The silver state. [volume] (Unionville, Nev.) 1870-1903, 1875-03-12
THE SUBSIDY SYSTEM ENDED.

The question of subsidies to rail
roads and other enterprises, which has
figured SO conspicuously i'll politics OF
late, is now settled BY the highest tri-
bunal in the land--the Supreme Court
of the United States. The decision OF
the court is rendered in a case in which
the bonds of the town of Topeka, kaD-
sas. were issued to bridge, company.
The holders sued on the interest cou-
pons attached to the bonds in the Cir
emit Court, from the decision of which
an appeal was taken to the Supreme
Court. The court holds that the theory
of our governments, State and National,
is opposed to the deposit of unlimited
power anywhere, and thnt the legisla-
tive and judicial departments of these
governments are all of limited and
definite powers. The decision, of which
the following is syllabus, will end the
subsidy system, which has been the
source of the stream of corruption
which has flowed into the Legislative
halls of the country, both State and
National:
l. A statute which authorizes towns
to contract debts or other obligations
payable in money implies the duty 10
levy taxes to pay them, unless some
other fund or source OF payment is pro-
vided
2. Ii there be No power in the Legis-
lat,.re which passed such Il statute to
authorize the lery of taxes in aid of the
purpose for which the obligation is to
be contracted, the statute Is void, and
so are the bonds or other forms of con.
tract based on the statute.
There is no such thing in the theory
of our governments State and National,
as Unlimited power in any of their
branches The executive, the legisla-
tive aud the judicial departments are
all of limited aud defined powers.
4. There are limitations OF such
powers which arise out of the essent al
nature of all free governments. Implied
reservation of individual rights, without
which the social compact could not
exist, and which are respected by all
governments entitled to the name.
6. Among these is the limitation o.
the right of taxation. that it can only
be used in aid of Il public object, an
object which is within the purpose for
which Governments are established.
g. 1t cannot, therefore, be exercised
In aid of enterprises strictly private for
the benefit of individuals. though III
remote or collateral way the local pub
lie may be benefited thereby.
7. Though the line which distin-
cuisines the public nse for which taxes
may be assessed from the private use for
which'tney may not. is not always easy
to discern. vet it is the duty Of the
courts, where the case falls clearly
when properly called on for the pro-
lection of the rights of the citizen, and
aid to prevent his private property
from being nnlawiully appropriated to
the use of others.
s. A statnte which authorizes town
to issue its bonds in aid of the
manufacturing enterprise Of individuals
is void, because the taxes necessary to
pay the bonds would. if collected. be
transfer of the property OF individuals
TO aid in the projects of gain and
profits of others, and not for public
use, in the proper sense of that term.
8. And in snit brought on such
bonds or the interest coupons attached
thereon. the Circuit Court properly de-
clared them void.