, 1870-05-05


TIC compapy,which the TTcasuIHg Of the counties
uame1 are prnceediog to collect: that the property
Of the company IS mortsaeed to the Enitet!
form certain duties and intimately 70 pay fve per
cent Of its net earnings to the United states fnas
the company win be greatly h1asred snd esn
duties to the United 5tatrs 1t the taxes imposed
shs be collected, and thxt 10 2ome extent, taxes
Of the same description nave been already pald o5
the coupauants Hnu Of the securities Of the United
States. Cpon this case the complatnaat5 praJed
an Injunction To- ressa1 he eops;nT fro IT. Pa511
assessed; and 4 temporary Injunction vas aAo"et'
By the District J1dge.
tlons Of The bIl The answers OF the three County
Treasurers admit the assessment Of under the
laws Of kansas, but deny thai such taxes nave
rssa he IaWay company, and Insist that the prop
erty Of the company only bears its due proportion
OF he ta1ea levied upon all the property IN the
msuc acatCst tic company In the matter OF ra1ar
ton. 10 these answers no replication was put H.
but m agreed statement Of facts Was dleI, Eec!1n
urrIpE upon Congress legislation In aii Of the
railway company; ndnftting that the property Of
the company Is liable. under the laws Of
nj 1 purposes; that the taxes complained Of hare
teen assessed III conformity with the statutes OF
the State; that the company has executed 2 alsf
States; and that table Of earnings and ezpentu-
lures for 1857 and 1868. appended to fhe asree-
meut, Is correct
the question arose whether the property OF the
railway company described In the btu WIS subject
to the lax which he statutes OF kansas autno5-
tzea to be levied On all other property not specially
exempted for State, county, and municipal pnF-
poses Upon this question the Judges Of the Cir
cult Court dtTsded in opinion, and 1t has been
The counsel for the compliments have very
Justly said that the question Is one OF very graTe
lmporanes %as suggested sasnsr IA han asgasa +;
exempt by the State Constitution frpu, taxation,
aud that The State, having reserved toiself IN the
of 1fty years L I valuation then to be made upon
two years notice to the company, has, therefore,
3 property In the road which cannot be taxed: bnt
reserved Is too remote and too contingent 70 be
regarded Qs within the meaning Of the exemption
The main argument fos the eomplaManfs, aow,
aud purposes Of the United States, and, being q
therefore. Exempt from taxation under State au-
thority. It is to be observed that this exemption
Il not claimed by any act Of Congress- It IS not
e q he
Legislature. But II Is earnestly insisted that the
right of exemption arises rom the relations
OF the road to the General Government It
IS urged that the aids granted By Congress
to thu road granted tn the exercise con-
stitutional powers 70 rcEnlats eomnefSe, . sssao
port armies, and TO suppress tnsuKEeCt1on a1l N.
vaston, md that, By the legislation which supplied
MD, required security; mnossd d9tle., ana. anany,
OF income. the road Has adopted as an instsn-
mcnt Of the government and as such vas not
TcGnloush rs. Maryland IS much relied on in sup
port Of this position But we appsehend tnat me
reasoning Of the case Fil hardly warrant ne con
clusJoI, which counsel detiuce from 1t In this. In
that case the main questions were whether he
incorporation Of the Bank Of the United States,
with power to establish branches, Nas an act OF
prcss7 and whether the bank and branches rs
actno1ly established were exempt from taxation
By State legislation? Both questions were r.
Court dill not hold, counsel suppose that Con-
g1csa under the constitution, has ahsolufa ana ex-
elusive power to determine whether m act Of leg
lalation IS or = not necessary and 1 propes, e,
| It's enumerated powers It defined the wor1s
and ,p pF0psTr words as aa91S1?sa.
piafniy adopted, not prohibited, hut consistent
NTH the letter and spiar Of the constitution and
held that tho incorporation OF bank WIZ al
| branches ras necessary and proper means to the
t1etiniiion thus given i held further. that Con
szess Mth'n tts unit n ne &c exs,qsee < JsaGe
and that its choice Of any means or Tue deAneu
character was restricted only By Its OWL dtsGre-
ton. But The qnestion whether nc passsani =,
| Incidental powers, vas determined bT the court
! great part Of the argument was directed to the
proposition that the incorporation Of nank was VIZ
| an exercise Of Incidental power, within the true
meaning OF the terms necessary and proper, e1.
