Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1905-11-08
AID 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. ii SPECIAL
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
1908 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:
| have expressed to clerk of court Dane
county decision in tax case, my con-
elusion 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 valorem law,
on the ground that it was uncOnstltu-
tional, not conforming with the provi-
siOns in the constitution on equal taxa
tion. The railroads had nearly fifty as
SCISSORS to testify that in taxing the yalu-
alton of property i'll 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-
tenn, paying a tax on their gross earn
Ings. Mr.. Chynoweth estimates the in
af,0+1s
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 $1,000,000 more than under the
gross earnings system.
The railroads are determined to carry
the case to the supreme court for settle
ment A similar law was in force in
Michigan at the same time, and after a
hearing of Lloyd Bowers and others the
ease 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 commotion 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. III. Chynoweth. and
sald How do you like that?'
Judge Hastings Opinion.
Judge Hastings opinion says in part.
My conclusions are that the constitnt;o,
soes not prohibit but permits the classifica.
.EAoh OF property by the Legislature for the
purpose of taxation. NC
Property, and subject in each class NAV
different rate from that in other cIa 5000
nut all In the same class must be taxed ~
the same rate. " q
Different rates may be imposed upon the
property IN dlHerent classes, when both
elasses are taxed on the advalorem ha sis
10 justly classification for different man
ger or ol1erent rates, there must be q dir.
terence in character, use, productiyeness or
circumstances of the property or subjects
IN the different classes
ouch dlferences exist between the rail-
.foad property IN this state and all other
property as warrants the Legislature in
taxing 1t as class by itself.
It IS a proper classification of such prom
~ TO make it out of all local taxing dis.
t-scts in the state, by exempting If from
i;sXauon therein, and levy on It by state
@dicers tax to be paid into the state
9teasury Tor state purposes in lieu Of all
The Legislature may adopt at the rate #
when rallroad property Is taxed upon It's
value the average rate paid nv the other
property In the state the year previous
In providing for such rate the Legislature
do not delegate the right to fix such "a
TO the local taxing districts, but fix 1t
themselves. -
The taxes so provided for while it goes
INTO the state treasury and becomes a part
of the general fund of the state, is NOT
levied as the full annual state tax renu,r ioi
to be provided for by section 5 article s
of the Constitution.
Section 8, article 8, does not require the
Legislature in providing the rate at which
property in particular class shall be taxed
TO fit it so that 1t will produce the exact
amount of money required to meet the EST.
Stat
that the different taxes provided for and
payable into the general fund of the state
might In any year create a surplus does
not render the statute providing for any
one Of them void unless perhaps the rate
was fixed for the express purpose Of Great,
ing q SurpluS}.
railroads and street and electric interurban
'oads to permit of the latter being ex,
Guided from the class in which steel roads
The doctrine Of classification permits +hc
yaluing of railroad property as a unite
without deduction of Indebtedness, although
such deductions are allowed to mortga gors
OF a certain class Of real estate and the
owner of credits.
The mode of taxing railroads provided
by chapter 315, laws of 1903, is not reDues
nant to the provisions of the constitution
of Wisconsin or the fourteenth amendment
to the Constitution of the United States.
he 'ns OF the the county
fraud or wiful and intentional disregard
of the law will render void an assessment
II the facts disclosed in the testimony OF
these assessors show their assessments in.
valid think the defendants objection tc
their competence as witnesses to show tina
fact was well taken, and the testimony
must be excluded
think that the presumption must pre-
vail that all local assessments of the gen,
eral property of the state were legally made
and that tho rate at which the plaintiffs
property was taxed was the rate required
by chapter BIO, laws Of 1908 and that the
tax is valid.