The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-01-16
SUPREME couaT-seeclAl TERM.

msp,, {. CAPITAL ssocf, II s.!sm,s,p. Em-
ploycd to Convey United states Mails.
Before Leonard, r J. Ingraham and Clerke J. J.
Tie People en- rel the United States and Brazil Mad
Steamship Company Tho Commissioners of Tares and
LSssn,snts for the CITY and County If Nclo Fork This
case sams up before this court yesterday on cerora
review the for taxes OF the rostos for the
year 1ses The Cnl,ed States and Brazil Mail Steamship
Company 10 corporation organized by and under the
laws OF the state Of New York. for the transportation OF
passengers and freight bstweensthe ports Of New York
and Rio Janoro Brazil and the entire capital OF the oon
pany 10 invested in the steamships &C. OF the line The
paid in and secured capital of the corporation amounts
10 600 and the Commissioners have assessed the
company In that amount as the value Of their capital
stock liable TO taxation a. personal estate.
On the part OF the REALTORS u claimed by hessra
Rapao, and Allen Foley, Of unset, that by reason
essry for The o. lie business Of che com
capital Il the vessel. themselves exempt from tara.
tion nrst because they arc employed in foreign com.
United States government in carrying n. mas; thirdly,
by Of the provision Of abe federal constitution
the provision pa NY 90 asn
tuition Of the United States which declares that no pref
srence shall be given By any regulations Of commerce
II 10 further held that the exemption claimed BY reason
Of the ehips being employed In foreign rests
upon the provision OF the constitution giving Congress-
the power 70 regulate commerce with foreign nations &C.
and this power 10 exclusively vested in Congress- conse.
Queny NO State Legislature operate upon that sub
jeck The vessels question being employed BY the
government IN carrying the mails are for that reason
exempt from TAXATION for the States tax those
means which are employed by tho government Of the
United Satos In carrying out the powers vested in II by
the constitution. The provision Of the constitution or
the United States which prohibits the States from laying
any duty Of tonnage prohibits them from laying any
tax which shall have tie erect The tax upon the
value OF the vessel Is s Objectionable II IL were
measured by her tonnage
In behalf OF the respondents II was urged by David J.
Dean, Of counsel that The REALTORS entitled 10
the exemption claimed for the power OF taxation is
sovereign power and h necessary 10 the exsencs Of
the States and the due administration Of their govern
ment a. s essential 10 the existence and adminstra
ton Of the national government. The power Of tara
son Ia accordance with these principles has ever been
recognised residing In the State well as the national
government, with other Limitations In either than
those imposed by the national government and those
arising from the structure Of the government The
only express constitutional limitation upon the taxing
power OF the States that IN which they are prohibited
from laying any mpost or duties imports and exports
The fact that the ships Of the company engaged Ia
foreign commerce does not establish the right 70 the
exemption claimed. The power OF The Federal govern
ment 10 regulate commerce 10 not exclusive and the
clsm Of the REALTORS for exemption from taxation W
The State becauAe their vessels are engaged In conveying
tbe United States malls cannot DO seriously malnsancd
y has been sxprsssly yepudiassd In punpsS %