, 1873-12-09

Judge Farwell rendered decision yesterday
III tho case Of tho nopublio Lsfo tneuranco Com
pauy,us. Ioscph polalt. County Olork, to rostrain
him flom extending tho tax on tho capital stock
Of said Company. In accordance With tho aaseas-
mont Of the Htato Bonrl Of Equalization. lilo
motion for M Injunction was oyorruled by tho
Judge for want Of equity.
Mono Of tho strong points upon which tho tax
alton Of capital stock by tho Slate Doard has
boon brought in quoation werc raiaod in this
caao. and tho only thing really decided by Judge
Farwoll is Tint 1t Ia competent for tho State to
It, Instead Of taxing 1t against tho stock
holder. In this point VIC think the
Judge has orrol, for 1t Ia pretty we'll satttcd
that the sils Of poraonal property ia at tho real
1cnco of tho owner. 4 citizen Of Nov York
owning slarcs of etock in railway in another
ssato or Of q railway trayoraing several statoa,
Is taxable In Now York upon that property.
Taxes upon personal property Icing higher IN
Now York tl,an in Now Joraey aud Connecticut,
numbers of porsons doing business in Now York
havo In fact romovoa their rasideuces to the lat
ter States. II ia certainly not contemplated TINT
tho aau,o property shall bo taxed twice in tho
snn,o yonr for State purposos. Judge Farwell's
answer to this objection is. that II tho State in
which tho owner resides taxca him for tho value
Of the pharea Of stock owned by him in au 1lli-
uois corporation, TINT ia Ills misfortune,
aud is something which docs not concorn
ua. Of course. this question will ultimately
be tested in tho United States supyomo Court,
for it is Of tho ,ostimportanco, not norely to
Illinois but to alt tho States, to know whether
tho right to tax such sharos belongs to the
State where the owner resides or to the State
where tho aharos aro Issued.
This, as no hnyo alroady remarked, Is tho
only real point decided By Jud. 90 farwoll. Mono
of tho objections against tho taxation Of capital
stock, in tho mode and mauuar adopted by the
State Board. 80 strongly advanced by Judge
Cation III his argument at Morris in tho casc OF
Tho 0ttawa Glass Company, woro raised in tho
case of tho Hopublio Lilo Company, for tho
reason that thc latter Company had filed a
sworn abatement In tho Auditors Office at Spring
0eld that 1t had property to An amount greater
than that 1T which ita capital atocl
was asseasel, md for the further
reason that it had no indebtedness. II
the caae Of tho Ottawa Glass Company, tho State
Board had first assessed all tue tangible proper
| rg Of tho Company, mud had thon assessed itE
capital stock representing tho same property
and finally had added its debts to tho capital
stock and assessed that Also Upon this staff
t Of facts. Judge Mo1soberts granted a ternporar.
injunction. 4 similar case will soon come be
fore tho Circuit Court OF Cook County-th Of tht
Poetic Hotel Company, where tho ontiro hoto
property has been assessed and tic capital stool
asecBscd in addition to it. Tho Law provide!
that only ths value Of tho capital ssocs "oye
aud above the va1uo Of tho tangible property
that is, the difference II any, between tho VALUE
Of tho stock and that OF the property-shall b.
added to tho value Of tho tangible property fo
PURPOSES of taxation. The State Board coustruot
tho words "over and above" to mean in addl
| tion to-" and 1t ia this construction which ha
raised such universal and just indignation. 4
this point was not raised in the nopublic Lii
caso, tlero woso really 10 equities in it, aud tn
bill van accordingly dismissed.