The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-11-30
RAILROAD COMMISSION HAD POWER TO TAX
And Since the Supreme Court Has Held That the Law
Aboshing it Was Unconstitutional and That the
Name Was Merely Changed, the Power
ADMINISTRATION to be Heard
at Charleston on Satur
day December 2.

The decision Of the Supreme court in
the Abbott case has produced one un
looked for result-a petition on behalf sf
the State for a rehearing of the Corpo-
ration Commission tax case by Judge
Simonton.
1t is we'll known principle of prac-
tice that u construction of the State
statutes by the Supreme court of the
State is always accepted in the Federal
courts. The State Supreme Court,
therefore, having held that the act OF
1899 abolishing the Railroad Commits
sion was unconstitutional, that it mere
ly changed the name to the Corporation
Commission, it follows that the latter
has the powers of the old Railroad
Commission. The railroads have never
claimed that the Railroad Commission
did not have the power to tax railroads;
their claim in the hearing at Ashevilie
was that the last Legislature in the
act establishing the Corporation Com
mission failed to confer the power io
assess taxes Judge Siin0nton so held
in his opinion in the case
The Supreme court, however, having
held the Act of 1899 unconstitutional,
the Act which it sought to repeal, the
old Railroad Commission act which
gave full taxing powers, is still in force.
This gives an entirely new aspect TO
the case and the attorneys for the State
are confident that Judge Simonton will
now hear the case on its merits.
The petition for the rehearing will be
presented to Judge Simonton at Char
lesion, s. c., on Saturday OF this week.
December End. While it is not yet de-
cided who will act it is probable that
Col. John w. Hinsdales and James FL.
Pou, Esq, vii go to Charleston to pre-
sent the case for the State.
The petition for a rehearing is, in full,
as follows:
THE PETITION.
In the Circuit Court of the United
States for the Eastern District of North
Carolina. Sitting in Equity at Raj
eigh, y. G..
To the Honorable. the Circuit Court
Of the Eastern District of North Caro-
lima:
Your petitioners, the defendants above
manned, respectfully request. that his
Honorable court will grant to them a re-
argument or rehearing of the above enti-
tied cases ON the following grounds:
/. That ON the 10Th day of July. 1899,
the complaiiants above named, respect
lively, filed their bills of complaint here
IN, asking for a perpetual injunction
restraining the defendants from further
proceeding in the assessment and levy
ing and collection of certain taxes. and
also for preliminary injunction until
the hearing.
z. That on the 18th day of July. 1899
this honorable court granted in each
case a restraining order and an order to
show cause why an injunction as prayed
for in said bills should not be granted
until the final hearing of the said causes
respectively.
3. That ON the 18th day of September,
1890 the return day OF the said orders
to show cause, the defendants appeared
before this honorable court, at chain
bers in Asheyille, N. c., and made a
return to said orders to show cause, and
filed affidavits to support lit, the COM
plainants filing counter-aftidayits; and
by consent all Of said causes were
heard together, and after argument Of
counsel for both sides, the court reserved
its decision.
4. That on November 4th, 1S99 tue
court filed in the office of the clerk of
this court, the opinion in ali of said suits,
IL copy of which lis hereto annexed and
made a part thereof.
D. That said opinion sustained the jur-
isdiction of this court. and held that the
Corporation Commission had no mower
under the statutes of North Carolina TO
assess railroad property for taxation, and
directed injunctions to issue as prayed
for, but did not indicate whether they
should be perpetual or simply until the
hearing. Your petitioners are advised,
that the opinion contemplated that i'm
tellocutory orders, granting the injuilc-
tions till the hearing, should pc drawn
by the comDlainants and presented to the
court and lie signed and entered in each
case. stg1 ~
q. That no orders of any character
have been drawn by the counsel or sign
cd by the court and entered in the said
suits or amy of them. And that ais your
petitioners are advised and aver the ques-
ion of the awarding Of an injunction till
the hearing or a modification OF it's opin-
ion i'm the premises lis within the absolute
control of this honorable court.
Z. That this honorable court in said
opinion construed and interpreted certain
acts of the general assembly of North
Carolina to-wit, the ''act to provide for
the general supervision of railroads,
steamboat or canal companies, express