Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-05-05
Council Bluffs,
ROADS LOSE IN TAX CASE
Supreme Court Decision Will Apply to
Many Cities in Iowa.
BLUFFS NOT ALONE TO BENEFIT
Lines 20 Pay water and LiEht TaHe.
on whole Of state Board NaIua-
ton and Not Alone on
Mileage.

The decision of the Iowa supreme court
sustaining the contentious Of the city OF
Council Bluffs that its railroads should
pay water and light taxes on the whole o.
the state boards assessment was greatly
pleasing to CITY Solicitor elem F. IIimball
who conducted the legal fight for the city
The decision makes Immediately available
the opportunity of collecting about $40 OC
OF back taxes, which all of the railroads
OF the city have refused to pay for period
OF about five years, but which the Illinois
central, Union Pacific and Northwestern
united In fighting In the courts
Inc decision Of the railroads not to nav
the taxes was based upon a rule Of their
making In direct conflict with the rule OBJ
served by the state board in assessing the
taxes. AS is well known. the state takes
rom the cities and towns all power 10
assess railroads and other similar corpora
tons general assessment Of each cor
poration Is made covering all Of the mileage
within the state. Each city and town and
township Is then apportioned, the taxes
accruing from the mileage OF main lines
WITHIN It's limits. Under this rule for ex-
ample Garner township collects about
N0Vn annually from the Rock Island and
council bluffs. with but a fraction of the
mileage, but with the vast network of
terminal tracks gets only about Si2 900 II
all or the taxes are collected. The rail-
ROADS have Joined in the refusal to nav
lakes Tor water and street lights EXCEPT
Tor the portion Of their mileage lying ada
cent to their stations Where the mileage
mas been three miles the companies have
paid the fun amount for the first mile a
small fraction Of the assessment for the
second mile and none at all for the third
claiming that the companies got no benefit
at all from the water and light distribution
in the outlying districts.
Mitchell Began Action.
The court action was begun when County
Treasurer Mitchell undertook to force the
collection Of the tax against the Illinois
central, known In the case and on the
tax books as the Dubuque Sioux City.
On January "a, 1905, the company applied
for an injunction to Judge Thornell in the
district court. The case was tried and
Judge Thornell held that the claim OF ex-
en1ption for the northerly mile of main
line inside Of the city limits was lust and
rendered a permanent injunction against
the city from attempting to collect It, The
decision was Of great Importance to the
city, as 1t cut off two-thirds of the rail
road assessment for water and light taxes
1t was promptly appealed to the supreme
court and argued and submitted about
sixty days ago. City Solicitor Kimball felt
the Importance OF the case and, went into
court after the most thorough preparation
He was opposed by the abIest lawyers that
railroads could secure. They2tmade a hard
fight, for the case affected more than
twenty other large cities In the, state. Dur
Ing the pending of the suit efforts were
made by the company to have It dismissed
representative offered to pay all back
taxes and enter an agreement to pay in
the future II the suit wa& withdrawn
County Treasurer Mitchell and Solicitor
Kimball refused to consider the PROPOSE
tion on the grounds that II their claim was
not good they did not want to collect a
cent. but IL tenable they wanted the
matter settled by supreme court opinion
The question OF appeals to higher courts
was discussed yesterday. Mr.. Kimball was
of the opinion that the company could not
get into the court of appeals for the reason
that no interstate question was involved