The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1917-03-10
MUST CONSIDER
BONDED DEBTS
OCOURT AT RENO OVERRULES
TAX COMMISSION IN GOLD
FIELD CASE

Inc Keno Gazette Oh wednesday
has the following report of the
decision of Judge Stoddard in the
tax suit of the Goldfeld CONSOLE
dated Water company against the
Nevada tax commission:
'In a decision handed down today
by Judge r. c. Stoddard in the dis
trict court in the case of the Gold
field Consolidated Water company
against the Nevada tax commission,
brought to obtain redress for an
alleged generalization by the Nevada
tax commission of the property of
the company for assessment purpose
for the year 1913, the plea of the
plaintiff in the case was granted
and the assessed valuation of the
company reduced from $150,000 to
$4,000.
1.-THE decision is based largely on
the fact that the tax commission in
of the company neglected to take
into consideration the company's
bonded Indebtedness, which amount
ed to $254,00O in 1913.
From the testimony in the case,
Judge Stoddard says in his opinion
the tax commission in making the
valuation took into consideration
only the original cost of the prop
erty, amounting to 100000, the
ost of reproducing the property
amounting to $335,O0O, and the
earning value of the property.
"The opinion also upholds the
plaintiffs contention that the tax
commission, in fixing the valuation
of the property, ~'disobeyed the man
datory provisions of section eight
of the tax commission act by failing
to base it's findings upon the con-
sideration of the factors and ele-
ments which an investor in such
character of property would be
reasonably willing to pay therefor in
order to acquire ownership; and
also by not giving such weight and
consideration, in arriving at it's
findings of such value, to all factors
affecting, influencing or determining
the valuation of said property which
a purchaser would ordinarily give
but instead based it's valuation on
the cost of reproducing the prop
erty.
1.-THE decision of the court de-
clares the 1913 assessment void and
the county treasurer of Esmeralda
ounty is ordered to refund to the
yolaintiff the amount of taxes which
were paid corresponding to the re-
duction thus made.
I'm making the decision the court
held that, from the evidence intro
duced, it could not find the prop
erty to be worth more than
$125,OOO, sixty per cent of which
would be $4,000.
1.-The case was heard in Reno on
November 5th and 9Th, 1915, but
was not submitted for decision until
January 2 of this year.
I'm the course of his opinion,
Judge Stoddard had this to say
upon the validity of the statute
under which the tax commission
acted:
"'While the validity of this stat
ute is not questioned in this pro-
ceeding, nor is it deemed necessary
to consider the constitutionality
thereof in order to determine the
questions presented herein, never
theless it may not be amiss to OBJ
serve that a provision of the Cali
fOrnia constitution almost identical
in terms with the statute above
quoted has been declared void as
being a discrimination in conflict
with the fourteenth amendment to
the federal constition. (Santa Clara
VS.. Southern Pacific Railway COM
pany, IS Fed. Rep. 385. See also
San Mateo VS.. S. P. company, IS
Fed. Rep. 145.)
without further discussing the
effect of or the reason for excepting
railroads and other qu%asi-public cor
porations under the provisions of
the last-quoted act, the fact re-
mains, as disclosed by the undis-
puted testimony, that the commits
sion in arriving at it's finding as to
1.-The full cash value" of plaintiffs
property considered the amount of
the bonded Indebtedness due on said
property, but after so doing failed
to give weight to said Indebtedness
as a factor which would naturally
influence any prospective purchaser
Of said property possessing ordinary
practical business competence, con-
trary to the express command of
section eight of the tax commission
act.
Whatever combination of fig
ures of method of computation the
lAommission employed in arriving at