The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-06
A SWEEPING DECISION.

Whatever may be the opinion Of
persons who take a Populistic view of
courts and corporations, there are now
a few Of the latter who do not think
the courts are on their side. The de-
cision handed down by the supreme
court Of the United States in the
Indiana and Ohio corporation tax
cases should satisfy the most pessi,
mistic jeremiah in the land that courts
do not stretch the law to shelter cor
poratiOns. The decision extends the
taxing power Of states so far, and is
fraught with such possibilities Of con-
sequence, to make it a cause celebre
Those two states have similar laws,
and from action taken by the state
board Of equalization under them. an
peals were taken by the Western
Union Telegraph company and others
affected. The Ohio law, passed in
1894, requires all express, telegraph
and telephone corporations doing bust
ness in that state to report to the state
board their mileage, stock value and
gross earnings for the previous year.
On these reports the board fixes the
taxable value of the property of the
companies. The Ohio board increased
the taxable valuation of the Ohio COM
panies from $4,000 to over s., OOO, 900.
This, it may be gathered from the
dissenting opinion of Justice White,
was accomplished by assessing in
Ohio that proportion Of the entire
stock value of the company which the
mileage in that state bore to the en-
tire mileage Of the company in the
nation. From this the Western Union
Telegraph and Adams Express com
panies appealed and it is this power
that is affirmed by this decision, over
the dissenting opinions of Justices
White, Field and Harlan. The decision
is one that will surprise the bar in its
apparent conflict with the rule that
makes stocks personal property, as.
sessable only at the domicile Of the
owner, with also the apparent double
taxation that will result from the tax.
alton of the properties in the states
where situate, and also the taxation
in other states of the stock which rep,
resents those properties.
Only the dissenting opinion Of
Justice White is given and the full
text Of the majority opinion, de-
livered by Chief Justice Fuller,
must be awaited before the reason
ing upon which the court based
its judgment can be known.
But of the significance Of the
decision, its far-reaching possible and
probable consequences, there is no
question 1t determines, in effect, that
the property Of a company in a state is
not limited to it's tangible properties
there, but that these are visible rep
resentatives of the entire body Of prop,
erty which the stocks represent, and
that any state may tax the aliouot
part Of that entire value represented
- S-Ao NeNiioAOAC PAOpSIIy WlLnln us
limits. Thus the $S00O0,OOO of stock of
the Western Union, actually held in
greatest part by citizens of New York.
may be made to pay taxes in Min
nesota in an amount proportional to
the miles Of wire operated by that
company in this state.
There is to be no distinction to be
drawn between telegraph and railway
companies under this decision and
In those states, like Iowa, where rail,
way taxation is directly laid upon theil
trackage, the tax can be extended to
cover the proportional share Of the
entire stock capital of the COMPANY
If utilized, the consequences must he
an increase Of rates unless the repress-
i've hand Of the state is laid upon them
But whatever consequences may ensue
enc effect will be to discourage the wa
tering OF stocks, such as many have un-
dergone. If it's defects should be to dim