Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1905-11-10
AD VAL OREM TAX VALID
Railways Lose in Decision from
Judge Hastings.
ATTACKED LAW OF 1903
Contest Over Taxation of Steam Trans
Portation Companies in Wisconsin
Now Goes to Supreme Court.

MADISON. Wis, Nov. 4.-[Special.l
Judge Hastings of Green Bay, who
was brought here on an agreement
among the railroad attorneys some
weeks ago to hear the evidence and
listen to arguments in the ad valorem
taxation cases, brought by the railroads
against the state to declare the law of
1903 unconstitutional has decided that
the law is constitutional and the tax
valid.
Law Held Constitutional.
The following letter was received at
the attorney generals office this MORN
ing on the subject:
I have expressed to clerk of court Dane
county decision in tax case, my CON
clusion being that the law Is constitutional
SAMUEL D. HASTINGS.
To Set Aside Assessments.
The suits were brought by the rail-
road companies to set aside the assess
ment of 1903 under the ad yalorem law,
on the ground that it was unconstitu-
tional, not conforming with the proyl-
sions in the constitution on equal taxa
ton. The railroads had nearly fifty as
SCISSORS to testify that in taxing the valu-
alton of property in that year they did
not take into account franchises, etc.
On the other hand the state had the
members of the tax commission as ex-
pert witnesses in the case. Judge Has
tings has had the matter under advise
ment for over a month.
Million Is Involved.
Prior to 1903 the roads operated under
what is known as the license fee sys-
TEN, paying a tax on their gross earn
ingS. Mr.. Chynoweth estimates the in
crease in receipts about 100000 more
for the year 1903 and almost $500 900
for the year 1904. 1t is estimated that
the difference now under the new law is
at least 81, 100000 more than under the
gross earnings system.
The railroads are determined to carry
the case to the supreme court for settle
ment. \ similar law was in force in
Michigan at the same time, and after q
hearing of Lloyd Bowers and others the
case was decided against the companies.
Commotion Is Caused.
Word was received in the circuit court
room of the decision while the case re-
garding back taxes to be paid by the rail-
roads was being heard by Judge Tar
rant 1t caused connection as it
passed from lip to lip, but somehow the
railroad attorneys seemed prepared for
the shock. Attorney General Sturde-
want was pleased. He grasped the hand
of his associate, w. I'll. Chynoweth, and
SAID: How do you like that?"
Judge Hastings Opinion.
Judge Hastings opinion says in part.
My conclusions are that the constitution
does not prohibit but permits the cIassIfica
tlon OF property by the Legislature for the
purpose of taxation. N0' 'no
property and subject In each class NAV
S 1f. taxed IN a different manner and at n
aiiterent rate from that in other classes,
oil 4
the same rate. N at
Different rates may be imposed upon tbe
piropery IN different classes, when both
classeS are taxed on the advalorem basis
10 Justify classification for different man.
ner or different rates, there must he q DIFF
terence ference IN character, use, productiveness or
In the different classes
Such differences exist between the rail
road road property In this state and all other
property as warrants the Legislatures in
taxing 1t as class by itself
1t Is proper classification of such nron
"rty TO make 1t out of all local taxing dis,
'FlctS IN the state, by eXemDting il from
3yation therein, and levy on 1t by stote
GERS tax to be paid into the state
%,asury for state purposes in lieu of ali
The Legislature may adopt at the ratio o+
when railroad property is taxed upon its
value, the average rate paid by the other
property in the state the year previous.
In providing for such rate the Legislature
do not delegate the right to fix such rate
to the local taxing districts, but fix If
themselves.
The taxes so provided for while IT goes
into the state treasury and becomes q part
of the general fund of the state is nor
levied as the full annual state tax required
TO be provided for by section 5 article 3
of the Constitution.
Section 3, article s. does not require thc
Legislature in providing the rate at which
property Ill n particular class shall be taxed
to fit it so that it will produce the exact
amount of money required to meet the est
mated expenses of the state and the fact
that the different taxes provided for and
payable into the general fund of the state
might in any year create surplus does
not render the statute providing for any
one or them void (unleSS perhaps the rate
was fixed for the express purpose of Great
ing Il SurpluSl.
Sufficient difference exists between steam
railroads and street and electric interurhan
roads to permit of the latter being ex-
cluded from the class in which steel roads
are put.
The doctrine of classification permits the
Valuing of railroad property as a unite
without deduction of Indebtedness although
such deductions are allowed to mortgagGrs
OF certain class of real estate and the
owner of credits
The mode of taxing railroads provided
ny chapter 80, laws of 1908, is not repug
nant to the provisions Of the constitution
OF wisconsin or the fourteenth amendment
10 the Constitution of the United States
Regarding the testimony of the county
assessors he says: Nothing but actual
fraud wilful and intentional disregard
of the law will render void an assessment
If the facts disclosed in the testimony OF
these assessors show their assessments in
valid, | think the defendants objection to
their competence witnesses to show that
fact was well taken, and the testimony
must be excluded.
vail that all local assessments of the gen,
eral property of the state were legally made
and that the rate at which the plaintiffs
property was taxed was the rate required
by chapter 3l5, laws of 1908 and that the