New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-01-03

were that all the companys property was assessed, ho
exemption beag made OF mortgage securing lndeDte"
ness that the company had no opportunity 30 apply loi
relief and that in general the assessment and taxation
were unconstitutional The argued before Jus
lice Field and Judge Sawyer August 21-20 1882 ana
the opinions were read in the Circuit Court at san
Francisco ON September 25 Tnc Court held that inc
assessment on winch the taxes were levied was lnVad
and void and that final judgment must 90 Tor the
company.
FULL TEXT OF JUSTICE FIlLDS OPINION.
bronqhf TO recover of the southern Pacific Railroad
Company corporation formed under the laws OF can
fOrna certain state and county taxes levied upon us
roerty fuv the fiscal SS1 aud lSc2 alleged 70
be due to the plaintiff with per cent aided or lner
1on-na,rent and interest ii commenced III one OF
The SUPERIOR courts OF the State and on Application OF
le railroad company, besides general GENIAL OF the
ale atous O complaint, sets up as sptcial answer
-, e acf,n mai in Inc sinenJ Of is property,
c0r,IN 10 watch the taxes claimed levied
LAWFUL and unjust discrimination was made between us
vantage subccuDg II 10 unequal snare OF tue puoc
burdens and tuat IL was not Afforded an opportunity OF
being heard respecting me assessment ana that s9e
discrimination made ana proceeding mad under tne
provisions the Consutuutn OF California ADOPTED III
1879 wh ch ~ that Fespec are IN colhlcI WIN uS Io
teenth amendment of the Constitution o. TIC united
States. .,s., 90, ... l., ,b
State not exempt amer the laws of me United states
IL. with certain exceptions To DC laAeu ~ ~
value TO be ascertaned as pfescllnSu ny ia" o'.
in the ascertanenU OF is value as basis Tor iaXalOn
Vdua5 ana tnat "hed oF IaIi'Oau coaIV a.. Us, pS
the thirteenth article, MORTGAGE Oeed OF trust OF
other obligation by which 0e0 is secured Is uealeu
Tor the purposes or assessment anu tsAntlo' as an III
fercst IN the property Affected Thereby ana, exc t as
70 railroad and other quasi puo!c corporations the
oiue nj the ur0Deriy affected, less the value OF the
security 10 be sscd ana taxed 20 lie o" e anu tue
yane security i 10 be assessed ana taAeu 10 It's
holder (sec ~ Bui by article tne franchise
roadway roadbed, rails and rOn2sIock or all rall-
roads operated in more than one county are 10 DC
assessed their actual va ue ana appOrOhea 10 lne
counties, cities and districts IN when the IOhuS are
IN he ~
lard herein No deduction from ms value Is allowed
for any mortgages On the properly ,,,v.. ..... 4,
aSsess ent provided Tor the ifanclse roadway fSad
bed rails and ro.lng-stock" of railroads operated III
more tnan one cOuAty that provided Tor me assess
tent o. C nv ~ in me countV civ or dstrlc. in Which
II is situated In ine manner prescribed by laws ara the
spsryIsOls each county consul ute Board OF fQl
lion of tbe taxable property the county, and must
scl uou prescribed rules OF notice To It's owners.
state Board Equalization Is also created " me Con
stituton equaze the va ualion oi te prop
erty OF the raj counties so tAat equaty may De
preserved between the taApay ers VI Iiie %
lies its action in TINS respect must He"lSe &c upon
pre- criDed rules OF notice -,
rails aud rOuugstock of railroads operated IA no4e
tsan Que county IN state is 10 be made By this SAFE
Board. And IN making It, the Board IL net required 20
give any hoIce to tne o~Geis nor Is az W
for aff riding them opportunity 10 Dc hrtd respect
in tne valuaOn Of thvir property Tue tepth secnon 81
the article which corners Tails pow VI ~
been hra by supreme Court OF the STATE I" Dc s;
executing requiring no Legislation LOT us enforcement
The defendant, as already stated, Is corpoIAIoh
formed uuder the laws tne STATE and operates rail-
,oa ad ~ is little over III miles, which
twenty-five mics aud onetenth OF niie pas, tI4ng n
the county MateO IL principal place OF Du9lhero
il at Sal francisco. Its Stockholders are ana always
have been citizens OF the Uui'ed states some OF WhOn
are residents OF tbs Stale and some OF other staes
Previously 10 January 1881 II Was indebted 10 diner
en cifize of H. United states many Of them residents
OF this state large advanced to construct ana
coup the road AMI 10 secure TINS Indebtedness IL
s Hancin aud its ro lin appIrtenauces, ana
also upon number vi tracts Oi lana slluhtea ia o
fernt countless Tue edness secured exceeds $1,000
Iufe Of the road part Of which, except the accrung
interest has pad the whole remains Naliu ana
subslsumgo legation u the company. 49,, s..o ro., -,
fiscal year VI 1881 and 1882 the state Board OF
Equalization assessed te iranchise, roadway I0adDeu
rails and rolling sock Of tae defendant AT fll'J0Vlo
that 49, at OF $4,000 pei m.e-and apPoruOhed
to county of san Mateo, Sil4l30 Upon ibe amount
present action brought In the assessment no deduc
lion allowed Tor tue mortgage but the property was
assessed at It's entire value Independently o the mort
gage. Nor notice gwen 10 the company by the
eompaHy 10 DE heard respecting he assessnent These
stand admitted by the demurrer, and the validity
othe defence rests upon the application OF inc Ia" 10
them
THE CONTENTION.
