Ashland tidings. [volume] (Ashland, Or.) 1876-1919, 1916-12-04
Another Delay in
Grant Tax Payments

to pay the taxes on the .. d G. lane
grant to seventeen Oregon counties
as provided in the Ferris bill, along
comes the Southern Pacific railroad
and protests payment. The taxes in
volved are for 1913, 1914 and 1915
and amount to approximately ST.
100000. The railroad is determined
not to be out this money, despite the
acts passed by congress in June.
You are notified" says the South.
ern Pacific to President Wilson, con.
gress, the secretary of the interior
secretary of agriculture, attorney
general and treasurer of the United
States, that any payment of such
taxes or ordering of the payment of
the same by the respective officers
named, will be made on their own
responsibility and at their peril and
that of the United States"
When congress passed the Ferris
bill it provided that the taxes for the
years mentioned would be paid by the
government to the respective coun-
ties and that the government would
later reimburse itself from the rail-
road through the sale of land under
the terms of the grant.
The first thing to be done was to
ascertain the claims of the counties
for taxes. This was done in tripli-
cate, one copy going to Washington,
one to the railroad and the other to
Oswald West for checking up. West S
report on the claims has been prac-
tically completed and the government
was prepared to pay the taxes on re-
ceipt of the check on the claims Of
the railroad. The railroad was to
make its check and report in thirty
days. Now the railroad not only fails
to file its report, but comes out with
the announcement that it refuses to
recognize the right of the government
to pay the taxes.
To Louis L. Sharp, chief of field
division, general land office, at Port
land, B. 4. McAllister, land commits
sioner of the Southern Pacific, has
set forth the position taken by the
railroad with regard to the tax mat
ter.
Judge Wolverton on July 1, 1913,
declared the land grant forfeited.
This decree was reversed by the SUI
preme court of the United States on
June 81, 1915. 1t is to cover this
period of three years os taxes that
congress arranged to pay to the coun-
ties the back taxes. McAllister con-
tends that between the time Judge
Wolverton declared the grant forfeit
ed and the time the supreme court
reversed him, the railroad did not
have possession of the land and, con-
sequently, can not be made to pay
the taxes through the government,
mo power rests in the congress of
the United States to declare or main
tain a revestment of the title to the
railroad compaEy's property in the
manner attempted by said act ap-
proved June 8, 1916; that in the
event the United States pays any
taxes on any lands granted as afore-
said, such payments will be volun-
tary payments by the United States
of taxes upon another's property and
will not be recoverable by the United
States from the owner of such prop
erty."
Continuing, the railroad declares
mo taxes could be lawfully levied
or assessed on said lands by the state
of counties of Oregon or Washington
for, during or within the period be-
tween the entry of said decree of
July l, 1918, and its reversal, June
81, 1915, nor thereafter become a
lien upon said lands; nor could taxes
levied or assessed on the lands which
had not become a lawful lien upon
the same prior to July /, 1913, there
after become lawful lien thereon,
nor could said states or counties law
fully enforce the collection of any
taxes levied or assessed on or against
the lands for the years 1913, 1914
or 1915 or for any of said years"
Also, the railroad questions the
constitutionality of the Ferris bill,
and this is a matter which is being
hurried to the supreme court for de-
termination.
In short, the railroad intends beat
ing the counties out of the $500, 900
taxes neatly. If the government
pays the taxes the railroads will re-
sist reimbursing the government on
the grounds set forth; if the govern
ment hesitates and does not pay the