, 1874-06-22

7, JUNE %, 1874.
local AsacaBors Is ovorrulod, on tho ground tint
tho Constitution doolnres tlht asaesamonta a11all
DO mado by such poraona appointed for that rur-
pose us tho Legislature mey dotermine. This
Board wna proytdod for TINT purpose, mud duly
authorized by tho Legislature to mako tlis
assessment. Tint Board WAS also fully autlor-
| izol to mako rules for its own government
iu tho discharge Of ita lutios. Tho Court say
that thoro ia booming injustice In tax-
| Ing corporations which aro largely indebted,
and whose earnings aro insufficient to pay tho
interest on thoir debts, to the full valuo Of tfor
property mud privileges without regard to tholr
dohta, but 1t has mover boon The policy to dis
crimnato in favor Of individuals on this account,
anda olain, for exemption cannot DO mado by q
corporation when like claim may not bo made
| by an individual. Tho weakest point In tho do
csion, na 1t scoms to U.s. is that Which justifles
tho ndding Of lobts to capital stock for pur.
poacs Of taxation, instoad OF aubtraoting tic
aano. Wo glvo this In tho words Of tho Court:
Tho mode Of valuatlon adopted BY tho Board Of
Equalization L. That the value Of tho aggro-
gate Baroa Of capital atock Is equal to s yalo Of a
tho property including tho franchise belonging to tho
corporations whore ia not indcbcd a. That, where
tho corporation Is indebted, ths Indebtedness propor
tionntoly reduces tho ynla Of tho aharos Of capital
stock o. That tho va!ue of tho dobt is determined by
the value Of TINT bclonging to the corporation from
which Its payment 10 enforced, go that hoWoYdr
great tho nominal nount Of tho DEBIT is actual value
| can never exceed that sum. To illustrate: Where
corporation Ia free from debt and tho aggregate vauo
H. rta tu in AHa
s'stned that tho valus Of It's capital stock,
| including It's franchise, II 100000. II the
| samo corporation, still retaining tho samo prop
criy s, houoYer indebted $780, o0o this will reduce tho
aggregate yaue Of is shares Of sock to 100000 But,
nB tie 1aw does not exempt corporations or ndiVid-
uas from thc payment of ta1ca account Of !ndcb-
cncsB would not DO accurate to tax tho corporation
ut this ao,Hk, 1ecnuso to do would be to exempt
ito the extent Of jts indebtedness. To ascertain,
therefore, wa. would be Tho aggregate va1uo Of iss
sharca Of atoek, II the corporation were t.ee from
debt It H necessary to nna to tho vaMe OF the aaafea
Of stock II the corporation, in tho given oaao, Ia H.
dobed 100000, tho shares Of stock will bc worth
nothing but tho valuo Of tho dcbt will be Slooooo
which is tho Yuuo OF that from which its payment can
10 enforced; and II tho corporation Ii indebted IL
any creator at tho ya1uo OF tho debt will still ba
only s16o,0oo.
Tic Court hold that while tho value Of etookn
may nuctuato, aud bo at times quoted beyond
thoir real value, 1t Is lawful to assoss them for
taxation OF their onrrentf valuo. The mode
adopted by tho Board ia hold to bo constitutions
al, and, while thoro may bo injustice done. tho
Court has no power to revise It. However, much
alton; no power Is given tho Court to arrest tha
collection Of tho tax merely on tl,at account.
Tho Supreme Court Of this State has repeatedly
affirmed TINT a court Of equity will noyor en-.
terrain a.bill to rostrain tho collection OF tux
excepting iu caaeB where the tax is unauthorized
by law or where It ie assessed upon property no!
subject to taxation, or In casea in which proper
ty has boon frauduontly assessed Too high
In the cass Of tho Western Union Telegraph
Company, Incorporated by the laws; Of New
York, tho court hold that it la in fact md theory
a foreign corporation. Whilo there ia no doubt
ot the power OF the Legislature to impose taxa
ton on such corporations to whatoyor extent 1t
may In its discretion c1ooao'aa condition Of
doing business in this stnte, 1t docs not appear
that tho Donrd of Equalization wns authorized
to asseas ta capital stock, under the law Of 1879.
Tho law Of 1872, providing for tho assossment
upon tho ynlue Of capital stock of corporations.
couiinca its provisions to thoso companies
created by or undor tho laws Of this State.
and therefore tho tux on tho oapltal STOCK
Of tho Western Union Telegraph Company and
other foreign corporations ia pcrpotually en-
Joined.
In tho caao Of Mr. Adsit, banker, Of this city,
tho decision, Aowoyor proper, is carious. MIR.
Adalt, in bis return Of taxable property, nstod
somo $4,000 Of groonbacks. which wero
assessed at their faco galue by tho local A6Beeaor
tho slate Board OF Equalization arbitrarily added
Gs per cen: to tie assessed vauo Of al tho por-
Eona1 property in Cool. County. Mr. Adait, thero-
foro was taxed at tho assessed value Of S1.G8 for
every dollar Of greonbacks possessed by him.
The Court in ths caso say TINT Mr. Aflsit failing
to appear hoforo tho local Board and havo tho
essoasmont equitably adjusted, and thoro being
no fraud alleged III the assessment, tho Court
cannot enton tho collection Of tho tax '''
Tho practical Objects Of tue tax Laws as inter-
rrotod by tho Court would seem to DO thoao. ~
That oil corporations which can do business under
articles OF copartnership will resign thoir CHAR
ters and cancel their stock to avoid taxation
(2) that most Of tho stock issued Of Iate years
by tho bushol without any money having boon
pnid for 1t will bo wiped out; - TINT tho rail'
rond companies will now join in tho effort to
Layo the whole syatem Of taxation by valuation
abolished, md replaced by the Pennsylvania
System Of uconBoa, etc.; "a that tho question
:. Of taxing oapiral stock against companies iesu'
Ing but not owning 1t, will be taken to tho su'
preme Court Of tho Unitod 8tatos.
AN AMERICAN CARDINAL.
Amerioa Is to have Cardinal Of tho Roman
And tho strange thing about the matter Is that