The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1913-04-10
DELINQUENT DUES or
EXPRESS COMPANIES
COVERED BY ELLIOTT
Exchequer of State Will Fatten
BY $4,000 When They
Come Across"

Sioux Falls, S. D.. April S.-Not only
did South Dakota win an important
principle of law in the decision Of
the express tax cases by Judge Elliott,
but the winning of the cases means
an addition of $780, 900 to the state treas
ury as the suits for the 1911 and 1912
taxes are brought on the same grounds
as those for the 1910 taxes which Judge
Elliott decided in favor of the state.
All of the express companies except
the American and wells-Fargo nave
paid the taxes assessed by the board
of equalization. These companies con-
tended that the board of equalization
in levying their assessment based he
amounts not on the values of their
properties in the state. but upon their
gross earnings as shown by the
amounts which they paid h railroad
companies for the use OF their lines.
They presented a theory to support
this and asked the court to accept
their theory. This Judge Willard did.
but Judge Elliott refused to on the
ground that the theory did not work
out to the exact amounts and that the
law presumed that the board made its
assessment according to law until the
contrary was proven.
The theory of the express compa-
MES was that the board q made its
.c'A q booIs VI "a pSA III
of the lot paid to the railroads
by the express companies and that.
having thus estimated the mount OF
tax, they made a fictitious valuation
by figuring out what valuation would
be required to raise the tax so esti-
mated at the rate OF IS mills.
Under the state laws gross earnings
cannot be taxed. the levies being made
My on the aiu of the property
owned or used by the common carriers.
The companies hoped to establish that
they were thus taxed on their gross
earnings. Judge Willard held with
the companies on this contention, but
Judge Elliott held against them, de-
claring that their figures. while close.
did no prove their theory and that.
furthermore, their theory was not suf-
ficient fact. even though it worked
piled with the law unless there was
evidence to prove that it did not. and
there was no snch evidence intro
duced.
The plaintiffs presented a table
winch showed that Wells Fargo & Co.
naa PAID SlSi.l73.s2 to the railroad in
the state during the year 1910 and that
at a rate of Az per cent $S.152 In
taxes would be derived. They contend
ed that with that amount OF taxes
nxed the board figured out what valu-
ation would be required to raise the
"a i&tt vi 10 MUS and then
arbitrarily IKE the valuation accord
lngty; They showed that the valuation
OF their property, according to the
state board. was $685. SIT. and that the
.ax levied from that was ss.u655, or
nearly the same as the mount pro
duced by AZ per cent of the gross
earnings. Judge Elliott held that the
Iaets that the amounts We're nearly
the same II not prove their theory
IN the least. The table was worked
OUT lor all of the companies in the
state along the same line and while
me INJURIES were close. they were not
That the express companies VIII,
rush the matter of appeal seems GER
lhln, as they are now paying a heavy
n for a day that their taxes
remain unpaid me they viii want 70
avoid that penalty. ~
The complaints of the 1911 and 1912
cases are practically the same as in
q n Just decided, and he testimonv
would be about the same. 1t is there.
fore considered highly probable that
n express companies will nor n1sh
tne other cases If they lose in the CIR
curt court of appeals.