The railroad company contends tnat the taxes in
valid and void two grounds lst, the
Iuen according TO which they levied, made IN
pursuance Of tine discriminating provisions OIL the state
Constitution, IN The enforcement o. wAch inc company
vas allowed any deduction from the valuation or
It's property FOR The mortgage thereon ana wac hs SUD
tcied TO an unjust opOron Of the puoc burdens. anu
the Ourteen,n amendment OF the Federal COnsiltutlon
and ID the assessment made III pursuance
OF provisions State Constitution which gave no
notice 10 tue company, nor Afforded IL any opportunity 10
b. heard respecting the OF tue properly, or for the
81 properly withoat due process OF law guaranteed ny
Tne plaintiff on the o:her hand contends:
Is. That the power Oh taxation possessed Dy the
State Is Unlimited except by the Constitution OF tne
Ined ttes and that exercise cannot be assailed IN
Federal Court either for the hardship or injustice OF
I'd That the classification OF property for taxation.
ana apportOnment OF the taxes according 10 suci
classification not forbidden by the Constitution OF
the United states and that within such cassncaion
the property OF the railroad company ana the appofoA
3d. That the fourteenth amendment OF the Co1sutu-
on Of the United States was adopted 10 pr9ieet tue
newly MADE citizens OF he African race III
AID should not Dc extended beyond that purpose ,,
4th. That corporations are not persons withh 'he
r3eaning OF that amendment; 49, g.
9Th That statute uxlDg the sessions OF inc stae
Board OF Equal zaon ana REQUIRING aad yne of s
property, Afforded ali the notice ana nearing esseha "
the validity OF the assessment maze and
9TH That the provisions OF article - OF the Constl,
tuition the taxation OF railroad properly are 10 p
treate conditions upon the continued existence VI
We do no, the positions OF the several counsel
were prese various forms but we give their sub
stance ana purpOrt
hen are enftted 10 hare ne same justice ncted out
nen, Uhieh is De,ed 10 The humtest cit,sen moe can
mol DC one lac Tor Item ana aloDc' '"U 'o' o.fefs
Tie thus presented for ouf determination are
Of the groaest magnitude and Importance Ihe answer
10 them concerns merely the railroad corporations OF
this SAT-, but all corporations oiher than
within the United states IL IL OF the highest interest
to hem uIl to whether their properly 10 SUBJECT 10
the same rules assessment and taxation 70 which inc
property of individuals Is subject VI :, Gun
separated distn from that OF ah'
made liable 10 different burdens in the way VI
elton the state may choose 70 imposS; hv AZ
have been argued VITA great abity ana learning ~ uis
tipguisned counsel on DOtn sides, aud hey nav
from the court the Dost patient ana thoug ,
nation Iadeed, their examination has Ueeh
painful anxiety 10 right c0nciusion az ~
the Court is ~ the opinion prevailing thiousnoe.
the railroad corporations OF lbe o.sse
by means Of their great wealsh and the ~,
employ. have DocOIne so powerful as 10 oe III n.
ialasnces in the administration OF the lays an opinion
vE!ca will be materially strengthened by utcision
temporsy relie wing any one OF Its Just pro
portion of the public burdens That consideration. nov
ever, cannot BE- allowed 10 affect the )lasnent "
Court Whatever acts may be imputed Justly or UNJUST
h 70 the corp ora,ons, they entitled, wbcn tuey
the tribunals Of the Nation, ~ have Inc sane Ju