The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-09-13
500 LINE ASKS
REDUCTION IN
ITSV VALUATION
Files Mandamus Action in
District Court Against
Equalization Board

hurkIHE that the state board of
equalization did not act in good faith
in establishing a valuation upon its
property, the 500 Line railread has
filed mandamus action in district
court here seeking to prevent the
board from certifying it's valuation
at $3a, a,25l.9 1892.
As established by the equalization
board at u recent meeting the valua-
ton ef 500 line property for taxa
ton purposes was placed at that
figure.
temporary restraining order has
been issued to prevent State Tax
Commissioner Thorstein H. Thoresen
and State Auditor John Steen. from
proceeding with the work Of certify
ing the 500 line valuation to the az.
ditors Of the 80 counties through
which the line runs, unless the va.ua-
tiOn so certified shall be only GO per
cent Of the value fixed by the board
Of which both are members.
Hearing September -
Hearing in the case has been set
for. September -.
In its complaint the railroad
charges that the board fixed a high
valuation on its property and that OF
other railroads arbitrarily. designed
~ and wilfully. contrary to the judg-
ment Of the members Of said board
and contrary to law"
The hi~h valuation was not set by
the board "mistakenly and in good
faith but purposely as matter of
expedicncy and because Of disinclina-
ton to place value upon railroad
property generally, and plaintiffs
property in particular, materially less
than it had been valued in previous
years." the complaint AYERS.
The further charge is made that
the equalization board has for years
followed the policy of placing high
valuations on railroad property and
that each successive wear extends its
influence into the next year and oper-
ates to strengthen application Of that
policy. The railroad contends that
ever since 1922, and even before that.
its valuation has been at least $l2.-
100000 too high each year and that
this year the valuation is $4,000. 900
too high. Unless curbed by the
courts, the complaint alleges, the
state equalization board will continue
to levy excessive valuations on rail-
road property. The petition also al
leges that il its request for q per-
manent injunction is not granted, the
500 line will be forced to pay $685.
COS in taxes over and above its right
ful share. The correct valuation. it
contends, is $2O.S4O.509
Case Is Important
The case is regarded as of especial
importance here since it calls into
question the equalization boards val
uation Of all railroad property in the
state. II the 500 Line wins the case
other railroads are expected to file
similar actions for reductions in their
taxable valuations.
Papers in the case were served ON
members Of the equalization board
today. After reading the complaint
Tax Commissioner Thoresen COM
mented that the railroad company
evidently il attempting to evade
payment Of its fair share Of the tax
burden"
Ten years ago the value of all
North Dakota railroads was fixed by
the federal court in an action brought
by all the railroads jointly against
the equalization board, he said. The
value as fixed in that adjudication
was greater than the value assessed
by the board this year, he said.
Equal Reduction Made
THE valuation % fixed by the
federal, court was reduced because
the board took into account economic
conditions affecting railroad opera
tions and financial returns from their
investment, this despite the fact that
the physical valuation Of al the lines
showed an increase. The reduction
in the taxable valuation Of the rail-
roads has been fully % great as the
lcpatsssee ~ eage thsee)