The New York herald., 1870-03-15


Are Subsidized Corporations Liable to be
Tnxeds
WASHINGTON, March IA, 1870.
There is case now pending In the Supreme
Court OF the United States that SO well exhibits the
terrible greed rapacity or the railroad subsidy
gobblers clamorlng In the lobby Of congress for
more aid" that am induced give 1t a brief
notice.
Tine Kansas Pacific Railroad Company IS an od
acquaintance, great Western counterpart Of the
New Jersey Camden ana Amboy, excepting that as
yet to the credit OF the members he said 1T has
not been able to control the Kansas Legislature
though It's road extends through the entire length
OF the State, nearly 4o0 miles. The for the
road was granted by the Kansas Legislature In 1866
and 1t Is in nowise national enterprise further
than that through the influence OF the brazen-aced.
ness OF the subsidy ring it has been from time TO
time aided by the national government. It has been
known as the Leayenworth, Pawnee and Western
Railroad, the Union PacInc Eastern Division, and
now as the Kansas Pacific Railway Company. The
HERALD of the 10th inst contained an account OF
It's managers operations In the lobby OF Congress
for ten years past where they have obtained direct
ana indirect aid, in shape OF free gifts OF lands
loans OF bonds and privileges OF ens amounting it
is estimated to about $4,000 coo. The amount Of
State and county aid granted am unable to ascer-
tain. hat an informed that the county OF Leaven-
III,
ter OF II million dollars worth OF stock.
A man in the moon, who knew little nothing or
subsidized corporation Managers would certainty
suppose that men 30 bounteously aided would pe
eager to pay their fu share or taxes. At least he
would never suspect that they would refuse to pay
fairly assessed State and county taxes the ground
that they had been aided by the national govern
ment; but he would find himself very much ms
taken by looking over the records Of the Supreme
Court OF the United States In their "Dnl Of
compaints' tue Kansas Pacific Railway managers
set iorth:-"Ihat the authorities OF the county or
property OF the said railroad company in said
county, covered BY said mortgage OF the United
States and nave levied tax thereon for state,
county, township and other municipal purposes. of
$322S 49, and nave placed the tax ron Tor the colec
tion OF saId taxes In the hands OF said defendant,
James Blood, treasurer of sad county OF Douglas,
for collection. aud he demands payment OF SAID
payment Of the same under the laws OF the State,
unless the said taxes are voluntarily paid Ly SAID
company. Comp!al3nts aliege that the SAID taxes
LEVIED Dy the sad counties OF Wyandotte Douglas
and Jefferson have been illegally assessed an9 lad,
and are WHOLLY wholly without warrant or authority
erty, beng In part the property OF the United
States, Is not subject to taxation by STATE
the company and injury TO the government likely 10
result from the levy OF taxes upon this property
under state authority, the subject was brought 10
attention OF Legislature of the state, but no
favorable action was ootained from that body; on
the contrary the action OF the Legislature indicated
an indisposltion to relieve the company or any OF
the burden or taxes OF which 1t complained. For
the reasons stated IN this bill the companants pray
SAID taxes or any OF the same and that temporary
Injunction issue restraining and enjonlng the sad
defendants above prayed, ana that upon the first
hearing hereof the said injunction may made per-
petual by the order aad decree OF this court.n
DEFENDANTS ANSWER,
In answer to the bill OF complains the defendants
state that the taxes have been Legally assessed and
lad in the same manner, and according TO the same
rates taat OF other railroad property In the State
and that the railroad and telegraph property de-
scribed IN the bill OF complaint Is not IN whole or
part the property OF the Uniled states but IS wholly
H.
Ing under the laws OF the State OF kansas; and
have invested their money therein for the purposes
OF private gain and emoluInent, and not as govern
ment agents, or as sustaining any other relation 10
the government oil the United States than prI
yae citizens. they deny that the franchises or PRIV
ileges OF the company are or have been interlered
assert that the property Of the company is only
qured to bear It's due proportion Of the taxes levied
crmnation has been or is made against the railway
company In the matter OF taxation.
THE INJUNCTION GRANTED
It VIII not surprise those vine know what sort or
material Kansas uses II the manufacture OF United
States Senators to learn that Kansas judge--Mark
W. Deahay by name-could be found 10 grant the
temporary injunction prayed for by the compIan.
ants. The collectors were enolned each and every
one OF them. under penalty or $4,000 De levied
their lands goods and cbatteis to absolutely de-
refrain from all further attempts to collect
said taxes ana the said company from paying the
same the further orders Of SAID Court OF Chan
Gerry 10 the contrary and under thS the pain afore.
saidn
AT the final hearing for perpetual Injunction the
court divided and the case went to the Supreme
Court OF the United states, wncre It Is now pending
Tns Is the most important now before the
Supreme Court, yet until the issue OF to-dayis
HERALD 1t has not been heard II the corporation
gains iis case nearly every dollars worm
OF railway properly west oi the mississippi
river will be, by the precedent thus estao-
lished, wholly exempt from State, county or
municipal taxation for nearly every railroad corpo-
ration III that section has been aided In way Dy
the national government, and may therefore claim
exemption upon the same ground The national
banks with tner enormous SUBSIDY OF $500, GEO, 0oo
VIII nos be slow to put In their claims for eXemp.
uon-as, indeed. may any and every corporation
that can by hook or crook get grab our national
Treasury. The uHblushing assurance CT this grind
Ing monopoly IN thus seeking to evade its just share
OF taxation, Is absolutely sckening. The small far
mer, who To exc OUT a load OF produce for market
buys part rom neghoor, must pay an internal
revenue nuckstcr'5 license, In addition 70 his na-
Llonal, state, county and municipal taxes This
grinding railroad subsidized monopoly receives, as
free gift, millions upon millions OF dollars worth
OF our pubic lands from Congress, and sells them
pleasure; but when called upon to pay pttance for
S,ate aud county taxes The managers marcn boldly
to the supreme Court Of the United states ana de-
mand exemption.