The daily Argus. (Rock Island, Ill.) 1873-1877, 1876-05-08
TAxING CAPITAL STOCK.
An Important Decision of the United
States Supreme Court.

THE ARGUS has already stated that the
supreme court OF the United States has
reversed the action OF the United States
court for the northern district of this state
in relation to the state revenue law. which
calls for the taxation Of capital stock and
franchises OF railroad and other corporate
companies. The Importance Of the decision
cannot be overrated, as it sustaiDs our
state revenue law, and will in the course
Of the next sixty days, put not less than
$lO0OO,OOO Of back takes into the state
and local treasures.
Mr.. Justice Miller, who renders the
decision, states the case as follows
The three cases, whose titles stand at
the head of this opinion, are all appeals
from decress of the circuit court from the
northern district Of Illinois, enjOlning
appellants from the collection Of taxes
asses 'ed by the proper officers of the state
OF Illinois against three several railroad
companies, organized under the laws OF
that state, and doing business in it. The
plaintiffs in the first named Of the above
suits are mortgages Of Toledo, Peoria 4
Warsaw Railroad Company. In the other
two cases the compliments are stock
holders Of the respective companies whose
interests they represent, namely, the Chi
cago Il Alton Railroad Company IN No.
7Ol and the Chicago Burlington Il Quincy
Railroad Company in No. 7U3.
The act OF the Legislature Of Illinois Of
March 80, 1872, under which the taxes
complained Of were assessed, makes specia
provisions for the taxation OF railroads anC
other corporations, the main feature d
which is the purpose Of leaving to eacl
county, city and town the power OF assess
ing for taxation what is properly local il
the same manner that other similar
property is taxed in that municipality, ant
at the same time to subject to like taxation
on some fair basis that which is not in it
nature so clearly local, but which, b,
reason Of its being appurtenant or inciden
TO the railroad, should pay its share to thu
state, TO all the counties, towns and cite
through which any part Of tie road runs
The theory OF the system is manifestly t
treat the railroad track, it's rolling stock
its franchise, and its capital as q unit fOl
taxation, and to distribute the assessed
value OF this unit according as the length
OF the road in each county, city aud towI
bears TO the whole length OF the road.
THE OFFICIAL DIGEST.
!. While this court does not lay dowr
any absolute rule limiting the powers or
court OF equity in restraining the collection
OF taxes, 1t declares that it is essential tina
every case be brought within some of thu
recognized rules OF equity jurisdiction, anC
that neither illegality or irregularity in tn,
proceedings, nor error or mistake in tn,
valuation, nor the hardship or injustice O.
the law, provided it be constitutional, no
any grievlence which can be remedied by
suit at law, either before or after thu
payment OF The tax, will authorize an in
Junction against its collection.
2. This rule is founded on the principl
that the levy OF taxes is a legislative an
not a Judicial function, and the court ca
neither make nor cause to be made ne,
assessment ii the one complained of b
erroneous, and als) in the necessity tina
the taxes, without which the state coul
not exist, should be regularly and prompt
ly paid into its treasury.
3. Quere: Whether the same rigi
rule against equitable relief would appl
to lakes levied solely by municipal corpol
ations Tor corporate purposes as that her
applied to state taxes? Probably not.
4. Nolnlunction, preliminary or final, Ca
De granted TO stay collection OF taxes unit
it is shown that all the taxes conceded
be due, or which the court can see oupt
to be paid, or which can be shown to
due by afhdavits, has been paid Or tende
ed without demanding a receipt in full
o. While the constitution of Illinois r.
quires taxation in general, to be upiforI
and equal, it declares in express terms th;
large class of persons engaged in speci
pursuits, among whom are persons or CO
IA. poratlOns owning franchises and privilege
nay be taxed as the legislature shall d
ermlne, by general law, uniform as
class upon which it operates, and und