The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1905-11-09
AID VAL REM TAX VALID
RAILWAYS Lose in Decision from
Judge Hastings.
ATTACKED LAW OF 1903
Contest Over Taxation of Steam Trans
rortation Companies in Wisconsin
Now Goes to Supreme Court.


Judge Hastings Of Green Bay. who
was brought here on an agreement
among the railroad attorneys some
weeks ago 10 hear the evidence and
listen to arguments in the ad valorem
taxation cases. brought BY the railroads
against the state TO declare the la" OF
1903 unconstitutional has decided that
the law Is constitutional and the tax
valid.
Law Held Constitutional
The following letter was received at
Che attnru.v generals Office this morn
cng on t. subject:
! have expressed TO clerk Of court Dan"
county decision IN tax case. my con
'slusion being that the law Is oonsttut'uAi
SAMUEL u. HASTINGS.
To Set Aside A assessments.
The suits were brought by the rail-
yoad companies TO set aside the assess
.meut Of 1903 under tho I'D volorem law,
on the ground that il was unconSttn-
ronal, not conforming with the proVl'
sions in the constitution on equal taxa
zion. The railroads had nearly NIFTY as
pessors TO testify that in taxing the valu-
ntion of property in that year they did
not take into account franchises, etc.
On the other hand the state had tho
,membcrs of the tax commission hs eK-
pert witnesses in the case. Judge Has
Rings has had the matter under advise
mcnt for over month.
Million Is Involved.
Prior to 1903 the roads operated under
what is known as the license fee sys-
ITEM, paying a tax on their gross earn
tngs. Mr. Chynowcth estimates the In
crease in receipts about 100000 more
for the year 1903 and almost $500, 900
dor the year 1904. II - estimated that
Thc difference now under the new law Is
Ht least $lUypUOO moro than under the
gross earnings system
The railroads arc determined 10 carry
the case 10 the supreme court for settle.
rnent A similar law waq in force in
Michigan az tho samc time. and after n
Rearing OF Lloyd Bowers and others the
case was decided against the companies.
CONNECTION Is Caused
Word was received IN the circuit court
Toom Of the decision while the cnse re.
guarding back taxes to b" paid by the rail
Foads was being heard by Judge Tar
giant II caused . C0mmoGon ns 1t
passed from lp 90 lip. but somehow tho
Faliroad attorneys seemed prepared for
1he shock Attorney General Smrdr-
Tant was pleased. He graspcd the hnnd
pr his assocIate, W, If. Chynowcth, and
paid; How do you like THAR
Judge Hastings Opinion.
Judge Hastings opinion says in port
Ny conclusion are that the constitution
eoes not prohibit but permits the CInssI6rnl
Ion of property by the Legislature FOR the
kutpose of taxation.
I Property and subject IN each rInas rnav
Pc taxed In different manner and nt n
different rate from that In other cIags.,
Eut an IN the same class must be taxed at
khe same rate. W
Different rates may be Imposed upon the
property In different CLASSES, when both
CLASSES are taxed on the ndvalorem baals
10 JUSTLY classification for different man.
per or different rates. there must be n air
Refence in oharnctcr use, productivcncss or
elfcumstnnc's "f the property or subjects
" the different classes.
Such differences exist between the rou.
Soad property In this state ana all other
property az warrants the legislature In
AhrinG II as n class hy itself
II IL proper classification OF guch prop.
~ 10 make Il out Of all l0cnl taxins dis.
- IN ne STATE, ~, cA"mptIng II from
.rrs INK 70 be paid into tho stntc
H7uty Tor state purposcH iu llru OF all
taxes "
,hc Legislature may ndopt Mt the rotc =,
1lch railroad property IL taxed upon its
'alue, tho average rate pulh by fhr other
gropcriy ~ tho .tutr The year previous
In proy0l,ue rut such rate tho LrgIaIpfur.
~ not delegate the right ~ fix pTrl, rnte
e. The local taxing d'str,rn, but IA It
Thc ,a1r. 10 provided rar VIM, 1, Goa,
ento th" stat" treasury und becomes u part
Ef the general fund of the afntc a. nor
s"virH aH 600. fu'l annual state tax required
b. De- Wu.llnd for iy section f. nffirIr \
Section q. a'r.lr =. docs not require tho
g"FFhnt" 'a InElnt lh' rate M which
e. n Il 10 s6o +, "H pr,ln@" tD \. , ",o@t
amount OF money required 60 meet Che cslI.
mnird HH"Ahra A. thn state ma the fnrf
ihat ih" alH.r'"t i"yr. PROVIDED Tor ma
NJ