The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1877-02-14
Interesting Railroad Decision.

The mutually of interest between
Mississippi and Tennessee III railroad
system common to both, gives impor-
lance in both States to a recent de-
cision Of the Supreme Court of the latter
on questions involving the mode and
power of taxing the roads. The sub
ject of the whole matter is stated in the
Memphis Avalanche. The 18th section
of the Revenue Act passed by the Ten
nessee Legislature March 20, 1875, pre-
scribed that ''any railroad company,
which will accept as a special amend
ment to its charter, for a period of ten
years from the lst Of January, 1875,
and that will pay annually to the Treas
urer Of the State 1 per cent. on the gross
receipts from all sources of such compa-
ny, shall be exempt from the foregoing
provisions of this act, and the payment of
Il per cent. on all gross earnings shall be
in full of all taxation" Under the OPP
erations of the above section various
railroads paid taxes.
THE question having been brought be-
fore the Supreme Court of Tennessee,
Justice Deaderick delivering the opinion,
decided the mode of taxation prescribed
in the 18th section of the Revenue Act
to be unconstitutional. In his opinion
reported in the American Of Sunday
Judge Deaderick held as follows:
Its argued in support of the validity OF
this eleventh section that tbs one and one
half per cent. of the gross earnings of the
road is. by the act, aScertained to be equal
to the tax assessed on other property; and
if the Legislature has adopted this mode OF
aScertaining value, it is authorized to do 50
by the express provision OF the ConStitu-
ton that the value of che property to be
taxed shall be asGertained in such Il man
uer as the Legislature shall direct.
If the tax OF one ana Onc-half per cent. on
gross earnings is to be construed as the
amount OF tax arising upon the value of
the company's properly at 40 cents on the
$l00 then If the tax next year should be 81
cents, the company should pay 3 per cent.
to preserve equalil Y and uniformity, unless
their property should depreciate one-hali
In value. But the one and one-half per
cent. under the Constitution, insisted on.
tract, contained in the section. The first
ten sections of the act do aim at 6qRaliJy
and uniformity. But the eleventh section
proposes to release she com Danies TOR one
and one half per cent. OF thSir gross earn
ings, from the operations of the equal and
uniform taxation provided in the preceding
sections, and substitutes equal taxation, for
the annual payment of a sum to be ascer-
lsiped-indetnite, uncertain in amount,
and dependent upon the amount of their
business.
The eleventh section does not purport 10
ascertaia the vaiue Of the property OF the
companies nor does il psrport To levy tax
upon such property according TO its value,
but Oh the contrary il proposes to relieve
them from the equal and uniform tax upon
their property levied by the preceding see
tionS, and 10 accept one and onc-half per
cent. Of their gross earnings in fun of all
taxation.
The Legislature may direct the manner
OF ascertaining the value Of property. but it
cannot tax IT otherwise than according to
It's value. 1t may choose what agencies ii
thinks best to ascertain the value of prop.
erty. but the taxes imposed must be equal
and uniform.
Under section eleven. for consideration,
the Legislature has contracted in effect not
to tax property OF railroad companies at all.
This cannot be done under the present
Constitution,
The judgment of tie Cirenit Court will
be reversed and Judgment rendered ia fa-
vor of plaintiff.