The daily Argus. (Rock Island, Ill.) 1873-1877, 1876-03-02
THE ILLINOIS TAX CASES,
Before the Supreme Court of the United
States.

WASHINGTON, d. G. Feb. 29.-The
case of Miller Collector. &C., appellant, vs..
NJ. K. Jessup ct al, appellees, were argu-
ed to-day by Attorney General Edsall, and
the Hon. Lyman Trumbull for appellants.
and by G. Beckwith and Obadiah Jackson
for appellees. Jackson's argument at
tracted especial attention, and was
frequently questioned by the judges
This is one of the cases where the Illinois
railroad companies seek. though non
resident stockholders, to enjoin the col.ec-
tion of taxes. The cons;itutionality of the
board of equalization of Illinois, as well as
the legality of its acts, is involved. The
cases come here by appeal by the State of
Illinois from an injunction granted by
Judge Drummond The case of the
Toledo, Peoria & Warsaw railway is also
in argument by r. &. 1ngersoll for the
railroad, and that of the Chicago, Burling-
ton & Quincy railway will be taken up to-
morrow, Mr. Browning and Mr. Writ
Dexter appearing for the last named COM
pany. A large part of the revenue of the
state is involved in the decision. There
are different questions in each of the cases.
The essential points are, first, whether the
state can tax capital stock and franchise in
the manner in which it is done; second,
| Nhether-the state can distribute the value
IF the right Of way in different counties
proportionately to the length Of the line of
the counties to the whole line Of the road
| The rates of local taxation were shown in
the argument to vary from to 38 per
cent.
| WASHINGTON, D. c., Feb. 2S.-An i'm
portant case. involving the interests of
railroads in the middle aud western states,
is to be argued in the United States
supreme court tomorrow by ex-senator
Trumbull, Acknowledgement Edsall, of
Illinois, and others, representing the State
of Illinois, and Corydon Beckwi;h, r. j.
Tngersoll, and Writ Dexter, of Illinois,
and B. w. Hanna, of Indiana, represent
ing the Chicago, Alton, Chicag0 & North
western, Toledo, Peoria & Warsaw, and
Indianapolis & St. Louis railroads. Other
railroads Of Illinois being under cover ol
Judge Drummonds injunction will share
the fate of the suits now pending in the
supreme court. The question is upon the
motion of the State OF Illinois to dissolve
Judge DIummonds Injunction. which was
made perpetual in the court below The
facts of the case are, in brief, that the
Ctdtc vi iHiuUls lIltu W IOiiOW tiIt IudSSd
chusetts law where the franchise of corpor.
ations is taxed. In Massachusetts almos,
all the capital stock of corporations has 9
substantial value, most of it at par value
and much of it above par. Here the
franchise for taxation is easily ascertaineG
by deductiDg the tangible property from
the capital stock; in other words, what Ii
paid to the stockholders in the franchise a.
thing of value for assessment and tax
alton. In Illinois the capital stock o
railroad companies is of small value, and i
the roads can pay the interest on thei
bonded debt, they do about all they cal
do. The Illinois state board y clualiza
ton assumed a valuation fr the capita
stock of their roads, but found this les
than the tangible property. and. therefore
included the debt. This is held to b
equivalent to double taxation. The road
do not own their capital stock, and th
point is made that if they pay taxes o.
their tangible property they should not b
required to do more. 1t is estimated tha
not less than $l0.000,000 are involved i
the question now pending.