The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1878-03-27

manufacturing companies were liable
on account of their machinery and other
material employed for manufacturing
purposes, shall be applied to the pay
ment Of the debts and liabilities which
any Of said companies may have in
CURED ''in constructing or purchasing
the same;" and it was made the duty OF
tax collectors for the period of ten years
to give to each of said companies a re-
ceipt in full for the amount of all taxes
due upon receiving from such of said
companies an affidavit made by the Pres
ident or Treasurer of the same that the
amount of said taxes have actually and
in good faith been applied during the
year in payment of debts incurred or
money borrowed as aforesaid, and which
receipt so given shall be in full for all
taxes, county, State or municipal to
which said companies shall be subject"
This appropriation, however, ceased,
when the profits of said companies should
enable them to declare an annual diyi-
dend Of four per cent. upon their capital
stock The law further provided that
the benefits of the act should not apply to
companies whose capital stock should be
less than ten thousand.
The Wesson factory was established
prior to the law of 1872, and a subse-
quent act conferred upon the company
in operation the benefits of the provisions
of the law. On the 1st of February
1877 an act amendatory of the original
law Of April 1872, was passed, declaring
that the latter act should be so construed
as "not to exempt from taxation any
property of any manufacturing company
other than the paid in capital stock
of said companies, their machinery for
manufacturing purposes, their manutac-
tured goods, the buildings in which the
machinery is located, and the grounds
upon which they are situated, or which
may be within the necessary enclosure
around such buildings" etc.
The law was passed to settle the con
struction of the first act and to prevent
the privileges therein conferred from be-
ing extended to objects and property not
embraced within the intent and scope of
the original law 1t was asserted that
other property belonging to at least one
or more of the corporations, such as
lands, dwelling houses, store houses and
| divers and sundry other descriptions OF
real and perishable estate, had escaped
taxation under the law. When the tax
collectors came to apply the provisions
of the last named act to Wesson factory
viz: to remit the raxes only on their
capital stock paid in, their machinery,
goods, buildings, grounds, etc, to the
exclusion of other property, such as out
side lands, residences and other proper
ty, the company enioined the col
lection of the tax amounting 1t is
said to about four thousand per
annum. The case was tried before
Chancellor Peyton and resulted in his
dissolving the injunction. Not having
read his decision, we are not prepared to
stata- with -annnranu the Grounds nnnn
ever, that his Interpretation of the amend
atory law of 1877, was that it was net in
conflict with the act of 1872 and was,
therefore, no violation of the contract of
the State with the company-that in get
ting exemption for their capital stock,
machinery, buildings for manufacturing
purposes, goods on hand and necessary
grounds, they were, in fact enjoying the
full benefits of the law.
we have been informed that the de-
cision of the learned Chancellor took a
still wider range, and that the law of
1872 was declared unconstitutional and
void, in that it was in direct conflict with |
the Constitution of the State article u, |
section 49, which declares that "the
of corporations for pecuniary |
profit, shall be subject to taxation the
ame as individuals ;" and section 20 of
he same article which declares ''that
axation shall be uniform throughout the
State;" and that ''aU property shall be
axed in proportion to its value to be
by law" There is nc mis-
aking the meaning of these clauses
hey are as plain as A. B. c. There
nay be a difference of opinion as 10
7hether they are sound public policy,
ut ss to their meaning there can
e no doubt. All property must be {
lxed and "taxation must be uniform" |
his fact was recognized by the trainers
f the law of 1872, and hence they put
ne exemption in the form Of donation to
ay the debts and liabilities of the COM /
anies designed to be favored. But this
as only whipping the devil around the I
Jump" They were collecting the tax
oresumptiVely only and then paying it
ack again; which was great injustice to '
e other portions of the tax-paying com a
unity. The whole system of exclusive r
ivileges is wrong in principle. Every il
terest and every class and every aVoca- o
On protected by the law, and enjoying i,
benefits ought to pay its equal share Ii
r the support of the government. il
part from the principle of the law we n
g discussing, it is wrong in extending 81
elusive favors to wesithy companies and tc
thholding them from the poor and D;
lall enterprises struggling for existence, la
lose capital stock paid in does not ex- 1t
ID ten thousand dollars. la
Doubtless the case alluded to will be
zen to the Supreme Court for ultimate