| planned by the court, an argument which would
hare been qte snpe,aaons 9a& & GdeSoh Sos y tns
| in,lIciaI department OF the government. We do
not doubt, however, that upon the principles SET
cIse q powers Incidental 70 the powers mentioned
by counsel make authorize contracts VIII mar
Tiicas Or corporations fos seEs.ces 70 re p $ogs
| don for. and In performance OF, such services;
! NAV MAKE any stipulation and conditions ln rela-
9 such aids not me &
emnoTStl in srch services from any State ta1atfon
which win prevent or impede the performance OF
then: .,n,. =, t,e ro.a To ezemnt,on rum
such taxation be maintained In the absence OF any
Legislation By Congress to that e1eck7 lt 9 4a-
guessoqao ne 1aao dueton aeay sated d
hold that the Bank OF the United states Wli1 rs
branches, vas exempt nom ta3aAon % tae ss:as ",
e founa q the chspser But 6s
don created 6y the United States and g N agent
II s sde%e b1 s aes q G. @ al
faculties, powers ano lnnEelo11 ~ 1na,,fies
owe its existence or any oi @ l1.atinn lG.ni
r. tpcn es 1a1at!o6 mas mainly put upon thls
ground GoI Mss lae ALL .ine,ared not to e1-
important AM!iati1ns, :. ~ M hanr 1Iti,in the
~ ~. - J1tsrosfa helj nv risIzpna nf the State
State, nof 20 inss1esG @ y 5 otsar | 1oesna
IN nc lnsItoe 3; ~ nr rsrp1nncns hare heen hei
ana opelanons " t ga = tsratinn 90 honGa issnad
70 He eAemps prong G11S 11Se. ~ S-tt7, ~ Th.-Jss
!oI t1o1ey eul -, ;r,ohy.Snasz ta1na,,
~, ~ ~ ~ ,r.sI;ae Trh EsnTs =. she TaInr
WALL H. olfs Of GfeIlt usfH 1ot saH
g. oupels1soss1 ,,h M"n, ,n1,-+ian ~ "a tha ~.
instances II MAlA t11Mun 1s1pMh srorv
1enl IL y ts1e9 aat.a haan -. haid r. aTfse frnm
lana MnEat aAse uceA ,n1S -" ,,,,tzo1i,r ~ ~
tas snGvs tiavns rr'ar srts of Congyese+ NJ in the
case Of tns ta1St ~ y nrescrihe he eSrent
Hn!Ga aF. s. saesi6n sy - anniietl ivan A.
20 HHcn 1.sss.e asa.s 1Foii H-9 Ryatf1ev ~ The
zen r.. dsSEsae's, ,o pan1ta - 6nrr-ri4u1nrers
TGople. nssaa 10 - Vha r,es. ~ ~
Man y IN ;n II mnitcd a Sttss e1smntan ron Ha5
" 20 ta1anuu 1 Mas ~. III 81 ~, ra,rn1on9 to
gIonna- anT 49, tmHoeaJ 1re.fy nn,n an
.ae 49, - ~ 4 st1,naTr ~ tha rararr11err
Gpe1asson " ~ ~. ,. - ;,s,.,sa. ~, tta .-s-s
1nat s9cn LaEs .sa1. Galos ~ anatttn ~ trs
tions 81 ~ sse " III ths same
Eeasonnk W." aty ~ ~, i 80. ~ sa@
Menl c1ea1eo ~ 'l7en Aoh poooe a0o
en1a; on, cusa 7, v,,cn ,ne
6at We ~ nos S o. 9nS " se ar1,ret1ot ~ mr nat
Ieai ss.lS y. ueiea e. ~ 81 nass ~ ;..sn hcIti
adet m az a aenc ~ ~ nf y
to thet eject ron lass conEanuaon .n;,Itnr ~ fnr
Win otnef Plopeily 70 tne geneta H. pnoT1nant ~
tEe common Dement, pec11Se u xuG ~ G1nrS111ent
NE c0tpoIauon u t1e sEt'.ss ~ IN tha case
II y true to2t so1uc q tae ~ farnr the
aeIuonGn ~ IA ;na ,1aeIsion Itself Il in,itesl
the Of the bank IS m t ~
a~ o. ne laMea tas ~ the royernuent Of The On.
nse q ts ansnSes 5r ~ fne IN rperf to Corporations
| ateu states. tauu the ierlsaf1o1 or Conoress Ne