The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-04-28
Board Of Equalization and Review
viii Take up Matter of the
Water power Assess
ment.
ARGUMENTS COMPLETED
Both Sides Of the Case Presented to
the Board at Meeting Held In
the Council Chamber
Yesterday.

The city council as a board of
equalization and review will act on
the complaint Of the state and the
county in the matter of the assess
ment of the Mississippi River Power
company some time Monday.
Arguments for and against raising
the assessment from 100000 were
concluded yesterday afternoon at $3.50
O'Clock, following heated session in
the council chamber, and the matter
was taken under advisement by the
board and will be disposed Of Monday.
The council chamber yesterday att
ernoon was packed with persons in
terested In the proceedings and both
sides Of the case were ably present
ed before the board. The talkfesi
became trifle warm at times and
sarcasm peeped out during the ses-
sion. Both sides were dead In earn
est and there was no talk Of COM
promise. The state and county stood
out for an assessment of not less than
s1O,0O0,OOO and they were supported
by delegation representing those In
the county who are in favor Of q
higher assessment for the water
power company.
Claim Assessment Too Low.
The state and county claim that
the 100000 assessment is unreason-
ably low and out of proportion to
other assessments in the district.
Nothing less than $10,000,000 is It's
stand. Besides the complaint filed
yesterday by County Attorney Hamil-
ton and Assistant Attorney General
Robbins, two similar documents were
also presented to the board, one sign
ed by J. N. Hayes. justice of the
peace in Madison township, and a
second signed by the following resi-
dents of the city and county: VIII
liam Philip, M. V. B. Walker, A. c.
Helwig, J. f. Peterson, H. H. Jingsl,
G. ". Heller, c. Keppel, Nancy KEEP
pei, r. L. Baul, ]. N. Wilson, Walter
Powers, w. H. Siegfried and Henry
Wiegner.
These petitions read practically the
same as the one presented in the
name Of the county attorney and the
state.
History Of tie Case.
The history of the water power
taxation case is well known When
it was decided to build the plant here
Keokuk promised not to tax the con-
Germ for twenty years. However, a
nominal assessment of 100000 was
power company.
About a year ago former Assessor
S. H. Johnston presented state
ment to power company officials, cali
ing for an assessment Of SS,000000
on the power plant and asked them to
sign it. They refused. With the
privilege given him by the law, NJ.
Johnston Immediately doubled the as
sessment to s16,0O0,OO0.
The matter came before the board
of equalization and review and after
arguments for and against the assess
ment were made. the board reduced
it from the $16,OOO,O0O to S50O,O0O,
which in itself was raise of 100000
over the year before
Mr.. Johnston Immediately appealed
the case to the district court and N
time it was transferred to the federal
court. Then motion was filed 10
remand the hearing back to the dis
trict court. Judge Wade, however,
overruled the motion on the grounds
that the federal court was the proper
place for the proceeding. And there
tue ludtteT IeSLS. / lie case HAS uoL
been tried. When Assessor Dimond !
made the assessments this year, !
he left the water power assess
ment at 100000 as set by the board /
the year before. He hoped that the
court would decide on the case before
he had finished his work so that he
might make the assessment on the |
power company according to the rul-
ing. AS the matter has not come up
yet, he did not change the assess
ment as set by the board last year.
Paid Tax Under Protest. !
The Mississippi River Power cont
pany paid taxes this year on the as
sessment of 100000 but only under
protest, so that it's case in court |
might not be jeopardized.
The state of Iowa, backed by a |
party of citizens of Lee county in
favor of higher taxation on the
water power company, Shas now step
ped in and asked the board to make |
the assessment this year at not less
than S10,000,000
During the hearing yesterday the
whole matter was again gone over.
The promise of twenty years exemp-
ton was again brought up, the loca-
ton of the state line was challenged |
and documents tending to prove that
the earnings of the power company ~
the present time could not stand the
tax asked by the state, were intro
duced.
The power company officials plead
ed with the board not to take action
until the federal court had taken Up
the suit bending from last year. ii
was argued that the ruling in this
case will settle all disputes and give