The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1877-02-08
From the Nashville American
RAILROAD TAXATION.
The New System Of Assessment De
cIared unconstitutional.
SUMMER Comfy WIrs Eser Case in tise
Supreme Court.

Sumner Comfy HiEs kaer Case in iise
Supreme Court.
Tie case of Thomas 5. Ellis, Rev
enue Collector for Sumner county, VS..
the Louisville and Nashville Railroad
Company, was decided yesterday, by
the Supreme Court. The opinion sets
out with reciling the substance Of the
different sections Of the act of the Leg
islature, passed March 20, 1873, and
entitled "An act, declaring the mode
and manner of valuing the property
of a railroad company for taxation"
and quotes sec. IL, which Is as fol-
lows; '"That any railroad company,
WHICH will accept as a special amend
ment to its charter, for period Of ten
years from the first of january, 1873,
and that will pay annually to the
Treasurer Of the State J per cent.
on the gross receipts from all sources
of such company shall be exempt
from the foregoing provisions Of tins
act, and the payment Of } per cent.
gpon ali gross earnings shall be in full
of all taxation"
Judge Deaderick, in delivering the
opinion Of the court said
"But it is insisted that the 11th
section of the act proposes, upon GER
tain conditions, different rule of tax
alton than that provided for in the
first ten sections Of the act, These
first ten sections prescribe a mode Of
ascertaining the value Of the property
Of railroad companies, that 1t may be
taxed equally and according to its val
ne, as other property in the State, by
the State, counties and incorporated
townsville the 18th section pro-
vides different rule of taxation, for
the benefit Of the State, III flu y Of all
taxation Ii this llth section does
not impose a tax upon the railroad
companies property according to its
yal4e, equal TO aud uniform with
other taxation OF property throughout
the Stale, it is inconsistent with Il
requirements of the constitution and
cannot be sustained, notwithstanding
the amendment Of the charter of the
railroad company surrendering sup
posed exemptions from taxation after
ten years.
THE surrender of supposed inn
munity from taxation, though it
might be good consideration for the
grant of special exemptions CT privi-
leges, in the absence Of any constitu-
tional prohibition TO make spch grant,
cannot give validity TO an act Of the
Legislature, which it is prohibited by
the Constitution from passing.
it is argued in support Of the
validity of this eleventh section that
the one and one half per cent. of the
gross earnings Of the road is, by the
act, ascertained to Le equal to the lax
assessed on other property; and if the
Legislature has adopted tits mode of
asccrtaining value, it is authorized to
DO so by the express provision of the
Constitution that the value Of property
to be taxed shall be aseartaiped in
such manneP SIS the Legislature
shall direct.
IF the tax Of i per cent. on gross
earnings is TO he construed as tie
amount Of tax arising upon the value
of the cnmpany's property at 10 cents
on the $50, thcn if The tax next year
should he so cents, the company
should pay3 per cent, to preserve
equality and uniformity, unless their
property should depreciate one>half in
value But the Il per cent, under
the Constitution, insisted on, cannot
be Increased under the legislative con-
tract, contained in she section. The
first ten sections of the act do aim at
and uniformity. But the
llth section proposes to release the
companies for 3 per cent. If their
gross earnings, from the operations Of
the equal and uniform taxation pro
vided in the preceding sections, and
equal taxation, for the an
ual payment Of 4 sum to he ascertain
uncertain amount, and
upon the amount Of their
business.
1.-The l1th See. does not purport to
ASCERTAIN The value Of the property of
the companies, nor does it purport TO
levy a tax upon such property ac-
cording to its value, but on the con-
trary 1t proposes 10 relieve them from
the equal a.id uniform tax upon their
property levied by the preceding sec
items and to accept y per cent. of
their gross earnings ip full of all tax
alton.
1.-The Legislature may direct the
manner Of ascertaining the value of
property, but it cannot tax i other
wise than according TO is value. 1t
NAV choose what agencies 1t thinks
best to ascertain the value of proper
ty, but the taxes imposed must be
equal and uniform.
" Under Sec. II, for q considera-
ton, the Legislature has contracted in
effect not to tax property of railroads |
at all.
This cannot be done under the |
present Constitution.
q The judgment of the Circuit !
Court will be reversed and judgment |
rendered IL favor of plaintiff.