Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1882-12-08
THE NEW CORPOR ALTON LAVA DECISION
WHICH MAY BEAR on THE LAW.

The main question in regard to the law in
regard to the taxation Of corporations in this
State just passed by the Legislature, is
whether il will stand in The courts. If it is a
constitutional and valid law, there will be
few to question its general expedency There
are large amounts of property belonging to
corporations in Vermont, which have not
and do not pay their share of the public bur-
den of taxation. If they can properly be
made 10 pay their share, the tax-paying pub
lie will be glad to haze them made so to do.
4 decision was rendered, few weeks ago,
in an important case in California, which
seems to bear on the new law,a some points.
BY the new constitution Of California all
property is with certain cxceptions) requir-
ed to be taxed in proportion to its value ;
but in the ascertainment of its value as ba-
sis for tayation distinction Is made between
the property owned by individuals and that
owned by railroad corporations. The South
ern Pacific railroad, of that State,
having refused to pay its taxes, on the
ground that this discrimination in re-
gard to its property was unlawful, the
county of San Matco brought suit
for the amount Of the taxes. The case was
heard in the United States Circuit Court Of
California, before United States Judges Field
and Sawyer, who rendered decision which
is published in the last number of the Fede-
raj Reporter. The main points of this decls-
ion are as follows:
The Fourteenth Amendment of the United
States Constitution, in declaring that no
State shall deny to any person within its
jurisdiction the equal protection OF the laws,
limits the powers of the State to,sehing indi-
viduals or their property.
This equal protection forbids unequal
cxactlons and among them unequal taxa.
ton.
Uniformity in taxation requires uniform
ty in the mode of assessment, rs well rs in
the rate of percentage charged.
Corporations are persons in the meaning
of the Fourteenth Amendment and entitled
to the equal protection" of the law in re-
gard to their property, The State can not
withdraw corporations from the guarantees
of the Fedora Constitution.
Under its power TO amend, alter or repeal
charters Of corporations the State can not
divcst property of rights that have became
vested.
In view of these considerations and of the
fact that the State of California had made n
different rule regarding offsets for mort
cages, in the case of railroads, from that in
the case of individuals, and different rules
as regards notices and opportunity to cor
rect errors before the State cquallzing board
in the case of railroads. the court gave judg-
ment for the railroad company. The case
goes up to the Supreme Court of the United
States. This application of the Fourteenth
portant results.
While il is our impression, from what we
have heard, that the railroad corporations in
this State will not resist the payment of their
taxes under the new statute some other coipor-
atoms may do 50; and if the United States
Supreme Court should sustain the PROPOSE
ton that the fourteenth amendment requires
uniform rates of taxation and uniform
modes of assessing taxes, in the cases OF cor
porations as of individuals, it might make
some trouble for our State. In regard to
this we shall all have to wait and see what
we shall see.