Omaha daily bee., 1908-11-24
PORTLAND NINE TAX DEAL
Rumor that Attempt Will Be Made
to Set Aside Compromise.
STATE MAY TAKE ACTION
Attorney General Said TO Believe
that Company is Liable for
Fall Amount or for
NothinR.

There is a possibility that the arrange
mcnt entered into between PottawattaInie
county and the Portland Gold Mining
company, whereby the latter is to pay
$40, 900 and certain costs in full settle
ment OF the 1000 suits instituted by the
county to collect taxes a~gsregsting ovsr
$500, 900 from the company and it's indi-
vidual stockholders, may be sought to be
set aside.
The movement to have the settlement
set aside, II made at all, will come, It is
said. from the state authorities. A per-
son who Is known 10 be in the confidence
of Attorney General Byers IN authority
for the statement that the attorney GEN
eral Is opposed TO allowing the settle
ment to stand and that he Is considering
the a~dvisability of taking steps ia court
~ have II annulled.
IL is said that Attorney General Byers
holds that a settlement Of a suit In
volvlng the large amount of money that
the Portland company tax case does. Cor
such an insignificant sum as 100000 is
against public policy. The attorney gen.
eral, it is said. holds further that II the
Portland company or It's individual stock
holders we're subject to the payment of
taxes on the stock, they were liable for
the full amount sued for or nothing at
all. Once the suits were begun they
should have been determined by the
courts is said to be the opinion of the
attorney general.
The amount that the state will receive
from the settlement with the Portland
company win be very small, whereas II
the 1000 suits we're prosecuted to a sue.
eessful termination it would receive quite
u considerable sum as its proportion Of
the taxes thus collected. The state, II
is commended. was never consulted by the
authorities of Pottawattamle county rel
alive to the proposed settlement, and &
It had been, the attorney general. 1t 1,
said, gives It as his opinion that i
would not have consented to any sucl
compromise.
That the Portland company and its in
dividual stockholders, II liable at all, arr
liable for the full amount of taxes as
sessed against them and this question
should have been determined by tn,
courts Is the view of the matter ex
pressed. it is said, by the attorney gen
erai.
M. f.. Schleieher of Minneapolis, a mem
Der of the firm of Fleener & Schleicher
who had q contract with Pottawattami
to ferret" out taxes which had beef
omitted to be assessed has written t
County Auditor Cheyne inquiring whel
and how the firm of which he is a mem
Der may receive its commission on til
settlement. Under its contract this flrr
was to receive Is per cent of all money
recovered into the county treasur
through Its discoveries" OF omitted O
unassessed taxes. It's commission on In
IS per cent basis. II the compromise sci
Element Is permitted to stand, wi
amount to $4,000.
In his letter to the county auditor Nj
Sch!cicCer says that. while the amour
TO be paid in by the Portland company
much less than the amount due. the sci
Element Of the cases on that basis wa
doubtless hetter than to continue III
litigation, IN view of the uncertaintie
involved Tits was the view taken b
the Pottawattamie county authorities. q