OFFICE OF THE CHAMBER OF COMMERCE, R. P. DERRICKSON, ESQ., Chairman Board of Equalization of Taxes: Yours, very respectfully, CHAS. L. RAYMOND, Secretary. Your Committee having neither legislative nor judicial authority, feel compelled to leave the policy of the law to the legislative authority of the State, and the constitutionality of the law to the courts of competent jurisdiction, and confine ourselves within the law as we find it on the statutes. The position taken by Secretary Raymond in his letter of the 6th inst. is at entire variance with the plain requirements of the revenue law. The 4th clause of section 3 of said law states in plain terms that the assessed value of the tangible property, real and personal, shall be deducted from the aggregate fair cash value of the capital stock, including franchise. Thus if the tangible real and personal property is assessed at say $100, 000, and the fair cash value of the capital stock is, say $850,000, the assessment for capital stock under the law, assuming property to be assessed at its full value, would be $750,000. But, assuming property to be assessed at 50 per cent. of its actual value, the capital stock of $850,000would be $425,000, from which the $100,000 assessed value of tangible real and personal property would be deducted, leaving $225,000 to be assessed as capital stock. The decisions of the Supreme Court of this State heretofore made in Bureau county and in other cases, will compel the State Board, in its assessments of property, to adopt as its basis for values the proportion of the actual value at which this Board finds other property of the State to be assessed. This your Committee believe to be a concise statement of the requirements of the Revenue Law, which must govern the State Board in its assessment of the capital stock of corporations. In plain words, the Board is only required to assess capital stock where a value is clearly ascertained over and above the assessed value of tangible property of the incorporated company or association. If there is no such value, then no assessments can be made against capital stock. The law does not contemplate taxing the same thing twice, as claimed by Secretary Raymond. In answer to the claim of the President of the Chamber of Commerce, that the value of capital stock is an invisible property, and not a taxable property, we only take the law which governs us, which in the 1st section thereof declares that" Fourth, the capital stock of companies and associations incorporated under the laws of this State," is a property which shall be assessed and taxed. Seventeen corporations in the city of Chicago made returns, which are now in the hands of the Auditor, to your Committee, after which your Committee departed for Joliet, Will county. The officers of this county seemed to be laboring under the same misapprehension as the official of Cook county. They, however, cheerfully furnished your Committee with all the information desired. Five corporations made returns, now in Auditor's office, to your Committee. All of which is respectfully submitted. Schedule " A. " R. P. DERRICKSON, D. R. MCMASTER, STATE BOARD OF EQUALIZATION, The following resolutions were adopted by the State Board of Equalization, in session this day. Mr. Derrickson offered for adoption the following preamble and resolution: WHEREAS it appears from the schedules furnished to this Board by the Auditor, that Cook county has returned thirty-eight thousand acres less assessed this year than in 1872, and has returned ten thousand less city lots than in 1872; and whereas, there are complaints that the City of Chicago has failed to assess and return many millions of dollars worth of property belonging to incorporated companies; be it Resolved, That a Committee of three be appointed from the Board by the Chairman, whose duty it shall be to immediately proceed to the City of Chicago, and if possible confer with the County Board and Clerk, and with all other practical sources of information, and obtain all the facts bearing on the subjects in foregoing preamble; and to take such action as it may be found necessary to obtain from incorporated companies, the statements or returns required by section 32 of the State Revenue Law, and report the same to this Board at as early a day as shall be practicable; such Committee is hereby authorized to employ such clerical assistance as it may find necessary. Mr. Dewey moved to amend the resolution of Mr. Derrickson, by adding the following resolution: Resolved, That said Committee also be authorized to take such action as may be found necessary to obtain returns under section 32, Revenue Law, from corporations in Will and other counties. The additional resolution of Mr. Dewey was accepted by Mr. Derrickson. On motion of Mr. Whitney, The resolutions were adopted. The Chairman appointed Messrs. Derrickson, McMaster and Dewey said Committee. We certify the foregoing to be a correct copy of proceedings from the journal of the Board as far as relates to the matters therein referred to. C. E. LIPPINCOTT, Chairman. WM. STADDEN, Secretary. In working up the abstract by Towns, for use of the County Board in making their equalization, I discovered that