The Lansing state Republican. [volume] (Lansing, Mich.) 1855-1874, 1860-02-14
Letter from the Attorney General.

OF Counties IN the PIPER TehlIsuIa 10 a portion
Of the specific taxes paid by certain mining
companies, has received the following reply,
which he hands US for publication.
DETgoIr, Feb. 3, 1860.
Hon. d. l. CASE, Aud General :-DsAR SIR /:
As requested by you, now give my views
touching the right of counties in the Upper Pen
insula to portion of the specific taxes, required
to be paid by Certain Mining Companies in that
peninsula. In doing this, shall confns myself
to the seventeen mining companies in Houghton
county, incorporated by special charters pre-
vioUsly TO the time the present constitution took
effect, which was January 81, 1851. These COM
panies are the following Copper Falls, North
Western, Pittsburgh and Boston, Albion, Eagle
Harbor, North American, Quincy, New York and
Michigan, North West, Siskowett, Isle Royale,
Phoenix, Native Copper, Pittsburgh and Isle
Royae, Eureka, Iron City and Cape
These were all chartered in 1918, lSis and
1850, and the charters of several Of them amend
ed in one or the other of these years or in s5l
bat not as to the mode and amount Of taxation
The rule Of specific taxation on the eight first
named chartered in ls4s,) is thus expressed in
section of the charters
The said company shall pay to the Treas.
urer of the State OF Michigan, an annual
tax at the rate OF one per cen, on the whole
amount of capital actually paid in of thu capital
stock of said company, and also upon all sums
of money borrowed by said company, viii tax
shall be paid on the frs, day of July in each year
and shall be estimated upon the last preceding re-
port of said company and for that purpose the
president and secretary of said company, shall on
the 6rst day of January in each year, or within if
teen previous thereto, make under their hands
return to the State Treasurer, verified by their
several oaths, stating the amount which has ac-
taaly been paid in on the capital stock of said
company, and also the whole amount Of money
which a. any time has been borrowed bv 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 Safe taxes upoo
the real estate of said company and any invest
ment of any partition of the nett profits Of
said company in the business of said company
and returned TO the State Treasurer, according
And this rule applies also to the remaining
nine companies, with the exceptions, that in the
case of the North Vest the taxable capital is
made to include the amount paid tor their lands
to the United States, and the amount of assess
ments levied and paid in and it is required to
make report on the first OF December, or within
fifteen days previous, laws 40, PIP. O., 6s) In
the case OF the Euerka and Iron City Company,
the change in the time OF the report is the same,
aud the tax is declared to be in lieu of all State
tares upon the real and personal estate of the
company. In the case of the Swanscot (Cape)
the tax is 10 be paid on the first Nondty Of Ju-
~, and the report made on the first Monday of
January, or within fifteen days previous.
The first question which requires solution is,
have the Legislature power to alter the rate of
taxation upon these corporations to their preju-
dice and without their consent, by making il
more burdensome upon them?
They have all been created since the Revised
Statutes of 1916 took effect. The charters of
the Copper Falls, North Western, Albion, Php.
nix, Eureka, Iron City and Cape Companies %
each contains provision to this effect: That
said company shall be subject to the provisions
of chapter So title TO- of the revised statutes of
eighteen hundred and forty elk, far as the
same are applicable and not inconsistent ,cith
the provisions of this act"
Chapter IS provides (sec. 90 that every act
Of incorporation passed since the Goth CAV of
April, 1889, or which shall be hereafter passed.
shall at any time be subject to Amendments, al
tera!ion or repeal, at the pleasure of the Legs
sture: Provided, That no act of incorporation
shall be repealed unless for some violation of its
charter, or other default, when such charter
shall contain an express provision, limiting the
Duration of the same"
The duration Of all these charters is limited to
IN express period of time viz: thirty wears
md of course, in the absence of any other pro-
'ison affecting them, the Legislature cannot re-
peal them, except for such violation or default;
although it might alter or amend them.
The clause las. cited, however, was itself sus-
,eptible of repeal or alteration by any subsequent
vet; and if the clause above quoted from the
'harters be repugnant to the one from chapter
IS, that clause must yield to the subsequent
provision.
The charters, then, having established given
ate of taxation, and declared that 10 be ia Ee,.
i all other tares, de-, it is plain that any other
ate more burdensome than the established one
would be inconsistent with them. and therefore
he clause in chapter So being inconsistent with |
he clause in the charter, would not apply.
The principle that such charters are contracts
etween the State and the corporation, and
therefore,, inviolable BY the State. has been too
item asserted by the highest judicial tribunals
D admit of doubt. They very properly held |
hat the power Of the State TO do so is prohibited
y that clause of the Fe iers Constitution which
ecares that no State shall pass any law impair
lg the obligation Of contracts; and have in M.
ferrous cases applied the principle in denial of
ne power claimed by State statutes TO change
ne measure of taxation in such a manner as 70
lure or render less valuable the franchises of
he corporation. OF course, refer TO private.
nd not TO public or municipal corporations.
| am therefore of opinion that the measure of
'xation required by these seven charters. or
ny charters subject 10 the Ike clauses. cannot.
lthout the consent of the respective corpora
ons, be changed by subsequent act of the
sls!ature TO their prejudice; and consequently,
lat the act OF Feb. IS, 1855, hereafter cited. is
,t binding upon them without such consent.