Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1906-01-19
IT'S SEATTLE LAWYER
PHILADELPHIA LAWYER" OF NO
FURTHER USE.

! OSGs
J. Hamilton Lewis as Corporation Counsel o
Chicago Has Beaten More Than so RaiIroad
in His Effort to Make Them Pay Franchise
Tax-he Failed in Three unfortunate Courts
But Was Upheld by the Supreme Court o
the State-wiIl Result in Millions Of Dollar,
Annually to the City.
James Hamilton Lewis, corporation
counsel of Chicago, after five months
fighting, has secured his first victory
in the crusade to make the corpora.
tions pay taxes due the city, asserts q
Chicago report. When he took his
office, one of the first things he en-.
tered upon was to compel the public
service corporations to pay franchise
tax to the city for the use OF the
streets.
Their defense was that they were
taxed generally on their franchises by
the State. He answered, taking the
position, which was regarded as novel,
that the use Of the streets, overhead or
surface or underground. through any
ordinance of the City Council, was in
the form of a license to use the street.
That though the State taxed the fran.
chise granted by the Legislature, the
city had . right to tax the use OF it's
streets, as An exercise OF license and
privilege granted by the City Council.
More than so railroads, street rail-
ways, elevated railways and under.
ground tunnel companies and the diff.
ferent terminal railroads centering in
the city were made the subject OF his
fight. They all combined to defeat his
proposition.
They were successful in three courts.
He was defeated before the local coun.
ty court in August. He was defeated
before the appeal board in September.
He was defeated again by the same in.
fiuences and their counsel upon ap.
peal, and in attempt to get manda-
mus to compel the levy OF the taxes
according to his contention.
With these three defeats, the com.
panies sneered at his efforts. One Of
the public papers Knocked and derided
him. This particular organ being the
mouthpiece of the great corporation
interest there, charged that the corpor.
alton counsel, James Hamilton Lewis,
in the words of one OF the attorneys
for the tunnel company-which was
the subject Of the main attack-was
trying to put upon Chicago one OF
the Seattle dreams-a technical legal
idea imported from ne far off little
State of Washington"
The Hearst papers aud the Dnily
News-the leading independent even.
ing paper-were the only supports he
had among the newspapers. The
Daily News, being a supporter Of polit-
ical policies opposing the Mayor, gave
out scant aid. 1t was evident that its
support was purely intended as q COM
pliment of Lewiston his persona.
courage in making the fight. Finally,
after these several defeats, il was be.
lieved, of course, he was vanquished
and his industry and persistency at an
end. He took final appeal to the
Supreme authorities at Springfield,
the capital. There the question was
reargued by him in person against the
combined opposition. The final tax
court has IL members.
To the astonishment OF the interests
at Chicago, who had been opposing
Lewis in this fight, the final tax court
decided in his favor, overturned all
the tribunals which had decided
against him, and laid tax upon the
underground tunnel Of 5000, 900, which
sum it pays. being the first money
paid upon its franchise in its exist.
ence.
All the companies interested have
given notice OF appeal to the Supreme
Court Of the United States upon the
question. But under the law here
they must first pay the tax before they
can proceed further. The people OF
Chicago become 100000 richer in
their tax fund by virtue Of the fight.
The other corporations, who must
come under the decision if it is sus-
tanned by the Supreme Court of the
United States, must contribute, it is
believed, more than $2,OO0,OOO year.
Lewis has announced publicly that.
acting under his authority as law Of.
ficer of the city and directing the
legal distribution of tax funds, this
money obtained by his fight for extra
taxes from the public service corpora.
tions shall be devoted to the increasing
OF the police force, cleaning the city
and enlarging the school accommoda.
tions.
This was q shrewd political an.
nouncement. It at once brought to
him the support of all families who
have children to be educated and who
are crowded out of schools; also those
who have children who are being
crowded in the schools; tho mer.
chants who have been demanding
police protection. and the residents
who have been crying for the same
became at once allied With him. And
the universal demand for cleaning
Chicago has been converted into the
support of Lewis in his tax fight.