the Assessors of some towns in the county had failed to add up the numbers of acres of lands and town lots, and the books were given out to the clerks of the office to make the necessary corrections. Meanwhile I went on with the abstract, adding such towns as were properly returned to us. The reason for continuing with the work before the errors had been corrected was that the County Board might proceed with their duties. It is not usual for the County Board to equalize on lands and lots separately, and consequently the number of acres or lots is not necessary to be reported to them after the abstract of values had been completed and proved for the whole county, and before the correct number of acres and lots had been ascertained. I assisted the County Board for two weeks, and when they had finished their equalization, I commenced to prepare our report to the Auditor. some towns in Cook county have no lands and others no lots, the columns of lands and lots would necessarily be vacant as to such towns; and in our hurry to get our report to the Auditor for use of the State Board, who were then waiting for returns from this county, the deficiency was overlooked. There was nothing intentional about it. It was a mere clerical error, which we are very sorry should have happened. The actual number of acres as returned by the Assessors, and which should have been reported to the Auditor is.. The number of acres reported was.. A difference of.. The actual number of lots, as returned by the Assessors, and which should have been reported to the Auditor is. The number of lots reported was. A difference of. As 524, 610 497, 497 27, 113 222, 860 177, 229 45, 631 Schedule "D." COPY OF CIRCULAR. To.. CHICAGO, September 5, 1873. The undersigned are a Committee appointed by the State Board of Equalization, now in session at Springfield, to obtain information on which to assess the capital stock of corporations in Cook and other counties. None of the corporations of Cook county have complied with section 32 of the Revenue Law, which requires them to furnish the Town Assessors with a statement. In the absence of these statements, it becomes the duty of the State Board to proceed to assess corporations upon the best information they can obtain, and in so doing they have the right to assume that the nominal value of the capital stock is the actual value. This will, in all probability, be the rule adopted by the Board, and, therefore, all corporations interested should make it a point to appear before the committee and furnish information. Herewith please find a blank, which, if filled out and returned, will furnish the required information. Please make return of the blank or appear before the committee in the County Commissioners' room, old Court House, between the hours of 9 and 12 A. M. and 2 and 4 P. M.. on Saturday and Monday. Yours, etc., R. P. DERRICKSON, On motion of Mr. McCabe, The report was received and referred to the Committee on Assessment of Capital Stock of Corporations. Mr. Derrickson, chairman of Special Committee, asked for instructions in regard to obtaining returns of corporations in the city of Quincy. Mr. English moved that the Special Committee go to Quincy for the purpose of obtaining said returns. Mr. English, by consent of the Board, withdrew his motion. On motion of Mr. Derrickson, The Secretary of the Board was instructed to open correspondence with the County Clerk of Adams county for the purpose of obtaining the statement of the corporations located in the city, required to be made by such corporations, under section 32 of the Revenue Law. On motion of Mr. McMaster, The Board adjourned until 9 o'clock to-morrow morning. FRIDAY, SEPTEMBER 12, 1873. The Board met, pursuant to adjournment. Mr. Miles in the chair. The minutes of yesterday's proceedings were read and approved. The following preamble and resolution, offered by Mr. Miles on the 10th inst., having been made the special order of business at 9 o'clock this morning, was then taken up, viz: メ WHEREAS the fourth clause of section three of "An act for the assessment of property, and for the levy and collection of taxes," approved March 30, 1872, in force July 1, 1872-provides as follows: § 3. Fourth-The capital stock of all companies and associations now or hereafter created under the laws of this State, shall be so valued by the State Board of Equalization, as to ascertain and determine, respectively, the fair cash value of such capital stock, including the franchise, over and above the assessed value of the tangible property of such company or association. Said Board shall adopt such rules and principles for ascertaining the fair cash value of such capital stock as to it may seem equitable and just; and such rules and principles, when so adopted, if not inconsistent with this act, shall be as binding, and of the same effect as if contained in this act, subject, however, to such change, alteration or amendment as may be found, from time to time, to be necessary, by said Board: Provided, that in all cases where the tangible property or capital stock of any company or association is assessed under this act, the shares of capital stock of any such company or association shall not