The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-16
REVENUE TAX CASE
II Was Argued in the supreme
Court Yesterday.
A NEW VIEW OF THE CASE
PRESENTED BY COL. llNoDAhH
IN HIS ARGUMENT
rusoecs,oN EXPECTED TO-DAY
The Asylum Case Has Not fe' oee''
Decided by Juoge Adams--""'rro
baby be Argued Tomorrow
in Supreme Court.

,,he case of the Governor against the
Auditor, touching the rate OF taAataon III
tho new Revenue Act, was argued IN the
Supreme court yesterday morning.
The validity of the entire Revenue
Act depends upon the decision of the
court. If it is declared unconstitutional,
either the revenue law OF 1880 which
Ievies a totally insufficient tax. and
which has, perhaps, been repealed by the
Revenue Act of 1897, will be resorted to,
or the Legislature may be called to-
rether again to rectify the mistake in the
tax levy.
It has been urged by the coun.
sol for the Governor that the properly
tax is the standard and the capltatloh
tax, which is to be made three times the
property, must follow and be regulated
bv it. when it is fixed: that it is evident
that a mistake has been made, when the
constitution executing itself, Will thus
correct: that the court will not assume
that the Legislature has deliberately 'io-
lated the Constitution.
Col. Hinsdale, one Of the counsel TOT
the Governor, yesterday presented WIN
mnch force. an entirely new view OF the
point at issue. The capltatloh
tax as levied is $1.39. If the
equation of taxation required by the
Constitution had been observed, the
nronerty tax would have been one-third
Of This or 43 cents ON the 500 valuation.
The property tax actually levied Is 40
cents on 500, or three cents TOO much'
In other words, three cents of the prop
erty tax has been levied in disregard Oh
the Constitutional proportion.
Col. Hinsdale said that the tax as lev
led was valid because the Legislature
had the right to levy not only cents put
Sic cents of the property tax without re-
gard to the equation rule. The complaint
alleged and the demurrer admitted that
& 1-6 cents of the property tax was ieVleo
TO nav interest on the consolidated per
cent bpnds-and old, ante-Consututloh
debt. A number of decisions were clteu,
berinninc with University VS.. Holden oo
n G.. Reports, holding plainly that the
Legislature is not bound to observe the
limitation or equation provisions, wheh
levying a tax to pay interest on an olo
debt, or to pay expenses OF the ota'e
government other than the ordinary run
ming expenses That even If the consor-
dated per cent bonds which were givea
in compromise of an old debt be regarded
MS a new debt by novatlon, still the IN
terest on such bonds is not the ordlnaf!
running expenses of the State, ana not
within the constitutional rule Of proper
t;on or limitation. He insisted that II
was not necessary for the Legislature
to expressly apportion cents OF the
property tax to the payment OF the IN
terest. or to say that it was intended 10
no levied without reference in the con-
stitutional EQUATION. 1t was enough, that
rhe 3 cent tax has been so levied and
that the court must sustain the tax II
the Legislature had the right to make
such levy.
The Governor was represented by
Messrs. Cook, Harris and uinsdale; the
Auditor by Judge Avery. The decision
Of the court is expected to-day.
The court took the case up IN council
Yesterday afternoon. There is nothing
else now before the court, the Eleventh
district calendar having been completed
THE ASYLUM CASE.
Judge Adams decision of the Asylum
case was expected here "Wednesday and
had it arrived the case would have yes
terday been argued in the Supreme Court.
When yesterdays mail failed to bring
the expected decision, Mr. ]. c. l.. Harris
telegraphed to Judge Adams, who is now
alolding court in Goldsboro, to know
why the decision was not sent. Judge
Adams replied that ne expected to be IN
Raleigh to-day friday, and that he
would bring his decision and the papers
in the case at that time.
Judge Adams will be here next week
holding court.
1t is to be regretted that he has not
already sent in his decision so that the
case could have been argued and decided
this week, while the Supreme Court
has the time to spare. If the decision
reaches here to-day the case will be ar
gued before the Supreme Court to-mOr-
row.
All PARTIES concerned are anxious to
have the matter determined at once.
REPORTS FROM PUBLIC SCHOOLS