The Placer herald., 1870-05-07
THE POWER OF STATES TO TAX THE
PACIFIC RAILROADS.

nev corner lawyers, in the shape OF threats
that the State bad no power TO tax tbs
Central or Western Pacific Railroads, anc
Judge Sanderson has actually applied te
f e brief on this question in behalf OF the
Central Pacific in the tax case now pend
ing between that Company and Placer
county 10 our State Supreme Court. The
whole question. he wever, has now been SET
tied BY the Supreme Court Of the United
Sta es-Chef Justice Chase rendering the
dsclsion. s. a. 'arfI ares' o91.,- - g.'
The telegraph gives the subs tance OF the
decision as follows:
"Chicr Justice Chase on Saturday delivered a
long opinion in the case Of John Edgar inomp,
son VS. Union Pacific Railroad Eastern Division)
| an. others The opinion declares that the
Court is unable TO find in the Constitution any
warrant for exemption from State taxation
claimed in behalf OF the corporation
This case of J. E gar Thompson and 9th
ers is tax case which arose in the State OF
Kansas between the parties named and the
Union Pacific Railroad Company. 1he
questions involve were, whether the States
through which The Pacific railroad pass
have the power to tax The property and
franchises of the companies and wheIber The
roads aud franchises are the property OF the
Companies or Of the United States Gov
ernment. The case was taken to the Su
nreme Court on certificate Of division OF
opinion Of the Judges Of The Circuit Court
OF Kansas. Though a case against the
Union Pacific, the Central Pacific and
Western Pacific roads were permitted to be
heard and were beard, so the decision set
Ties The whole question for California and
Nevada as well as for Kaus;s. The counsel
on the part of the California roads contend
ed that the additional powers and franchises
conferred by the United States were supe-
rior TO those Of the State because they were
for 'he express purpose Of carrying cut the
Con institutional powers Of Congress to pro-
vide for "lhe common defence and genera!
welfare Of the whole country, military roads,
posts, etc; that the S ate had waived its rights
and powers by acqniescing in these acts Of
Congress, etc; that if State taxation is per
'ni led there is great danger that it may be
carried to such an extent as 10 deprive the
companies Of The power to comply with their
obligations 10 the General Government in
transportation Of troops, munitions of war,
mails, payment of interest and bonds Of tbe
Government at maturity, etc, and, in fact
that these roads might be taxed out Of ex-
istence, and the General Goverr ment lost
all she had invested, and the benefits 10 b,
derived from the construction Of The road.
for all future time. On the other 81 le i
was contended that when a State creates
corporation its right 10 tax all the property
and franchises within the State inheres an d
becomes absolute. That the power O
States TO tax is not derived from the Gen
eral Government but is sovereign rich
and power in the State; that States b ave th,
sovereign power to tax property, trades avo
cations franchises Of private corporations
etc, as fully as those Of the private citizen
These latter Arguments. only an oullnelo
which we give, The decision Of the Suprem,
Court carries out and settles forever th,
power Of The States to tax all property ano
franchises Of these Pac:i, railroad compa-
MES as fully as that Of any private indvld
ua'. This is an important decision to tb,
tax payers Of Placer county, and it comes II
Q ood time, as our lax suits against he Cen
tra Pacific company are now being bearl
in the Supreme Court of the State, and al
the Attorneys Of the Company have beer
playing for delay on this very question
which bas been settled by the Suprem,
Court of lhe United States the highest iu-
dcal authority known to our Government
Now let The Attorney for Placer county, i
he is worthy Of the col fdence which ba:
heretofore been reposed in him press oul
tax suits agaust'he company that we may
know whether taxes on property can be COL
Iected or not.
After this decision, if the railroad canno
be made to pay taxes, then the county's law
yer is at fault or all other parties shoult
cease to pay. lakes at once.
DISTRICT CouHT PRoCEt EtDINCs-Judcn IT r
Reardan, presiding, The Court met on Monday
May ID, aud transacted the following business
Brown VS.. Brown l. Dismissed on motion o
plaintiff.
Afford VS. Newman Judgment for plaintiff fo