be assessed or taxed in this State. This clause shall not apply to the capital stock or shares of capital stock of banks organized under the general banking laws of this State; therefore, be it Resolved, That for the purpose of ascertaining the fair cash value of the capital stock, including the franchise, of all companies and associations now or hereafter created under the laws of this State, and for the assessment of the same, or so much thereof as may be found to be in excess of the assessed or equalized value of the tangible property of such companies and associations respectively, we, the State Board of Equalization, hereby adopt the following rules and principles, viz: First-The market or fair cash value of the shares of capital stock, and the market or fair cash value of the debt (excluding from such debt the indebtedness for current expenses,) shall be combined or added together; and the aggregate amount so ascertained shall be taken and held to be the fair cash value of the capital stock, including the franchise, respectively, of such companies and associations. Second-From the aggregate amount ascertained as aforesaid, there shall be deducted the aggregate amount of the equalized or assessed valuation of all the tangible property, respectively, of such companies and associations, (such equalized or assessed valuation being taken, in each case, as the same may be determined by the equalization or assessment of property by this Board,) and the amount remaining, in each case, if any, shall be taken and held to be the amount and fair cash value of the capital stock, including the franchise, which this Board is required by law to assess, respectively, against companies and associations now or hereafter created under the laws of this State. Mr. Mosier moved that the resolution be adopted. Mr. McMaster moved to amend by striking out the words "the market or fair cash value of," in the second line of the first clause, being the words which precede the words "the debt." Mr. Derrickson moved to amend the amendment by striking out of the original resolution only the words "market or," leaving it to read "and the fair cash value of the debt," etc. After some discussion, Mr. Derrickson, by consent of the Board, withdrew his motion to amend the amendment. The question then being on the amendment of Mr. McMaster, it was not adopted. The question then being on the original resolution, it was adopted by the Board. The resolution of Mr. Miles, offered on the 10th inst., for the purpose of declaring the opinion of this Board as to the per cent. of the actual value at which property has been assessed for 1873, and the amendment thereto, offered by Mr. McCabe, having been made the special order of business for this morning, was then taken up. The question being on the amendment of Mr. McCabe, to insert 75 per cent., it was not adopted. Mr. Hunter moved that the original resolution be laid on the table. On motion of Mr. Mosier, The Board adjourned until to-morrow morning at 9 o'clock. SATURDAY, SEPTEMBER 13, 1873. The Board met, pursuant to adjournment. chair. Mr. Lippincott in the The minutes of yesterday's proceedings were read and approved. Mr. Fisher asked leave of absence to attend the State Fair, he being a superintendent of one of the departments thereof. Leave granted. On motion of Mr. Willmarth, The Board adjourned until Monday morning at 9 o'clock. MONDAY, SEPTEMBER 15, 1873. The Board met, pursuant to adjournment. Mr. Lippincott in the chair. The minutes of Saturday's proceedings were read and approved. The Secretary laid before the Board a schedule of corporations in this State, incorporated under general laws, from January 1, 1866, to April 30, 1873, as shown by the records in the office of the Secretary of State, said list having been compiled in compliance with the resolution of Mr. Derrickson, adopted by the Board on the 10th inst. (See appendix for said schedule of corporations.) The schedule was referred to the Committee on Assessment of Capital Stock of Corporations. On motion of Mr. Warner, The Board adjourned until to-morrow morning at 9 o'clock. TUESDAY, SEPTEMBER 16, 1873. The Board met, pursuant to adjournment. Mr. Miles in the chair. The minutes of yesterday's proceedings were read and approved. Mr. Derrickson moved to take from the table the following resolution, offered by Mr. Miles on the 10th inst.: Resolved, That it is the opinion of this Board that so far as the property of the State has been assessed and returned to the Auditor, that the same is assessed at 65 per cent. of its fair cash value. Motion adopted. Mr. Warner moved to amend the resolution by making the rate per cent. 70 instead of 65. After some debate, participated in by Messrs. Derrickson, Diggins, English, Hunter, McCabe, McMaster, Warner, Whitney and Wiley, On motion of Mr. McMaster, The whole subject was laid on the table. Mr. Whitney moved to reconsider the motion laying the whole subject on the table. On which question the yeas and nays were demanded, and resulted: yeas 7, nays 11, as follows: Those voting in the affirmative are, So the Board refused to reconsider the motion to lay on the table. On motion of Mr. Warner, The Board adjourned until 2 o |