Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1880-05-05
Decision in the Virginia COu
pom Cases,

pom Cases,
AS was announced in dispatch
in THE Sun yesterday,the Supreme
Court of Virginia on Thursday rem
dered its opinion in the cases of APP
peal from State Auditor Massey's
decision that the coupons of the
bonds are taxable and not receiva-
BILE for certain classes ofdues to the
State. The court nullifes that de-
cision, afirms the constitutionaliy
of the McCulloch act of March %,
1879, providing plan of settle
ment of the public ebt,and declares
that all its stipulations and provi-
ions must be enforced. This in
cludes the provisions that the cou-
pons on the bonds issued under the
act "shall be receivable at and after
maturity for all taxes. debts, dues
and demands due the State" and
that"all obligations created under
this act shall be forever exempt from
all taxation, direct or indirect, by
the State, or by any county or cor
poration therein" Auditor Massey
had refused to receive the coupons
when rendered for taxes, upon the
ground, first that the bonds were
liable for taxation by the State, and
the tax must first be deducted from
the amount of the coupons before
he could receipt for them second,
because the constitution directed
the capltation tax and the school
tax to be paid in money. These
points of the auditor are all careful
ly reviewed by the court and all of
them rejected. The constitutional
ty of the act is affirmed upon the
ground that the right to exempt
from taxation sis right which is
incident to the legislative preroga-
tive. 1t is essential to the welfare OF
the State that the powers of ex-
emption should be vested in the
Legislative department as the power
of taxation, and may be exercised
by the Legislature at its discretion
except when it is clearly forbidden
by the organic law. judge Cody,
a distinguished jurist and a most
eminent writer on constitutional
limitations and other branches of
law, says: The general right to
make exemption is involved IN the
right to apportion taxes, and must
be understood TO exist wherever it
is not forbidden and cites numer-
Gus authorities in support of the
doctrine" The decisions of Vir-
GINA courts, which are stated at
length, are all regarded as conclu-
sive as to this view of the case,
and indeed it is declared to be of
the very essence of sovereignty that
the power to exempt from exempt
from taxation should lie where the
power to impose it resides. The
clause in the Virginia constitution
on which Auditor Massey relied,
and which declares that all proper
ty subject to taxation shall be tax.
ed in proportion TO its value, does
not require that all property in the
State shall be taxed, but that when
any species of property is selected
for taxation, it shall be taxed in
proportion TO its value In other
words, it is meant "that taxation
should be on the advalorem princi-
pie, and that it should be equal and
uniform" but did not seek to i'm
pose san infexible inhibition of ex
empting in any case property from
taxation" Any such construction
as that would prevent municipal
corporations from exempting their
bonds, or the "plant' OF manufacto
ries they wish to encourage from
taxation, and would be a perpet.
ual bar to enterprise and progress
As to the second reason given
by Auditor Massey for rejecting
the coupons, the court is OF opin-
ion that "all the questions raised
thereby have been repeatedly de-
clded by this court" and instances
are given in evidence of the fact.
1t was, therefore, decided that the
act and all its provisions are con-
stitutional, and a mandamus was
issued against Auditor Massey
commanding him to receive cou
lpons in accordance with those pro-
VISIONS, and 10 execute receipt IN
full discharge of taxes so paid. The
lauditor, in a letter addressed to
Attorney-Gcneral Field, bows
gracefully to the decision of the
court, and says he will regard it
"as settling the questions involved
mot only in case before the court,
Ibut in all similar cases, and shall
conform to the instructions implied
in that decision, and shall 80 in
struct collectors of State revenue"
This settles the matter finally. AS
result, Virginia State bonds and
coupons have advanced in price and
are in better demand.
4 Al. l. M,pnr