railroads.
Tax Sinking by injunction is becom-
ing an art, with procrastination as the
great lever for bringing the state. coun-
ties and cities to terms. The idea that
any class Of property owners had it
within their power to stave off the pay
ment of taxes for years by injunction
was never dreamed OF by The trainers
of the constitution or our national leg
islature. 1t certainly was never con-
templated that any single taxpayer or
class of taxpayers should enjoy the
privilege of Sinking his burden of taxa
ton for years under the plea that his
property has been assessed out of pro-
portion with other classes of property.
What would become of the govern
ment If all property owners should re-
sort to the same method of tax evasion.
How could we maintain our courts,
even, let alone the various departments
Of county and municipal government,
and the public schools, if any consider
able portion of the taxpayers so banded
together for the purpose Of forcing re-
duction of their assessments? Why
should not the railroads be compelled TO
pay their taxes the same as other prop
erty Owners-pay them in full, under
protest if they believe that their prop
erty has been overvalued by the State
Board of Equalization:
The inevitable effect of tax Sinking
by injunction must he TO cripple the
local government This has already
been demonstrated by deficits in city
and county treasures, Notwithstanding
the enormous amount of back taxes col
| lected under the scavenger act. This
scavenger tax income was derived from
the forced sale OF real estate delinquent
for taxes. excepting alone the property
OF railroads. With the machinery OF
injunction at their disposal the railroads
would be able TO stave OF their taxes
for an indefinite period. Such a CON
| dition is intolerable
The main object or Governor LaFol-
lette's call for a special session of the
Wisconsin legislature is said TO be TO
recover 100000 OF taxes evaded
| ~ the raflroads tbrough rahs tas