The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1913-04-10
DELINQUENT DUES or
EXPRESS COMPANIES
COVERED BY ELLIOTT
Exchequer of State Will Fs.tten
BY 5000 When They
Come Across"

Sioux Falls, S. D., April S.-Not only
did South Dakota win IN important
principle OF law In the decision of
the express tax a by Judge Elliott,
but the winning of the means
an addition OF $50, 900 to the state treas
ury as the suits for the 1911 and 1872
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 have
paid the taxes assessed by the board
Of equalization. These companies con-
tended that the board of equalization
in levying their assessment based the
amounts not on the values OF their
properties In the state. but upon their
gross earnings as shown by the
amounts which they paid the railroad
companies for the use Of their lines.
They presented a theory to support
this and asked h court to accept
their theory. This Judge Willard did,
but Judge Elliott refused to m the
ground that the theory did not work
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-
iituo WhS IIldI TIC DOdru udu Hlh0c lLS
assessment on a basis of AZ per cent
OF the mount paid to the railroads
by the express companies and that.
having thus estimated the amount OF
tax, they made a fictitious valuation
by figuring out what valuation would
be required to raise the tax 80 esti-
mated at the rate of % mills.
Under the state laws gross earnings
canno be taxed, the ,leyies being made
only on h value 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 not prove their theory and that,
furthermore, their theory was not sur
hcient fact, even though 1t worked
out, as the board presumably COM
piled with the law unless there was
evidence to prove that 1t did not, and
there was no such evidence intro
duced. ~ .a4g
The plaintiffs presented a able
which showed that Wells Fargo d Co.
had paid $181.173.92 to the railroad In
the state during the year 1910 and that
at a rate of Az per cent $8,152 in
taxes would be derived. They contend
ed that with that amount of taxes
AAou the podru inquired out what Valu-
alton would be required to raise the
axes at the rate of 2S mills and then
arbitrarily, fixed the valuation, accord
ingly. They showed that the valuation
OF thei property, according to the
state board, was $2S9,S77, and that the
tax levied from that was $S,116.55. or
nearly the same as the mount pro-
duced by An per cent Of the gross
earnings. Judge Elliott held that the
facts that the amounts were nearly
the same did not prove their theory
In n least. The table was worked
out' for all Of the companies in the
state along the same line and while
the figures were close. they were not
That the express companies win
rush h matter of appeal seems GER
tain, as they are now paying a, heavy
penalt for each day that their taxes
unpaid and they viii want TO
avoid that penalty. I -
n complaints Of the 1911 and 1919
cases are practically the same as in
n n just decided, and the testimonl.
would be about the same. 1t is there
fore considered highly probable that
the express companies will NOT pusb
the other cases IL they lose in the CIR
Cult court OF appeals. ..7T