New Orleans Republican., 1873-03-12
supreme Court DeCisiOns-EmDOrtant Tax

T.om =. Washington Chronic.e.'


In the cast. OF ,ae Philadel elphia and Read
ing railroad against the State of PennsYl-
rAnia no. Il J. the question was whether a
FAX laid bv the State upon the gross re-
ceiDtE OF the road was unconstitutional, as
being IN conflict with the power delegated
to Congress. - regulate commerce among
the States. and a. being il the nature of an
!mpGst. As - inter State transportation.
the court says mat whlio no tax can be i'm
posed br tile State Ipen II. the fruits o.
such transportation may be taxed n the
manner mere adopted, zach fruits, IN the
:....l. q. gross receipts. having been incor-
nor3ted INTO the mass Dt the company
property. While sUCA Il tax affect. com
meIge 1v INCREASING the rates OF trans
DortatiOu, i: = said K !s no: such tax upon
commerce as renders It obnoxious 10 the
constitutions. provision stated. Nor is It
invalid "a laying al lmnOSt. OF duty, on
imports or exports. Judgment affirmed.
Justice Milie: Field and Hunt dissent.
holding that TAX on gross receipts IS ua-
constitutions, ana void.
In the case Ot the Philadelphia and Real
ing railroad against the Scate ot Pennsy.-
vania NO. -. ;le Tax was upon the
aunbeT OF tons Ot treigh. transported into,
rtt u: Or th:"u-n tho State The court
holds that such = caX Is not upon the fran
Oh sc OF the read. lOr upon us property or
business mea.ure,, Nv the number OF tons
carried. Bu.. upon the contrary, it is eX-
prassiy laid UpaE t.Ia freight carried. ana
: not pToroct!"leu to the amount Q!
business done "A :: ;nspOrsation. Tor il - the
sam. whether the treIght - carried one
Il.Ile or three hundred miles. II carried
...1n the Goal; IA. IL. the tax is 20 De PAID
upon =.
Tie conclusion ::aon tie whole case is
tina: the iaX. ;aI - !: .ppiirs to articles
carried ;ntO. out ~ % :AEough tie State. Is
Unconstitutional and VOID, being Tegu
ia'.On o. COmmerc. among the Statas--a
I. -u'atioR :Iica o-.ongs "a Congress. The
iuugment OF IN" Supreme Court OF Penn
-viyania :. reversed. Justices Swayne and
Davis dissent. holding ;ha' the tax Is on
.hc business Dt the Cdl!Itr. and that the
tonnage !s only "a mode Ok .t5CertaInIn. the
extent Ci ta. business.
The case ot n. Erie railway against tHe
State @: Penns FivanIa 40. 30t Is disposed
Of oy the decision n the case NO 22j above.
the tax being held unconstitutional Tor the
reasons there assigned. Mr.. justice Strong
delivered the opinion .. the court III eaeA
OF the three eases.
In the cases .: Barnes and others agains:
the ?hiiadelp ph.. ana Reading Railroad
Company and various CJhE. roads. the
question was whether q dividend declared
OF q cdHtOdt company III DeCemDtFs i1t'f'
payable in January. 1879. is income for 1869
OF 1870. The court below '!eld that the IN
come tax act expired Ly limitation with the
clos. of the year 1869. and that there had
been 20 extension OF The tax: and that the
dividend. declared N December OF that
year. payable the next month. were div
der'ls t"r tnat year. and therefore not TAX
abb. Pending THIS decision. Congress pass
eG 81 a"t constituting the tax act to nave
been extended So ~ to iuclnd6 the GI':-
dPnts declared IN Decernb'r, 1852 The
cou.: below held th%t act - oe VOID. be-
cause bT i Congress attempted 10 perform
Il .UGic.a act, and Il was Gisr-gardei.
This court holds that the tax upon she
dividends IN these eases v..s distinct rom
tne income tax. ana th:! I was the lnteD-
tioi OF the &c: IMPOSING Il 20 tax railroad
companies for tleli gains and profits, and
no. t. tax 10. their shareholders and bond
holders. The diviIands were the earnings
OF the roads ior :'62, and were properly
ta"..i a .or .ha- gear. Nj. Justice Ciitfo1d
read the opinion ot the conrt.
Nj. Justice Strong disseDta, taking Che
view that the section of the act imposing
this tax was intended 10 .each the bond
holders and stockholders. and not the rail-
roads, as they had been taxed IN preced-
.ng section, and tha: its provisions aimed
simply to prescribe mode of collecting
such income from The STOCK holders.