Omaha daily bee., 1908-11-20
TAX SUIT IS COMPROMISED
Portland Gold Mining Company and
County Reach an Agreement.
TWENTY THOUSAND DOLLARS PAID
Also 20 Pay All the Costs,
Including Filing Fees, In the one
Thousand Separate Cases In
cIuded i'm the Litigation.

In consideration Of the Q paying
so, 900. filing fees amounting to $1,000 and
all court costs the Loo suits brought by
Pottawattamie county against the Portland
Gold Mining company and the mo vidual
stockholders for taxes for several years
back were dismissed In the district Sourt
yesterday.
Negotiations looking TO the settlement
OF these suits have been pending for pOme
time. @. J. Chinn Of Colorado Springs, me
Of the attorneys for the Portland 0oid
Mining company, has been In the city fcr
the last two days comforting with Congress
man w. L Smith and State Senator C. q.
Saunders, h local attorneys for the COM
pany, ana County Attorney J. j. Hess and
Hari & FINLEY, special counsel for the
county.
The total amount assessed as taxes In
the 1000 suits was something over $500, 900.
n litigation was begun nearly three years
ago and a hearing was had before Judge
Thornell during the March term of court
last year. A number OF the original cases
were consolidated and on the result Of this
trial the outcome OF the entire attempt Of
the county to tax the corporation stock
practically depended. Since the hearing
before the court briefs have been filed by
counsel on both sides from time to time
and no decision had been handed down by
the court The transcript covered 100 pages
and the briefs 800 pages more.
Statement By Attorneys.
Charles M. Harl, one of the special coun-
sci for Pottawattsmie county In this liti-
cation, made the following statement when
the settlement was announced and the for
NAL order issued by Judge Greene in ac-
cordance with the terms of the COM
promise:
At different times during the progress
OF the litigation suggestions Of possible
settlement have been made by the mining
company, but the offers were such that
they could not be considered by the county.
Recently, however, the matter of possible
compromise was again taken up.
The Portland Gold Mining company made
an offer of $4,000 cash in settlement Of the
tax cases against 1t, which proposition was
by the board accepted and
by a judgment for that amount. The as
sessment was based upon the highest sales
OF Portland stock for each of the years
covered by assessment. The value OF the
stock fluctuated very greatly during these
years and the court would probably, in
view of all the circumstances and the
doubtful character of the case, fix the
assessment at the lowest value OF stock
for each year, which would have cut the
claim of the county from one-third to one
half. In addition to that there would have
SNNAA VI N
deducted from the value of the stock, the
assessment made against the real estate
II the company in Colorado, this assess
-nent under the statute being deducted
from the value of the stock for assess
mont purposes.
The treasurer in making his assessment.
having no knowledge of the value of this
property or the amount of the assess
ment, assessed the stock without regard
thereto. The questions involved in the
case were close and intricate. AS the Port
land company had raised questions involv-
ing the claim that the legislation Of Iowa
was in conflict with the federal consti-
tuition, a decision against them would
have been appealed to the supreme court
Of the United States, which could not
have been determined for something like
three years, Then, in view Of the fact
p%oration had been transferred to the Port
land Gold Mining company Of wyoming, 1t
would have required a suit in the courts
Of Wyoming to enforce that judgment, in
which would be presented other claims in
volving the effect of the federal constl-
tuition protecting In each state the judg-
ments OF every other state, that case
could have been appealed to the supreme
court of the United States with like delay.
that that with complete success on the
part of the county on every question in
volved, II would have been from five to
seven years before the cases could have
been finally determined and there was
the possibility Of defeat at any stage of
the litigation, and after a large amount
Of money had been invested in costs and
expenses.
In view of the fact that the Board of
Supervisors. while having abiding conf
dence in the business and legality OF the
claim Of the county, deemed 1t better to
accept $4,000 in cash than invest a large
amount in costs and expenses with the
chances of litigation and the certainty
OF a long period of time before anything
could he utilized. There was also the
LANCER that during the litigation the Port
land mines. which have been In operation
from ten to thirteen years, might be ex-
haUsted and there be no property out Of
which the claim Of the county could he
~calized. In view of all of these facts,
'1e Board OF Supervisors concluded that a
~sh settlement for 10000 would be more
atisfactory to the taxpayers of the county
! han risking other money in this protracted
"igation.
l The Board OF Supervisors at its session
yesterday afternoon took formal action in
the matter by adopting a resolution approx
ing the settlement.
Although 1t gets back all the costs II had
paid in the litigation, the county does not
receive much out of the settlement. Harl
& FINLEY under their contract with the
county were to receive is per cent OF what
ever amount might be recovered through
the tax suits into the county treasury. They
will therefore receive 5000 out Of the $2o,-
600. Fleener & Schleicher. who were work
ing under a 10 per cent contract with the
county,, uiSCoNeTeu luhl the fOftlduu
company had not been assessed. They will
receive 5000 and this will then leave $4,000
to be apportioned among the state, county.
city and school district. The city will get
the largest share, something in the neigh
borhood OF $500. while the county's proper
ton will be not more than 5000.
The settlement is considered a favorable
one by the county officials. The outcome
of the suits was doubtful and the litigation
would have undoubtedly dragged along for
several years yet at a large expense to the
county. Even II the suits ultimately ter
minated in favor of the county and il Sc
cured a judgment for a large amount County
Attorney Hess expressed the opinion yes
terday that IL would be very doubtful IL by
that time the county could discover any
visible property TO levy on.
The Portland Gold Mining company was
originally Incorporated under the laws OF
lows and had its headquarters ostensibly in
Council Gluffs. where the annual meetings
of the stockholders were held. Shortly
after the county commenced these tax suits
the company dissolved its Iowa incorpora-
| kta, .nd rag,rnVnarafaA u NUuou.g.-