Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1869-07-30

". Jenkins, 60 N. c., rep, 147l the Gene-I
raj Assembly has no power TO contract a |
debt, without vote of the people. TO add
in the construction OF new railroad. I'll
the General Assembly has no power to
contract debt for the purpose OF build
ing new railroad, with the assistance Of
contributions by individuals, county SUBJ
scriptions, and subscriptions by other rail-
roads, it would seem it cannot have power
to contract debt for the purpose of ma
king new railroad out and out pro-
hibition not tc contract d lesser, surely
amounts to a prohibition not to contract a
greater debt for the same object. The evil
which the Constitution seeks to prevent IS
not that of giving aid to individuals or
corporations in the construction Of ral!-
roads ; but the evil is that of contracting
neac debts on the part of the State, the
existing debt being almost too heavy to
bear. and the credit Of the State lettering
under the load. A construction by which
new debts may be contracted on larger
scale than one expressly prohibited, is
not admissible upon any principle OF law.
As this is a deduction from Galloway vs..
jenkins, in which the Court was divided,
will put my conclusion also on the con-
struction of all the provisions of Art. 8.
III. The act under consideration IS IN
violation of the Constitution IN this tho
tax levied by it disturbs the proportion
which, by the Constitution, capitation tax
must bear to the tax on the value OF pro
perty, to-wit: "IHe tao on q poll shall be
equal TO tie tao on three hundred dollars
anorM of pr0pe1ty." Hero we have the pro
portion. Then follows provision ''Iho
State and county tax combined shall never
exceed to0 dollars on tie hedd," and the
necessary effect is that the State and
county tax on the value of property shall
mover exceed two dollars on three hundred
worth of property; and tho effect also IS
that if the tax on poll is less than two
dollars, then the tax on three hundred dol
lars worth of property must be less i'll the
same ratio. In other words, the tax on the
poll is "Me staaadard' by which the tax on
property is to DO levied.
Under t,co dollars, the power to levy II
poll tax for State purposes Is unlimited !;
this interest needed no protection, for it
has a full representation in tho General
Assembly.
Counties arc protected by Sec. 7, which
provides "taxes levied for county pUr-
poses shall be levied in like manner with
| tho State taxes, and SHALL never exceed
double of the State tax, except for spe-
cial purpose and with the special approval
of the General Assembly.
Cfhcs tO1cns and tOpaships are protected,
| Art. 7, Sec. 7, which provides, " no debt
shall be contracted, Hnr shall any tax be
levied except for necessary expenses, un-
leas by IL vote of Il majority Of the qualified
voters therein
The only remaining interest is that OF
| property hOtdeTs iii respect to State ant
comfy taxes. This interest is protected
by the equation fixed between capitation
Tux and tax on property A statute which
ai4tnrbs this equation itrenks down the
safeguard thrown around property by the
Constitution II it can be done to tho tx
tent Of ono hundredth OF ono per cent, 1t
may be done to tho extent Of one tenth,
and there is no limit.
It was urged on tho argument, this
equation applies Of.iy to taxes levied Tor
current expenses OF tho State and counties,
and has 40 reference to taxation, nec@a
3nry to pay the interest Of the public debt,
or the tax to be levied to pay the interest
of any new debt.
1st agree that, If, under this equation,
carried to its limit, the amount is not
enough to meet current expenses, and also
to pay Inc interest On the public debt, then
for the excess needed it ls not only within
the power, but 1t il the duty OF the Gen
crnl Assembly to tilsregaT! the equation !,
for this protection tn property must be
taken 70 be subject to the injunction, ''to
maintain the honor aud good faith of the
State unfinished, Ill regard TO the public
debt, " Art. l, sec. & and by aec. Of the
article under considerations it is ordained
THE General Assembly shall, by uDprO-
prltto lc4fs}GttOu fute/sIte tH,cntiOn, pro
vide for the payment 0f tho interest on
the public debt ana after 1880 it shall lay
q specific annual tax, as q sinking fund, to
discharge the principul.' do not adopt
the entire position taken by Mr.. Haywood,
that specific tax is meant q tax on land
by the acre III on horses and cattle by tho
head It is enough to admit that this tax
is to be independent of the equation ; as
in Sec Il tax for special county purposes,
with the special approval Of the General
Assembly, may be levied without reference
to the equation.
2. But I do not agree to the position
that the tax required by sec. 3, to be levied
to pay tho interest on any new debt, is not
subject to the equation and that the
power to tax property III reference to new
debts is unlimited. save by the discretion
of the General Assembly. There is moth
ing, rs we have seen in the case in regard
to taxation to meet tho interest and prin-
cipal of tho existing debt, to take this
taxation out of the equation. It's being
} called a special tax cannot have that effect
for section s requires that every act shall
state the special object to which the tax is
, to be applied. On the contrary, it is in
Guided in the equation by every rule o.
construction.
} This fixed equation between poll tax and
property tax, gives Significance to the pro
viso in the first clause, section s. "Nc
new debt shall be contracted in behalf O.
the State, unless IN the same bill dspeciqzta5
is levied to pay the interest annually.
} If the purpose was simply to keep "
the price Of State bonds, this woult
amount to but littlc-such tax is very
easily put in blll-but consider the pur
| pose to be to restrain tho power of taxa
t ton in regard to property, by reference t.
the equation before fixed, so that the spe
cial tax on property cannot be levied with
out making a corresponding increase in
the capitation tax, and this provisc
amounts to very important practical lin
, ;tation on the power to tax property, and
8 must have very decided effect in check
ing disposition to contract now debts.
And tho exception in regard to "supply