The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-05-12

In the United States Circuit Court yester
day, his Honor Judge Bryan presiding, motion
was made by Hon. A. @. Magrath for an injunc
| tion to restrain Reuben Tomlinson, Eeq., State
Auditor, and the treasurers OF the several coun
ties through which the South Carolina Railroad
passes, from proceeding to the collection OF taxes
assessed upon the property Of the company.
The bill sets forth that the South Carolina Rail
road Company has, by the statutes OF the State,
a perpetual exemption from taxation; that by the
recent act OF the Legislature the courts are for
hidden to interfere with the collection OF any
tax assessed under the authority OF the State,
and that the provision made In the statute for the
recovery OF taxes Illegally assessed and collected
ia inadequate and affords no adequate or substan'
tial relief Hence this bill Is brought by Bronch
Sons, citizens OF Virginia and Georgia, against
the South Carolina Railroad to prohibit the compa-
ny from paying the tax. and against the tax Off.
GERS for the purposes OF suspending the enforce
menE Of the taxes.
Mr.. Magrath appeared for the complainants,
and Messrs. D. II. Chamberlain and D. 7. Corbin
for defendants. Mr.. Magrath opened tho argu-
mens In support OF the motion. and cited from
the various statutes Of the State, showing that
the South Carolina Railroad Company had per-
petual exemption from taxation. he then argued
that suoh exemption from taxation constituted
contract. within the meaning OF the COnstitu.
tion of tho United States. which the court was
bound topretect. The act or the Legislature Of
1870 was distinct violation Of that contract,
which this court was bound to give them protec-
tion against. The learned counsel cited hume.
rous authorities in support OF his position, more
particularly from decisions Of the Supreme Court
OF the United States.
The question made in the bill, he sold, g this:
Branch, Sons b Co., citizens OF Virginia and
Georgia, come into this court with the allegation
that they arc stockholders Of the South Carolina
Railroad Company, and that tho State OF South
Carolina has imposed tax on the property OF
that corporation. from which tax by acts OF the
Legislature OF South Carolina, an exemption had
been granted to the South Carolina Railroad.
That exemption. they allege, is still in force. The
act OF the Legislature imposing tax now on the
property OF that company is violation OF con-
tract. and impairs the obligation Of that contract
being such, 1t Is case arising under the Consti-
tuition OF the United States, and case OF which
this cours has jurisdiction. According to the de.
cislons OF the Supreme Court OF the United States,
where q corporation within State Is either
unable or unwilling to make suficient opposition
to an demonstrations! act State Legislature,
It Is the right of corporator living outside OF the
STATE to come Into this court for that relief which
the corporation Is not able to secure. The parties
whom he (Mr. Magrath) represented, have de.
manded Of the South Carolina Railroad Company
its purpose In relation to the assessment made OF
this property for taxation, and that corporation,
as stated lu the bill, hos expressed to them Its
inability under the laws OF tho State to offer ON
enectual resistance to the collection Of the tax.
Counsel, after thus briefly stating the case, sub
mittcd copy OF the order, which It was pro-
posed to make after the hearing OF the whsle ar
gument by the court. This order restratns
Reuben Tomlinson and the various county treasu-
rers from proceeding By distress or execution or
any other manner to assess, impose, or collect
any tax upon the capital stock OF the South Caro-
lima Railroad Company or dividends thereon, DC,
and prohibits tho south Carolina Railroad Com
pauy from consenting to pay such tax, professed
TO be assessed and collected under the act Of 1870
&c.
The argument for tho State will be opened this
morning, ct IL O'Clock by, Attorney General
Chamberlain.
THE SuEDAY-ScHooL CONVENTION q
large number OF delegates to the State Sunday