The Lansing state Republican. [volume] (Lansing, Mich.) 1855-1874, 1860-02-21
Opinion of the Attorney General as 20 the
specific Taxes on Mining COmpaaie un-
der special charters in the Upper Penin-
suia.

The Auditor General, having requested the
opinion OF the Attorney General as to the RICH,
of counties in the Upper Peninsula. to portion
of the specific taxes paid by certain mining
companies, has received the following reply,
which he hands Us for publication.
DErRoIr, Feb. s, 1860
Hon. .. l.. CAsz, Aud General :-DEAR SIR:
As requested By you, | now give my views
touching the rights of counties in the Upper
Peninsula 10 a portion of the specific taxes, re-
quired TO be paid by certain Mining Companies
in that peninsula. In doing this, shall coafine
myself TO the seventeen mining companies in
HOughtOn county, Incorporated by special char
tiers previously 10 the time the present constitu-
tion TOOK effect, which was Jan. |, 1851. These
companies are the following: Copper Falls,
North Western, Pittsburgh, Boston, Albion, Ea-
gle Harbor, North American, Quincy New York
aud Michigan, North West, SiskOwett, Isle Roy
ale, Phoenix, Native Copper, Pittsburgh and Isle
Rov.le, Eureka, Iron City and Cape
These were all chartered in lsis. ls49 and
1880, and the charters of several of them amend
ed in one or the other OF these years or in ls5l,
but not as 10 the mode and amount OF taxation.
The rule of specific taxation on the eight first
named chartered in lSio,) is thus expressed in
section of the charters:
THE said company shall pay 10 the Treas
urer Of the State OF Michigan, an annual tax
at the rate of one per cert. on the whole
amount of capital actually paid in upon the cap
ital stock of said company, and also upon all
sums Of money borrowed by said company, which
tax shall be paid on the first dav of July in each
wear; and shall be estimated upon the last pre-.
ceding report Of said company; and for that
purpose the president and secretary of said COM
pany, shall on the first day OF January in each
year, or within fifteen days previous thereto,
make under their hands a return to the State
Treasurer, verified by their several oaths, sta
ting the amount which has actually been paid in
on the capital stock of said company, and also
the whole amount of money which AT any time
has been borrowed by said company: and said
State tax shall be in lieu Of all other taxes upon
all the personal property Of said company, and
in lieu of all State tax upon the real estate OF
said company; and any Investment of any por-
ton OF the nett profits of said company in the
business Of said company shall be considered as
80 much capital paid in, and returned to the
State Treasurer, accordingly
And this rule applies also 10 the remaining
nine companies, with tho exceptions, that IN The
case Of the North Vest the taxable capital is
made to include the amount paid for their land.
TO the United States, and the amount Of assess
ments levied and paid in and il j. required "a
make report on the first of December, OF within
fifteen days previous, laws 40, Up. o., 6s.) In
the case of the Eureka and Iron City Company,
the change in the time of the report is the same
and the tax Is declared to be in lieu of all STATE
tares upon the real and personal estate OF ;he
company. la the case of the Swansea: Cape
the tax j. to be paid on the frst -No''ddV # J'e
IN, and the report made on the first Monday q
January, or within fifteen DAYS previous
The first question which requires solution Is
have tie Legislature power to alter the rate o
taxation upon these corporations TO their prelu
dice and without their consent, by making il
more hurdensome upon them
They have all been created since the Rcvsct
Statutes OF 1916 took effect. The charters o
the Copper Falls, North Western. Albion, Pho,
nix. Eureka, Iron City and Cape Companies 4
each contains Il provision to this effect: THAI
said compan, shall be subject to the provision.
Of chapter 81 title 10, of the revised statutes o
eighteen hundred and torty-six, so far tie
same are oypiieaJle and nat inconsistent rii
the provisions Of kis act"
Chapter 30 provides isec. 20 that ever,
act of incorporation passed since the 10th DAY
of April, 1899, or which shall be hereafter pass
ed, shall at any time be subject TO amendment
alteration or repeal, At the pleasure Of the Legs
lsture Pro .iGed, That no act o. incorporation
shall be repealed, unless for some violation of il:
charter, or other default, when such charter
shall contain an express provision, limiting the
| duration o. the same"
| The duration of all these charters is limited &c
an expires. period of time, viz: thirty wears
| and of course, in the absence Of any other pro
vision affecting them, the Legislature cannot re
peat them, except for such violation or default
although it might alter or amend them.
| The clause last cited, however, was Of itscl
susceptible OF repeal Or alteration by any subsc
quent act; and if the clause above quoted from
the charters lie rcpugnant to the one from chap
| ter 81, that clause must WELD To the subseGuen
| provision.
| The charters, then, having established Il civer
| rate OF taxation, and declared hct 70 Le ~, liza
Of all othcr tGrss, de-, it is plain that any Other
rat" more burdensome than the established on,
would DO inconsistent with them, and that there
tore the clause in chapter 81 being incons.ten,
with the clause in the charter, would no; apply
The principle that such charters are contract,
between the State and the corporations, ant
therefore, inviolshe 10y the State, has been too
often asserted by the highest judicial tribunals
TO admit OF doubt. They very properly hold
that the power of the State to DO so is prohibited
by that clause OF the Federal Constitution whici
declares that no State shall pass any law impair
ing the obligation of contracts; and have in nu
| merous cases applied the principle in denial o.
the power claimed by State statutes TO change
! the measure OF taxation in such manner a. tc
injure or render less valuable the franchises o
the corporation. OF course, | refer to private
and not to public or municipal corporations
| am therefore of opinion that the measure al
taxation required by these seven charters, OF
any charters subject to the like clauses cannot
without the consent OF the respective corpora
tons, be changed by subsequent act OF the
legislature 10 their prejudice; and consequent
y that the act Of Feb. Is, $50, hereafter cited
Is not binding upon them without such consent.
Whether any such corporation has given its
consent 10 the change made by that act is not so
much q question of law as of fact, and must be
determined BY Nhst it has done. If il has done
any act fairly indicating an intention or a willing
ness on It's part TO accept the ith section of that
act, (Which adopts the same rate OF taxation per
ton az is required by section 20 Of the general
mining act OF Feb 3, ls53, l.. SO, . 81
such As making report plainly based upon the
act of 1853, or paying or offering to paw taxes
at that rate, the fact would conducs strongly
to SHOW m acceptance of the act Of 1855. This
question OF fact must however, be determined
by the Circumstances of each case as il arises
Tie remaining ten charters contain lee. dis
tinct provision respecting the power of the legs-
lsture TO alter or amend. That of the Pittsburgh
and Boston provides section s. that the compa-
ny shall be ''su5ject 10 the provisions Of chapter
50 Of the Rerised StGt,,fes Of 1876, 20 far q.
the same rag BE- applicable :" and provide. also
sec. lO) that the legislature NAV at snv time
alter, amend repeal this act, after the liinita-
ton thereof, $50 years by two-thirds vote