The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1870-05-04
The Right Of Counties to Tax Rail.
roads.

Some years ago the county Of Marshall
as indeed other counties Of our State, un'
dertook to assess taxes on the property o.
the Baltimore and Ohio Railroad. The
Railroad Company resisted and took the
mattertnto The Circuit Cpptt, and being
beaten there appealed 70 the Court ofAp
peals, from which Court VIC believe they
intended,tO go, It possible to the Supreme
Court of the United States, had not a com
promise with tho State been effected In the
meanwhile. As to how the Company
would. hsvei Jared lat the hands Of the
Supreme Court we may Judge from the
recent decision In tho case of the
Union Paciac Railroad against the
authorities of certain counties through
which the road passes N Kansas
Suit ihrobght bYttS Company to5Tp
strain their authorities from collecting
taxes under State laws and the matter
was decided last Saturday, sThG main
argument for the complaint was that the
road, being constructed under the direc.
tion and authority Of Congress for the uses
and purposes of the United States, and be-
ing n part Of a system of roads thus con.
structcd; ithas, therefore, exempt from tax
alton under State authority. Tho Chief
Justice says: -,sg, u srs4Fs
1--WE perceive no limits to the principle
Of exemption which the complainants
seek TO establish. :, Il would remove from
tho feaear Of State taxi ton all the proper
ty 'ofseSer5ys agent sofRthei Government.
Every corporation engaged in the trans.
pOrtation OF the malls or Government
property Of any description by land or
water, or in supplying materials for the
use of, the Government, Or In pertaining
any seryiGea of Whateyer king, might
claim the benefit Of the exemption. The
amount Of property now held by such cor
poratiOns, and having relations more or
less direct to the National Government
and It's service, Is very great. And this
amount is constantly increasing, go that It
may admit Of question whether the whole
income Of the property which will remain
liable to State taxation, II the principle
contendcd for or admitted and up
plied in It's fullest extent, may not
ultimately be found inadequate to the
support of the State Governments. The
nature of the claims TO exemption which
would DO set up Is well illustrated by that
which a advanced in behalf Of the com.
platn6nts In the case before Us, The very
grounds of claim are In the bountieS OF
tho General Government The allegation
IL that the Government has advanced large
sums to aid in the construction Of The road;
has contCntod itSGH with the security Of a
second mortgage; has made large grants
ol land upon no condition Of benefit to
ITSELF except that the Company will per
form services for full compensation, inde-
pcndently Of those grants, and will admit
Inc Government to q very limited and
wholly contingent interest in remote
net incomes. And because OF these
advances and these grants, and this tul'
" compensated employment, It Is
claimed that this State Corporation. ow-
ing is being p iState law, and tndebt;
ed for these benefits to the consent ana
active interposition Of the State Lcgisla'
ture, has n constitutional right TO hold It's
property exempt from State taxation, and
this without any Legislation on the part OF
Congress, which indicates that such OK.
cmption Is deemed essential to the full
performance Of It's obligations to the Gov
eFnment e.! ~; ytt.l it H.
We arc unable to find In the Constitu-
ton any warrant for exemption from STATE
taxation claimed In behalf Of tho claim
ants. und must therefore answer tho qucs.
tiOn certified 10 US in tho affirmative t"i
This argument Of the ChiCf. Justice and
decision Of the Supreme Court have even
moro force when applied in case Ike
that Of the Baltimore & Ohio road than in
the case actually before the court The
Pacific Railroad q n sort Of continental
affair, and as such was largely subsidized
by, the Government land d, insOns re-
spects, q sort Of military road-but yet tho
court holds It down under firm subjection
10 the municipal law Of Kansas, and com
pcls It to contribute Is the support Of the
government OftllAt State. Much more then,
or toriori, as the logicians say, would 1t
compel. . road like the Baltimore & Ohio,
which, moro than the Pacific road, was
the creation of municipal law, and for tho
most part confined in its origin and CON
struction to two States, to pay taxes to tAo
countics through which It passed.