The New York herald., 1873-12-16
UNITED STATES SUPREME COURT.


Important Opinion or tho Court ON tho
Question or the Taxation OF the Pacific
Railroad Company by states-Honors
to Justice Nelson.
WASHINGTON, Dec. Is, 1873.
The case OF the Union Pacific Railroad vs. Pennis-
ton, Treasurer OF Lincoln county, Nebraska appeal
rom the Circuit Court for Nebraska, was decided
in the Supreme Court to-day.
The question in this case was whether the Pacific
Railroad Company is such an instrumeDtality OF
the government as exempts 1t from State taxation
under the federal constitution.
IN delivering the opinion OF the Court Mr.. JUS
tice Strong in substance says that the taxing
power OF State is one or its sovereign attributes
and that 1t exists independently OF the constitution
OF the United States, and underived from that In
strument, and that it may be exercised to an un-
limited extent upon all property, trades, business
ana avocatIons existing or carried on within the
territorial boundaries OF the State, except
as far as it has been surrendered to
the federal government, either expressly
or by necessary implication, are propositions that
have often been asserted by this Court, and in
thus acknowledging the extent Of the power to
tax belonging to the States the Court has declared
that 1t is indispensable to their continued exist
ence. No one ever doubted that before the adop-
tion OF the constitution OF the United States
tax either directly or indirectly all persons and
property within their jurisdiction, alike by taxes
on polls or by duties on internal production, manu-
iacture or use, except 80 lar as such taxatlon
was inconsistent with certain treaties which had
been made and the constitution contains no.
express restriction Of this power, other than q
prohibition to lay any duty OF tonnage or any i'm
post OF duty on imports or exports, except what
may be absolutely necessary for exercising the
States Inspection law, as was said in
Lane county VS. oregonmz Wall nmin
OF taxation OF the States remained, and remains
entire, Notwithstanding the constitution: 1t is,
Of the general government; and In the case OF
tax upon 49,. the :, san same subject BY both gov gov
as the supreme authority must be preferred;
but with this qualification 1t Is absolute. The ex-
tent to which It shall be exercised and the mode IN
which 1t shall be exercised are all equally within
the discretion OF the Legislatures to which
the States commit the exercise Of the
by the Will Of the people,. expressed in
the State constitutions or through elections and
BURDEN or emSarrass the operations IS Of the @ national
constitution which oOntsmpatss Of aathorizss
gisIatures 2 ' To aOsne the extent just % INDICATED
It just complete in the States the like power,
Congress- Such are the opinions we have ex-
pressed heretofore and we adhere to them. The
tax in question t sc s held mot tho to os too
exercise OF the federal power to be for that
reason inhibited by the constitution; to hold
otherwise, it Is said, would be to deny to the
States all power to tax persons or property, for
every tax levied by State withdraws from the
reach Of federal taxation portion Of the property
from which 1t is taken, and to that extent dimin-
ishes the subject upon which federal taxes may be
laid Admitting fully that the company Is an agent
OF the general government both military and
postal, the Court say J does not follow that its
property is exempt from State taxation. In
Thompson Vs. The Union Pacific Railway Company
% WALL 579) it was held that the property OF the
company was not exempt. though the road was
ars % an S OF he @
largely for the use and purposes of the general
governments The company in that case were
in this, to the same extent and for
the same purposes. It may be considered
fD Sbt state tax upon the property Of an agent tot Of
the government merely because it Is the
property Of such an agent. A contrary
States in the collections Of their neces-
sary revenues, without any corresponding
portion Of the property within the States is en-
poyed on executions of the powers OF the govern
ment belongs n 70 sS government nn1 agents, and
sary for r0' their @ agencies. s @ United States States
mails, troops and munitions Of war are car
are employed IN the national service, so are
steamboats,, horses, stage coaches, wagons found
cries, shipyards and multitudes Of manufacturing
establishments These are the property OF ma
tional persons or corporations, who are instru-
they are the by the obecss Of the
government are attained. Were they exempt, as
here claimed, 1t is manifest that the State govern
mentS would be paralyZed. While 1t is OF the
utmost Importance that all the powers vested in
the general government by the constitution should
events have called for the most unembarrassed
exercise of many OF these powers, 1t has been de-
that state taxation ass decrs o. saGn %
Mr.. Justice Bradley dissenting, wrote q long
opinion in which he held that II the road bed may
be taxed 1t may be seized and sold for nOn-pay-
ment or taxes, seized and sold in parts and
parcels separated by county or State lines,
ing ing the corporation and establishing the line may
be subverted and destroyed. In his Judgment the
tax laid in this case was an unconstitutional inter-
ference with the instrumentalities created by the
national government in carrying out the objects
and powers conferred upon 1t BY the constitution.
Bradley. Mr.. Justice Hunt dssented from the
opinion Of the Court, but wrote no opinion. Mr..
Justice Swayne wrote an opinion concurring In
In the case OF Weber VS.. The Harbor Commits
sioners Of California. from the Circuit Court for
rived from the city Of San Francisco title to land
lying on the bay between sacramento and Com
and claimed the to put out
was against him and the decree Is here affirmed,
the Court holding that the water fronts are the
veyed In this case to the APPELLANTS predecessors.
The city has control OF the privileges claimed and
Mr.. Justice Field delivered the opinion.
After the reading Of opinions, Mr.. Justice Cinord
announced the death Of Judge Nelson In the fol-
lowing language
Information Is received that the late Mr.. Justice
Nelson departed this life Saturday last at his res
idence at Cooperstown, New York, In the alter
nOon The Court received the sad intelligence Just
mentioned with deep regret and sorrow, and, from
respect to the memory of the deceased and in con-
sidefation OF his long association with this Court
and Of his eminent public services 1t now adjourns
without transactng the ordinary business.
The Court was thereupon adjourned until to-
morrow at twelve O'Clock.
WPOLICE AND CLUBS.n