Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1906-06-14
MOVES AGAINST
7. G., | & R. R. co.
Corporation Cited to Appear
by Revenue Agent.
ABOUT 100000 INVOLVED
, Assessment of Intangible Prop
erty for Four Years-Effort
is Made Under Act of 1903.


One of the biggest tax suits that has
been filed in Tennessee in many years
and what will probably prove to be one
of the most interesting originating in
the South recently, was instituted by
State Revenue Agent James r. Jetton,
on Thursday before the Trustee of
Grundy County. Persuant to a formal
motion heretofore entered, the Tennes
see Coal Iron and Railroad Company,
INCORPORATED under the laws of this
State, was summoned to appear before
J. d. Nunnelley, Trustee of Grundy
County, on June 10, to-, show cause
why it should not be back assessed or
reassessed for taxes for the years 1903,
1904 1905 and 1906
According to the estimates of the
State Revenue Agent and the allega-
tions which will be made by him on
the hearing of the case before the
County Trustee, not less than 5000, 900
in the State and county taxes is invol-
we'd in the case One fourth of this
amount or about $500. 90, it is alleg
ed, is due to the State on an made
artate assessment for the years men
toned and the balance will accrue to
the county of Grundy should there be a
recovery. Should there be a recovery
for half of the amout alleged to be in
volved, it would perhaps be the larg-
est single tax recovery known in the
history of this State.
The contention of the State and
county, which is the basis of the act
ion, is that the property of the de-
fendant corporation has for many
years, or since 1894, been assessed at a
wholly inadequate value, and its prop
erty has BEEN grossly underestimated
in making up the tax lists Owing
to the statute of limitation, of course
no effort will be made to recover back
for longer period than this and the
three previous years.
An effort will be made by the State
to assess the property of the defendant
corporation under the terms of the as
sessment act of 1903 providing for the
assessment of quasi public corporations
and corporations public in their char
acter upon the aggregate value of the
capital stock and the bonds of the con-
cern less the value of the real and tan
gible property assessed for taxation. 1t
is alleged that the assessment upon the
intangible property of the company has
been at ridiculously low figure, con-
sidering the actual value of the out
standing stocks and bonds, and that
the amount of the capital or intangible
property which has escaped taxation
has been considerably in excess of $40,
900, GOO per annum for. the years fol
which recovery is sought.
The clause of the assessment act OF
1908 under which the action is brought,
provides in part for the method of ar
irving at the value of the property OF
corporations of the defendants class as
follows: 'Such corporation shall pay
an ad valorem tax on the actual cash
value Of its corporate property, includ
ing the franchises, easements, incor'
poreal rights and privileges and all 9th
er corporate property, which said val
ue shall not be assessed at less thar
the actual cash value of both its shares
of stock and bonded debt and which
said value shall be computed by look
ing TO and considering the marke
value and if no market value, the ac
tual value of such stocks and bonds tC
the corporation; provided however
that the assessment and taxation o.
said corporate property or capital stool
shall be in lieu of any assessment ant
taxation of said shares of stock o
bonds, either to the corporation or tn
owners thereof; and provided also
that the assessed value of the corporal
realty and tangible personally other
wise assessed shall be deducted in max
ing the assessment from the value o
q ~ appUprafn prOnnrtu nT IA
stock
1t is eontended by the State that tn
Intangible property of the defendan
corporation was never assessed for tax
alton until 1892, at which time. o
motion of Levi V. Woodlee, then tn
Back Tax Attorney for Grundy Coun
ty, the company was assessed for thre
years and the county recovered take
to the amount of about $26, 500. Thi
suit went to the Supreme Court of tn
State, a great many interesting legs
questions being raised by the company
but all points We're over ruled by tn
court of last resort and the judgemer
of the lower court in all particular
affirmed. This case is reported in
Pickle, and is one of the leading at
thorities in this State on the cOnstruC
tlOn OF the assessment laws.
Ii is claimed by State Revenu
Agent Jetton that since the determine
tion of this suit, for some reason, 4
assessment has been levied upon til
intangible property of the company q
required by law except for a sma
amount which it is claimed, is ri(
iculously out of all proportion to th
actual value of such property. Ii
insisted that the average assessmeI
levied upon the tangible and intanl
ible personality for the past ten yeal
win not exceed sec, 900 per annum.
Although the Tennessee Coal, IrO
and Railroad Company had an humb
beginning. having been founded shor
ly after the war, il has grown to be
very rich corporation, and its stock
now quoteiOn the New York ExchanG
at 1856 Since the amendment 10 u
charter made ON Jan. l. 1906. the can